Reviewing Binance Exchange: Take a close look at the Crypto Behemoth

Content

Binance – From an ICO to the biggest exchange in the world

While most Chinese exchanges failed to reach a global audience, there is a very important exception: Binance, the world's largest trade volume exchange.

Changpeng Zhao (better known as CZ) is the mind behind this Chinese exchange. It is worth mentioning that he already had some trading experience before founding Binance – he started his already impressive career building commercial engines at the Tokyo Stock Exchange. After CZ discovered the existence of Bitcoin in 2013, he started working on a number of cryptographic-oriented projects, including Binance's current rival, OKCoin, but then eventually decided to start the own crypto-unique exchange.

In order to raise funds for the new Binance stock exchange that was supposed to become a leader in the crypto-crypto niche, CZ conducted a fairly successful ICO, raising $ 15m. Investors were rewarded with Binance Coin (BNB), the native token of the Hong Kong stock exchange.

Despite the Chinese crackdown on cryptocurrencies, Binance has managed to enjoy a monstrous success against all odds. He literally had to temporarily suspend the recordings due to an incredibly high demand. As of now, Binance led by CZ records daily trading volumes of over $ 1 billion. Such a large volume is partially attributed to the enormous speed of exchange transactions. Binance is able to process up to 1.4 million orders in a single second. However, CZ keeps it humble.

"As far as we are concerned, we work hard to not always be the number one, because being the number one sometimes creates other problems, especially with regulators." & # 39; – CZ

Now, the Binance exchange is expanding globally, the landing partnership after the partnership. It is worth mentioning that the Binance exchange has already operated in Malta, Singapore and other countries. That said, it is important to determine if the exchange is at the height of this immense outcry.

In addition to English, the Binance exchange – an East-oriented exchange – also supports Chinese, Korean and Japanese. Given CZ's ambitious plans to create a truly global digital asset trading platform, it is expected that more languages ​​will be added in the future.

Set up an account

Let's jump into the registration process on Binance!

The process of buying cryptocurrency is quite simple. To create your Binance account, click on the upper right corner, where it says "Register". Then, you have to enter all the necessary information. Complete the captcha by sliding the puzzle to the missing location and search for an email in your inbox.

So, simply log in to your account. A pop-up window will appear asking you to enable 2FA on Binance (you need to download an application and scan a QR code).

As you can see, the registration process for the exchange is very simple and straightforward. In fact, you are already able to withdraw up to 2 BTC from Binance even without confirming your identity.

Deposit Criptovalute: what methods of payment are available?

Since it is a crypto-cryptographic exchange, cryptocurrencies remain the only payment method available on Binance. To purchase altcoin, you must purchase Bitcoin or Ether on Coinbase (or any other fiat-to-crypto exchange first). Most of these assets are traded with these two currencies, so it makes sense to deposit them first on the Binance exchange.

Once the list of coins is displayed, click on the "Deposit" button.

You must know your Bitcoin address in order to deposit money in Binance. Just copy the Binance address and deposit funds from your ordinary portfolio (the same modus operandi applies to Ethereum, Litecoin and many other businesses).

NB: the funds will not be available on your account at the moment! It may take up to a couple of hours before your money is deposited into your Binance account by another exchange, but you will receive your coins in a moment after five network confirmations.

Cryptocurrency Purchase: buy Bitcoin, Ethereum or any other altcoin!

To purchase Crypto on Binance, you need to go to the "Exchange" section and choose the "Basic" option in a drop down window. After doing so, enter the check mark of any cryptocurrency of your choice in a search box to select a corresponding trading pair (most of the assets are traded with Bitcoin or Ethereum).

Select this trading pair to view a candlestick chart showing the latest price fluctuations related to a certain cryptocurrency that is listed on the Binance stock exchange.

If you are willing to buy Crypto on Binance, there are two options available on the exchange: a market order and a limited order. The purchase of any cryptocurrency at the current market price on Binance presupposes the creation of the market order. Meanwhile, the limit order allows you to buy (or sell) coins at a specific price without the need to constantly monitor the Binance bag.

Trading fees

There is a flat trading rate on Binance which is set to 0.1 percent. In July, Binance launched a new discount program on trading commissions that classifies users based on trading volumes and the current BNB balance. As shown in the table below, producer fees and taxes for consumers can be reduced to 0.02% and 0.04% respectively. Of course, even the minimum discount remains an unmissable dream for Binance run-off-the-mill traders since the monthly trading volume must exceed 100 BTC ($ 641,833 at the time of writing this article). Meanwhile, the highest VIP level on Binance remains an exclusive billionaire club of Bitcoin since 150,000 BTC is very close to the value of $ 1 (it is very questionable if the largest cryptic whales can boast such huge trading volumes on the exchange).

There is also a 25% discount on all trading fees paid in the BNB token (according to the Binance white paper, this discount will decrease each year until it disappears completely in 2021).

Deposits do not involve any additional payment, but there is a pick-up fee that depends on the digital asset of your choice (some digital activities such as NEO do not imply any withdrawal charges on the Binance exchange).

Transaction limits

Since Binance is a crypto-cryptographic exchange, you can not deposit legal currencies. However, when it comes to cryptography, you can deposit an unlimited amount of digital resources. However, there are withdrawal limits that are directly related to the level of verification on the Binance stock exchange.

If you want to break the chains of the 2 BTC limitation per day, you need to go through the Binance verification process. To reach Level 2, you must enable 2FA (which is a mandatory requirement for each exchange that helps improve user protection). After that, you must complete KYC verification by sending your personal information to the Binance exchange (name, address and photo of your ID).

Once you do this, you are free to send up to 100 BTC to your wallet every day. In particular, the verification process on the Binance exchange is significantly less invasive than other exchanges since only the photo of your ID is needed to seal the deal.

High-dollar investors are able to withdraw even more, but they must contact Binance's customer support if such a need exists.

Safety: is there any reason to worry about your coins?

It is absolutely clear that the ability to build a large user base in such a short space of time comes from creating a high level of trust. Unlike an army of other Chinese trades that are often associated with false trading volumes and other cheating, Binance appears to be a solid trading platform. Binance really offers high level security?

Unlike Coinbase, one of the main fiat-to-crypto exchanges, Binance led by CZ does not provide enough information on how its clients' funds should guarantee, which could interest some Binance investors. One would be naive to assume that Binance, the largest exchange on the market expected to rake in a billion dollars, even in the midst of the broken crypt, would not take user safety seriously. The downside, the infamous Mount. The Gox fiasco shows that no one is too big to fail in this nascent industry, and Binance could see the same fate.

In fact, Binance suffered from a serious phishing attack in March. Hackers have collected user access for months with the help of scam websites to steal their funds. All the Binco users' portfolios were converted into BTCs, but then they were hampered by the withdrawal process. Since these individuals started pumping Viacoin in advance, they proved to be the only ones to lose funds while the attack itself had been effectively prevented by Binance.

NB: always check the website address before entering any sensitive information that could compromise the security of your Binance account!

In addition, there are many security features that will help you improve the security of your Binance account:

Speaking of the regulatory side of this problem, it must be emphasized that Binance is not registered in the United States, which essentially means that the exchange does not have to comply with the policies of the SEC.

In September, U.Today reported an explosive report by New York attorney general, Barbara Underwood, who said that Binance, along with other big name swaps, does not adequately protect its users from manipulation. This does not necessarily mean that Binance has broken the law: the watchdog simply requires greater clarity on investor protection.

Customer care

The success of a certain exchange depends to a large extent on the responsiveness of customer support. HitBTC, for example, provides its users with disastrous feedback despite being one of the main exchanges. Speaking of Binance, there is also room for improvements since the exchange does not provide live chat support – a very useful tool if you need a quick response. In addition, Binance users do not have the ability to contact the telephone support team.

You can leave a request on your website and wait for a reply that is sent to your email address. Since Binance is positioned to become a global exchange, there is a multilingual customer support. However, Binance is usually criticized for a long response time (it usually takes three days for Binance's staff to respond to the request). Still, Binance has a good presence on social media: he has more than 880,000 followers on Twitter, and CZ himself often tweets too, keeping the Binance user base constantly busy.

pros and cons

Binance Benefits:

1. Large and solid user base. The fact that Binance is globally considered reliable by so many traders is a clear indicator of the fact that it is a force that should not be underestimated. Moreover, as mentioned above, Binance is perfectly suited for both seasoned traders and novice users who are making their first foray into the world of cryptography.

2. A gigantic amount of coins. Binance has become the cornerstone of those who want to diversify their investment portfolio with alternative sectors.

3. High-speed (Binance can process up to 1.4 million TPS).

4. A competitive pricing structure with a transparent discount system offered by the Binance team.

Binance Disadvantages:

1. Customer support less reactive to Binance than other competing exchanges.

2. There have been numerous complaints about the support for the withdrawal to Binance.

3. China. Binance is based in Hong Kong, but still remains in China's sights (which maintains its hawkish position on the crypt).

4. Concerns related to privacy. Binance is storing user data, which could be alarming for those who value their privacy.

5. The absence of deposits in fiat and withdrawals on Binance (to buy Bitcoin, you must deposit Bitcoin from Coinbase).

Decentralized exchange in sight?

While it is already outperforming all other exchanges in the crypto-crypto department, Binance is approaching the launch of its decentralized exchange (DEX) which is expected to enter live in the first quarter of 2019. BNB will be a native currency in the exchange that should guarantee users the freedom to have full control of their funds.

The theme of decentralized exchanges has always been a rather questionable problem in cryptographic space. While Ran Neuner's experts call them the future of the cryptography industry, the existing examples of such exchanges do not even have an ½ ounce of the popularity of their centralized competitors (which actually apply to all dApps).

The tariffs mentioned above remain Binance's bread and butter, but the co-founder of Ethereum Vitalik Buterin has already found a solution to reward decentralized trade developers by including native taxes in smart contracts (case in point: EtherDelta).

CZ believes that Binance is the best alternative of a decentralized exchange since it has a solid infrastructure. The CEO says that the main advantage of decentralized and decentralized trading platforms is the ability of users to completely control their funds. There are no user accounts – all transactions are conducted on a blockchain. In this case, a centralized exchange like Binance does not act as custodian of portfolios.

Conclusion

The fact that Binance has risen to the forefront in no time is no surprise: the exchange stands out among its competitors because of its low commissions, a bevy of coins available and a perfect reputation (Binance has not yet suffered single hack since its beginning). The downside, everything is changing at a vertiginous speed in the world of the crypt – one day you're the cock of the walk, the next you're the duster.

Binance continues to assert its dominance by opening offices all over the world, but the exchange has not yet managed to overcome the test of time to appear in the "oldtimer" crowd. Anyway, the future looks bright for Binance with CZ-lead, and there's no reason why it should not be your first choice when it comes to C2C exchanges.