Binance is the leading cryptocurrency exchange in the market. It has become a billion-dollar business out of nowhere in just a couple of years. This article is a Binance review. It’s a beginner’s guide to Binance features. Read this review to find out how to deposit, withdraw, and trade safely at Binance.
Binance is growing fast
Binance was founded by its current CEO, Changpeng Zhao. He has become one of the best-known figures in the crypto industry. Zhao has long experience in building trading software, and he has worked as the CFO of OKCoin exchange
Binance comes originally from China, but it moved to Taiwan in late 2017 due to the crypto ban that forced all Chinese exchanges out of the country. Binance raised 15 million USD in an ICO, which wasn’t much compared to the hottest ICOs in the market. The company broke records soon after by becoming the fastest ever start-up to reach the unicorn (a billion-dollar) status!
According to Zhao, the Binance project was planned many years before its launch. This was the main reason it was able to conquer such a big market share so fast. Binance was the only exchange in the market working properly in the crypto boom of 2017. Nowadays there are tens of millions of users worldwide.
Binance is a crypto-crypto exchange, which means you are buying cryptocurrencies using other cryptocurrencies instead of fiat money (EUR, USD, GBP). Binance has been building fiat on-ramp as well after relocating its headquarters to Malta in 2018.
Binance launched its sister exchange, Binance Jersey, in January 2019. It’s using Binance’s software, but it is a different exchange located physically in the Isle of Jersey. Binance Jersey supports bank wire deposits (EUR, GBP) but you can only buy the most popular cryptocurrencies from there (Bitcoin, Litecoin, Ethereum, and such).
Next, let’s create a Binance account and see all the key features!
Opening a new account is a fast and simple process – all you need is an e-mail address. Note, that Binance is not available to US customers and some other selected countries, like Japan and China. See the site Terms & Conditions for further details.
Start the registration process by clicking the link below.
You should land straight to the registration form. You only need to input a username, an e-mail address, and a password. If you don’t land straight to the registration form, just choose Register from the top menu.
Next, you’ll get a confirmation e-mail to your inbox. Finalize the registration by clicking the confirmation link in the e-mail.
When you log in to your Binance account, you are asked to activate 2FA (two-factor authentication). You need a mobile app called Google Authenticator for that. It’s available in Apple and Google app stores.
Two-factor authentication is a standard feature at all serious websites and services these days. Gmail and Hotmail are using it too, as an example. When using 2FA, nobody can log in to your account even if they’d know your username and password. The final confirmation key is always needed, which can be only found from your mobile app.
Note that KYC is not compulsory on Binance, but you need to verify your account if you want to make transactions worth over 2 BTC per day.
Binance review – how to deposit and withdrawal
As mentioned earlier, Binance is a crypt-crypto exchange. Therefore, you need to make a deposit using any of the supported cryptocurrencies. You can go to Coinbase and buy some Bitcoin first and then move it to Binance.
It is also possible to buy some selected cryptocurrencies directly via credit card. This feature is quite expensive especially for smaller amounts and only certain coins are supported. We don’t recommend it.
The first thing we’ll do in this Binance review is to show you how to make a Binance deposit.
Click Wallet -> Spot wallet from the top menu to view all your cryptocurrency balances. You can make a deposit from this page by clicking the Deposit button after each coin. Alternatively, choose Deposit from the sub-menu on the left.
Once you have done this, the following form opens:
The form looks the same for all cryptocurrencies. Click the Copy Address link to copy your deposit address to the clipboard. If you are depositing from a mobile wallet you can also use the QR code.
Next, send cryptocurrency to this address and wait for the funds to be confirmed. You are notified via e-mail when this is done. Deposit time depends on the cryptocurrency and the wallet you use for sending.
Binance withdrawal is as simple. Click Wallet -> Spot wallet from the top menu, select Withdraw from the sub-menu on the left and you’ll land on a similar form. All you need to do is to give the amount and the address.
If you have the 2FA activated, you need to input the verification code as well. You must also confirm the transaction via e-mail. If you don’t receive this e-mail inside 20-30 seconds, check your spam folder or try again.
How to buy cryptocurrency from Binance
Now we can move forward in our Binance review. Let’s go buy some coins from the exchange!
Click Spot -> Classic from the top menu. We recommend using the classic version of the exchange until you are more familiar with Binance. The basic version is a very simple form, which allows you to convert from a coin A to coin B. This form has limited options, though.
You can buy cryptocurrencies with Bitcoin, Ethereum, Binance Coin, and stablecoins like Tether. This means you cannot buy Tron by using Litecoin, as an example. Other exchanges work the same way. Bitcoin has usually by far the most trading pairs available.
See the image below. There are links titled [BNB] [BTC] [ETH] [USDT] in the top corner. Click [BTC] to view all Bitcoin trading pairs.
If you use Binance a lot, it’s nice to click the most used trading pairs as favorites. You can do that by clicking the small star icon on the left side of the trading pair. Click the black star symbol in the menu to view all your favorite pairs.
There are basically three ways to buy cryptocurrency from Binance.
- Limit: You want to buy a cryptocurrency at a certain price. This is often used in large purchases, which cannot be filled by the current volume. With limit buy, you can make sure you always get the price you want. There is also a risk that your order never gets fully filled if the market moves the wrong way.
- Market: You make a purchase with the current market prices and volume. It’s recommended for inexperienced users and small purchases.
- Stop-limit: You want to make a purchase when the price moves above or below a certain number. You must set two price levels: stop and limit. This method is for advanced users only, who know how to use it.
Binance order form looks like this:
We recommend using the market buy until you know how to use the more advanced options.
In our example, we are buying ADA tokens with Bitcoins. Click the Market tab first and then 100% button, which gives you automatically the maximum amount of ADA coins you can purchase.
If you get a message saying you have insufficient balance, it means the price moved against you exactly at the moment you tried to make the purchase. Click the 100% button again and a new number should be updated on the form.
How to sell cryptocurrency on Binance
By now, you know how to buy cryptocurrencies on Binance. Next in this Binance review, we’ll show you how to sell them. Selling cryptocurrencies on Binance is no different from buying, really. The trading pairs work the same way in buying and selling.
The question you must ask is: what do you want to do with your tokens after selling? Maybe you want to sell ADA back to Bitcoin and then move it to Coinbase to get euros or dollars. Or maybe you want to keep it in USDT at Binance and wait for new trading opportunities.
Or maybe you want Ethereum instead? Choose the trading pair that suits your needs, so you don’t need to make additional trades in vain. If you like Ethereum then trade ADA to ETH directly instead of ADA to BTC and then making another trade from BTC to ETH. Each trade has fees.
Note: if you are making large buys and sells you should check the liquidity. Bitcoin and USDT trading pairs have usually the best liquidity, which means you get the best price. ETH pairs have usually the lowest.
Click Spot -> Classic from the top menu and select the trading pair just like in the buying process. When you have the buying form open, you just click the sell button instead. Again, we recommend using the Market option if you are not an experienced trader.
See the image above: if you are using the Limit option and your order doesn’t get filled, you can access all open orders from the My Account menu and Open Orders link. You can cancel all your open orders any time from here.
Binance review – experiences and tips
Binance has proven to be one of the safest exchanges in the market. All exchanges have some technical issues every now and then, but Binance’s uptime is very close to a hundred percent. They have also handled all serious issues very professionally.
The best source for Binance info is their CEO, Changpeng Zhao a.k.a “CZ”. He is very active on Twitter and tweeting 24/7 if there is something significant happening at Binance. You’d also follow the official Binance Twitter and their Reddit page.
Binance deposits and withdrawals are handled as fast as in other top exchanges. The exchange is working very well despite the fast-growing user base.
If you are an active Binance user, hold some Binance Coin (BNB) on your account. Go to your account settings and tick the box next to “Using BNB to pay for fees” option (see the image below).
You’ll get a 25% discount from trading fees when they are paid with Binance Coin. If you don’t hold any BNB, they are paid from the currency used in your trade. The standard fee is 0.1% without BNB and 0.075% with BNB. The more you trade, the cheaper the fees become.
You can withdraw up to two (2) Bitcoins per day without verifying your account. This is more than enough for a standard user.
Many traders would agree that Binance is the top exchange in the market right now. They have the most popular coins and the highest liquidity. We have nothing but good experiences from Binance ourselves.
Binance Coin and LaunchPad
Binance is more than just an exchange. Binance opened its own blockchain in early 2019, called the Binance Chain. At the same time, Binance Coin (BNB) moved from Ethereum blockchain to Binance’s own blockchain.
Binance Coin was created in the Binance ICO in 2017. It’s good to hold some BNB in your Binance account to get trading fee discounts, as mentioned earlier. Binance Coin has also been one of the best-performing cryptocurrencies since its inception.
You can also use Binance Coin to access Binance LaunchPad, which is their platform for IEOs. If you are not familiar with an IEO, read this guide first: What is an IEO – Beginner’s Guide.
In short, IEO is an ICO organized by a cryptocurrency exchange. Binance’s IEO platform is called LaunchPad. It has become very popular in 2019. The best-known IEO is probably the BitTorrent token.
You can only participate in an IEO if you hold enough Binance Coins in your account.
Click the square icon next to Exchange in the top menu. A dropdown menu opens (see the image above) with LaunchPad link in it. You’ll find also Binance Academy from here, which is a very useful learning platform. TrustWallet is a good wallet developed by Binance to hold Binance Coins.
At the moment, Binance LaunchPad works like a lottery. The more Binance Coins you hold, the more lottery tickets you get. If you win in the lottery, you are given a chance to participate in the IEO. The minimum you need is 100 Binance Coins, which will give you one ticket.
Binance is also moving to market trading in 2019. This means you can buy and sell cryptocurrencies with leverage. Binance will attract even more professional users with these features.
Binance futures, staking and saving
This Binance review might feel like a long article, but it’s simply due to all the features Binance has on offer.
Binance has kept expanding in 2019 and 2020 massively. You already had a taste of this in the previous chapter. It is no longer just an exchange, but also a competing smart contract platform with the Binance Chain and Binance Launchpad.
There are some interesting new features, which have become quickly popular. Click Derivatives -> Futures from the top menu. Binance’s future options have been received really well by the market. They allow you to go long or short the market with up to 125x leverage. You need a separate futures account to trade these and futures are for professional investors. We don’t recommend them for newbies.
If you want some extra profit, go to Finance -> Savings. This is an option suitable for average joes as well. Binance offers up to 5-8% yearly interest rate for selected cryptocurrencies. Such services have gained popularity online with the rise of the DeFi sector.
Binance also introduced mining in the spring of 2020. There is now a Binance mining pool for Proof of Work mining (Bitcoin). This is not for everyone, but Binance also has a Proof of Stake mining options available. This means staking in practice. Select Finance -> Staking from the top menu. Staking Proof of Stake based coins gives you 1-10% yearly interest depending on the coin.
Binance review – 2FA provides security
We are almost done with our Binance review, but there is one important thing to mention.
We highly recommend enabling 2FA (two-factor authentication) on your account. As mentioned earlier, 2FA will protect your account from unauthorized use. Nobody can log in to your account without having access to your authenticator app.
When you log in to your Binance account, a “puzzle” like this is shown:
The purpose is to prevent bots from logging in and make sure it’s a human accessing your account. All you need to do is move the slider from left to right, so the puzzle piece goes to the right place. Then you are forwarded into your Binance account automatically.
Every exchange in the world is vulnerable to hacking and criminal activity. There can be also other technical issues, which prevent deposits and withdrawals for a short while. No matter how trustworthy the exchange is, you’d always hold your cryptos in your own wallet long-term. This way you are always in 100% control of your funds. We recommend using Ledger Nano X.
We recommend trying Binance, the leading cryptocurrency exchange in the market.
This Binance review was certainly a positive one, but that’s how many users feel about this exchange. We’ve used Binance since it came to the market in late 2017 and experienced no issues.
Note: Binance is not available for US citizens. If you are from the United States, try Binance US instead.