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This guide will cover everything you need to know about the Binance exchange and how to open an account. These days the crypto exchange market is filled with a wide variety of options. Choosing the right exchange can be quite a headache for most, with some exchanges getting unstable during periods of high traffic.
Why Should I Open a Binance Account?
- Binance is the largest exchange by trade volume
- Better prices and tighter spreads
- +95 crypto currency pairs
- Easy basic sign up with no verification needed on Tier 1
- Low trading fees of only 0.05%
- Great competitions/gifts
Sign up with Binance here: https://www.binance.com
Binance is a popular Chinese crypto currency exchange. While the company is still fairly new on the market, it has managed to gain a lot of popularity thanks to its impressive coin listings and low trading fees. Binance is a crypto-crypto exchange only i.e. they do not accept Fiat money deposits. You deposit a wide variety of crypto currencies and then trade these for others. Most pairs are quoted against BTC and ETH.
The most recognizable name behind this project is that of Changpeng Zhao. Changpeng is the CEO of Binance. He has an impressive resume with years of experience in crypto currency. He was the Head of Development at Blockchain, Co-founder and CTO of OKCoin, and the Founder and CEO of BijieTech before working on Binance.
The team consists of highly experienced individuals, who are from some of the leading institutions including Accenture, Morgan Stanley, Nomura and SBI Group. Overall, Binance is run by group of reputable developers which have access to abundant resources and partners. We believe that Binance will continue to evolve as the team grows, adding more services over time. The vision behind Binance is quite ambitious, as they intend to become a Decentralized Exchange & ICO launch platform.
Note that Binance has also received backing from high profile individuals like Roger Ver of Bitcoin.com and Neo CEO Da Hongfei, both influential in the crypto currency world
Binance Signup & Login
To use the exchange, users will first have to create an account https://www.binance.com. The process behind this is simple and straight-forward and you don’t have to verify your account for level 1 trading access. On level 1 you are able to use a 2 BTC daily withdrawal limit. For level 2 which allows up to 100 BTC withdrawal per day, you need to upload a photo ID and wait till you are approved. There are higher limits still, but you will need to contact them directly to arrange this.
A pop-up should appear on the screen the first time you log-in, and immediately enable 2FA to increase your security. Now that this is out of the way, you can go ahead and fund your Binance account. While you can choose from a multitude of digital currencies, it is recommended that you stick with either BTC or ETH for funding.
To fund your account, visit the “Funds > Deposits / Withdrawals” link at the top of the site and find the currency you wish to send, then click the “Deposit” button next to it which will then you give you the wallet address. You can then send your funds to this address to begin trading on the platform.
Now that your account is funded, you can simply start trading, exchanging and investing in various crypto currency pairs. Binance offers plenty of choices, as they support all major digital currencies, but also numerous ICO listings and their respective tokens. The history of your deposit will be shown in the “Funds > History” tab.
The platform offers two options for crypto currency trading – basic and advanced. Neither are very user-friendly. However, anyone that has traded Bitcoin or Ethereum before should be able to find their way around. Given that Binance is a crypto-crypto exchange, we know this will be the case.
One of the most important things is that you can execute a trade without having to worry about delays due to high website traffic. Binance uses a platform that is capable of processing 1.4 mil orders/second, which makes this platform one of the fastest exchanges in the market. Overall, Traders can expect a sleek and intuitive UI that conducts, perform and executes trades in real-time, not like the majority of exchanges that become unstable during busy trading sessions.
This is what the basic view looks like:
The order book is on the left. Trade history and other pairs on the right. Order entry is below the graph with limit and market orders supported initially. Stop orders have since been added as well.
And this is what the advanced view looks like:
Even though I have a very strong trading background, having used systems like Reuters and Bloomberg before. I still prefer the basic layout.
Supported Crypto Currencies
Binance has often been praised for its wide variety of support coins, 92 at the time of writing. These can be traded against Bitcoin and Ethereum. Traders can use the platform for multiple crypto currencies, including, but not limited to Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, EOS, Dash, LiteCoin, NEO, GAS, Zcash, Dash, Ripple and more.
Margin trading is not available at Binance. For those of you who are not familiar with the trading world – this is a system which allows you to trade with more money than you actually have in your account. Your balance is then used as a guarantee to maintain your open position.
Another thing to note is the Binance Coin, which was issued during their own ICO. The Binance coin can be used to pay fees and it will also feature in their future plans to create a Decentralized Exchange where it will form one of the key base currencies. Purchasing the Binance coin itself looks like a good investment for the future as the exchange plans to use their profits to buy back a portion of the coins every quarter and destroy them: hence decreasing the supply and making them more valuable for holders.
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.”
Binance Fees & Limits
Fee comparison with other exchanges (taker fees)
- Binance 0.1%
- Bittrex 0.25%
- GDAX 0.25%
- io 0.25%
- Kraken 0.26%
- Poloniex 0.25%
At the time of writing, Binance charges an average fee of 0.1% on each trade that a user makes. Those who choose to pay via the Binance token can get a 50% discount on the trading fee in the 1st year, which is absolutely great news. These are surely some of the lowest fees available. Withdrawal fees tend to vary for each digital currency. For instance, 0.0005 is charged for Bitcoin withdrawals, and 0.005 is charged for ETH withdrawals.
When it comes down to transfer limits, there is no limit on the number of coins that you can deposit. However, without getting verified, users are limited in terms of how much they can withdraw, 2 BTC as stands. Verification will establish you as a level two users, thus lifting these limits and providing a lot more freedom when using the platform. The verification process requires users to provide Binance with:
- First name
- Last name
- Passport ID
- Passport photo
- Selfie with passport
With Level 2 verification, your daily withdrawal limit increases to 100 BTC.
A unique feature of Binance you will notice is that they regularly hold competitions with some amazing prizes. At the time of writing there are two ongoing competitions, Waves and Tron. The waves competition gives away 20,000 Waves to Traders based on how many trades they have made of this currency.
The other competition is for Tron (TRX) where participants have the chance to win a Maserati, Mercedes Benz, Macbook Pro or iPhone X. Again, the winners are the people with the highest trading volume of this crypto currency pair.
While Binance is one of the newest cryptocurrency exchanges available on the market, it has quickly managed to attain a high level of trust from its users and the crypto currency community. Given its brief history, it is not surprising that Binance has not yet been hacked. The most obvious issue with this exchange is the fact it operates in China. The exchange fails to provide users with enough information on how the funds are being secured, yet we like to believe that security is taken seriously. Two-factor authentication is available and is always a nice sight.
Binance Customer Support
For an exchange to be successful, it requires a great customer support team, capable of answering all user questions and requests in a timely manner. While the support area on Binance could use a little work, the team is responsive and capable of offering professional aid to traders in need. Support tickets are submitted via an online form featured on the website, and responses are made via email. There is currently no live chat support, nor a phone number where customers can get in touch with the support team. Other than the CS team, Binance offers a couple of FAQs and articles meant to help users get accustomed to the exchange and the way it works.
Currently, the matching engine of the exchange is capable of processing approximately 1.4 million orders each second, hence making it one of the fastest exchanges available on the market. Additionally, the exchange works on all forms of devices, including web, Android, WeChat, and HTML5.
Non-English speakers will be happy to know that Binance offers multiple-language support in Chinese, English, Korean and Japanese. Based on everything that has been outlined so far, Binance is set to become one of the biggest exchanges in the world with great fees and awesome crypto currency support. We are happy to recommend Binance. https://www.binance.com/
- Founded by industry veterans
- Easy to Use
- Low Fees
- Good Support
- Lots of Listings
- Good Trading Interface
- High Liquidity
- No Fiat Payment Options
- Doesn’t offer phone Support
- New company