Binance Exchange Review: Is It Reliable And Safe To Invest?

General Information Binance Exchange

Binance Features Review

Of course, the most important feature provided by Binance is the ability to switch between different cryptocurrencies. The exchange lists over 100 cryptocurrencies that are traded in over 600 trading pairs. However, there is a lot of competition between different exchanges and Binance is constantly introducing new features to attract traders. At Binance, you can also buy cryptocurrency with a credit or debit card, trade leveraged futures contracts, participate in chip sales, and borrow your cryptocurrency to earn interest.

Binance trading – trade over 100 different cryptocurrencies and choose your trading interface

Binance trading platform offers a very strong feature set, and users can choose to use a basic or advanced trading interface. You can select from four order types:

• Limit orders
• market orders
• Limit orders
• OCO orders (one-cancels-the-other)

If you have the most basic type of Binance account (VIP 0), the manufacturer and borrower rate is 0,1%. However, if you own some BNB and pay your fees with it, the manufacturer and borrower fees drop to 0,075% (25% discount).

Deposit and withdrawal fees vary depending on the cryptocurrency you are dealing with. For more details on Binance Fees, go to the Binance Fee Table page.

Binance trading fees are competitive with other major cryptocurrency exchanges.

Buy cryptocurrency instantly with a debit or credit card

Binance gives its users the option to purchase cryptocurrencies with their credit/debit card. You can choose between:

• Bitcoin (BTC)
• Ethereum (ETH)
• XRP (XRP)
• Litecoin (LTC)
• Bitcoin Cash (BCH)

Fees for credit/debit card purchases are 3,5% or $10, whichever is higher. This method of purchasing cryptocurrencies is very convenient, but more expensive than a bank transfer. Binance does not directly support bank transfers for the purchase of cryptocurrencies, but does provide integrations with third-party vendors such as Paxful to streamline the process.

Leveraged Trading

Trade Bitcoin with up to 125x leverage and altcoins with up to 75x leverage

Binance also offers leveraged trading with up to 125x leverage for Bitcoin and up to 75x for other cryptocurrencies. The exchange's futures contracts are denominated in USDT stablecoin, which is pegged to the US dollar. Leverage trading is an advanced form of trading that is no longer suitable for beginners.

Binance contracts are perpetual contracts, which means they have no expiration date and, theoretically, can be held indefinitely.

Binance Launchpad

Participate in project token sales blockchain emerging

Binance was arguably the driving force behind the new Initial Exchange Offering (IEO) trend – its platform for hosting token sales is called Binance Launchpad. To be able to participate in IEOs on Binance Launchpad, you need to hold a certain amount of BNB token – this requirement may change depending on each token sale. Examples of tokens that have been launched via the Binance Launchpad include BitTorrent Token, Matic Network and Celer Network.

Loans in Binance

Earn interest on your cryptocurrency holdings

In 2019, Binance introduced an interesting feature that allows users to earn interest on cryptocurrency bonds stored in the exchange. The exchange offers flexible deposit and fixed deposit programs.

With Binance's flexible deposit loan programs, you can stop borrowing and withdraw your funds at any time – however, the trade-off for greater flexibility is lower yields. Fixed deposits offer higher yields, but you need to commit to borrowing your encryption for a longer period (usually 30 days).

By using these loan products, you are actually lending cryptocurrency to traders who use it for margin trading.

Binance competitions

Win prizes by participating in promotional contests

Binance often runs competitions where you can win some BNBs. The exchange also frequently links to projects listed on Binance for promotional contests where you can get your hands on other tokens as well. If you have some time to spare, Binance's various competitions can be a relatively simple way to gain extra encryption.

Binance Coin

Binance Exchange Token for Tax Discounts and Other Benefits

Binance held an Initial Coin Offer (ICO) to kick-start its exchange launch in 2017. The token that was sold at ICO was the BNB, which is now one of the largest cryptocurrencies by market capitalization.

Binance Coin can be used to lower your trading fees on Binance, and holding it also gives you access to IEOs on Binance Launchpad. BNB is also the native asset of Binance Chain's blockchain platform. If you plan to trade Binance frequently, it is a good idea to buy a small amount of BNB to benefit from discounted trading fees.

Mobile Binance Analysis

Use Binance Encryption Exchange Anywhere
As well as other major cryptocurrency exchanges, Binance provides a mobile app for iOS and Android operating systems. The mobile app provides an elegant user interface and a solid feature set. You can use the app to buy cryptocurrency or trade your cryptocurrency on any trading pair listed by Binance.

The app also supports Binance's margin trading and leverage trading features. Live chat within the Binance app provides 24/7 customer support.

Is Binance Reliable and Safe to Invest?

Binance is generally considered to be a safe cryptocurrency exchange to use, although there is one event that has damaged the reputation of the security exchange. In May 2019, attackers managed to steal $40 million worth of Bitcoin from the exchange – fortunately, the exchange has a lot of capital and was able to reemexchange all affected users in full. The exchange claims that it dramatically improved its security processes after the hack.

If the fact that Binance has been hacked in the past is an obstacle for you, you can choose a trade like Kraken or Coinbase. However, holding your funds on any centralized cryptocurrency exchange for an extended period presents considerable risk.

Binance Trading Fees

Depositing funds is completely free with Binance. However, it's a slightly different story with deals and withdrawals, though these remain among the cheapest in the crypto industry.

Binance gets a 0,1% reduction of every trade that takes place on its trading platform, making it one of the cheapest encryption exchanges on the web. As such, trading fees of 0,1% apply to both spot trading and trading margin. For example, Coinbase Pro charges 0,5% for any trade, while Bittrex charges 0,2% fee per trade. Other popular altcoin exchanges, such as KuCoin and HitBTC, charge similar fees. KuCoin equals Binance's trading fee of 0,1% per trade, while HitBTC charges 0,1% for market makers and 0,2% per trade for taking orders. Bags like Poloniex or Kraken are also more expensive as they cost 0,15% -0,16% of the manufacturer's fee and 0,25% -0,26% of the borrower's fee.

You can also get significant discounts on trading fees using Binance Coin (BNB) (up to 25%), referring friends (up to 25%). Together, they make Binance one of the cheapest exchanges in the industry.

Low trading fees also apply to Binance Futures. At the most basic level (VIP 0), you will pay 0,02% maker fee and 0,04% taker fee.

Another important factor to consider when evaluating Binance rates is the futures financing rate and the daily interest rate of the margin position. They tend to change based on market conditions and there are no fixed rates, so be sure to check them regularly on the Binance website here and here.

Last but not least there are deposit and withdrawal fees. Free cryptocurrency deposits for all 180+ currencies supported by Binance. With withdrawals, Binance offers excellent value for money, although fees vary from cryptocurrency to cryptocurrency. A small sample of the rates for some of the most popular currencies is shown below:

As you can see, Binance allows its users to remove regular or BEP2 versions of their assets. BEP2 withdrawals are based on the Binance Chain and do not use an actual cryptographic asset, but an indexed BEP2 version of it.

To put these fees in some perspective, Kraken and Bittrex charge a withdrawal fee of 0,0005 BTC, while Bitfinex and HitBTC charge 0,0004 BTC and 0,001 BTC respectively.

Although Binance does not have any fiat-to-crypto trading pair, it does facilitate fiat-to-crypto purchases using third-party service providers and integrations. Using Binance Fiat Gateway, you can buy and sell encryption with over 40 fiat currencies. Fees vary based on payment method and floating exchange rates determined by Simplex , Koinal , TrustToken , BANK , iDEAL , SEPA , Paxos and other payment processors.

Typically, fiat gateway fees range from 1% to 7% based on the payment method and processor chosen. Bankcard transactions tend to cost more compared to other payment options.

Overall, Binance charges some of the lowest fees in the industry, which is a big plus. Its broad and growing suite of services is available at reasonable prices, making it one of the most affordable, innovative and convenient trading options out there.

open a free account

Safe Assets Fund for Users (SAFU) – Binance's Emergency Insurance Fund

SAFU is an insurance fund that Binance can withdraw from in emergency situations such as hacks. Binance says it allocates 10% of the trading fees generated by the exchange to its insurance fund, which is secured through cold rooms.

Other Binance Exchanges

Binance DEX

Binance.com is not the only cryptocurrency exchange launched by the Binance company. There's also Binance DEX, a decentralized exchange that's built on Binance Chain's blockchain platform – this exchange has less liquidity, but lets you trade while keeping track of your private keys.

other exchanges

Binance has partnered with numerous companies around the world and provided its technical expertise to help launch exchanges designed to comply with regulations in specific jurisdictions. These exchanges list fewer cryptocurrencies than Binance.com, but allow you to buy and sell crypto directly with fiat currency:

• Binance US
• Binance Singapore
• Binance Jersey
• Binance Uganda

Conclusion

As we can see, Binance offers one of the most impressive resource suites you'll find among cryptocurrency exchanges. You can trade a wide variety of currencies for a reasonable fee, and you can trade with high leverage if that's your preference. Other resources, such as IEOs and loans, are more of a niche but can offer a lot of value.

If you already own some Bitcoin or Ethereum and would like to try trading different cryptocurrencies, Binance is unlikely to disappoint you.