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The Binance platform offers a number of pros and cons which should both be heavily weighed. Starting with pros, users are eligible for a savings trial fund voucher after completing the verification process, there is a wide variety of trading types and platforms, and there is a VIP level system that is designed to encourage new users to keep trading to reap the benefits of increasing their levels. As for cons, there are unfortunately some. These include the long waiting time for the personal verification process and an overwhelming interface that may intimidate novice traders.
Binance is a cryptocurrency exchange and is, at the time of writing, the largest cryptocurrency exchange on the market. It is important to note that the main Binance exchange website is currently unavailable in the United States, due to finance regulations. With that being said, Binance have launched a sister website (Binance.us), which is a separate exchange designed to comply with all applicable laws in the US (although this sister website is currently banned in seven states (namely Connecticut, Hawaii, Idaho, Louisiana, New York, Texas and Vermont).
To start with, registering an account with Binance is a simple process – it merely takes entering a valid email address and creating a password that is a minimum of eight characters, at least one number and at least one upper case character. You are then directed to a security verification process (which could be a puzzle or another verification process – essentially this is a process to prove that you, as a new potential user, are a human being and not a robot. Once you have completed this verification process, you will then be emailed a verification code to proceed. Once you have entered your verification code, you will then be asked to complete the personal verification procedure.
The personal verification procedure starts off with you entering your personal information as required, providing proof of Government-issued identification (this would generally be your passport) and a facia recognition process. The review procedure to check and verify this information takes ten days, which is a substantial time to wait. Once your identification has been processed and you will receive get a 500 BUSD Savings Trial Fund Voucher.
Binance does incorporate two-factor authentication when logging in to the website, which is done via an SMS message or a Google Authentication process.
Binance have made recommendations in terms of securing your new Binance account which, alongside Google or SMS two-factor authenticators methods, include checking and restricting which devices can access your Binance account, using a strong password (a mixture of upper and lower case letters, numbers and symbols which are unpredictable for hackers) and changing it regularly, whitelisting (ensuring that withdrawals are only made to addresses that you trust and to a list that you’ve created).
Binance also offer their own crypto wallet, Trust Wallet, which can be connected to your Binance account. Using a wallet such as this can be recommended as it provides a large amount of convenience. However, as with any crypto wallet, there are also potential security risks.
Binance also recommend not using the website/platform in a public network (unless using a VPN), as there is always a risk to your investments and cryptocurrency when accessing the platform in this way. There are simpler steps that can also be taken, such as installing anti-virus programs on your PC, your laptop and any other devices that you will be using to access Binance. Always monitor your messages and emails and be aware of malware and phishing attempts – once you’ve fallen for those, your finances are seriously at risk, so it is key to keep your wits about you when you’re using this platform.
The deposit process is a simple process, with various options in terms of how to deposit your finances (this can be via fiat currencies – regular currencies – or digital currency). One way to do this is to use your debit or credit card, but this is the most expensive method. The fee does vary depending on the currency and varies between 3% to 4.5% of the deposit that you’re putting in. If you’re depositing a cryptocurrency directly into your Binance account, there is no charge. Therefore, it would be recommended to use a crypto wallet to convert your fiat finance into a cryptocurrency and then deposit that into your Binance account. This bypasses the high fiat deposit fee and means that you can invest more in the markets.
The withdrawal fees of the cryptocurrencies do vary greatly from 0 for the ACM (AC Milan Fan Token) to 248 for withdrawals on the ARPA blockchain.
The trading fees do vary based on the type of trading that you’re planning to do. They also depend on your VIP level (which increases the more transactions that you complete.)
For the makers, this varies between 0.0200% and 0.1000%, and the taker fee varies between 0.0400% and 0.1000%.
This is based upon the cryptocurrency that you’re borrowing or lending, so the fee on this can vary drastically and is also changeable. The best way to track this is to look on the Binance fee page and to monitor this as often as possible.
The maker fee on this trading section varies from 0% (for the VIP level 9) to 0.0200% for VIP 0. The taker fee starts at 0.0170% for VIP level 9 and 0.0400% for VIP 0.
On this trading platform, the maker fee is -0.0090% for VIP level 9 and is 0.0100% for VIP 0. The taker fee is 0.0240% for VIP Levels 5 – 9 and 0.0450% for VIP 0.
Once your verification has been completed, you will now be able to trade.
Binance does offer a variation on how to trade, and this can be useful to work with if you are unsure of what you’re working with.
The Convert & OTC Portal is the simplest trading interface to work with, and it is a portal where (on the market section) you convert one token immediately into another. There is no fee to complete this transaction. The limit section allows you to monitor the relationship between the two selected cryptocurrencies and to see the trading rates and activities between those cryptocurrencies in the previous 24 hours. You also have the option of viewing the same chart, but with different timespans of one week and one month. When you decide to enter your limits, you have a choice of expiry time between 1 hour, 1 day, 3 days and 7 days. These timespans are selected so that you can monitor the activity within this time.
The Classic option takes new users to a tutorial video about Spot Trading as you do need to have some understanding about that type of trading before you get into the depths of Binance. Once you have watched the video, the platform takes you through each step of the interface, listed as follows:
As is indicative by the name, the advanced screen does give you more options to look at, but does require a thorough understanding of what you’re looking at. This screen includes all of the options that the Classic screen does, but includes the spot trading screen and also incorporates the limit screen mentioned in the convert and OTC panel. Essentially, the advanced screen is an amalgamation of the classic and convert and OTC panel screens and charts.
In order to be able to partake in the margin trading, one needs to complete a quiz first to ensure that you know what you’re doing when you get involved in it. These questions are thorough, multiple-choice questions that are designed to ensure that you understand what margin trading is and the risks involved with it. Once you have passed this quiz, the screen is similar to the advanced screen, but with added cross and isolated columns.
The P2P (peer to peer) section is where users can purchase or sell cryptocurrencies directly to other users. If you’re planning to buy cryptocurrency in this way, you’ll be taken to a screen that contains adverts (where users have placed how much cryptocurrency they’re selling and what they’d like in return for it.) You can buy this with fiat currency, but you’re limited to what is being sold for that currency if you do opt for that. If you’re opting to sell cryptocurrency, you can see what other users are requesting (as they can place an order request if they’d like a certain amount.) By having this feature, this allows users to trade between one another as individuals.
This is the section where you can invest your crypto coins into equity shares. At the time of writing, companies such as Apple, Tesla and Microsoft were included in the list. Being able to trade equity shares does require a considerable amount of finance on your side, as these are large companies that are included. However, if you have managed to increase your trading portfolio to that kind of level, there is no reason why you cannot invest into shares in large companies such as this and become a true crypto-investor.
Binance’s NFT (nonfungible token) section is extensive and creative. Different projects and artworks are available for purchase using these tokens. You can also purchase mystery boxes, which can contain artwork and games. This section does add a creative and fun element to the website and also includes auctions where you can bid on the creative work (using cryptocurrencies such as Bitcoin and Ethereum, as the auctioneers set the conditions of the auction.) Being able to participate in an auction where you can purchase creative work from fellow users allows creativity to thrive and, given the difficulties that the Covid-19 pandemic has thrown at us, has allowed artists to make a living (if they can get a good following.)
Another feature of the NFT section (and following on from the auctions mentioned previously) is the opportunity to directly view the creative work of fellow users. Creative workers can create their own profiles on Binance and set their profile up as a shop. By having this, those in the creative industries have an opportunity to make a living and a following by selling their work on multiple platforms.
There are over 500 cryptocurrencies available for purchase on Binance, and these vary from the popular ones such as Bitcoin, Ethereum to lesser-known ones such as SafePal and Swipe. Because of the wide variety available, this has made Binance the most popular cryptocurrency exchange on the market.
To conclude, Binance is the leading cryptocurrency exchange platform on the market and it isn’t hard to see why. The diversity in trading and market options, the use of auctions to encourage those in the creative industries to sell their work and the tutorials on each section of the trading department ensure that every user gets the most out of their Binance experience.
