It is always a challenge to choose what crypto exchange one will use. The main challenge is always picking one best suited to your requirements. Additionally, many crypto exchanges allow us to buy, sell and hold our crypto assets. As such, it becomes difficult for beginners to select one.
We take a look at the world's largest cryptocurrency exchange, Binance. What is it, what are its main features, and is it ideal?
What is Binance?
Binance is a popular crypto exchange that is designed for experienced crypto investors. Binance is one of the leading trading platforms, supporting over 500 cryptocurrencies in more than 180 countries. It allows for crypto-crypto trading in these cryptocurrencies and virtual tokens. These include Bitcoin and Altcoins like Ether, Litecoin, and Dogecoin, along with its token, Binance Coin (BNB). Additionally, it offers relatively low trading fees, although its trading options are more limited in the US.
Binance Pros and Cons
Pros
It offers more than 150 tradable cryptocurrencies to US customers, despite its regulations
Offers low fees in transactions
Has a wide selection of trading options and order types.
Cons
The US version is more limited
The platform is complex and may be confusing to beginners
The platform has no built-in digital wallet available.
Binance is faced with specific regulations in several countries.
Introduction
Binance, established in 2017 by Changpen Zhao (CZ), is the leading crypto exchange in the world today. However, the platform has run into regulatory issues and is currently under investigation in the US.
It comes in two operations. There is a mobile application, and also one can have a desktop version. Binance has a wide array of trading features, including an impressive market chart selection. Users can also access various trading options, including futures and options, as well as various order types.
With many tools and features, Binance has a comprehensive learning platform, an NFT platform, and more. As it is limited in the US, the NFT marketplace does not appear available to US customers yet.
It is the largest crypto exchange in terms of the trading volume.
Experienced traders may appreciate the variety Binance offers. However, beginners might find the platform confusing due to its many features.
Cryptocurrencies Available in Binance
Binance has more than 350 cryptocurrencies available for trade on its exchange. However, only 150 of these are available in the US. Besides, for international users, it supports various fiat currencies, including USD, EUR, AUD, GBP, HKD, and INR.
Binance supports popular cryptocurrencies, which include;
Binance Services
Binance Exchange
Binance exchange allows users to exchange fiat for Bitcoin or other coins. There are different ways for one to buy crypto on Binance.
P2P Trading- It has been an elegant feature, with the platform providing a peer-to-peer P2P trading service, directly connecting buyers and sellers of crypto. It allows for fiat payments, with a wide array of payment options that rhyme with the user's preference.
Credit/Debit Card- Binance partners with Simplex to provide a brokerage service supporting credit and debit cards. The service allows you to buy a different variety of different cryptocurrencies with a credit or debit card.
Binance Trading Platform
Trading on Binance is relatively easy and user-friendly. Users can choose between a beginner-friendly or advanced trading interface for spot trading, catering to all users. Additionally, the platform offers various trading tools, including real-time charting tools with moving averages and exponential moving averages.
Besides, traders can place their trades through the Binance app, the Binance website, or the Binance desktop app. Using Binance, any user can still see their portfolios and trade history and the order book and price charts. It also provides users with different order types, including a stop order, limit order, stop-limit order, stop-market order, and trailing stop order.
Binance Futures and Derivatives
Binance futures allows traders to speculate on the price of (rather than purchase and sell) Bitcoin and popular Altcoins. Besides, Binance allows for leveraged trading of up to 20x, meaning that traders can multiply their profits or losses by 20 times.
Binance Fees
In a competitive space, the fee structure of Binance is cutting-edge. The platform offers spot trading fees at 0.1%, which is very enticing. Additionally, for futures trading, users can enjoy even lower fees, which start at 0.02%.
When using BNB, its native token, for transaction fees, users can receive a 25% discount.
Deposits on the platform are entirely free. However, withdrawal fees do apply, which in some ways correlate with blockchain transaction fees.
Binance Security
Binance's security features two-factor authentication (2FA) through the Google Authenticator app or short message service (SMS), address whitelisting, device management, and the ability to restrict device access.
We can say that their security offering is about average for the industry. However, it is the company's reputation that remains to be a cause for concern.
Opening a Binance Account
To have a Binance account, follow the steps below:
Step 1: Visit the Binance Website
Step 2: Click the "Get Started" button in the top-right-hand corner and enter the required info. The registration process can take a few minutes, as Binance will verify your account information.
Step 3: Enable 2FA
Step 4: Link your payment method
Step 5: Deposit funds and start trading
How Binance Compares to Other Cryptocurrency Companies
Overall, Binance offers a wide range of supported assets and trading options for global traders, and its rates are also some of the lowest in the industry. Even though the platform is full of positives, its compliance issues have become a concern.
If the platform does not sound like a suitable option, you may want to conder other options like Coinbase, one of its primary competitors, or even Kucoin.
Final Thoughts
Although Binance is the largest cryptocurrency exchange in the world, the ongoing investigations and the long list of countries banning or limiting its services are cause for concern.
Its platform also may be too complicated for new cryptocurrency investors. However, if you are an experienced global trader eager to explore different tokens and trade options, Binance may have the features you are looking for.
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