Binance has garnered a huge popularity after its powerful climb to top-3 position in the chart of the world’s largest exchanges. But how did it all happen, and what makes Binance so popular and loved that just in months of its beginning, the exchange topped all charts?
Some of the most popular names in global cryptocurrency exchanges are – coinbase, bittrex, bitfinex, binance, poloniex, kraken and so on. But for a newbie, it can be head-spinning process to decide, where to go for trading, and where to make a new ID. So, to ease the process, and provide a useful review, here is an in-depth analysis of Binance cryptocurrency exchange and wallet.
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ABOUT BINANCE AND ITS INCEPTION
Binance is one of the largest exchanges out there, and it is based in Tokyo, in China. Binance is an abbreviation of ‘Binary-Finance’, which aptly reveals its identity, and its intentions. It was founded by Changpeng Zhao, who was the former co-founder and CTO of OKcoin, another cryptocurrency exchange based in Beijing, China. Binance is co-founded by Yi He, another member from OKCoin’s founding team, who decided to join Zhao in Binance.
Clearly, the two leaders have a history of working together in cryptocurrency and blockchain based firms, after which they opened their own venture. Binance was started in mid-2017, and today it is worth $1.1 to $2 billion dollars. It is not surprising how the exchange climbed its way up, when there were many other exchanges operating at the time. Both Zhao and He have close partnership with NEO founders, that is the reason they have offered 0 transaction fees on NEO and NEO-GAS coin on their platform.
The fast popularity and a welcoming gesture by investors, was followed by quick adaptation by people across the world. The entire credit for it goes to the lightning speed capability of Binance, which makes it able to execute 1.4 million transactions per second. The current user base of Binance is over 4 million, which is growing every day.
No other decentralized exchange has ever handled such a massive volume with such a quick speed, and an added layer of security that Binance provides.
WHAT MAKES BINANCE DIFFERENT?
Binance is different from all other cryptocurrency exchanges of the world in a way that it started with a token-sale. Binance has its own currency abbreviated as BNB (Binance Coin). It started with a total supply of 200 million tokens. They riased $15 million in just the pre-sale, that gave a kick-start to the venture. Binance started soon after the pre-sale was over, and since then it has just continued to climb up and becoming one of the most popular exchanges of the world.
The added benefits of investing in Binance Coin (BNB) were the discounts on the trading fees. If an investor trades using Binance Coins (BNB), he will save largely on trading fees, as Binance provides 50% concession in 1st year, 25% in 2nd year and 12.5% in third year of your trading. These rebates add up to your savings, using which you can either buy more of BNB, or stock some of those crypto-assets for future.
The withdrawal limit of Binance allows unverified users (Level 1) to withdraw 2 BTC every day, while verified users (Level 2) can withdraw as much as 100 BTC in one day, which is around $800’000 if current price of BTC ($8000 per coin) is considered. Binance also acts as a secure wallet for users.
ADVANTAGES OF BINANCE
Binance has many advantages, and some of them are –
- Lightning fast transactions with user-friendly interface.
- Minimum information required for registering a Basic account (ID).
- For an advanced account you might need a government-issued ID, but verification takes less time, and is relatively quicker compared to other exchanges.
- Maximum security, never been hacked.
- 2FA is available and can be enabled for an added layer of security.
- Available across all devices – web, android, WeChat, PC etc.
- Multi-language support including English, Chinese, Japanese, Korean.
- Binance Labs – a co-venture of Binance Cryptocurrency Exchange, hosts an array of services. They help other start-ups with assistance, funding, resources and advisory. It has kept Binance in news, ever-since.
- To upcoming tokens, they provide a launch-pad that gives them a quick visibility for their pre-sale and incubation period.
- Trading Fees is 0.1% which is one of the lowest in the world. It can be further halved if you use Binance Coin (BNB) to trade.
- Transaction fees depends on the cryptocurrency you want to buy or sell. It also depends upon the blockchain conditions. Currently, transaction fees for Bitcoin is 0.001 BTC and for Ethereum it is 0.01 ETH, while for NEO and Neo-GAS it is 0.
- Binance is supported worldwide, and its easy interface makes it possible for international investors to contribute and trade freely.
- For mobile app, an API private key can be generated to access Binance via third-party websites or applications.
- Binance acts as a wallet to store your crypto-assets, since it has advanced security protocols.
DISADVANTAGES OF BINANCE
Apart from so many advantages and upsides, Binance also lacks in many domains, and some of them are –
- The biggest disadvantage of Binance is that it does not provide Fiat/Cryptocurrency pairing as of now. There are only cryptocurrencies available, and the pairs too are only of crypto-assets. If you want to buy cryptocurrency using USD or any other Fiat currency, you will need to go elsewhere. On Binance, you first need to deposit your cryptocurrency, only then you can start trading. Hence, PayPal is useless for Binance.
- The application for iOS is not listed in Apple Store, but users can still download it from official Binance-website, by downloading an IPA File.
- The interface of Basic view is easier but if you switch to Advanced view, it is typical and tough to understand. The complex interface of Advanced view has repelled users and forced them to switch back to Basic version. Only seasoned traders are comfortable with Advanced version.
- Android version of Binance mobile app might be available in Google Play Store, but users have reported difficulty in usage.
- Binance stores some data like logging IP addresses from the users’ devices.
- You cannot buy in bulk through Binance, if you want to drop over $100,000, Binance is not for you. Try CryptoGo.
- Since it is based in China, the risk of Chinese government’s behaviour towards cryptocurrency always stands with a fearful stance.
- Another downside of Binance is that they ask for English version Passport verification for the users to become level 2 verified account holders. This leaves out a large bracket of users who do not have passports.
REGULATION AND REACH
Binance is one of the few bitcoin exchanges, that has no compliance issues, as it is available world-wide and accepts international registrations. It is based in China, and as of now, it only provides complete range of its services to Chinese customers, like 2FA (two-factor authentication) that only approves Chinese numbers for now.
As per similarweb.com, the total visits that Binance managed to pull in January 2018 were around 380 million, which is around 88% more than the previous month. Binance can be called a gap-bridging portal, which is not restricted to a geography.
Binance has the lowest global ranking of #247 compared to Kucoin.com (#1287) and coinbase.com (#396). While the total visits by users on Binance.com (306 million) are slightly less than coinbase.com (359 million).
You can notice the consistency that Binance.com has maintained with its user-visits and traffic. It has been increasing with a gradual slope, while with coinbase.com, the traffic has reduced relatively.
It is interesting to notice that despite being pro-Chinese, the highest number of visitors it pulls are from USA, which is whooping 24.3% (almost a quarter), while the Turkish stand second in line with 8.3% traffic. While Japan, Vietnam and UK are third, fourth and fifth respectively.
The direct competitors of Binance are – coinbase.com, Bittrex.com and Kucoin.com.
SOCIAL MEDIA INFLUENCE
Binance has a heavy social media influence on its popularity. Fascinatingly, YouTube is the social media that has contributed almost 38%, while Facebook stands at 27% and Twitter at 16% in referring Binance to users.
BINANCE SIGN-UP AND SECURITY FEATURES
Signing-up on Binance is very easy, especially for new users who want to register for a Basic account. An advanced sign-up may require your government issued ID, which might take some time to verify. A basic account however, is almost instantly ready to use.
You can transfer the cryptocurrency from your other accounts and start trading instantly on Binance. There is no option to ‘buy’ cryptocurrency using USD, Euro, YEN or any other Fiat currency, but you can surely convert your Ethereum or Bitcoin into other currencies and ICOs to trade.
Earlier enabling 2FA (two-factor authentication) was only possible for Chinese users, but now Binance has opened this option for international users as well. International users can either enable SMS verification through OTP (one-time password) or can also enable Google Authentication for signing-in and withdrawing funds from their accounts.
Although Binance is one of the most secure exchanges as it has never been hacked so far, but still some users complained of losing money as their accounts were not secured with 2FA, hence it is highly recommended to use and enable 2FA on all your cryptocurrency exchanges.
To verify your account from Level 1 to Level 2, you might need to submit your passport images, and your own selfie while holding the passport. All these conditions make it tough to conduct a thorough verification, but once submitted correctly, the turn-around time is very less. Binance quickly verifies the documents and upgrades your account from Level 1 to 2. Hence, it is generally not advised to use any online bitcoin exchange as a wallet, because they all are prone to hacking.
CRYPTOCURRENCIES SUPPORTED BY BINANCE
Binance supports a hub of cryptocurrencies and ICO Tokens. There are many tokens that you might not find elsewhere, but only on Binance. As of now, it supports more than 250 cryptocurrencies and tokens. Some of the ICO tokens, got a window to begin through Binance, and since there was no other place to trade in those currencies, hence this bitcoin exchange quickly gained popularity among users who wanted to trade in alt-coins. Its own in-house coin – Binance Coin (BNB), gained instant fame after being launched. That is the reason why Binance continues to operate as third largest cryptocurrency exchange by trading volume.
Binance has gained an instant popularity because of its low trading fees and added discounts with BNB coin. No other cryptocurrency exchange can provide such low fees, nor can they transact such massive volumes of currency in a matter of hours. Binance has an extensive and fundamentally solid network, that supports maximum users with minimum hassle. Binance also supports major hard-forks, and you can trade in both Bitcoin Cash (BCH) and Bitcoin Gold (BCG) on Binance.
BINANCE FEE STRUCTURE
Update: Binance are offering a 70% discount in fees to recognise the trading platform being down for an upgrade.
The Binance fees are the lowest at 0.1%. Where Bittrex charges around 0.25% fees of the trading volume, Poloniex has a maker and taker structure for its fees, where the seller pays more than the buyer.
Coinbase charges almost 1.49% on buying/selling and around double of that if the transactions are made using credit/debit cards. People are also extensively using PayPal to trade crypto-assets, but for Binance the credit cards and PayPal do not work.
Binance is the only one that charges 0.1% of the volume traded, and they further offer to reduce that to 0.05% if the trader uses BNB (Binance) coin to trade. Such features are not available with any other exchange of the world.
Binance has two separate sections on their website – one is announcements, where users can find the latest news related to the cryptocurrency exchange. The other section contains a hub of FAQs, which are further divided into sub-sections that make it easy to refer even for a new user.
Apart from these sections, it has a separate section where they invite users to submit requests. To help deal with their grievances in a faster manner, they have a drop-down menu with some common issues pre-listed for the ease of the customer.
If you have an issue that is not listed in the menu, or FAQs, you can always click on ‘other issue’. It will redirect you to another window where you can write your issue down and submit your request. Their customer support team is responsive and active.
With a hub of cryptocurrencies available to trade, lowest possible trading fees and 100 BTC withdrawal limit per day for level-2 users, Binance has easily become one of the most popular crypto-exchanges in the world. It has continued to remain strong at third-position in traded market volume. It is likely to grow in the future given its talented founders on the board. With a lot in the pipeline, and this review we hope that you are in a better position to make a constructive decision for yourself. The homepage will show you other exchanges to check out.