This Binance review will look at the exchange in light of its key features, strengths, weaknesses ,and how you can go about exploring and getting started with it as you are treading through the wonderful possibilities that blockchain technology has unveiled in our age.
An efficient and secure cryptocurrency exchange is at the heart of every successful trader, thus it remains an important step to pause and consider the kind of exchange you are about to fall for. Among the most notable exchanges on the web today, Binance remains one of the most prominent names which is why we endeavored on this special effort to consider all the necessary aspects of the exchange to aid both the curious beginner and the seasoned crypto investor.
What is Binance?
Binance is a cryptocurrency exchange that has its roots in China through two renowned computer scientists, Changpeng Zhao and Yi He. The duo formerly worked with OKCoin before launching the exchange in July 2017 after a successful initial coin offering which managed to raise $15 million. Upon realizing that China did not have provision for a crypto friendly environment as the government decided to ban cryptocurrencies, the exchange was moved outside the country and ended up in Malta as the headquarters.
Unprecedented success followed the exchanges establishment as it achieved the status of world’s largest cryptocurrency exchange based on trading volume in less than 1 year. On average, the exchange boasts of a daily trading volume of $1.4 billion. The exchange is crypto-crypto in nature meaning that it does not support fiat-cryptocurrency exchanges.
It also boasts as one of the exchanges with a huge portfolio of coins and tokens amounting to more than 200 in number, and features its own digital currency named Binance coin (BNB). Now let us look at how you can get started with the exchange.
Signup and login
The exchanges signup process is relatively straight forward, following the standard signup procedure for most exchanges. Let’s have a stroll through the steps.
- Go to the exchanges homepage: https://www.binance.com/en
- Click on the “register” button.
- Fill your e-mail address and password in the registration form.
- Consent to Binance’s terms and conditions.
- Solve a simple puzzle to prove you are not an online Robot.
- Click on the verify email button to activate an automatic verification email to your email address.
- Check your inbox and click on the verification link to complete the verification process.
Upon registering, you will have to make sure that your account is secure by activating the 2 factor authentication feature. In case this is still crypto jargon, 2FA refers to a verification procedure or process that makes sure that your account is inaccessible unless there is verification from two devices, which are your computer and smartphone.
In this case, after filling in your email and password during the login process, the system sends a code to your phone which you then feed into the login code-field to have access to your account. This is an effective way of getting the hacker out of the equation even if he/she has your password and email address at his disposal.
How to trade on the Binance Exchange
Trading on Binance is adapted to both beginners and experienced traders as it has two main trade settings or options namely: Basic and Advanced.
The basic trading option features a simplified layout of important information to facilitate your trades. However, it is important to note that though the option is termed basic, it stills needs a bit of orientation for the newbie, but all in all, it still manages a relatively neat and easy to understand layout if you are willing to learn.
The advanced option features extra features for the well versed trader who is on the lookout for a little more to maximize his/her trading experience. An extensive representation of price charts and a wide range of data relating to the market is displayed on the layout.
Let’s plunge forward and have a step-by-step look at how you can get started with basic Binance trading.
- After a successful login, click on the exchange button close to the upper left corner of your screen.
- This will give you two options, “basic” and “advanced”. Choose the appropriate option.
- The basic layout will open up featuring the real-time price chart, trading pairs, buy and sell options trading history and other parameters.
- Choose your preferred trading pair. Binance has a huge list of trading pairs at your disposal. You are able to access the trading pair of your choice on the top-right side of the screen where you can choose pairs which include Bitcoin, Ethereum, Binance coin…
- Select your preferred trading type. In this case, it’s helpful to understand that the exchange offers three main types of trades. These include Market orders, Limit orders and Stop limit orders. Market orders are the simplest as they provide a straight forward buy or sell option that let users to engage in trading using the current price of the preferred market price. Limit orders allow you to choose the maximum or minimum buying and selling prices respectively after which they wait for prospective buyers or sellers to confirm the trades. Stop-limit orders allow users to set particular prices where they can buy or sell. Market orders provide the fastest and simplest way of trading thus it is the most preferred.
- To buy or sell any cryptocurrency, you utilize the two fields featured at the base of the charts which show buy or sell buttons. Buying a crypto will involve setting the amount, verifying with the exchange rate and involved fee before confirming the transaction.
Having looked at the basic steps to get started with the exchange, let’s have some time to consider the key features you need to be aware of.
The platform boasts of remarkably low fees especially when compared with most major exchanges. In general, there are no fees attached to deposits whereas other transactions such as withdrawals and trades cost a small percentage of the involved assets. Withdrawals depend on the type of cryptocurrency, for instance, Ethereum places a withdrawal fee of 0.01 ETH whereas Ripple comes with a fee of 0.25XRP.
When it comes to trading fees, there is a 0.1 percent fee attached. However, there is a provision to lower this fee further by 50% when you use the exchanges cryptocurrency (BNB) to pay the exchange.
Withdrawal and Deposits
The deposit and withdrawal options are accessible through the funds tab on the top right side of the screen. To deposit some funds you go to funds where you choose deposits from the drop down menu.
A click on the deposits option opens up the deposits page where you choose the cryptocurrency you want to transact. After choosing the crypto, the appropriate address will be displayed which you then use to conduct the transaction from another wallet or exchange.
To withdraw funds from the account, choose the withdrawals option from the funds drop down menu. On the withdrawals page, you choose the appropriate cryptocurrency then enter the amount before confirming the withdrawal.
The main security features of the Binance exchange are the password created through the registration process and the 2 factor authentication feature. As we’ve already explained, two factor authentication makes sure that your account is inaccessible even if someone stole your password as it requires further authentication from another device, such as your phone.
The verification process can be processed by either SMS or the google authenticator app which works in sync with your smartphone. Beyond this, it’s all about following the best security practices such as not providing your information to any other person even if they claim to be Binance staff, making sure you are using the official website and using a strong antivirus program.
Payment methods accepted
On this note, it is necessary to emphasize that Binance is a crypto-crypto exchange platform. This implies that you cannot buy any crypto using fiat currency (USD/Euro) on the exchange. Buying crypto in this case implies funding your account from another exchange then use it to pay for the cryptocurrency of your choice. All other payments for transactions are carried out within site as either a percentage or a fixed fee as described above.
There are more than 200 hundred cryptocurrencies on the exchange making it probably one of the most comprehensive exchanges on the market today. All major altcoins are included on the exchange including some emerging coins having only a few months of existence on the cryptocurrency landscape. These can be accessed within the trading page, withdrawals drop down menu as well as the deposits dropdown menu.
Now let us look at a summary of the exchange’s positives.
- Efficient: One of the main reasons for the exchanges popularity is its relatively efficient transactions. It usually takes a few minutes before withdrawal and deposits are confirmed.
- User friendly: The interface is easy to navigate with no prior experience. The team also made a commendable effort to simplify the trading interface for the basic trader.
- Secure: The 2 factor authentication process provides an extra layer of protection to the user.
- Huge coin portfolio: The exchange supports a large number of coins thereby providing a wide range of investment opportunities to traders.
- Low fees: The transactions fees are on the lower side when the exchange is compared with most of its competitors thus a more practical option for beginners.
- Lacks fiat to crypto trading: The lack of Fiat to crypto conversion option makes it imperative for one to have a preexistent crypto account in order to use the exchange.
Binance Exchange Review: Conclusion
To sum up, Binance provides a cost effective, efficient and secure way of commencing cryptocurrency investments for both beginners and experienced traders. It remains a remarkable competitor for most advanced crypto exchanges as evidenced by its sheer size in terms of number of users and trade volume.
The lack of fiat conversion is perhaps the major shortfall but it makes up for this through a professionally built platform which is highly accessible and efficient.