Binance has garnered major popularity after it climbed into the top-3 of the world’s largest exchanges. But how did it all happen, and what makes Binance so popular that just in months of it being launched, 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 a difficult decision about where to go. So, to ease the process, and provide a useful review, here is an in-depth analysis of Binance cryptocurrency exchange and wallet.
ABOUT BITCOIN EXCHANGE BINANCE AND ITS LAUNCH
Binance is one of the largest exchanges out there, it’s based in Tokyo, 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 at Binance.
The two leaders have a history of working together in cryptocurrency and blockchain based firms, which always bodes well for any new venture. Binance started in mid-2017, and today it is worth $1.1 to $2 billion dollars (difficult to put a figure on the exact amount). 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. Given that, it is not surprising how the exchange climbed its way up the rankings, zero fees will always attract customers.
The welcoming gesture by investors, was quickly followed by a rise in popularity and an increase in users across the world. This is credited to Binance’s lightning speed capability, which makes it able to execute 1.4 million transactions per second. The current user base of Binance is over 4 million, and growing every day.
No other decentralised exchange has ever handled such a massive volume with such a quick speed, and with an added layer of security that Binance provides.
WHAT MAKES BINANCE DIFFERENT?
Binance is different from all other cryptocurrency exchanges because 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 raised $15 million in just the pre-sale, which kick-started the venture. Binance started soon after the pre-sale was over, and since then it has just continued to grow and become one of the most popular exchanges in 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, and can be used to buy more BNB or other cryptocurrencies.
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 the news, again boosting its credibility.
- To upcoming tokens, they provide a launch-pad that gives them 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, as it has advanced security protocols.
DISADVANTAGES OF BINANCE
Despite the many advantages and upsides, Binance also lacks in some areas, as highlighted below –
- 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 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 can be tough to understand. The complex interface of Advanced view has repelled users and forced them to switch back to Basic version. Only seasoned traders appear to be comfortable with Advanced version.
- Android version of the 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 one from our list of reviewed cryptocurrency exchanges.
- Since it is based in China, the risk of Chinese government’s behaviour towards cryptocurrency always stands with a fearful stance.
REGULATION AND REACH
Binance is one of the few bitcoin exchanges that has no compliance issues, it is available world-wide and accepts international registrations. It is based in China, and for the moment it only provides Chinese clients with the full scope of the services.
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 may notice the consistency that Binance.com has maintained with its user-visits and traffic. It has been increasing with a gradual slope, while coinbase.com has had a steady decline in traffic.
It is interesting to notice that despite being pro-Chinese, the highest number of visitors it pulls are from USA, which is whopping 24.3%, while the Turkish stand second with 8.3% traffic. 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 large social media influence compared to other exchanges, which again has enhanced its popularity and reach. 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 requires 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 convert your Ethereum or Bitcoin into other currencies. On top of that you can also access lots of new coins from ICOs.
At first, 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 use Google Authentication for signing-in and withdrawing funds from their account.
Binance is one of the most secure exchanges because it is yet to have been hacked, however they have received complaints from users that have lost coins from their accounts because they were not secured by 2FA, hence it is highly recommended to use and enable 2FA on all your cryptocurrency exchanges.
To get level 2 verification, you need to submit your passport as well as a picture of yourself holding the passport. All these conditions make verification an elongated process, but once submitted correctly, the turn-around time is relatively low. Binance quickly verifies the documents and upgrades your account from Level 1 to 2.
CRYPTOCURRENCIES SUPPORTED BY BINANCE
Binance supports a hub of cryptocurrencies and ICO Tokens. There are many tokens that you will not find elsewhere, only on Binance. Currently, it supports more than 250 cryptocurrencies and tokens. The fact that some ICO tokens are only available on Binance has really added to the growth of the exchange.
It brings a whole new set of investors to the table, angel investors or early investors that have an increased risk appetitie. Its own in-house coin – Binance Coin (BNB), gained instant fame after being launched. That is the reason why Binance continues to operate as the 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
The Binance fees are the lowest on the market at 0.1%. 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 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.
They also have 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. They do not offer any phone support for their clients, which is not ideal.
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 cemented itself in third position in terms of traded volume and looks likely to grow given its talented founders. 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.