Binance Review: Examining The Biggest Exchange in Crypto
If you’ve ever thought about trading or investing in crypto markets, Binance is definitely a name you should be familiar with. Currently it has the highest trading volume per 24 hours, and trades at twice the volume compared to the second largest exchange. It’s held that title since early 2018, and doesn’t seem to be slowing down any time soon.
Binance Review: History
The company was founded in 2017 by Changpeng Zhao in Shanghai, China. Chang first got into crypto after he sold his house… and put all the money into Bitcoin. Shortly after the company was incorporated, China issued a nationwide ban on crypto trading, which caused Binance to move to Japan. Unfortunately, Japan enacted similar restrictions which made Binance move to Malta, where they’re currently headquartered.
Binance: Supported Currencies
Binance supports 15 fiat currencies and over 300 tokens. Those are amazing numbers, as most exchanges only support 20-50 tokens and even less for fiat currencies. Furthermore, Binance has a ton of trading combinations, so you can trade USDC for ETH. This saves a lot of time and makes trading much easier since most exchanges would make you convert your USDC to fiat first and then convert fiat back into ETH, making the process more complicated than it needs to be. In total, they have 600+ trading pairs so there’ll most likely be a trading pair for your favorite tokens regardless of how small they are.
Binance: Trading Overview
Binance is the #1 exchange in the world in terms of trading volume, with an average trading volume of $3+ billion every day. The craziest part is that the exchange peaked at $37 billion when Bitcoin surged in late 2020. Currently, there are over $15,000,000 users on the platform according to their website.
You can fund your trading by directly linking your bank account or debit card. They’re partnered with Simplex so you can make purchases directly with a credit or debit card, making small investments super convenient. The platform is also available in 40+ countries, which is significantly more than most exchanges so you won’t have to worry too much about geography-based restrictions.
The exchange accepts Visa and Mastercard, and also has fairly low fees at 3.5% or $10 per trade. Transfer times can take anywhere from 20 minutes to 1 hour, so deposits appear in your account quickly and you won’t need to wait weeks to receive your funds.
One great feature of Binance is that you can trade derivatives like options, futures, leveraged tokens, while also performing margin trading. Of course, you’d have to be a fairly advanced trader to actually take advantage of those features.
Lastly, there are two trading versions of the platform, basic and advanced. The advanced version is a more sophisticated application that was made for experienced traders, while the basic version is a simplified version for the casual investor.
Binance: Additional Services
In addition to their exchange, Binance also offers multiple crypto products, including Binance Pool, Earn, and Launchpad. Each of those services have their own use cases, with Pool and Earn being ways to earn interest on crypto through staking and Launchpad being a way for companies to successfully launch tokens on the platform. They also have their own crypto loans program along with many other features, so be sure to check out their website to get a better grasp of all their offerings.
Binance has their own token, called the Binance Coin. It acts as a store of value for their exchange and is one of the top 10 coins on the market in terms of market cap. Since the coin will forever by tied to the value of the exchange, it could make a very good investment for those that believe in the long-term potential of Binance as a company.
Binance was hit with 2 major hacks, both leading to bad press and unfavorable criticism from the media. The first one was in 2017, early on in the company’s growth cycle. They were still situated in Japan at the time and the hack caused the Japanese government to come down with regulations on the company, forcing them to move to Malta. The second was one of the biggest hacks in crypto history, where hackers stole 7,000 bitcoins worth $40 million dollars. What happened as a result? Binance closed for a week and worked 24/7 to improve their security to make sure this would never happen again.
So far in 2020, there hasn’t been any hacks but if there’s a point of concern with the company, it’s their security.
Binance Review: Conclusion
Overall, Binance has tons of great features of their traders. They’re by far the biggest crypto exchange by volume, and that doesn’t seem to be changing any time soon. Furthermore, they offer hundreds of tokens, trading combinations and lightning-fast transfer times to make the platform user-friendly for beginners and advanced investors alike. The platform is available in many countries and the fees aren’t too high which make it a really good exchange. They offer additional products like staking and the Binance token as well.
One point of concern is their security due to a very high profile hack in 2019, but they’ve taken measures to upgrade their security since then. Overall, it’s still a great platform that any crypto enthusiast should check out, especially if they’re interested in altcoins.
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