Binance is a global exchange platform that focuses on trading cryptocurrencies. It is today’s biggest crypto exchange. Binance offers many features. Among them is the basic trading platform as well as an advanced trading platform for people that trades crypto more often. Binance also offers future tradings which include margin. Spot trading, which is trading cryptos, does not include margin. Binance was initially based in China but due to China’s crypto trading restrictions, it now has 11 headquarters in 11 countries including the United States, United Kingdom and 9 other countries.
Binance is known for having more than 500 cryptos currencies to trade and having high liquidity because of the high volume of traders on the platform worldwide. Fees for trading ranges from 0.02% to 0.1%.
Binance is also separated into two, Binance.com & Binance US. The reason behind this is the United States has more restrictions, therefore Binance US do not have as many features and cryptos to trade with as Binance.com does. Due to its complexity, international Binance has a higher volume. US citizens can use a VPN to trade on Binance.com as an alternative method. Otherwise, Binance US does provide all the main popular cryptos.
Is Binance safe?
Binance is safe. Transactions have a 2FA verification process. Since July 14, 2018, Binance has implemented a secure asset funds for users (SAFU) in order to offer protection to user funds in extreme cases where they get their money stolen. The SAFU is funded by allocating 10% of trading fees from Binance into this insurance plan.
And if you do not feel comfortable keeping your money on Binance, Binance offers the possibility to save your wallet key onto an external hardware wallet such as the Ledger Nano S. This way your money will be offline, and no one can touch it.
· Biggest cryptocurrencies exchange up to date.
· Basic trading and advance trading platform available
· Possibility of storing key to External Hardware Wallet
· Lowest crypto currency fees compare to its competitors
· Complex platform with a lot of features
· Multiple crypto to crypto currency pairs
· Margin available for future trading
· Future trading available
· They constantly update and add new hot crypto currency
· Quick trade execution time
· Fast set up to create an account
· Great customer support
· They provide Secure Asset Funds for Users (SAFU). It is an insurance policy they have in case something happens to your money.
· Anti-phishing code enable
· 2FA (2 factor authentication)
· Platform is pretty complex and has a lot of features. It will take some time to get familiar with it.
· Need to find crypto to crypto currency pairs
· Binance.com is international and has a lot of crypto, but the US has its separate Binance, the Binance US. The US version has fewer cryptos and possibilities than the international one Binance.com.
How do you open a new Binance account?
To open a Binance account you can simply register with an email or a phone number. Depending on the chosen method, Binance will send a code to verify the email or phone number. Once verified, your account is then created.
The next step is to increase your account security by using two factor authentications (2FA). This can be done using either the phone verification or google verification. Once the 2FA is set up, you can transfer money into your account from another crypto if you have some. If you want to deposit fiat money from your bank, then you will need to do identity verification on Binance by simply taking a picture of an ID card and taking a video of a face nodding or looking towards a side.
Afterwards, there are other steps that can be done to enhance security such as setting up a hardware wallet such as the Ledger Nano S to your Binance account. This can be useful if you want to protect your wallet. Binance will only access your account when that key hardware wallet is plugged into your computer.
Another step that is optional is to use the enabled anti-phishing code. This feature allows you to set up a code sent by Binance in their communication with you via email. This way, you can identify any other spam email pretending to be Binance.
How do you deposit money on Binance?
There are two forms of deposit that can be done in your Binance account. The first one is to transfer crypto, and the other form is fiat money directly from your bank. If you are depositing crypto, you simply have to choose crypto, select the amount, the type of crypto, copy the wallet address and paste it in the platform from where you are sending the cryptos.
For the second method which is fiat money, the process will be to choose the currency you use and transfer the money from your bank. Some currency can be transferred directly on finance, while others will have an equivalent token to represent the currency. For example, USD will be automatically stored as BUSD in a 1:1 ratio. This means that if you deposit $100 USD, you will have 100 BUSD that can be traded to purchase your preferred crypto.
How do you buy cryptos on Binance?
You can buy a crypto on the classic or advanced platform on Binance. There is spot trading available which is crypto coins and future trading, which is contracts. Spot trading is the one to own coins.
When you select the desired coin to buy, there will be multiple options when buying that coin. For example, on the screenshot above we want to buy a DOGE coin and there are multiple currencies options we can use to exchange for it. We simply chose the way of conversion we desire to make. For example, I have some bitcoin and I want to buy DOGE, therefore I will choose the DOGE/BTC option and make a trade.
This pairing method has its advantages and disadvantages. The advantage is if you own the direct pair of the currency you want to purchase, there will not be any other conversions to make. The disadvantage is if you do not own any of the pair crypto to purchase it or if the desired crypto has only one pair to exchange for (mostly happens for newly added crypto) then you will have to do some conversions. Making some conversions can have fees but this will mostly be done once, other platforms have the same fees, but they do the conversion themselves.