Binance Review 2020 – Is it Safe and How to Use It

9.1 Total Score
One of the best ones at the market right now

PROS
  • Easy to Use
  • New coins added very often
  • Good Support
  • Acceptable fees
  • User-friendly Trading Interface
CONS
  • No phone Support
User Rating: 3 (18 votes)

Binance is one of the crypto unicorns. CZ led exchange has taken crypto world by a storm and rocketed past its competition to take up the top spot in almost every cryptocurrency ranking out there.

Whether you’re just starting out with cryptocurrencies or you are a professional trader, Binance offers a wide variety of tools for engaging with digital asset markets. It’s straightforward to purchase and sell cryptocurrencies through the Binance platform. There are also some additional features that make the platform capable of handling complex trading operations, as well.

In this article, you are going to learn how to purchase, sell and trade cryptocurrencies on Binance exchange.

What is Binance?

Let’s start this Binance review by telling you where Binance is located: they have first relocated to Hong Kong from China and then moved to a small european island of Malta. This cryptocurrency exchange has been gaining momentum over the past few months. The platform gives users access to a robust set of trading tools, charts and security features. The exchange was created by experienced professionals in the cryptocurrency space, and the most recognizable name behind this project is that of Changpeng Zhao, former CTO at OKCoin.

Binance was created after attracting funds via an ICO (Initial Coin Offering – creating a new digital asset, backed by the project), and it began live trading in July 2017.

Binance is known for its fast transaction processing as well as its low trading fees (0.1%). The Binance technology is capable of processing 1.4 million orders each second. This makes the platform a world leader in potential cryptocurrency exchange volume.

By offering both Basic and Advanced exchange interfaces, Binance is rumored to plan to offer professional traders an access to more complex options, such as margin trading (hello BitMex), and it also makes it easy for beginners to execute simple trades.

Binance currently supports Chinese, English, Korean, and Japanese language.

Binance is compatible with:

  • PC client
  • WeChat
  • HTML5
  • Android
  • iOS
  • Web*
Trade Coins on Binance

Available Cryptocurrencies

Binance has a vast selection of cryptocurrencies with pairings to TetherEthereum, XRP, its native BNB token and Bitcoin. Here are some of the available coins:

Fees

Making deposits to Binance in any supported currency, creating an account online, and downloading the Binance mobile app is completely free. You may incur a fee when withdrawing funds from Binance. However, fees vary depending on the currency.

The fee structure at Binance is very competitive in the current environment. When trading on Binance, Binance charges a flat 0.1% fee on each trade. For a platform that doesn’t use a fee schedule, this is definitely one of the lowest fees in the industry.

Binance has issued its own token, BNB – click here to read more about it and its wallets. This token can be used to pay any kind of fees incurred on the exchange. If you pay using BNB, you currently receive a 50% discount on the trading fee, 25% during the second year, and so forth – bringing it down to 0.05%.

  • BNB Withdrawals: 1 BNB
  • BTC Withdrawals: 0.0005 BTC
  • GAS Withdrawals: Free
  • BTM Withdrawals: 1 BTM
  • SNT Withdrawals: 1 SNT
  • EOS Withdrawals: 0.1 EOS
  • NEO Withdrawals: Free
  • QTUM Withdrawals: 0.1 QTUM
  • ETH Withdrawals: 0.005 ETH
  • LTC Withdrawals: 0.001 LTC
  • BCC/BCH Withdrawals: To be confirmed
Trade Coins on Binance

How to Buy Bitcoin with Binance?

Binance used to deal only with cryptocurrencies but that has changed since they launched their own fiat-crypto exchange called Binance Jersey. You can read more about it below.

Is Binance Safe?

Even though it did suffer a hack in May 2019 (more on that below), Binance still enjoys a reputation of one of the safest exchanges in the industry.

It is much younger and less transparent than its competitors that are much more established businesses in a traditional sense of the word, like Coinbase, Kraken or Bitstamp, however, led by the charismatic CZ, Binance would definitely rank high among crypto fans as one of the safer places to store coins (if you have to hold them on someone else’s servers and wallets).

Two-factor authentication is available and is always a nice sight. It is however known that the platform offers a multi-tier system architecture.

The Binance architecture includes CCSS and ISO/ICO_27001:2013 security protocols. For account security, the platform offers users the option to activate Google Authenticator and 2FA to verify withdrawals and security modifications. Users must activate one of these features in order to verify an account.

Binance’s privacy policy states that the platform does collect user information and stores the data on its servers. Users concerned with privacy can click the “Privacy” tab on the main Binance site if they want to review the details of the Binance policy in full.

How to Make a Trade on Binance?

You can view the markets on Binance without registering for an account. However, you will need to sign up and log in to actually make a trade.

  • Select “Register” from the main website. Follow the steps to create a new account. It’s important to note that you will probably need to verify your email address in order to activate your account.
  • Once your account is confirmed, you will be able to log in to Binance using your userID/email address and password. Be sure to double-check that the URL is correct and uses the https protocol to prevent phishing attacks.
  • To deposit funds into your account, click on the “Deposits Withdrawals” link under the “Funds” tab.  From there you will see a list of supported currencies, so choose which cryptocurrency you’d like to fund your account with (Bitcoin is typically near the top) and click “Deposit”.
  • Binance provides you with a deposit address for the currency of your choice, and this is the address you will want to send your funds to. You can either use the provided QR code or copy the alphanumeric code.
  • Whether you’re keeping your funds on a third-party wallet or another exchange, just go there and send the funds to your Binance deposit address, either via QR or by pasting in the code.
  • Once the transaction has been confirmed, it will usually take a couple of minutes to process, so you may not see the transfer register instantly in your available Binance balance. It’s important to note that when a transaction is in the process of being confirmed, it may appear in the “In Order” tab.
  • Once your account has some funds, you can proceed with trading. To make a trade, navigate back to the exchange dashboard by clicking either “Basic” or “Advanced” under the “Exchange” tab in the upper left-hand corner. For beginner traders, the “Basic” view is easier to navigate.
  • Go to the trading pairs tab and choose the trade you want to make. If you have deposited Bitcoin to your account, you will be able to purchase several different cryptos with Bitcoin. One more thing worth noting is that Binance also supports some trading pairs which use Ethereum as a base currency. This means that if you want to take advantage of the BNB token for decreased fees on Binance transactions, you can use either Ethereum or Bitcoin to purchase BNB.
  • Once you’ve selected your desired trading pair, simply enter the desired amount of currency you want to buy. Also, you need to set the price you’re willing to pay for it. Once the details have been confirmed, click the “Buy” button in order to complete the transaction.
  • When you have bought a new cryptocurrency, your funds will show up in that cryptocurrency’s designated wallet in your account’s “Funds” area. You may need to take further steps towards account verification in order to withdraw funds from Binance.

binance review

Customer Support

The customer service on Binance is also top-notch if you compare it with its peer exchanges. Worth noting, Binance provides customer support in 7 languages!

As of now there is no Binance support phone number, but they do have a customer support section where you can submit your requests. Usual turnaround time is around 24-hours.

Read our updated guide on BNB price prediction for 2019 & 2020.

You can also use their live chat support option as shown here in the restricted operating hours.

Apart from that, their FAQ section is quite detailed and if you go through it well, you may not really need to contact Binance support.


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Company Trust

I’ve been increasingly interested in Binance recently after seeing that community members seem to love this exchange.

The company raised around $15 million in an ICO in July 2017. It immediately acquired 20,000 registered users as part of the raise.

Changpeng Zhao, CEO of Binance and co-founder of OKCoin, has an impressive resume with years of experience in cryptocurrency. He was the Founder and CEO of BijieTech, Co-founder and CTO of OKCoin, and the Head of Development at Blockchain before working on Binance.

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In August 2017, the exchange announced that Yi He, co-founder of OKCoin and one of the most respected and influential individuals in China’s online economy, was joining the platform. She was co-founder of OKCoin, the Vice President of Yixia Technology, and the Founder of Yi Zhi Bo before working on Binance.

Many investors have taken a closer look at Binance since Yi He joined the platform. The value of Binance Coin has risen by 40% at the time of writing.

Trade Coins on Binance

Withdrawal Limits

You can only deposit cryptocurrency funds. However, there’s no limit on the amount that you can deposit, and there are also no fees on any of your deposits.

binance-withdrawals

The amount which can be withdrawn each day is determined by user’s verification tier. You’re placed at Level 1 without submitting any verification details, and you can withdraw up to 2 BTC worth of cryptocurrency a day.

You need to enable either two-factor authentication (2FA) or Google Authenticator in order to be classified as Level 2. Currently, only Chinese phone numbers are supported for 2FA.

Following that, you need to provide the following information:

  • First and last name
  • Country
  • Gender
  • Passport
  • Passport photograph
  • Selfie with passport

Your daily withdrawal limit increases to 100 BTC with Level 2 verification.

How Can I Get the Binance App?

You can visit Binance on the web and access the trading platform directly through your browser, but you will have to register for a new account before you can make trades.

On mobile, the Binance app can be downloaded for free from the iOS or Google Play store. Binance users who live in China will find links to WeChat resources on the Binance home page.

Trade Coins on Binance

The Move to Malta

In March 2018, Binance made an official announcement that they were going to be migrating operations to the crypto-capital of the world – a small island of Malta in Europe, stating :

After reviewing several different locations, the company decided to invest in the European nation due to its existing pro-blockchain legislation and the stability that it offers financial technology companies through its regulatory framework.

Binance received a warm welcome from the Prime Minister of Malta on Twitter.

Binance Decentralized Exchange (DEX)

First sneak peeks into the Binance DEX came in mid-2018, when Zhao shared relevant „pre-alpha“ details about the platform via his very active Twitter account. While he kept up with vague updates during the following months, a first in-depth look into the decentralized exchange was released in December of that same year.

Read our comprehensive guide on best cryptocurrency exchanges.

Binance DEX will be built on top of the Binance Chain, upcoming blockchain that will allow Binance’s native token BNB to move away from Ethereum onto its own native mainnet.

The chain is being built on top of Cosmos’ Tendermint protocol; more precisely, Binance forked the protocol and removed some of its elements.

Zhao claims that this DEX will be able to handle current volumes of its centralized older sibling, aka the regular Binance exchange. This will require high levels of performance from the Binance chain, which is why Cosmos was selected as a base to fork off of. Binance Chain will be able to generate blocks every second and process “a couple thousand” transactions in that same time frame.

Scaling has been a significant issue for decentralized exchanges in the past, as their inability to process high transaction throughputs ultimately led to major losses of on-platform liquidity and transaction volume.

Not a real DEX

Binance DEX won’t actually offer non-custodial storage, it does suggest that you’ll have a certain safety net in terms of your private keys. If you lose your private key you won’t lose access to your actual funds, but only to the Binance Chain-issued stablecoins.

This means that you could potentially regain access to your funds even without the private key. This does place alot of control over your funds into the hands of a third party, which is the complete opposite of what a proper DEX should do.

Additionally, the relative centralization of DpoS algorithm Binance Chain adds to the issue. A crypto commentator once said that if your currency cannot be 51% attacked (which is an issue related only to PoW currencies), then it isn’t decentralized. As Binance Chain is s DpoS project that will have just 11 validating nodes to begin with, it might end up being even more centralized than similar DpoS projects well-known for their issues with centralization like EOS or TRX.

Such a blockchain is basically a permissioned, private network, where only select members will get to take part in maintaining and validating it.

Decentralized Stock Exchange

In collaboration with the Berlin-based Neufund and MSX, the innovation vehicle of the Malta Stock Exchange (MSE), Binance is planning to launch a decentralized stock exchange for listing and trading tokenized securities alongside crypto assets. All parties will run a pilot project to establish the parameters for a global platform.

According to CapLinked, the market cap of equity tokens alone is projected to reach $1 trillion by 2020.

Binance Jersey – Buy Crypto For Fiat

Binance Jersey is a subsidiary of Binance which allows European residents to perform fiat-to-crypto purchases of cryptocurrency. The platform came to life in mid-January of 2019, some months after Binance opened a similar subsidiary for the African continent, called Binance Uganda. 

Here is a full review of Binance Jersey.

At the time of writing they are only offering four trading pairs with more to follow soon:

  • BTC / EUR
  • BTC / GBP
  • ETH / EUR
  • ETH / GBP

Supported Countries:

ArgentinaEswatini (formerly Swaziland)LatviaRomania
ArmeniaFinlandLiechtensteinSingapore
AustraliaFranceLithuaniaSlovakia
AustriaGermanyLuxembourgSlovenia
AzerbaijanGibraltarMacauSouth Africa
BelgiumGreeceMaltaSouth Korea
BrazilHong KongMauritiusSpain
BulgariaHungaryMexicoSweden
CanadaIcelandMonacoSwitzerland
ChileIrelandNetherlandsTurkey
CroatiaIsraelNew ZealandUnited Arab Emirates (UAE)
CyprusItalyNorwayUnited Kingdom (UK)
Czech RepublicJamaicaPeruUruguay
DenmarkJapanPoland
EstoniaJerseyPortugal

The interface is basically the same to the one you’ll see with the regular Binance exchange. It’s a simple, easy-to-get-used-to setup offering basic and advanced overviews that look similar but offer different levels of data/tools.

Fees on Binance Jersey

GBP Deposit/Withdrawal Fees
Deposit: 7 GBP Withdrawal: 20 GBP
EUR Deposit/Withdrawal Fees
Deposit: 8 EUR Withdrawal: 20 EUR
Trading Fees
General 0.1% trading fee
Crypto Withdrawal Fees
Bitcoin: 0.0005 BTC (Min withdrawal 0.001 BTC) Ethereum: 0.02 ETH (Min withdrawal 0.01 ETH)

Buying Bitcoin with Australian Dollars

Back in March 2019, Binance launched a special platform for Australia, Binance Lite which is the continent’s first fiat/crypto gateway where investors can buy Bitcoin with cash in Australia in a secure, reliable, and easy to use way.

Binance Lite is comprised of a network of over 1,000 newsagents across Australia where people can use cash to buy bitcoin. Of course, as with all other cryptocurrency exchanges, this one requires account verification before you can use it.

The Binance Lite brokerage service is operated by InvestbyBit, an independently operated subsidiary of the Binance.com cryptocurrency exchange. Below are main perks and features of Binance Lite:

  • Fees A 2.5% transaction fee (50% discount applied) plus GST on the transaction fee for each purchase is currently being charged as an introductory rate. Therefore, for a $50 order, the transaction fee will be $1.22 and the GST will be 10% of the transaction fee, which is $0.12.
  • Limits The system is currently in its Beta phase, and the minimum purchase amount has been lowered to $30 with the maximum purchase amount capped at $1000. These limits may change over time and only multiples of $10 are being accepted, such as orders for $50, $60, $70 etc.

Verification process

KYC is a mandatory feature these days – in order to complete the verification process, it’s necessary to submit 1 or 2 forms of government issued ID documents as a Passport, Driver’s Licence, or Medicare card, in addition to your residential address. If you have already used Binance with a completed KYC verification, you will be sent to the order summary page directly after opening a new order.

Paying by Debit and Credit Card

Binance allows investors to buy cryptocurrencies with debit and credit card payments through its partnership with Simplex. It’s possible to buy Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP tokens with Visa and MasterCard and the benefits of using a debit or credit card on Binance include:

  • Swift Transfers: Average 10-30 mins for bought coins to reach your wallet
  • Low Fees: only 3.5% per transaction or 10 USD, whichever is higher
  • Convenient: Visa and MasterCard accepted

In order to buy the supported cryptocurrencies with a debit or credit card, users can first go through the official instructions page and then visit: https://www.binance.com/en/creditcard.

Binance Launchpad and Initial Exchange Offerings (IEOs)

Binance describes its Launchpad initiative as a “token launch platform for transformative projects”. This simply means that the platform is focused on providing blockchain start-ups with the knowledge, networking and the “kick in the butt” required to raise funds via an ICO.

Since these tokens are launched with the help of exchanges, they got a new moniker – initial exchange offerings.

What this practice does is introduce a crypto exchange into one project’s fundraising effort in a much more direct, centralized, hands-on manner.

The exchange essentially becomes the counterparty in the entire token launching process (whereas with ICOs the counterparty was the development team behind the token), enabling crypto projects to fundraise directly on the platform.

Investors don’t need to send crypto to developers’ smart contract to get their tokens. The purchase can be completed through their existing exchange accounts. You’ll need to own an account on the exchange (likely KYC and AML verified) and some cryptocurrency that the exchange accepts for the IEO token; once the exchange announces the date of the IEO, you’ll get the chance to bid on your own tokens.

How to Take Part in an IEO

The process is quite simple:

  • Find a project willing to conduct an IEO. This will be announced on the project’s/exchange’s social media/websites.
  • See which exchanges will take part in the IEO. The project can decide to go with a single exchange or eventually with more of them; this has so far not happened yet.
  • Register on the exchange and complete your KYC/AML registrations.
  • Find out what cryptocurrency you’ll need to purchase the tokens.
  • Learn the date your IEO starts and bid on your tokens when the time comes.

The Lottery System

Binance Launchpad runs a lottery system which decides what number of lottery tickets you can claim which is dependant on the amount of BNB tokens you hold in your Binance account over a 20-day period leading up to the day of the lottery, with a maximum of up to 5 tickets per eligible account.

Users will be able to claim up to a maximum of 25 lottery tickets based on their daily average BNB holdings (represented by X below) over the specified period leading up to the lottery draw date.

For example, 50 ≤  X < 100 means that your average BNB balance over the entire specified period is kept at 50 BNB or more, but does not exceed 100 BNB. 

Daily Average BNB balance (X)No. of Lottery Tickets
50 ≤  X < 1005
100 ≤  X < 15010
150 ≤  X < 20015
200 ≤  X < 25020
X ≥ 25025

Average BNB Holdings Calculation

An example of the average BNB holdings calculation for each user is below, assuming that a 7-day BNB holding period is required. 

Day #BNB Balance (at 0:00 AM UTC each day)
Day 1100 BNB
Day 2100 BNB
Day 3100 BNB
Day 4100 BNB
Day 550 BNB
Day 650 BNB
Day 750 BNB
Average BNB Calculation(100 + 100 + 100 + 100 + 50 + 50 + 50) / 7 = 78.6 BNB
Total Eligible Ticket(s)5 Tickets

A snapshot at 0:00 AM (UTC) each day records each user’s BNB balance, and should your BNB balance drop below the minimum balance required on any given day during the 20-day period, they will be put into the lower threshold.  For example, if User A holds 301 BNB for 19 of the 20 days but their balance drops to 299 BNB on one day. They will move to the lower threshold and only be eligible to claim 2 lottery tickets.

Before the actual lottery date, users are given a 24 hour period to select how many lottery tickets they wish to enter, with the maximum number based upon their BNB holdings over the previous 20 days. Here, if a user submits an entry of 5 tickets and 2 tickets end up winning, they are committed to pay for 2 ticket allocations (in BNB) for the tokens.

Each lottery ticket has a unique number with multiple lottery ticket holders, obtaining tickets with consecutive numbers. For example, when claiming 5 tickets, the tickets may be numbered 100010, 100011, 100012, 100013 and 100014.

Once the 24 hour period ends and all tickets have been fully issued, Binance begins to randomly select multi-digit numbers. These are matched against the tail digits of all issued tickets in order to determine the list of winners. The selection process continues until the maximum number of winners are matched, and the respective BNB is deducted from each winning user’s balance, as soon as they are deemed a winner.

Binance announces the maximum number of potential lottery ticket winners, and the allocation amount corresponding to each winning ticket in advance.

Binance Launchpad first supported projects for 2019 were BitTorrent and Fetch.AI, both of which have shown clear intention to expand their business activities with blockchain technology.

Conclusion

The myriad of coins and low and competitive trading fees found on Binance are unmatched. The exchange is also known for its fast processing speeds and is capable of processing 1.4 million transactions per second. The platform has started to gain popularity in the blockchain community, and currently sits at the number 17 spot in terms of 24 hour trading volume.

The major problem we have with Binance is that the company is new and the project hasn’t been around long enough to actually prove itself.

Binance Pros and Cons

Pros

  • Supports around 100 cryptocurrencies
  • Basic and Advanced exchange views
  • Supports many languages
  • Low and competitive fees on transactions and withdrawals
  • Founded by industry veterans with a proven track record in crypto and finance
  • Capable to process an enormous number of transactions (1.4 million) each second
  • High liquidity
  • Offers BNB coin for reduced trading fees

Cons

  • New company, so it’s hard to assess its long-term viability
  • Based in China, so it’s unclear how recent regulatory actions by the Chinese government may impact the exchange
  • Currently only Chinese phone numbers are supported for 2FA
  • Does not allow fiat money transfers
  • There have been reports about delays when withdrawing certain coins from Binance
  • There have been reports about difficulty with the Android version of the mobile app

Still not sure whether Binance is right for you? Check out Binance reviews on Revain.

Binance Hack – May 2019

The “security breach” that happened on May 7th, resulted in 7,000 BTC being stolen from the exchange using advanced methods that helped the hackers remain undetected. The stolen Bitcoin at today’s prices, brings the total loss at the hands of hackers to roughly $41 million dollars. Shortly after the company noticed the hack, the company blocked some features on the platform in order to perform a security review. In particular, withdrawals and deposits have been frozen for a week so that hackers can’t steal more crypto assets. All functions and features were re-enabled after a week.

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Nysatellite-Printfair's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on Nysatellite-Printfair is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of Nysatellite-Printfair.com

Felix Kuester works as an analyst and content manager for Captainaltcoin and specializes in chart analysis and blockchain technology. He is also actively involved in the crypto community - both online as a central contact in the Facebook and Telegram channel of Captainaltcoin and offline as an interviewer he always maintains an ongoing interaction with startups, developers and visionaries. The physicist has couple of years of professional experience as project manager and technological consultant. Felix has for many years been enthusiastic not only about the technological dimension of crypto currencies, but also about the socio-economic vision behind them.

7 Comments
  1. Thanks for that review. I like Binance because of the low fees, it’s a good exchange. Only Cobinhood could be better with 0 fee.

  2. They don’t allow you to use BNB to reduce withdrawal fees, I bought 100 SNT, and when I went to remove it to my wallet they were going to take 50 for a fee!

    • Hi Jim

      They offer 50%-cheaper TRADING with BNB. Withdrawal is not trading so they charged you withdrawal fees (you send coins to other wallet). When you TRADE on Binance with BNB pairing, they charge no fees.

  3. Love Binance and it’s ease of use for no tech savy people. I use Coinbase then graduated to Binance. Great advice!

  4. I got hacked on Binance and was offered no help in recovering any of my stolen funds; there is always talk of cryptos being safe but you would think if there’s a ledger open to the public and stored on not one but thousands of servers you’d have more safety than a regular market but I guess I must be the only person who got burned even while following all the safety protocols they recommend. YOU COULDN’T PAY ME TO USE BINANCE EVER AGAIN!!!!

  5. Hi guys Im Filipino i live in Australia for for a while, that’s where I bought my coins some in btcmarkets and coinspot last year, now that I’m back in the Philippines and I’m not going back to Australia,my australian bank account cost me 5$ a month, now that the market is no good to sell,any tips and ways to kept my coins, while im in the philippines,i wanna close my australian bank account,do I really need my Australian bank account to keep my coins? please help thanks… what should i do,should I transfer it here and make a Philippines account?

    • Reply
      Julian Joseph Lehmann February 4, 2019 at 11:05

      Hi

      Just transfer the coins to your own wallet – best choice would be Ledger Nano S or Trezor. If not those, than, if you own iPhone – Coinomi wallet would be a good and safe choice.

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