Binance Exchange Review: Key Features, Trading Fees, and Other Details

Introduction

Cryptocurrency exchanges are the ideal way to carry out any transactions related to digital assets. Like how traditional banks play their role in transacting money, crypto exchanges also do the same, but through a decentralized process. As blockchain technology came into existence, several crypto exchanges emerged.

With that said, the existing crypto exchanges have started updating their platform with new features and collaborating with famous personalities and companies. One of the important crypto exchanges that fall under the mentioned category is Binance.

Binance exchange is a well-known and well-established cryptocurrency exchange with convenient trading features available for all crypto holders across the globe. With 120 million registered users, Binance promises security for transactions with an advanced data encryption system.

1. Binance Exchange History Overview

Binance crypto exchange was launched in 2017 by its CEO and co-founders Changpeng Zhao (CZ) and Yi Hi. The business was initially  headquartered in China, but due to crypto regulations in the country, the platform location shifted to Malta, Europe, in 2018.

Currently, Binance has 120 million registered users and more than 350 cryptos listed on its platform. Binance Coin (BNB) is the native token of the Binance exchange. Initially, BNB was based on the Ethereum network, and currently, it works on Binance’s own blockchain — Binance Chain. There are a maximum of 200 million BNB tokens, as of now.

Also, Binance’s BNB is the fifth largest crypto with a market cap of $43 billion ($43,483,126,525).

2. Binance Exchange Platform Interface

Binance offers a convenient interface where users can dive into the platform’s features and trade their coins effectively. The interface page of Binance shows some relevant information, such as the number of cryptos listed and registered users, the 24-hour trading volume on the exchange, etc. Also, the front page of the Binance exchange shows the list of popular cryptos.

3. How To Trade Crypto on Binance Exchange?

Trading coins on Binance is a convenient process, and the platform ensures safe and secure transactions. The exchange helps users buy and sell cryptocurrencies quickly using its streamlined buy/sell processes. Binance puts forward three steps for an effective way to buy and sell crypto on its platform.

1. Register for an account
2. Verify user identity
3. Buy crypto

Users can easily buy Bitcoin and other coins using different payment methods. This includes bank transfers, credit or debit cards, and cash. Also, Binance promises trusted and verified payment options for every user and provides them with a secure and endless  crypto-buying experience.

After purchasing any coin, Binance will deposit the new crypto that people bought, directly to their Binance wallet. The wallet users can immediately trade their purchased coins on the many products and services on the Binance Platform.  a safe and simple way to manage crypto assets.

Besides, Binance provides services outside for its users such as Binance NFT,  Binance Charity, Binance Oracle, Binance Academy, etc.  

4. Key Features of Binance Exchange

Binance Exchange Trust Wallet

Binance’s Trust Wallet has over 25 million users. The wallet allows users to buy, store, and collect NFTs, and exchange and earn crypto.  Binance outlines some steps for earning its native token, BNB, using Trust Wallet.

1. Install Trust Wallet via iOS Crypto Wallet or Android Crypto Wallet.
2. Buy or deposit BNB in Trust Wallet
3. Start staking BNB to earn more than 30% APY

Trust Wallet allows users to earn crypto natively within the app through staking while retaining complete control over their funds. Also, the Trust Wallet app supports 65 blockchains and over 4.5 million assets.

P2P Transactions on Binance

• Place an order: Users can place a P2P order, and Binance P2P will escrow their particular crypto asset.
• Pay the seller: In the next step, users must send money to the seller via the suggested payment methods. Complete the fiat transaction and click “Transferred, notify seller” on Binance P2P.
• Get the crypto: As the seller confirms receipt of money, the escrowed crypto will be released to the user.

Specifically, on Binance P2P, takers are charged zero trading fees, whereas makers are charged a small amount of transaction fees on every completed order. Binance P2P allows users to trade crypto with over 700 payment methods, including cash, bank transfer, M-P[ea, and multiple e-wallets.

Binance Convert

Binance exchange offers the Binance Convert tool, the easiest way to trade cryptos with just a few clicks devoid of placing orders on the trading interface. The traders can instantly convert their coins or fiat assets at any time with a live price and zero fees.

Spot Trading

Spot trading on the Binance exchange is free, and this came into effect in August 2022. Spot trading is a method of trading crypto without literally buying it instead, trading USD through a market or a limit order.

Margin Trading

Binance uses the Margin Trading technique, in which both short-position and long-position traders can sell and buy crypto by leveraging/predicting the price of a coin in the future. The exchange allows spot trading margin and derivates trading margin leverage up to 20x.

Strategy Trading

In this trading, users can use Binance automation tools to trade crypto like a pro. Strategy Trading enables Spot Grid, Futures Grid, TWAP, and VP. Spot Grid is for traders who want to buy low and sell high orders at set intervals across a configured price pocket. Futures Grid amplifies purchasing power with Grid Trading applied to COIN-M and USD-M contracts.

Swap Farming

While making a swap, users have to pay less fee only and can get up to 50% of fee returns in BNB.

Binance OTC

This feature of Binance serves private and institutional clients with professional services and advanced technology. Binance OTC provides a fast and competitive pricing solution without the need for trading on order books.

Binance Earn

Binance Earn is a multiservice junction on Binance where users can see all their earning possibilities open for them and the cryptos they hold. Binance supports over 180 coins under the Binance Earn service. Users with a minimum amount of crypto indicated in their chosen product and completed identity verification checks are eligible to use Binance Earn.

Binance Pool

Binance Pool lets Binance BTC Mining Pool users get benefits from value-added services and earn rewards.

Liquidity Farming

Liquidity Farming is another essential service offered by Binance. Here, users can instantly trade and pool tokens to earn rewards. The process allows users to stake their coins by depositing them into a lending protocol via a dApp. The users can calculate their returns based on annual percentage yields (APY). 

DeFi Staking

DeFi Staking on Binance exchange presents financial solutions to users via smart contracts. The current DeFi projects on Binance provide higher annualized earnings for specific coins.

Binance NFT

Binance NFT is known for its diverse, secure, and reliable NFT collections. The NFT marketplace showcases several collections namely Bored Ape Yacht Club,c Invisible Friends, Otherdeed for Otherside, Mutant Ape Yacht Club, The CR7 NFT Collection, and many more.

5. Top Cryptocurrency Conversions

6. Supported Fiat Currencies on Binance Exchange

Binance crypto exchange currently supports more than 40 fiat currencies on its platform. The following table shows the list of supported fiat currencies.

7. Deposit / Withdrawal / Trading Fees

Binance caters to users with more cost-effective fees than other crypto exchanges. The fees levied are very low, making the platform preferable for crypto traders and enthusiasts.

Binance does not apply any fees on selected fiat and stablecoin BTC pairs, and the maker fee on BUSD pairs is also zero. The spot trading fee is 25% off, and the USDⓈ-M Futures Trading fee is 10% off on Binance.

Binance Exchange Withdrawal Fees

Deposit fees on the Binance exchange are relatively free. Users can withdraw either regular or Binance Chain Evolution Proposal 2 (BEP2) versions of their assets. BEP2 is a technical standard that has a set of rules that efficiently manage and issue tokens on the Binance Chain Network.

All BEP2 withdrawals do not use an actual crypto-asset instead, it uses a pegged BEP2 version. For fiat transfers on Binance US, USD wire withdrawals cost USD15/USD35 for local and international withdrawals.

Fiat currencies like EUR deposits can be done using:

• Simplex (VISA and MasterCard)
• SEPA bank transfer
•  Ideal bank transfer
•  BANXA (bank cards and bank transfers)
• Koinal (VISA, Mastercard, and other major car processors)
• Paxful (300+ payment methods)

8. Controversies and Issues

There have been several controversies circling around different crypto exchanges and blockchain companies. Specifically, serious issues such as data breaches and hacks are more dominant in the crypto realm. Binance exchange has also been the victim of some issues and allegations.

7,000BTC hacked from Binance exchange accounts

In May 2019, hackers stole 7,000 BTC from various Binance exchange accounts. The malicious fraudsters managed to access user API keys, 2FA codes, and other confidential information from the hacked Binance accounts.

However, the exchange applied its Security Asset Fund for Users (SAFU) tool to cover this big loss. SAFU was launched to secure and protect Binance users in case of any misfortune cases.

Binance KYC data breach

Binance exchange faced a hacking scandal in August 2019. This scandal resulted in a hacker possessing large amounts of the firm’s ‘Know Your Customer’ (KYC) data, which included over 10,000 personal photos. The hacker demanded 300 BTC from the exchange, which was worth $3.5 million at the time, so as not to release the data. The hacker also created Telegram groups that allegedly featured some sensitive material. 

To defend against this issue, Binance offered a reward to anyone who identified and revealed the hacker. Also, the exchange offered a lifetime VIP membership and preferential trading fees and services to the victims of the hack.

9. Achievements

Besides the pain points that Binance faced, it has earned names and achievements that made the news in the crypto sphere.

Binance CEO Changpeng Zhao has frequently remarked that their vision for cryptocurrency has a great insight that makes its network burgeon the entire financial system.

Typically, Binance has been partnering with celebrities and famous companies to boost its network in the blockchain sphere and beyond that. The platform has teamed up with companies such as SafePal, YG Entertainment, Splyt, and celebrities namely Cristiano Ronaldo and Khaby Lame.

The exchange also offers multi-platform support and is accessible via its web platform, mobile apps for Android (including Android APK) and iOS, and desktop clients for macOS and Windows. Moreover, Binance users can utilize the Binance API to merge their trading applications into the Binance platform.

The BNB coin of BNB Chain has been in the fourth position in terms of market capitalization, and now the coin is holding the same rank.

In 2019 and 2020, Binance acquired India’s largest cryptocurrency exchange, WazirX, and the Chinese dApp analytics platform, DappReview. Moreso, the platform also acquired the most popular crypto market aggregator, CoinMarketCap.

10. Binance Exchange Pros and Cons

Pros

• Affordable fees
• Ability to buy and sell crypto with 40+ fiat currencies
• Trades over 1000+ cryptocurrencies
• High liquidity
• Fast trading times and transaction processing
• Offers SAFU insurance against hacks
• Provides a range of services and products

Cons

• Does not provide fiat currency trading pairs
• No privacy-preserving measures
• Challenges experienced when using a credit card
• It takes longer to create a KYC-verified account
• Experienced security breaches in the past

11. Final Score

• Services offered: 4/5
• Cryptocurrency support: 4/5
• Fees: 4/5
• Security: 3.5/5
• Review score: 4/5

12. Binance Exchange Summary

Concisely, the Binance crypto exchange is an all-in-one platform where users can experience trading through different methods such as spot, futures, margin, P2P, swap farming, Binance OTC, etc. Binance users can also enjoy earning from various trading methods. 

Although security issues happen for many crypto exchanges, Binance relatively ensures safety and protection for its users from data breaches. In cases where Binance has undergone hacks and fund loss, the platform team has distributed recovery funds and implemented other recovery tools for users.

13. FAQs

Disclaimer:  This material must not be used as a basis for making any investment decisions. This serves as informative material about the crypto exchange. Trading digital assets involve high risk and can result in the loss of investment capital. Hence, always make sure to do in-depth research before engaging or investing in any cryptocurrencies.