With the popularity of cryptocurrencies growing every year, exchanges where they can be traded or also increasing. Choosing the right exchange for trading your digital currencies is important as you want to get the best price, pay the lowest fees and make sure that your cryptos are safe and secure.
One of the most popular exchanges to hit the scene is a Chinese cryptocurrency exchange known as Binance. It's a website where you can exchange one cryptocurrency for another cryptocurrency. Emerging onto the marketplace in the latter half of 2017, it has quickly become one of the most popular destinations for crypto enthusiasts who want to trade their coins with low trading fees.
This review will give you more insight into the inner workings of Binance and how you can use it to exchange cryptocurrency pairs
Binance General Information
Binance Overview & Background
Binance Pros & Cons
Binance Main Features
Creating An Account
Creating an account for the Binance exchange is relatively easy. Their registration page asks you to create a password and supply your email address. Once you've done that, you'll be able to deposit funds and withdraw a daily limit of 2 BTC. If you choose to withdraw more than that, you'll need to upload your photo ID. This will allow you to withdraw as much as 100 Bitcoins per day.
The time that it takes to verify your identity fluctuates. When the site first started, they were flooded with new users and verification time suffered. However, they handled that well and as that first surge of new users has now slowed down, verification has gotten faster. If you do plan on exchanging larger sums of digital assets, it's best to make sure that this verification step has been completed before you decide to trade.
The Binance Exchange
When you first log on to the website, you will see an "Exchange" tab. You have two options to use when exchanging cryptocurrencies -- a "Basic" platform and one that is "Advanced." If you are new to crypto trading, even the basic platform can be a little daunting to use. The main difference between the two is that the advanced platform provides you with more technical indicators. If you rely more on technicals when you trade, you will probably prefer this platform.
Otherwise, both exchange platforms allow you to enter a price and amount that you want to use to exchange.
Basic Binance Exchange Platform
The basic exchange platform uses a daylight theme and allows you to trade BTC, ETH, BNB and USDT pairs. If you click on "BTC," it will bring up a list of available pairs that you can exchange with Bitcoin. When you click on one of these pairs, the current buy and sell offers will appear on the left side of the screen. In the middle of the screen, you will see a current chart of the chosen crypto. You can change the timeframe to 5 min., hourly, daily or weekly.
Below the chart, you'll find options for limit, market and stop limit orders. Market orders will be executed at the current market price. If you choose a limit order or stop limit order, you are choosing a specified price where you want to buy or sell.
Further down the page, you can check to see if you have any open orders and your previous order history.
Advanced Binance Exchange Platform
The first thing that you'll notice about the advanced exchange platform is that it has a large area where you can mark up a chart. You have the availability of looking at 1 min., 5 min., 15 min., 30 min., hourly, daily and weekly time frames.
The "Tools" tab allows you to draw trendlines, Fibonacci lines and 11 other options. By clicking on the "Indicator" tab, you'll have access to 16 technical indicators. The advanced platform also allows you to exchange with BTC, ETH, BNB and USDT. Once you click on a crypto pair to exchange, you'll see the current offers to sell and buy.
Similar to the basic platform, you have options to make limit, market or stop limit orders. One thing to remember about exchanging on either platform is that you will not get a second chance to verify your trade. Once you click the "Buy" or "Sell" button, your order will be placed -- there are no second chances.
Funding Your Binance Account
Funding your account is relatively easy. Click the "Funds" tab and choose "Deposits." You will be asked to select a coin or token to deposit. You can choose from a number of different cryptos. However, it may be best to stay with BTC and ETH.
When you want to make a deposit, you will need your wallet address. To get the address you have two choices -- you can copy your address to your clipboard or use the QVC code. Transfer time for your deposit will depend on the type of crypto that you choose. Each one has a different transfer time that is associated with its blockchain.
Once you've funded your account, you have the ability to purchase cryptos for the long-term, make some short-term trades or just exchange one crypto for another.
You can use either the basic or advanced exchange platform to make your trades. As you already learned, there are just two options for placing an order -- limit or market transactions. Some individuals were expecting a few more options for trading. The platform is still relatively young so there is definitely room for them to offer more advanced trading options in the future.
How To Place An Order on Binance
If you have used another cryptocurrency exchange to place a trade, you're probably familiar with the process. However, if you've never made an exchange, you may need some guidance.
Once you've got your funds in your wallet, you can make a trade. Choose either the basic or advanced platform. Next, you need to decide if you want to use BTC, ETH, BNB or USDT. Once you click on your chosen trading pair, the trading screen will change to your choice. Note that you can also search for a cryptocurrency or pull one from a list of "Favorites" that you create.
If you're using the basic platform, you will see the current prices of buy and sell orders listed on the left. The sell orders are colored in red and listed at the top, and the buy orders are colored in green, listed at the bottom. The number that's listed between the buy and sell orders is the price of the last order that executed.
If you'd like to place a buy order, you will use the left box that's underneath the charts. In the "Price" box, enter your desired trading price. If you're using a BTC pair, this will be shown as BTC. Next, you will need to enter the amount of crypto you'd like to buy. You can also choose to click on one of the percentage buttons -- 25%, 50%, 75% or 100%. These will fill your order with the chosen percentage based on the amount of currency you are using to place the order.
If you're using 1 BTC and click the 50% button, you would exchange .5 BTC for the crypto you are buying. If you choose a trading price that is not currently near the market price, it may take some time to execute. You can look at the bottom of the screen to check the "Open Orders" to see if your order has been filled.
Once your order has been completed, your new crypto is placed in its appropriate wallet. You can go to the Funds area to verify the amount.
Let's briefly delve into the different services that Binance offers on its platform.
This is where you can exchange fiat currency like USD, GBP and EUR into cryptocurrency like Bitcoin, Litecoin and many many others.
Futures & Derivatives
Binance Fees & Limits
The average fee for the exchange is listed at 0.1 percent when you make a trade -- that's $.10 per $100. If you choose to use the BNB coin, your fee will be cut in half. However, Binance will periodically charged only 0.05 percent per trade during times when they are holding a promotion -- as they are doing at the time of this writing.
When you withdraw funds, fees vary based on the digital currency that you are moving out of the exchange. The fee for each crypto will be listed when you decide to make a withdrawal.
There are no limits on the amount of digital currencies that you would like to deposit. However, you must get verified if you want to withdraw more than 2 BTC at once. The process requires you to upload an image of your government issued ID, your full name, country and gender. You can also use a passport to become verified.
Binance BNB Coin
If you haven't already noticed, one of the trading pairs that you can exchange your cryptos with is BNB. This is the Binance coin, which debuted during their ICO. It can be used to pay fees, make exchanges or use as a long-term investment.
Binance has stated that they will be using a portion of their profits each quarter to buy back BNB coins. Their plan is to destroy them until they only have 100MM BNB available.
Supported Cryptocurrencies On Binance
One of the reasons why many people choose Binance as one of their exchange platforms is the wide range of coins that are supported. They have many of the popular coins that are traded such as Bitcoin, Bitcoin Cash, Ethereum, Dash, Ethereum Classic, LiteCoin, Zcash and many more. In addition to these listings, Binance also supports airdrops -- when NEO had an airdrop of ONT, NEO holders on the platform received ONT.
Binance tends to list new tokens on its platform soon after they have their ICO. This allows you to take part in the trading action of new coins or tokens that may be popular. This can be lucrative as popular coins receive high volatility and price action.
Competitions On Binance
Binance is also known for holding regular competitions. In the past, they have given out some pretty good prizes such as a Mercedes-Benz automobile, MacBook Pro and a Maserati. The winners were chosen based on their trading volume of a specific currency.
Tips On Making An Exchange On Binance
One common problem that many users make is entering the wrong wallet address when they decide to make a transfer. It's important that you double check your wallet address to ensure that your funds reach the correct destination. You may want to send a small amount first to make sure that you are sending your funds to the correct address. While this may cost you a little more, it's well worth it so that you don't end up losing a large amount.
If you have a challenge that requires you to contact support, it helps to provide detailed information so that they can handle your ticket without having to ask you for anything else. Always be sure to include the wallet addresses that are being used, transaction times and any other pertinent information that will help resolve your problem.
Regulations and A Move To Malta
The cryptocurrency space is still in its infancy. This has led to a struggle between established systems and this new way of making transactions on the blockchain. Established systems are fearful of losing traction of their centralized control. In March 2018, the struggle came into play between Japan and Binance as the exchange was not following official regulations. Since then, Binance has decided to move operations to Malta "due to its existing pro-blockchain legislation and the stability that it offers financial technology companies through its regulatory framework."
This has been seen as good news for the exchange. The Prime Minister of Malta offered a warm welcome to Binance on his Twitter feed. In addition, the exchange announced that talks were underway with Maltese banks. The end goal is for the exchange to also act as a gateway for individuals who want to turn their fiat currencies into cryptos.
Adding A Decentrailized Exchange
Binance has also said that they are "researching decentralized exchange frameworks and analyzing existing implementations." This would mean that Binance would run their centralized exchange alongside decentralized exchanges. Using the BNB token to pay for trading fees on the decentralized exchange.
Binance Customer Support
As with any website, challenges will pop up from time to time. It's important for you to be able to contact customer support and receive a resolution in a timely manner. This aspect of Binance has gotten better since it's initial opening. They closed new registrations for a while so that they could take care of current customers.
If you need support, you must submit a request. Responses to challenges are sent to your email address. Currently, the exchange offers no live chat or a contact phone number where you can reach them.
The website does have an FAQ section where you can receive answers to common questions related to trading, deposit/withdraw, two-factor authentication, security, account access and miscellaneous.
While the support staff at Binance has increased their response times, it can still be slow to receive an email from them. This seems to be a challenge with some of the larger exchanges due to the large volume of users.
Crypto exchanges have seen explosive growth during the past year as the popularity of cryptocurrency trading has grown. In fact, Binance became one of the largest exchanges for crypto trading in just a few months. It's important to remember the inner workings of the exchange as they must carefully vet and train their staff to ensure safety and security.
Are my funds safe on Binance?
If you own cryptocurrencies, the safest way to hold them is to have possession of their private keys. Of course, when you need to make a trade, you have to send them to an exchange. While Binance is one of the newest cryptocurrency exchanges on the block, it has become one of the most popular due to its high level of transparency. While this is encouraging, the exchange does not provide any information as to how your funds are being held.
As with any exchange, there are risks, but Binance has shown that it is serious about security. They offer two-factor authentication, which is an important step you can take to keep your funds safe from thieves.
Was Binance Hacked?
Binance has automated systems in place to thwart attacks from hackers. In the first quarter of 2018, a phishing website was discovered that was capturing login credentials of people and installing API access on their accounts. When the hackers struck, they exchanged the alTcoins of their victims into BTC. Then they used the BTC to purchase Viacoin and pump the price. Fortunately, the automated systems at Binance caught the hack and stopped any withdrawals. The only ones to lose money were the hackers -- whose funds were donated to a charity.
This attempted hack just shows that you have to be extremely careful with your cryptocurrencies. Always be sure to verify the URL of the exchange before you log in. It's a good idea to bookmark the URL of the exchange so that you can easily go to it when needed. Never click on a Binance link that you see on social media sites such as Twitter or Facebook.
This attempted hack could have ended worse. Binance did a great job at handling the attack with their automated processes so that no customer funds were withdrawn. Since the attack, Binance has offered a bounty of $250,000 for anyone who has information leading to the identity of the hackers. The exchange should be praised for their automated processes and fast resolution of this situation
Final Thoughts On Binance
Launched in 2017, Binance has completed some amazing progress in a short amount of time. The matching engine has the capability to process about 1.4 million orders per second. This makes it one of the fastest ways to trade your cryptocurrencies.
The exchange also uses a responsive design so it works great on all types of devices -- PCs, smartphones and tablets. The exchange also offers language support for non-English speakers. The platform is equipped to handle Japanese, Korean, English and Chinese users.
It's not surprising that this exchange has become one of the top destinations for crypto traders. It's definitely one of the leading exchanges. They offer excellent fees, have a responsive support team and have plans on improving the way that trades are made.
We would definitely recommend using Binance to make your trades. In addition, it never hurts to remind you to be safe when you sign into the exchange and use the platform. Utilize their two-factor authentication and store your cryptos in your own wallets when you are not making an exchange.