Binance Review and Comparison
By: Ofir Beigel | Last updated: 4/22/20
Binace is the leading crypto to crypto exchange around with over 100 coins supported for deposit and withdrawal. In this review I’ll cover the main things you need to know before signing up.
Binance Review summary
Binance is a crypto only trading platform that offers one of the most competitive rates around. If you’re looking to trade crypto to crypto only this is probably the easiest and cheapest way to go.
The exchange accepts users from around the world and has received favorable reviews from the crypto community. Recently the exchange has also partnered with Simplex to allow credit card purchases of cryptocurrencies at a premium.
That’s Binance in a nutshell. If you want a detailed review of Binance keep on reading, here’s what I’ll cover:
- Binance Overview
- Binance Services
- Currencies and Payment Methods
- Binance Fees
- Buying Limits
- Supported Countries
- Customer Support and Reviews
- Binance vs. Other Exchanges
- Frequently Asked Questions
- Conclusion – Is Binance Safe to Use?
Binance is a Hong Kong–based cryptocurrency exchange launched by developer Changpeng Zhao (aka CZ) in July 2017. Zhao’s company Beijie Technology created the exchange after a successful ICO that raised $15 million.
Investors who invested in the ICO got Binance Coin (BNB) in return which can be used to trade cryptocurrencies and pay for fees on Binance. BNB’s initial value was around $0.1, and as Binance got more and more popular the coin appreciated in price.
Beijie Technology and its founder maintain an impressive track record within the industry. Zhao’s CV includes high-profile positions, such as technical director at Blockchain.com, and his company now provides trading systems for over 30 other platforms.
Following struggles with the Chinese government’s views on cryptocurrencies, Binance now runs its servers from more lenient states, providing it with the freedom to run a competitive exchange service:
“In response to China’s decisions, we are moving our IP’s from Hong Kong to an offshore location. So we are registered in multiple locations and we have people in multiple locations. That way we will never be affected by one regulatory body,” explained Zhao.
The trading exchange has been experiencing astounding success since its summer launch, and it now sits around the top ten in terms of 24-hour trading volumes on Coinmarketcap.
Binance offers a crypto-to-crypto exchange, meaning that it doesn’t facilitate any fiat currencies. This allows the platform to work freely, steering clear of any red tape or regulation (for now). Users can choose between the “classic” and “advanced” interfaces for order book style trading plus peer-to-peer and OTC trading options.
The classic interface allows a quick view of market and trading pairs, making it easier to switch pairs. The advanced view gives users access to advanced charting tools.
For people who are new to trading there won’t be any difference between the two views – both would seem too complex.
Less experienced traders now have a basic quick trade option which allows you to simply convert coins at the market rate.
Additionally Binance has recently partnered with Simplex to supply a brokerage service. This service allows you to buy 17 different cryptocurrencies with a credit card. However, this service comes with a fee of 3.5%.
Brave, the privacy-focused browser integrated a Binance Widget for in-browser trading. The widget allows users to buy and trade crypto through Binance, as well as view and manage their crypto portfolio.
Binance accepts crypto deposits only. All coins supported by the exchange can be deposited and withdrawn. Having said that, Binance’s brokerage service allows you to buy the following currencies with a credit card:
- Bitcoin (BTC)
- Ripple (XRP)
- Binance Coin (BNB)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Binance USD (BUSD)
- Basic Attention Token (BAT)
- Cosmos (ATOM)
- Dash (DASH)
- EOS (EOS)
- Nano (NANO)
- Paxos Standard (PAX)
- TRON (TRX)
- TrueUSD (TUSD)
- Tether (USDT)
- Stellar Lumens (XLM)
Adding to this is a neat roster of up-and-coming altcoins.
In a competitive space, the fee structure of Binance is cutting edge. Its team members have sharpened their knives and are slicing the opposition apart.
A flat rate of 0.1% is very enticing for any trader who doesn’t need immediate fiat liquidation. Incredibly, it undercuts most other large exchanges, some of which charge upward of 0.2%. That’s a pretty sizeable difference if you’re working with large orders.
BNB, the native Binance token, provides an additional 25% discount on this trade fee when working with the coin.
Deposits are free, as you’d expect (aside from blockchain fees that are always paid by the sender). Withdrawal fees do apply, although they generally correlate with the blockchain transaction fees as well.
The withdrawal fee seems to be updated on a regular basis to try and offer a fair price.
Binance has a very simple limit structure, there are only withdrawal limits. Level 1 verified accounts can withdraw up to 2 BTC every 24 hours. Level 2 verified accounts can withdraw 100 BTC every 24 hours.
Verification requires filling out a basic Know Your Customer (KYC) form and providing proof of identity among other documents.
Binance does not mention which countries are supported by its exchange which makes it basically available worldwide. Customers from the USA can now use Binance US after Binance withdrew its main service from the country.
There is also no mention about exceptions for US citizens which caused Binance to come up on the US Department of Financial Services radar for potential violation of New York’s virtual currency regulations.
There’s a lot to love about Binance, and many traders continue to be upbeat about the service. Low fees, a responsive exchange, and developers with a proven track record leave most people beaming. Binance has generally been considered a comprehensive success in its short life so far.
Most support inquiries need to be made via the site’s email contact form. As with most major trading exchanges, you may have to wait a while for a response simply due to the sheer growth in demand.
There is a customer service bot chat to tap into, but some of the responses are automated (and in some in Chinese).
Happily, the website is completely multilingual, so most people should get along fine in one language or another (15 in total supported). This is another real advantage for Binance as it seeks to compete as a global cryptocurrency exchange.
One major problem does appear to be a thorn in the site’s side: Many reviews complain about a faulty 2FA/SMS confirmation.
The temperamental nature of this setup for Binance means that a few customers struggle to withdraw funds. In fact, it’s such a problem that scam allegations have been pointed at the service.
To be honest, dodgier prospects exist across the industry, and I see this as more of a technical issue than a scam. From personal experience I can say that if you use Authy (and not Google Authenticator) that problem doesn’t exist.
Since Binance provides only trading services I will compare its fee schedule to other reputable trading platforms.
Binance vs Coinbase (pro)
Coinbase Pro is Coinbase’s trading platform. It is one of the leading exchanges around in terms of reputation and adoption.
Aside from the limited availability of the platform worldwide (supports 103 countries), the platform charges a 0.25% trading fee which is 2.5 times of what Binance charges.
On the up side, Coinbase allows users to deposit and withdraw fiat as opposed to Binance. You can read my full Coinbase review here.
Binance vs Bittrex
Bittrex is a US cryptocurrency exchange that has grown in popularity among crypto traders since launching its operations in December 2014. Its steady growth has made it one of the most preferred altcoin exchanges on the market. You can read our full Bittrex review here.
Bittrex charges a flat 0.20% fee on all trades. This is 2 times more than what Binance charges. The exchange supplies a wide variety of altcoins (over 250) which is more than what Binance currently provides.
Binance vs Bitfinex
Bitfinex supports over 100 cryptocurrencies and tokens, less than Binance which is near 200. You can read my Bitfinex review here.
Bitfinex works on a maker taker fee schedule. Makers, people who add new orders to the exchange, have a 0.1% fee at max (similar to Binance). Takers, people who remove orders from the exchange, have a 0.2% fee at max (twice than Binance).
Fees are reduced once you start trading in higher volumes.
Binance vs Kraken
Kraken, headquartered in San Francisco, California, is one of the oldest cryptocurrency exchanges around. It operates across the United States (with the exception of New York due to the BitLicense) and Canada, as well as in the European Union and Japan.
The platform supports over 30 different cryptos (As opposed to Binance’s 200+). You can read my Kraken review here.
Like Bitfinex, Kraken also works on a maker taker fee schedule. Makers have a max fee of 0.16% and takers have a max fee of 0.26%. In both cases Binance wins with lower fees.
Can I Withdraw Money from Binance?
You can only withdraw cryptocurrencies from Binance. There is no option to withdraw fiat currencies (i.e. USD, EUR, etc.)
Can I Buy Bitcoins on Binance?
Yes. It’s possible to Buy Bitcoins on Binance with a credit card or with any supported cryptocurrency.
How Do You Buy Bitcoins on Binance?
- Sign up to Binance
- Deposit funds to your account
- Find the trading pair for Bitcoin and the deposited cryptocurrency
- Sell the deposited cryptocurrency for Bitcoin
- Withdraw the Bitcoins to your own wallet
Alternatively you can just buy Bitcoin directly with your credit card.
Is Binance Safe?
Binance is considered a safe exchange that allows user account protection via the use of Two Factor Authentication (2fa).
On May 7, 2019, Binance experienced a major hack which resulted in 7000 Bitcoins stolen from the exchange. However Binance has stated that all losses will be covered by its emergency insurance fund (aka SAFU).
When we pull everything together and look at Binance objectively, the pros far outweigh the cons. This is more than can be said for some other competitors.
The exchange’s low fees combined with the team’s proven knowledge of how to build a trading platform is enough to make it a major player.
It’s no wonder that success followed the service during its opening months. Add to this the ability to offer a truly worldwide service away from the grip of the Chinese government, and there’s not much to stop Beiji Technology.
No fiat support is always a little frustrating, but it’s understandable in most circumstances. Having said that, Binanace is already on the path for adding EUR and GBP trading pairs.
Have you had any experience with Binanace? I’d love to hear it in the comment section below.