As cryptocurrencies grow in popularity, more and more people will be interested in owning or trading these so-called coins. Because of that, many cryptocurrency exchanges are created to facilitate buying, selling, and trading these different cryptocurrencies.
The many cryptocurrency exchanges makes it difficult for people to choose the best one. One might be aimed at beginners while the other aimed at professionals with years of experience. It’s very important to know which one is the best for you.
Binance is one of the largest cryptocurrency exchanges in the world, in this article we will deep dive into the Binance exchange and their features. If you’re interested in trading cryptocurrencies and to learn more about Binance, read on!
Contents
What is Binance Exchange
Binance is a cryptocurrency exchange that facilitates crypto-to-crypto trading. This means that they don’t accept fiat currency such as US dollars or pound sterling. This exchange was founded in China in early 2017 by Changpeng Zao or better known as CZ. However, due to increasingly tight regulatory pressure regarding cryptocurrencies and financial companies, Binance has moved it’s base of operations to Japan.
Before Binance opened their crypto-exchange, they raised money through an ICO or initial coin offering. The concept is very similar to an IPO but is crowdsourced rather than centralized on a stock exchange. The closest parallel to an ICO would be crowdfunding an indie game where people pay to get the game running and become their early adopters
Binance raised a staggering amount of $15 million. In return, the early investors were given a reward of their own which is the cryptocurrency token BNB or Binance coin. You should know that this token is built on the ethereum blockchain.
Currently, Binance is one of the largest and most successful cryptocurrency exchanges. They are averaging more than $1 billion in daily trades, this makes them the largest exchange for alt-coin trading.
The stellar growth of the Binance ecosystem even forced them to suspend new registrations in January 2018 due to fear of system overload. However, they’re currently active and are accepting new users.
Binance Features
Binance has a lot of features that improve the user experience of buying and selling cryptocurrencies. This has made them one of the most popular cryptocurrency exchanges in the world.
Here are several Binance features and advantages that you might find interesting
Cheap transfer fees and it can get even cheaper if you use BNB coin for the transaction fee
Huge selection of cryptocurrencies to choose from. Currently, Binance has a list of over 300 tokens you can buy, sell, and trade in their system
Highly accessible, you can access Binance using an Android or an iOS app
Multiple trading interfaces depending on your familiarity with trading. Binance offers beginner, classic, and advanced interfaces depending on what you need and want
Access to Binance earn, a feature to grow your cryptocurrencies safely. The platform enables you to stake and save coins that will then earn interest (or fees) depending on the program
Access to Binance Visa card. You can spend your cryptocurrency anywhere they accept this card, which is quite a lot of places actually
Peer to peer crypto trading platform. You can directly trade cryptocurrencies with other people on your own terms.
Loan feature that enables you to borrow cryptocurrencies on the Binance platform
NFT marketplace where you can buy and sell NFTs
Margin trading with up to 10x leverage that will enable you to leverage volatile price movements to generate a lot of profit
Ability to trade in future and derivative contracts
These features have helped Binance become the most well known cryptocurrency exchange in the world. In this article, we will discuss several of these notable features in depth so you can understand what they do and how they’re beneficial for you.
Binance Coin (BNB)
Binance coin (BNB) is a cryptocurrency that can be traded and used to pay fees on the Binance Cryptocurrency exchange. In general, using the BNB can decrease the fees you have to pay when using the Binance exchange.
If you’re a high volume trader using the Binance exchange, having a lot of BNB can be advantageous to drastically reduce your transaction fees. You can learn more about it below on our Binance fees section. Having BNB can decrease your fees by over 25%. This will drastically increase your profits if you’re a high volume trader. All in all, having BNB is advantageous for its uses on the Binance platform and also for it’s tradeability as a regular cryptocurrency coin.
Binance Smart Chain: The Underlying System Behind Binance
Binance smart chain (BSC) is an ethereum based blockchain ledger that’s developed by Binance. This blockchain is specifically developed to handle large numbers of transactions rapidly.
All in all, the BSC blockchain network is a lot like the well established Ethereum network that runs on ETH. Besides, BSC is also compatible with the Ethereum chain so it can run ethereum apps without too much trouble. Users using BSC can execute smart contracts and run trades similar to Ethereum’s model at a cheaper gas price using the BNB token.
However, to slash costs and increase the development speed, BSC uses a unique proof of staked authority or PoSA. This makes the Binance Smart Chain a lot more centralized compared to most blockchain networks on the market today. There are only 21 authorized validators confirming transactions at any given time.
Binance Fees
One of the most important things for people (like us!) is the fees associated with an exchange. Higher fees cut down into the profit margin for trades and it will negatively impact your profit bottom line.
Luckily, Binance has some pretty low transaction, deposit, and withdrawal fees. You can rest assured that you won’t lose a lot of money to the exchange when trading.
Binance Deposit Fees
If you’re depositing cryptocurrency into your binance wallet, there is no fee. However, depositing fiat currency is a different story.
When depositing fiat currency into Binance, the fee depends on the method of deposit and also the currency used. If you deposit Australian Dollars (AUD) using payID or OSKO, it’s going to be free of charge. However, if you’re depositing Hong Kong Dollars (HKD) using your bank, the fee will hover around 3,5%.
You can access the complete list of deposit fees for multiple fiat currency and deposit methods using this link.
Binance Trading Fees
The fees for spot trading cryptocurrency (buying and selling) starts as low as 0.1%. You can even get this lower by using the BNB coin to get a 25% discount on the transaction fee. This means that you’ll only be paying about 0.075% on each trade. This is pretty low compared to other leading cryptocurrency exchanges around the world.
If you’re a large volume trader and hold a lot of BNB, you can reduce your fees even further by leveraging your status as a high-volume trader. You can achieve a very low transaction fee of only 0.015% maker fee and 0.03% taker fee, inclusive of the 25% discount applied to all transactions paid using the BNB coin.
Binance Withdrawal Fees
When you’re withdrawing cryptocurrency from your binance account, you’ll incur a small flat fee to cover the transaction costs of moving the crypto into your wallet. The fee varies a lot depending on which coin you are depositing. You can check the precise withdrawal fee by using this link.
Fiat currency withdrawals are no different, they have variable fees depending on the withdrawal method and also the currency involved. Withdrawing Australian Dollars (AUD) for example using bank transfer is free of charge. However, withdrawing Pound Sterling (GBP) using bank transfer will incur a fee of around 1%. You can check the precise withdrawal fees for fiat currency by using this link.
Binance Earn
Binance earn offers multiple ways to increase and grow your crypto holdings safely without too much hassle. If you want to grow your crypto investment without trading, Binance earn can be a great alternative.
There are many features available in Binance earn, you can use a savings product to deposit coins and earn daily interest from those coins nearly risk free. You can also use activities to access limited yet high yield staking opportunities on the Binance platform.
Users can also use Launchpool to participate in the staking action, provide liquidity, and get rewarded by Binance. You can withdraw your deposited assets at any time and get rewarded for every hour you’re staking in the Launchpool. Besides this, you can also participate in Locked Staking and Ethereum 2.0 staking quite easily by using the Binance platform.
BNB vault enables you to invest your coins without any risk of losing the capital. This enables Hodlers to reap the rewards of increasing capital gains and also a small reward for their contribution to the vault.
If you’re more of a high-risk high-reward type of guy, you can always use the DeFi staking feature. You can also use the dual investment feature to deposit into a single cryptocurrency and earn yield based on two different assets.
Binance liquidity swap enables you to earn high annual returns by contributing your tokens to the Binance liquidity pool. You can also swap your cryptocurrencies in the liquidity pool and enjoy the benefits of low slippage and also low handling fees.
Margin Trading in Binance
Binance enables you to use margin trading on a few select cryptocurrency pairs. Users are able to leverage up to 10x on some of these pairs. Margin trading enables you to rapidly increase your money if the market is bullish. However, if the market is bearish and you take a loss, margin trading might just tank your account and make you lose a lot of money.
Because of that, it’s recommended to not use margin trading except if you’re already a professional in the field. This is a very high risk high reward strategy that can reward you handsomely but can also burn you if handled poorly.
Binance Futures Trading
Binance futures is a relatively new feature in Binance that lets users speculate on the future price of Bitcoins and Altcoins such as Ripple, Ethereum, BNB, Litecoin, and more. When trading in the future market, you’re not really trading cryptocurrency but rather taking advantage of the price rise/falls to make money out of those price movements.
The interface for Binance future is very similar to the regular trading interface. The only difference is on the ability to view open positions and also the function that allows you to control the leverage.
Fees on the binance futures stands at a maximum of 0.04% for any trade. This can be reduced even further if you have massive monthly trading volumes and also traders that provide liquidity to the market.
Binance Trading Bots
Binance is an exchange first and foremost, because of that, they don’t really focus on the automatic trading side of the game. This is where crypto trading bots and algorithms come into play. Currently, Binance has no built-in trading bots that you can use (at least openly). However, there are a lot of third party bots, be it a paid one or an open source bot that you can use to trade on the binance platform.
If you’re looking to use the best trading bots to trade your coins automatically, you should be careful. Not all bots are built the same, some perform better than others while some will underperform. Having the wrong setting will also cost you a lot of money. The bot might trade using faulty signals and indicators, netting you a large loss of capital due to the poor trades that it makes.
Besides the performance, you should also be wary of bots from untrustworthy companies. These bots will have poor performance and might even have poor security features. This will enable hackers and other malicious agents to hack into your account and drain it. Keep your API keys and authorization codes to yourself to avoid any unwanted accidents.
All in all, it’s recommended to stay away from binance trading bots if you’re completely new to crypto trading and have no experience with the crypto world. Watch some videos, look up guides (like the ones on our website!), and ask more knowledgeable people first before delving into the world of crypto trading bots.
Binance and Pionex
As we’ve established before, Binance has no built in trading bots, you need to use third party bots to trade automatically on the Binance platform. Luckily, Pionex, one of the largest and most respected trading bots around, is connected to the Binance platform.
Pionex aggregates demand from Binance and Huobi enabling you to trade using the aggregated demand of both large exchanges. Because of that, trading using Pionex is nearly the same as trading in the Binance exchange with the added benefit of having a trading bot with multiple settings.
Pionex also enables newer traders to grow their cryptocurrency relatively safely using the spot-futures arbitrage bot. If you’re a more experienced trader, you can also use the regular grid bot feature that Pionex has to capitalize on the daily price movement of hundreds of available coins on the exchange.
If you’re confident in the ecosystem of a particular cryptocurrency and have confidence that it will increase in price, you can also use the moon bot to dollar cost average into a particular cryptocurrency token.
All in all, Pionex provides an easy way for new users to access high quality trading bots.at an affordable price. Heck, Pionex is free, we don’t ask you to pay a monthly fee to use our trading bots, unlike several other bots out there.
Frequently Asked Questions about Binance
Here are several questions that are frequently asked by people regarding the Binance platform. Keep your eyes open as your question might have been answered in the section below!
How to Deposit Fiat Money to Binance
It’s very easy to deposit money into Binance, you can deposit more than 60 fiat currencies into Binance with multiple payment methods. To deposit money into Binance, you need to follow these 7 simple steps
- Log in to your Binance account and pick wallet, then click on fiat and spot
- Click on deposit
- Select the fiat tab
- Complete identity verification if you haven’t already by clicking on Verify now and following the instructions
- Select the currency you’d like to deposit and also the payment method to deposit the money. Binance supports credit cards, debit cards, or bank transfer
- Enter the required details and then follow the instructions
- Make sure to double check the details before submitting your payment order
How to Withdraw Fiat Money from Binance
Binance supports over 60 fiat currencies with various methods of depositing and withdrawing. Just like the deposit method above, withdrawing fiat money from Binance is also very easy. Here are the steps you need to take to withdraw money from Binance
- Login into your account
- Click Fiat and then Spot
- Select Withdrawal
- Pick the fiat currency that you want to withdraw
- Choose your preferred payment method. Keep in mind that different regions will have different available payment methods. Check in advance if your preferred method is available
- Enter the details on the page
- Enter the verification code to confirm your withdrawal
How to Withdraw Cryptocurrency from Binance
It’s very easy to withdraw your coins from the Binance exchange. However, you need to make sure to follow the right process. Fail this and you might just lose your hard earned cryptocurrency. Here are the steps that you need to take to withdraw your coins from the Binance exchange
- Login into your Binance account
- Click on fiat and spot
- Click on withdraw
- Select the crypto tab and select which cryptocurrency you’d like to withdraw
- Select the right network to send your coins
- Tap on the desired currency for withdrawal in the trust wallet tab
- Select receive
- Copy the currency address given to you
- Go to the withdrawal page of Binance and then paste the address you’ve just selected
- Check for any errors, if there aren’t any, click submit
- Click send code to send a verification code to your email
- Enter the 2FA code that has been sent to your email
How to Transfer from Coinbase to Binance
Binance and Coinbase are two of the largest cryptocurrency exchanges on the market today. Because of that, it’s quite logical that you or maybe your friends want to know how to transfer your assets between these two exchanges.
Thankfully, the process is very simple. Firstly, you need to have both a coinbase and also a Binance account. If you want to transfer crypto assets from Coinbase to Binance, you’ll need to have crypto assets in your Coinbase first.
First, you need to go to your Binance account and find your encrypted wallet address
- Navigate to the Fiat and Spot page on Binance
- Select the cryptocurrency that you’d want to deposit
- After clicking deposit on the cryptocurrency tab, you’ll land on the cryptocurrency wallet. You’ll see the address of the wallet on the address field
- Copy the address
Now that you have your wallet address, head over to Coinbase and log in into your Coinbase account
- Click the Send/Receive tab and make sure you click on the Send tab
- Enter the amount of crypto that you want to send to Binance
- Paste the Binance wallet address that you’ve copied from the previous step to the To field
- Click on the Pay With and select the cryptocurrency that you want to send
- Click continue to proceed with the transaction
After you’ve clicked on Continue, you’ll land on the transaction overview. Here, you can see the amount of crypto that you’re going to send to Binance and also see the fees associated with the transfer. Make sure that everything is correct before clicking on the Send Now button.
Congratulations! You’ve successfully transferred your crypto tokens from Coinbase to Binance. Usually, this process takes about 30 minutes give or take. However, network congestion and also technical issues might slow it down. Be patient and if it takes too long, quickly notify customer service.
Is Binance Safe?
This is probably the most important question for you before delving deeper into the Binance ecosystem. This is quite a tricky question, technically, Binance is very safe due to it’s multiple safety measures. However, regulatory safety is a whole other issue. Make sure your country allows Binance and crypto trading in general before jumping into the exchange
As we’ve said before, Binance has a lot of safety features that keeps you safe technically. These features include
- Two Factor Authentification feature means that you’ll need a second device to log in into your binance account. This is usually your mobile phone. Every time you try to log in, binance will send a code to your mobile phone to verify your login attempt. This prevents brute force attacks and also malicious hackers from accessing your account remotely without your phone.
- Email confirmation is an additional safety feature in which Binance will send a code to your email to confirm your login attempt. This adds another layer of defense for hackers before they can access your account.
- SAFU or Safe Asset Fund for Users is an insurance pot that is funded through Binance transaction fees. This will guarantee your assets (to an extent) in the event that Binance is hacked or faces a technical malfunction that causes losses for users.
- Device/IP Whitelisting is a feature in which Binance remembers which devices you usually use to log in into your account. If the device/IP is different, Binance will prompt an email confirmation to confirm that it’s really you.
Does Binance have a Withdrawal Limit?
Binance does have a minimum withdrawal amount and this varies depending on the cryptocurrency. You will not be able to withdraw a smaller amount than this number due to system reasons. You can check out the minimum withdrawal amount for all of the coins in the Binance exchange on their official website.
Besides the minimum amount, Binance also has an upper limit of how much you can withdraw per day, depending on if you’ve completed KYC or not. For users that have completed KYC, you can withdraw up to 100 BTC per day. However, for users that haven’t completed the KYC, you can only withdraw 0,6 BTC every day.
Because of this limitation, if you’re a high volume trader that needs to withdraw and deposit large amounts of money into the binance exchange daily, it’s recommended that you finish the KYC process as fast as possible.
