If you’re looking for an exchange to trade a variety of different cryptocurrencies Binance Exchange is one of the most popular platforms. Since early 2018, Binance is considered one of the biggest cryptocurrency exchanges in the world, in terms of trading volume. Supporting more than 100+ coins with 240+ trading pairs.
However, Binance is no longer just an exchange and in this Binance review, I take a look into what Binance has to offer on its platform. Including the likes of Binance Lending, Binance Academy, their own stable coins BUSD and location-specific platforms they are becoming a one-stop-shop for all things crypto.
How to Use Binance Exchange
What is Binance Exchange?
Binance.com is an online exchange platform where you buy and sell cryptocurrencies using digital assets such as Bitcoin and Ethereum.
The platform was founded in 2017, in China by Changpeng Zhao. However, Binance moved their servers and headquarters out of China (to Japan) in advance of the Chinese government ban on cryptocurrency trading in September 2017. Binance has since opened offices in Malta after stricter regulations in Japan and China.
Back in July 2017, Binance raised $15 million dollars in an Initial Coin Offering (ICO) for its ERC20 BNB token. As of January 2018, it was the largest cryptocurrency exchange with a Binance coin (BNB) market capitalization of $1.3 billion.
However, Binance also announced recently that they are formally expanding to the U.S. via a dedicated platform Binance.us.
Binance BNB Token
Binance Coin (BNB) is an Ethereum-based token that allows you to receive discounts on the services of the Binance platform. Users of Binance can receive a 25% discount on trading fees, by paying with Binance’s BNB token.
When trading with cryptocurrencies there is sometimes a small fraction of that cryptocurrency left over. This is known as “dust”. Within Binance you can convert this dust into their BNB coin.
BUSD Binance Stable Coin
Working in partnership with Paxo, Binance are launching a dollar-backed stable coin. The upcoming stable coin, which is dubbed as Binance USD (or BUSD) will be pegged 1:1 to the US dollar. They have also received the blessing of the New York Department of Financial Services (NYDFS).
When its launched, verified Paxos customers will be able to purchase BUSD tokens directly through the company’s wallet using either US dollar or PAX (which is their own stable coin). Binance users will also be able to trade BUSD for Bitcoin Binance Coin or XRP.
Binance Supported Cryptocurrencies
Binance is predominately a crypto to crypto exchange, meaning that you’ll first need to buy some crypto before you can start to exchange. This means there are no FIAT markets, however there are links to purchase crypto on the Binance.com website using a credit or debit card or even bank transfer (although these will be at higher fees/rates).
With Binance, you can trade in markets including Bitcoin, Alts, Stablecoins and their own BNB token.
Binance has one of the lowest trading fees of any cryptocurrency exchange at just 0.1% across all trades. However, using the BNB token for transaction fees will give you a discount to your trading fee. By default, if you hold BNB in your account, your trading fees will be automatically subtracted from your BNB balance.
There are no fees for depositing your crypto into Binance, other than the miner fees for your transactions.
How to Reduce Binance Trading Fees
By signing up to Binance Exchange using this link or referral ID GPZ64I32, you will save 20% when trading. However, you can save up to 45% when using the Binance BNB token. To find out more on how to save 45% trading on Binance Exchange click here.
Binance Withdrawal Fees
An important factor when withdrawing from the Binance exchange is to check out the Binance withdrawal fees. Binance withdrawal fees do vary and depend on the type of cryptocurrency that you are withdrawing.
You may also find that there are minimum withdrawal amounts that meet and these will be displayed when withdrawing from the platform. You can find the Binance Withdrawal fees and minimum withdrawal amounts over on their fee page.
How to Withdraw from Binance?
When trading on an exchange, it is important to withdraw your crypto and to keep it stored on an exchange long term. With Binance or any other centralized exchange, you won´t have access or control over your private keys. Also, an exchange that holds a lot of assets is far more likely to be a target for hackers.
Therefore, it’s important to withdraw from Binance and store your crypto safely in a secure wallet. I personally recommend a hardware wallet such as the likes of a Ledger or Trezor where your funds are stored offline and away from any potential harm.
If you want further information about how to withdraw, please check out this step by step guide on how to withdraw from Binance.
Binance Smart Chain
The Binance Smart Chain is a new blockchain with an environment for developing high-performance decentralized applications. Meaning that you can use DEFI apps such as the likes of PancakeSwap or BakerySwap to exchange your tokens, provide liquidity or yield farm. However, compared to transactions on the likes of the Ethereum network, the Binance Smart chain is fast and with low fees.
How to Connect Binance Smart Chain to MetaMask
MetaMask has always been the go-to wallet for accessing the Ethereum network. However, you now connect to the likes of the Binance Smart Chain for accessing decentralised apps (or DeFi) with low transaction fees.
Binance Mobile App
With the Binance mobile app, you can trade Bitcoin and cryptocurrencies from the palm of your hand. The app is available for download for Andriod or iOS. With the app, there’s a host of features available including spot, margin and futures trading. Plus users can use the Binance Savings, Staking and Loans products from inside the app too.
Trust Wallet Binance Official Wallet
Trust Wallet is the official digital wallet of Binance. Binance acquired the secure and intuitive mobile wallet in 2018. For more information on the Trust Wallet check out our video tutorial.
In late August 2019, Binance launched their lending platform on a subscription-based service which was on a first come, first service. Its a value added service to Binance users who hold idle digital assets.
What is allows, is for Binance users to grow their funds by earning interest income for lending out their holdings over a specific period of time.
They’ve split this across phases. Phase 1 of the lending launch included a 14-day fixed term for BNB, USDT, and ETC. And Phase 2 (released 4th September 2019) included 14 and 28 days fixed terms and included Cardano, BTC as well as the above.
Binance Earn is a crypto savings account, offering users an interest-earning solution for crypto assets held on the exchange. You can find out more information on Binance Earn by click here.
Binance Liquid Swap (BSwap)
Binance has recently created its own centralized version of an automated market maker (AMM) pool which is set to rival the likes of UniSwap. BSwap/Binance Liquid Swap (which is the name of their new decentralized exchange) allows users to token swap and provide liquidity in return for an annual percentage yield whilst also getting a share of the protocol’s trading fees.
Louise created the Every Bit Helps YouTube channel back in 2017, after finding the process of buying Bitcoin difficult. Therefore, in an aim to help others, she hopes that her tutorials will make the process of buying, selling and storing crypto a lot easier for newbies in the future.
After spending 20 years working in London in cyber security, she left the corporate life after having her second child in 2018. Louise now travels the world with her two small children trying to make the most out of life.