Binance.com Review 2020 – Scam or Not?
Binance.com offers a wide range of cryptocurrencies with several payment methods, including credit card and bank wire transfers. Trade with 100+ altcoins with margin up to 125x on futures on one of the world’s most liquid exchange that is rapidly growing in the crypto industry.
- About the Company
- Verification with Binance.com
- Trading in Binance.com
- Available Coins to Trade
- Ease of Use
- Customer Support
- User Experience
- Pros and Cons
- Supported Payment Methods
- Supported Countries
- FAQ – Frequently asked questions about Binance
When a new website is launched on the internet, what would be the most common review? The most common reviews especially when the newly launched website is an exchange/trading website
is that it could be a scam! A statement that is commonly being said by people that have only read negative reviews about a website but not haven’t tried using or exploring it themselves. But despite the fact that people are talking bad about them, it is still our duty to make sure that we look into their website and have a couple of features pointed out before we even distrust them.
With that being said, we will be reviewing a new exchange company called Binance.com today. Despite what people say about new websites, we will try to dissect them, and know what makes them tick. Without further delay, let’s talk about that!
Binance came from the combination of words “Binary” + “Finance”. Any indeed, Binance offers a lot of different products in the financial space related to cryptocurrencies, including spot trading, fiat purchases, margin trading and crypto futures on their global exchange.
The company behind Binance is currently registered in Malta. Before moving to Europe, originally they were completely operating in China, but due to the regulatory issues with cryptocurrencies, the company decided to transfer operations first to Japan then later to Malta for a more regulation-friendly and favorable environment.
The company’s CEO and founder is Changpeng Zhao who previously dealt with high-frequency trading in Shanghai before joining the crypto space. He worked in Blockchain.info’s wallet team and served as a CTO on OKCoin crypto exchange, before founding Binance in China in 2017.
The company had its ICO in July 2017 and after a few months, released their exchange website where their coin BNB can be used to pay the transaction fees. At the beginning of 2019 they launched Binance Jersey, an independent company to aim their European expansion and later in September Binance.US to help US citizens to purchase crypto in an easy and regulated way.
On their website, it says that they are capable of processing 1,400,000 orders per second with handling an average daily volume of 1.2bn USD, making them the biggest cryptocurrency exchange on the world based on the 24 hours volumes. Impressive numbers if you put into consideration the number of people that go to their website on a daily basis.
Binance is one of the most active community members among crypto exchanges. On their Facebook page and Twitter, they share all the important updates you need to be aware of that is impacting trading and the crypto space. On Reddit you can engage in discussions with other users and this is also one of the forum, where Binance actively responds to user’s questions. Binance runs multiple Telegram channels, dedicated to different topics, including Announcements, Discussions, Researches. They also have separate channels for English and Chinese speaking users. Binance.vision is the home of Binance Academy, a dedicated platform solely to learn everything you need about Bitcoin and altcoins from technology to trading. Their materials are well structured and easy to understand to make sure the largest audience is reached through their guides and walkthroughs.
Verification with Binance.com
Verification levels is a pain when it comes to exchanging websites, it is also a security feature that can help monitor our trading levels and keep in manual to help us control unwanted trades. What are verification levels? Account levels are there to keep the users safe from going over their regular trading capacity. Most of the websites now have manual activation that requires information from the user submitted to the company for review. There are also verification levels that are not connected with trading, but with deposit/withdrawal caps.
There are three verification levels available in Binance.com and these verification levels are for withdrawal limits. The first level has a 24-hour withdrawal limit of 2 BTC, the second level allows up to 100 BTC withdrawal, the last level would be level 3 and this would have a higher limit than 100 BTC (exact amount is not disclosed). How do we level up an account to increase its withdrawal limits?
To increase the regular level (LVL 1) to Level 2, the security SMS Authentication/Google Authentication needs to be turned on. Which is great if you ask us since this is a major increase in an account’s limit. Once this has been turned on, additional verification documents needed to be submitted in order for the account to be increased to level 2. You need to provide your name, date of birth, address and supporting documents, including a government issued ID card, passport or driver’s license. You also need to upload a photo of yourself so the system can compare the photo on your ID with your uploads, so make sure the picture is clear and your face is fully visible to ease the process. To complete the verification, you need to scan a QR code appearing on the screen so the phone number can be linked to your verified account. Note that you can only attempt the verification 3 times during a span of 24 hours but if everything is submitted properly, the process only takes about 10-15 minutes.
The level 3 account needs to go through a manual verification process which demands a user to contact the support team and ask for their approval.
Once logged into the account for the first time, the user will be asked to activate the Two-Factor Authentication under the account. There are two options, one would be the Google Authenticator and the second only works for Mainland China users which is the SMS Authentication. What we found really impressive is that the first time you log into your account is that you are not thrown right away to the sharks, we meant that you will not be thrown directly to the live trading board and they would redirect you to the security tab instead wherein everything needs to be taken care of before moving into trading.
There are quite a few features that this website has to make a user feel comfortable with their registration. We have already mentioned a couple of security features including the ability to add a 2FA to your account. They also have the verification levels for withdrawal limits that enable a user to add a layer of a level if they have gone through the requirements to upgrade one’s account to a different tier.
You are also able to add an API private key where you can access all the trading services of Binance.com from a third-party website or a mobile app, making it easier to transfer from one device to another. One of their famous features that will be talked about later in this review, this is the ability for the registered user to turn ON/OFF the fees payment using the BNB coin.
Beyond the 100+ different coins you can choose to trade with, Binance also offers the direct purchase of Bitcoin, Ethereum, Ripple, Litecoin, BNB, Bitcoin Cash and a couple of stablecoins like PAX, BUSD, and TUSD.
The exchange has two different layouts. Basic design help new users to get the hang of the trading feeling, has all the important information you would need to start trading with crypto on Binance. The chart has live prices, the order book is representing the most up to date trades and you can also see all the price changes for the various coins you can trade with.
In case you already have experience with trading, the advance trading screen will suit all your needs. Here you are given all the charting tools you would need to come and execute your trading strategy. The order book and market depth are also represented on the trading dashboard and you can choose from the various orders, like limit, market and stop orders that help your risk management. Here you can also make margin trades on several cryptos.
Seasoned traders can enjoy the benefits of leverage available up to 125x on Binance Futures platform. Futures contracts are available now in BTCUSDT and ETHUSDT trading pairs and you can also place the same order types on this platform as you would normally do on the spot market dashboard. The difference is that here the leverage can be taken up to 125x on BTC and 50x on ETH with the perpetual contracts. You can read about the various trading dashboard in the next section.
Margin trading is only suggested for experienced traders as here you may lose your invested capital is you do not employ proper risk management. At the same time, if you use margin trading, your available funds to trade are increasing by the leverage you take which can lead to significantly higher profits in case the market moves in line with your expectations.
Beyond margin trading, Binance recently introduced two new ways to earn money on your crypto holdings. Binance Lending lets you earn up to 10% average annual return on your crypto deposits. You can withdraw your funds any time with the flexible deposits, but if you are willing to commit yourself for a longer time period, with fixed deposits you can earn significantly more.
Staking is the other form of earning coins for your unused altcoins. You just need to hold your coins on your Binance account and you will earn staking rewards. The good news is that you can use your coins within the platform just as you would do anyway, as with staking you can translate or trade your coins.
We have already talked about the creation of an account, their website features; it is the perfect time to talk about how much they charge per trade. So how much do they charge? At the current rate, Binance only charges a 0.1% fee for each trade. In addition to this, Binance also runs a maker-taker fee model with volume discounts which lets you shrink your trading fees as low as 0.012%.
Compared to any other websites out there today, they probably have the cheapest trading fee to date! What’s even better is that they have their own coin BNB which can be used on their exchange website. As mentioned earlier, one of their features is to turn ON/OFF the ability to pay the fees with their own coin.
If you are paying for the use of BNB, you will immediately get 25% OFF from the trading fees. This means that the trading fee of 0.1% that’s dirt cheap, would even go down to 0.075% with the discount added. How awesome is that? You guys might want to read up about their coin as it is being discussed in this thread.
Deposits are always free of charge on Binance in all the hundreds of coins they offer. There is no minimum for deposits, but for withdrawals, they do apply limits as the minimum amount you can send out from the platform. For withdrawals, Binance only charges the network fee applicable for the specific coin you want to withdraw.
Trading in Binance.com
Now comes the fun part! Binance.com exchange is divided into two parts. One would be the Basic tab and the other is the advanced tab. We will be going to look into both these tabs but focus rather with the basic one since both are just basically the same, with the “advanced” having more things to look and get confused at.
To get to the basic exchange platform, log into your account. Remember earlier that we’ve talked about being redirected to your security account tab after logging in? On that same page, head over to the upper left-hand corner of the screen and click on the “Exchange” tab. This will open up two options to choose from as mentioned –please select basic.
Seen in the screenshot above, the chosen exchange BNB/BTC (of course, the default should be showing their own coin) can be seen in the upper left-hand corner of the basic trade screen. Found beside the exchange, squared out is the last price for the exchange between BNB and BTC, next to that is the 24-hour exchange rate and further down to the right side would be the high and lowest prices recorded within a twenty-four hour period. Shown charts can be changed between “Candlesticks” and “Depth” depending on what you like to look at.
Since this is a BTC exclusive website, all of the coins will be paired up with BTC. This can be found on the Right-hand side panel of the basic trade window. The list of the available coins that can be traded will be discussed later on in this review.
To Buy or Sell an order you just need to head on to the middle area where you are able to place orders. The price of the BTC can be freely changed to whatever value you think is profitable. After changing or retaining the price, select the amount of BNB or whatever the pair for your BTC is and click on BUY/SELL. Successful orders will then be placed on the left-hand side of the trading page. All Open Orders can also be viewed on the lower part of the trading page. To access this, just scroll down and the lowest part of the page should be it.
Now moving on to the advanced trading page, everything is turned into night mode and the difference is the optimized location of the important tabs found on the trading page. The indicators have been transferred to the upper left-hand side of the trading page, on the far right side would be the candlesticks and depth graphs; this is also where you are able to change the view from the regular or full-screen mode.
Going down on the right-hand side panel are the buy and sell orders that have been recently fulfilled. Below are the order tabs wherein everything that has something to do with placing an order can be found. On the lower right-hand side is the Open Orders, Trade History, and Funds tabs respectively.
One thing that this website lacks when it comes to their trades, would be educational material that can be of great use to new traders that want to get into the trading world. If they are thinking of adding features to their website, adding educational material is the good thing to do.
Available Coins to Trade
“A vast selection of pairings” a humble thought about the coins available to trade on the website Binance.com. And that is simply true and no words can describe the pairs available for exchange. To name a few tradable coins we’ve got BNB, Ark, Bitcoin, Dash, Ethereum, ETH Classic, Litecoin, and a ton more coins! To get a list of the complete available pairings, please head on to their website and create an account, here is the current list of coins available on Binance.
CTR, MATIC, IOTX, CDT, DOCK, STX, DENT, AION, NPXS, BCPT, VIBE, DGD, SUB, ZRX, BCD, POA, AE, IOST, BCH, POE, OMG, BAND, HOT, BTC, NKN, CVC, IOTA, BTG, BCX, ARK, BTM, TRIG, RCN, ARN, KEY, BTS, BTT, ONE, ONG, ANKR, GNT, ALGO, SC, ONT, PPT, RDN, RUB, PIVX, ARDR, AST, CLOAK, MANA, NEBL, VTHO, MEETONE, QSP, SALT, STORM, ATD, ICN, ZEC, REN, APPC, JEX, REP, ADA, ELF, REQ, STORJ, ICX, ADD, LOOM, ZEN, YOYO, PAX, DUSK, DOGE, BOLT, HBAR, RVN, NANO, WAVES, CHZ, ADX, XRP, WPR, KAVA, HCC, SYS, COCOS, TUSD, GAS, WABI, STRAT, ENG, THETA, ENJ, KZT, WAN, OAX, GRS, UND, PERL, TFUEL, LEND, DLT, TROY, LLT, SBTC, XTZ, AGI, MOD, EON, EOP, EOS, GO, NCASH, OST, BLINK, HC, ZIL, SKY, NAS, XEM, NAV, GTO, CTXC, WTC, XVG, TNB, BCHSV, DNT, STEEM, TNT, KMD, IQ, CMT, MITH, ERD, CND, UAH, FTM, POWR, KNC, GVT, WINGS, CHAT, RLC, PHB, BGBP, ATOM, BLZ, SNM, SNT, FUN, SNGLS, COS, QKC, FET, ETC, ETF, BNB, CELR, ETH, MCO, NEO, TOMO, LRC, MTH, XZC, GXS, MTL, VET, BNT, USDT, QLC, LBA, USDS, MDA, DASH, EDO, AMB, FUEL, TRY, TRX, EUR, LSK, NULS, BEAM, CAN, DCR, NGN, DATA, ENTRP, LTC, USDC, WIN, HNST, EVX, NXS, CBM, INS, XLM, LINK, MFT, QTUM, LUN, BQX, POLY, VIB, VIA, VRAB, BAT, BRD, BUSD, ARPA, XMR
Ease of Use
During the past couple of years, Binance did their best to streamline the process of exchanging cryptocurrencies in a professional, but still user friendly way. Their project called Binance Academy explains the underlying concepts of both cryptocurrencies and trading which helps even new joiners in the industry to quickly pick up all the necessary information they would need to get started.
The website is very responsive and easy to navigate on. Their website doesn’t have any lag issues at all. This means that when we go from one tab to another, everything happens in an instant and you are not forced to wait in awkward silence to get to the next page.
The different trading dashboards really help the users to make sure that are on the right interface depending on their expertise. Both basic and advanced users will probably find what they are looking for at an exchange. The walkthroughs and guides are clear with a lot of different screenshots which helps to get around the platform step by step.
Their mobile apps in the App Store and Google Play Store helps users to control their account on the go and also is utilized through the verification process. You can even download the Android APK directly from Binance.com if you do not want to go through the store.
After all the exploring with their features and how to trade, it is now time to look into the kind of support they have for their customers. One of the important things in looking into exchange/trading platforms would be to know what their customer care service is about.
We have stressed in so many reviews that when it comes to websites that handle money, customer care is vital to its progress as this bridges the gap between company and customer.
Here at Binance.com, a registered customer can contact them through email support since they do not have a live chat system integrated yet into their website, maybe a feature that will be added in the future. Aside from the email support that can be reached through firstname.lastname@example.org they can also be reached through QQ Group: 344615861. QQ is a messenger app that is widely used in China. They can also be followed through their Facebook, Twitter, Weibo, and Wechat accounts.
Their features provided are great. A little bit of time spent going around the website and exploring the tabs made us confident that it only takes time to familiarize their usages and feel content with what they have. As mentioned earlier, their website doesn’t have any lag issues so this is great. The security features provided are ample enough to keep your account safe.
What are people saying about the website? Most of the negative claims can be just opinions of what people say about them and are just that, no proof whatsoever of the negative claims they have on the website. You can read a little about how they say the website is a pump and dump scheme that you should be aware of. Click on this link to be redirected to the review.
It is also worth noting, during 2019 around $40 million dollars of Bitcoin has been stolen from Binance.com in a hacking incident along with 2FA and API token codes. The hackers used several techniques, including phishing, viruses and other attacking methods as the exchange’s CEO wrote about the incident in a blog post. The good side of the story is that Binance fully compensated its users and was completely transparent about the event in front of the public and also provided follow up measures they took to avoid such issues happening in the future.
Pros and Cons
- Bitcoin centered exchange
- Very low Fees
- A myriad of coins to exchange with
- No lags experienced with website
- Customer support lacks phone
- Has been hacked one time (but compensated their users)
- Different domains for US, European and rest of the world users
Supported Payment Methods
There is no information about restricted countries on Binance as they run now separate platforms for users in the United States and in Europe they can properly serve all users while being complied with local regulations. However, each platform has its restricted country base and only serves the dedicated countries as listed in their terms and conditions. We assume sanctioned countries are not allowed.
FAQ – Frequently asked questions about Binance
Can a US citizen use Binance?|Starting from 2019 June, US citizens are not allowed to sign up to Binance.COM and the platform seized to offer crypto trading entirely for the residence of the United States from 2019 September. The good news is that parallel to this, Binance moved its complete US operations to a standalone entity: Binance.US. On this platform all US citizens are welcome to register, trade cryptocurrencies while being fully compliant to local regulations.
Can you buy bitcoin on Binance?|Yes, you can buy bitcoin on Binance using several payment methods, including credit cards, bank wire transfer and 150+ different cryptocurrencies. Binance’s new feature, the P2P bitcoin trading is now available in the Binance Mobile App.
Which coins are supported on Binance?|There are more than 150 coins available on Binance to trade. You can trade against bitcoin or other major altcoins like ethereum, ripple, litecoin or alternatively you can also trade crypto against stablecoins. As Binance list new coins every now and then based on the demand from the community, refer to their info page for the most updated list of available coins.
How do I withdraw money from Binance?|You can only withdraw cryptocurrencies from Binance, no fiat, like USD or EUR withdrawals are available. In terms of altcoins, you have the option to withdraw 150+ different cryptocurrencies to their respective wallet address. Without verification, you can withdraw up to 2 BTC worth of coins in every 24 hours. Each withdrawal must be confirmed with an email or verification code in the mobile app.
How long do Binance withdrawals take?|Withdrawals on Binance happens instantaneously, the amount of time needed to get the coins into the wallet really depends on the blockchain’s traffic you are using. Depending on the capacity it can take anything from half an hour to 3 days, usually bitcoin withdrawals processed within an hour.
Should I keep my crypto on Binance?|Binance is a cryptocurrency trading exchange, hence offering a wallet to store your coins. Although Binance took all the efforts to keep your funds safe, in general, holding crypto on an exchange is not advisable. These platforms are exposed to hacking risk and even your account can be hacked in case you have not paid attention to security measures closely. Therefore it is only advisable to hold that much of crypto on Binance (and on any other exchange) that you use for everyday trading. Long term crypto holding should be kept offline in cold storage solutions.
Has Binance ever been hacked?|Yes, in 2019 Binance has been hacked where attackers stole around $40 million of bitcoins, API codes and 2FA authentications. Binance was fully transparent about the incident and recovered the loss of its clients completely.
How do you deposit money into Binance?|You can deposit 150+ different coins on Binance and you also have the option to buy cryptocurrency directly using credit cards. Head to the Deposit page on your Binance account and select the altcoin you would like to send to the platform. Here your unique deposit address will be generated where you can send the funds to. In some cases the deposit address is the same for all users (like in case of BNB) in this case make sure you note down the memo, which is your unique transaction identifier. Binance waits for 1 block confirmation for BTC and 12 confirmation for ETH and ERC20 tokens before the amount is credited to your account. Deposits are free of charge on Binance.
How are Binance trade fees calculated?|There are a couple of different fees you need to pay attention to when using Binance. The good news is that deposits are completely free on Binance and for withdrawals you only have to pay a small network fee to have your transaction processed. The spot trading fees are using a volume-weighted maker-taker fee model. For a monthly volume of less than 50 BTC, you need to pay 0.1% as both the taker and maker. In case you provide liquidity to the market (maker) your fees are decreasing by the volume you trade on a monthly basis. Binance also gives a rebate for BNB coin holders, you can check your trading fees in your account which is listing your VIP level from 0 to 9. For leveraged trades, you need to pay margin borrow interest rate which is charged every day at 0:00 UTC time for open positions. This margin borrow rate is depending on the coin you trade in and your VIP level. For futures trades, you pay a futures trading fee again for open trades at 0:00 UTC time. Based on your VIP level futures trading fee is between 0.0 and 0.4%.
Is there an app for Binance?|Yes, Binance has a mobile app available for both Android and iOS users. The Binance app lets you trade from anywhere and use the platform’s features on the go with full functionality. The P2P crypto trading option is also currently only available in the mobile app.
Is Binance coin a good investment?|Binance Coin (BNB) is exchange’s own native token. The ICO has been conducted in 2017, the ICO price was originally set to 0.1 USD while the coin is currently traded at 21 USD. The coin successfully survived the big crypto crash in early 2018 and has been gaining value since then. Beyond exchanging BNB to other altcoins, you can also use Binance coin to pay for travel expenses like hotel and flight, buy virtual merchandise and also accepted in some shops. BNB also gives you trading fee rebates on Binance if you hold a certain number of coins on your account. On a quarterly basis Binance burns (removes) coins from the market to decrease the supply which has a price increasing effect. As long as Binance doesn’t experience a major hack or theft incident, then BNB can be one of the few good, long term investments in crypto bearing in mind that crypto investment is always risky and subject to high market price volatility.
Binance Review Conclusion
We had fun as we went through the website and explored their features and what their exchange platform was all about. If you ask us if this is a safe place to conduct business with. Binance is relatively new – but they managed to earn a lot of trust in the cryptocurrency space.
In fact as of today, it is one of the most trusted crypto exchanges and trading platforms. And as they added new features like EUR & GBP Fiat support with Binance Jersey and also support for Credit Cards on their main platform – we can definitely recommend the Binance Platform to everyone – newcomers and “OG” crypto enthusiasts.