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Binance Exchange Review & Tutorial 2021: Beginners Guide

Binance Exchange Review & Tutorial 2021: Beginners Guide

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.

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.

Sign-up to Binance exchange Bitcoin

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.

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Binance US

For those from the U.S. it’s been recently announced that Binance has updated their terms of use and have stated that “Binance is unable to provide services to any U.S. person”. Effective on Sept. 12, 2019, “users who are not in accordance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com”

However, Binance also announced recently that they are formally expanding to the U.S. via a dedicated platform Binance.us. 

Binance US Review

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.

How to convert Binance Dust

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).

BUSD Binance Stable Coin

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 Fees

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 also separate fees for Margin and Futures trading.

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 Referral Code 2021

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.

Binance Withdrawal fees

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.

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.

Binance Smart Chain

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.

How to connect Binance Chain to MetaMask

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. By installing on a mobile device, you can also make use of the built-in security features such as a face or fingerprint technology to secure your assets.

Margin trading is now available on selected Altcoin trading pairs

Binance Mobile App

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.

Trust Wallet Review & Tutorial

Binance Lending

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.

How does Binance Lending Works

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.

Trade on Binance Directly in Brave Browser

Binance Earn

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 Earn: Earn Interest on your crypto

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.

Binance Liquid Swap

The Pit by Blockchain.com Review & Tutorial

The Pit by Blockchain.com Review & Tutorial

Blockchain.com famous for their cryptocurrency wallet have now launched an exchange named “The Pit”. Their new platform is a place where you can exchange your crypto so that you can buy and sell cryptocurrencies without having to go through 3rd party exchanges like Coinbase Pro or Binance.

The Pit by Blockchain.com

What is the Pit?

The Pit is a new platform powered by Blockchain.com for trading digital assets. With the Pit, you can view markets, check the status of your orders, make deposits, withdraw funds and trade crypto assets. It is available in 200 countries and within some locations, you can also buy crypto using FIAT. As it’s still in Beta, over the next coming months they will be adding more order types and more trading features.

It was built by an all-star team of veterans from NYSE, TD Ameritrade, Google, Goldman Sachs, UBS, Interactive Brokers, and Revolut. They aim to be the fastest in crypto by an order of magnitude – they measure in microseconds, not milliseconds – with a matching engine that could go head-to-head against any machine engine in the entire world.

Fastest Crypto Exchange

To ensure and encourage users to maximize control of their private keys, they’ve created a seamless connection function to link Blockchain Wallets with trading accounts on The PIT for easy deposits and swift withdrawals into their non-custodial wallet.

Blockchain.com chose Star Trek legend William Shatner to promote their new cryptocurrency exchange called The Pit. The campaign was designed to build awareness of the new trading platform The Pit, but also to educate people about crypto. William Shatner isn’t new to the world of crypto, he’s invested in Solar Alliance and Mattereum.

What Currencies Are Supported by The Pit?

In terms of deposits, depending on your location The Pit supports USD and EUR via bank transfers you can then buy and sell with the likes of BTC, ETH, BCH, USDT and XLM.

There are currently 17 trading pairs live with 12 more coming soon, and you can check the status on their website.

trading markets the pit

How Do I Open an Account with The Pit?

To open an account you simply need to enter your name, email address, date of birth and home address. If you already have a Blockchain wallet you have the option to “Connect to Blockchain Wallet”. This will be your only opportunity to connect and is only possible to do this during sign up.

Connect The Pit to Blockchain Wallet

If you are connecting to an existing Blockchain wallet, you will then be prompted to scan a QR code with your Blockchain app, or you can sign into Blockchain.com. This will enable you to easily transfer funds between the pit and your blockchain wallet. Also, if your blockchain wallet is already gold level verified you can benefit from gold level limits on the pit. 

Once you’ve verified your email address and accessed you account you’ll need to secure it with 2FA. Consider unlocking to gold level for increased withdrawal levels and fund your account.

Ledger Nano X - The secure hardware wallet

How Do I Deposit Funds?

You can deposit funds with EUR, USD, crypto or straight from your connected Blockchain wallet. To deposit funds you will need to have 2-factor authentication enabled in The Pit.

Deposit funds

How to Deposit from your Blockchain Wallet

When depositing from your Blockchain Wallet, your wallet password, private keys and backup/recovery phrase are never shared with The Pit. To deposit from your Blockchain wallet, select “Deposit“.

Click “Deposit From Your Blockchain Wallet” and input your Blockchain Wallet ID and password. 

From within Blockchain.com select Send besides the cryptocurrency, you would like to send.

depositing from blockchain

An address will appear in the Blockchain Wallet send form. You will then need to enter the amount you would like to deposit and click send.

How to Deposit from a 3rd Party Wallet

If you are depositing from a 3rd party wallet, choose “Deposit” and select the type of cryptocurrency you would like to deposit from the drop-down menu.

Copy the wallet address shown in the window.

Head over to your third party wallet and send the amount of funds you would like on your account to the address you have copied from The Pit.

How to Deposit FIAT

You can deposit the likes of Euros or USD, to deposit these funds. Select “Deposit” and choose Euro or USD.

You will then be prompted with bank details for the associated FIAT currency that you will need to send your funds to. Funds are generally available to trade in 1 business day. You also need to ensure that your recipient name matches the account holder name on your bank account for the transfer to be successful.

What Are the Fees?

The fee structure is based on a maker/taker model. You’ll pay 0.24% in taker fees if you trade less than $100,000 per month and 0.14% in maker fees making it 0.01% lower than Coinbase Pro fees. It starts with an introductory tier that’s lower than most exchanges. The more you trade, the less you pay.

Market Orders – A market order is an order type that executes immediately at the current price. With a market order, you are considered a taker of the market as you are taking the market value.

Limit Orders – A limit order is an order where you define the price that you want to buy or sell at. There are then a set of time conditions that you can apply to your limit order.

You can also check out The Pit fees here

How To Buy

To buy your crypto the first thing you need to do is select your trading pair. You can do this by clicking onto the ‘+’ icon at the top of the screen and selecting the required pair.

Then go to “Buy” on the right-hand side.

how to buy on the pit

Enter the “Amount” of your chosen cryptocurrency you would like to purchase and select the “order type” you would like to place from Market or Limit Orders.

If you select a Limit order you then enter the “Amount” you would like to buy at. You also have time in force conditions which allows you to specify how long an order will remain active before it is executed or expires.

If you have chosen a Market Order, your order will complete immediately. If you have chosen a Limit order, your order will appear in “Open Orders” whilst you wait for your order to complete.

With a limit order you have the ability to cancel your order before it completes, in case you have made an error or if the market moves too much.

How to Sell

To sell your crypto the first thing you need to do is select your trading pair. You can do this by clicking onto the ‘+’ icon at the top of the screen and selecting the required pair.

Then go to “Sell” on the right-hand side.

how to sell your crypto

Enter the “Amount” of your chosen cryptocurrency you would like to sell and select the “order type” you would like to place from Market or Limit Orders.

If you select a Limit order you then enter the “Amount” you would like to sell at. You also have time in force conditions which allows you to specify how long an order will remain active before it is executed or expires.

If you have chosen a Market Order, your order will complete immediately. If you have chosen a Limit order, your order will appear in “Open Orders” whilst you wait for your order to complete.

With a limit order, you have the ability to cancel your order before it completes, in case you have made an error or if the market moves too much.

How to Withdraw

With the Pit, you can withdraw your assets directly to your Blockchain wallet, to a third party wallet or depending on your account verification level you can withdraw to your bank account.

Withdrawing Crypto Assets

To withdraw your crypto assets to your Blockchain or third party wallet. Click onto your balance in the top right-hand corner of the screen and click “Withdraw“.

withdrawing assets from the exchange

Select the type of cryptocurrency you would like to withdraw.

From the destination address, select either “My Blockchain Wallet” (if connected) or “External Address“. If you are withdrawing to an external you will need to enter your public address.

Enter the amount that you would like to withdraw in your chosen cryptocurrency or in USD.

You will then be prompted to enter your 2-factor authentication code and you can click onto “Withdraw“.

Withdrawing FIAT

Withdrawals to SEPA (for Euros) are free, with a minimum withdrawal amount of 50 euros.

Wire transactions (for USD) are charged at $10 for domestic payments and $30 for foreign (which is deemed as accounts outside of the US) with a minimum withdrawal amount of $5,000.

To withdraw to your bank account, you need to first make a small deposit so that they can link your bank account.

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