Binance was founded as an ICO in 2017 and is now the biggest cryptocurrency exchange in the world as far as trading volume. As someone who has mainly traded on Australian-based crypto exchanges, I signed up to Binance in early 2021 to see if it could offer anything beyond the Australian exchanges I was used to using. And it turns out it offers a lot more. Continue reading for answers to the main questions people have asked about Binance, along with my experience using it.
Here are some of the emails I’ve received from Binance since joining (just to prove I’ve used it — I’ve had to cut out sensitive information):
And me depositing some ETH and USDT on it (blanking out the amounts):
Is Binance safe?
In its history of trading billions upon billions of crypto, Binance has proven itself to be safe and reliable, though it faced a hack of over $40 million worth of Bitcoin 2 years ago (Binance was able to cover user losses). Users have also often complained about delays with withdrawals, but there has never been a case of Binance definitely having ever deliberately stolen user funds or crypto.
For me personally, I trust Binance enough to keep a decent amount of crypto on there, but if you’re really security conscious you should get a hardware wallet and store most of your crypto there instead of on an exchange like Binance. As the saying goes: not your keys, not your crypto.
As far as account security, Binance of course supports 2FA, which is always recommended.
Does Binance have decent customer support?
This can depend on what version of Binance you’re using, and how hot the crypto market is. The USA version of Binance (at Binance.US) has the worst reputation for customer service. However, if you happen to be using the UK version of Binance (at Binance.UK) or the Australian version of Binance, you may get better customer support. If you’re using the USA version, be aware that there are numerous complaints about Binance taking weeks to respond to support tickets. And if you’re using Binance at a time when the crypto market is going nuts, they’re going to be absolutely swamped with support requests.
Unlike the Australian-based exchanges I’ve reviewed where you can always expect a response within 24 hours, with Binance.US, that’s unfortunately not the case.
What’s it like to trade on Binance? What trading do they offer?
Binance has a great trading interface, with good graphs, market data and the ability to make all the usual order types:
In addition, for beginners, Binance offers a “Convert” feature where you just enter how much crypto or fiat you want to put up and what you want to buy, and it’ll give you a price and amount:
This is a great feature. Unfortunately with other exchanges I’ve tested, while they offer an instant buy feature like this, the rate they give you (or the fee they charge you) is often terrible (e.g. see my Coinspot review where I complain about that). With Binance, they actually tend to give you a fair market price, so you can buy and trade crypto through their Convert feature without being fleeced.
For serious traders, Binance also offers a number of trading options that aren’t available anywhere else, especially if you want to short crypto. Through Binance Futures you can short all the main coins, including meme coins like Dogecoin.
What coins can you trade on Binance?
Binance supports trading in over 150 coins (though fewer are available if you’re using Binance.US). All of the usual coins are of course there (Bitcoin, Ethereum, Litecoin, Cardano etc.)
What fees does Binance charge?
Binance charges very reasonable trading fees of only 0.1% of the value of a trade, and these get lower with the more you trade (though the vast majority of people won’t trade enough volume to get lower trading fees). It’s also important that as the biggest crypto exchange, Binance has high volume and very low spreads (the difference between buyer bids and seller asks), so it’s easy to trade large volume there without losing a lot to spreads.
What’s Binance Coin?
Binance Coin is used to trade on Binance. While you don’t need it to trade on Binance, if you use it, your fees will be lower. Some vendors will also accept it as payment along with Bitcoin. Binance Coin was originally on Ethereum, but now operates on Binance’s own blockchain (Binance chain).
What’s Binance Smart Chain?
Binance Smart Chain is Binance’s own blockchain, very similar to Ethereum. The advantage of Binance Smart Chain is its transaction fees tend to be far lower. The disadvantage (as far as some are concerned) is it may be considered less decentralized.
Who can trade on Binance?
Binance is available in over 180 countries. For people in the vast majority of these countries, you’ll be using Binance.com, but there are also specific Binance partners for these specific countries:
Each of these partners are compliant with their countries local laws and regulations.
Can you earn with Binance?
Yes. Binance allows you to earn interest on stable coins (USDT, BUSD and USDC) of up to 6% at the time of writing, along with interest on different cryptos. Their interest on crypto (through their “Flexible Savings” product) is quite low compared to what I’ve found on other places, though. For example, they only give 1.20% annual interest (paid every 7 days) on Bitcoin.
I have used Binance to earn interest on BUSD myself:
This was dead simple to setup, and the interest rate Binance pays is much better than what a traditional bank will give you.
Is Binance recommended?
I strongly recommend anyone involved in crypto to sign up to Binance, even if you’re used to trading on another exchange. Not only is Binance the biggest crypto exchange in the world, but they offer a plethora of features and opportunities other exchanges don’t (the ability to short crypto, earn with crypto, buy stocks with crypto, get crypto loans, become a liquidity provider and so on). There’s no reason not to have an account with them.
You can sign up to Binance here (my personal referral link).