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This analysis of Binance by tradingcritique.com is very comprehensive hence if you are considering trading on Binance, it is recommended that you read and study the entire Binance review.
Binance is one of the most popular cryptocurrency exchanges in the world, with minimal fees, access to hundreds of coins, and complex features for seasoned investors.
Binance refers to an ecosystem that includes independently-operated platforms, websites, and clients (Binance’s Open Platform, Binance Launchpad, Binance Labs, Binance Charity, Binance DEX, Trust Wallet, and fiat gateway), as well as Binance. Its services are provided through mobile applications, clients, applets, and other applications.
Image 1: Home page of Binance website
Image Copyrights reserved to Binance
Binance was established in 2017 and is based out of Cayman by Changpeng Zhao, a developer who had previously built high-frequency trading software. It was founded in China but moved its headquarters out of the country after the Chinese government tightened its grip over cryptocurrencies. The firm was formed in China, but it relocated its servers and headquarters to Japan ahead of the Chinese government’s September 2017 ban on cryptocurrency trading.
Binance announced its desire to create an office in Malta in March 2018, after stricter laws in Japan and China. Binance and the Government of Bermuda signed a Memorandum of Understanding (MoU) in April 2018. Binance Jersey, a separate corporation from its parent Binance.com exchange, was launched in 2019 to expand the company’s European footprint.
Forbes employees disclosed confidential papers indicating that Binance and Changpeng Zhao set up a sophisticated business structure to fool US regulators and benefit surreptitiously from cryptocurrency investors based in the nation. Binance has made it clear that access to IP addresses in the United States is prohibited. Binance was investigated by the US Department of Justice and the Internal Revenue Service in 2021 on charges of money laundering and tax evasion. In June 2021, the Financial Conduct Authority of the United Kingdom ordered Binance to cease all regulated activity in the United Kingdom.
Fusion Systems, founded by CEO, Changpeng Zhao in Shanghai in 2005, specializes in high-frequency trading systems for stockbrokers. He is a multi-billionaire with a personal net worth of over $2 billion. In 2013, he became the third member of the team at Blockchain.info, a bitcoin wallet. He also spent less than a year as the CTO of OKCoin, a platform for spot trading between fiat and digital assets.
Binance is a worldwide cryptocurrency exchange with no permanent headquarters. It is a decentralized cryptocurrency exchange that is not regulated. This implies that it is not regulated by any authorities. Traders’ deposits onto Binance accounts are kept separate from their regular bank accounts. For enhanced safety, it does this with tier-1 banks. The official indicator of a bank’s financial health and strength is its Tier 1 test.
The Binance services are provided in several countries, including the United Kingdom, Uganda, Nigeria, India, and the United States. Binance Europe Services Limited is the company’s headquarters, and it is situated in Malta.
In the United States, Binance is presently unavailable. From the United States, you can use Binance.US, which leverages Binance’s matching engine and wallet technology, but its product selection and several trading pairs are restricted in comparison to Binance. Binance.US accounts are not available in Hawaii, Idaho, Louisiana, New York, Texas, or Vermont.
In summary, by utilizing crucial User information, such as API keys Used by trading bots and third-party portfolio managers, a hacker was able to get access and overcome some of their security mechanisms. From the exchange, they were free to withdraw more than $40 million in bitcoin.
Binance chose to cover these losses entirely with the “SAFU” security fund, but all Users were compensated for their losses. The fact that it compensated for these losses increases our trust in their honesty and integrity, but it also emphasizes the need of following safeguards and only keep tiny amounts of cryptocurrency on exchanges.
Table 1: Supported Countries of Binance
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United Kingdom Argentina Eswatini Latvia Romania Armenia Finland Liechtenstein Singapore Australia France |
Austria
Germany
Luxembourg
Slovenia
Azerbaijan
Gibraltar
Macau
South Africa
Belgium
Greece
Malta
South Korea
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Brazil
Hong Kong
Mauritius
Spain
Bulgaria
Hungary
Mexico
Sweden
Canada
Iceland
Monaco
Switzerland
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Chile
Ireland
The Netherlands
Turkey
Croatia
Israel
New Zealand
The United Arab Emirates
Cyprus
Italy
Norway
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The Czech Republic
Jamaica
Peru
Uruguay
Denmark
Japan
Poland
Estonia
Jersey
Portugal
Slovakia
Lithuania
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Binance does not have a minimum deposit requirement. It offers a variety of account kinds. The base account allows you to access a variety of services, but if you want to trade more sophisticated derivatives, you’ll need to establish a futures or options account. You can also open a business account in addition to these.
A Binance base account is a personal trading account.
A futures account is used to trade futures contracts.
An options account is used to trade options.
A Binance enterprise account is a Binance foundation account for businesses.
Table 2: Steps to create a Binance account
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Step 1 |
Go to Binance's website. |
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Step 2 |
In the upper right-hand corner, click the "Register" option and fill in the relevant information. |
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Step 3 |
Enable two-factor authentication |
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Step 4 |
Link your payment method and your account. |
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Step 5 |
Make a deposit and begin trading. |
The Inactive accounts are subject to a fee from Binance. Trading costs 0.1 percent of your account balance. However, the exchange’s volume-based pricing approach, which is based on your 30-day trading activity, can help you save money. Binance offers 11 price tiers, referred to as VIP 0 through 10, based on your 30-day volume. Additionally, it uses a maker-taker structure, in which those who add liquidity to the market (makers) are compensated and those who remove liquidity (takers) are paid a little bit more (at higher trade volumes) (takers).
Image 2: VIP levels in spot & Future trading volume on the Binance website
Image Copyrights reserved to Binance
You may fund your account with both cash and digital currencies. Binance does charge deposit fees. Using your credit card or debit card is the easiest method of payment, but it is also the most expensive. Deposit costs are determined by the currency and deposit method.
The deposit choices that are accessible are always changing. It supports the following methods of payment which are cryptocurrency, bank transfer, credit card, debit card, PTP trading, Banxa, and Simplex. It does not charge any fees for SWIFT transfers, which are the only option to deposit USD right now. For EUR and GBP deposits, bank transfers are not accessible; however, you can deposit in these currencies using your bank card for a charge of 1.8 percent.
Binance does not offer a free withdrawal option. The costs for withdrawing funds from Binance vary depending on the mode of payment. You should be aware that depending on the method you choose; withdrawals might take up to five business days. It permits you to withdraw funds to Crypto Deposit, Bank Deposit, Credit Cards, Debit Cards, PTP Trading, Banxa, and Simplex.
Image 3: Deposit and withdrawal fees of crypto on the Binance website
Image Copyrights reserved to Binance
The Binance platform is also available on Google Play, the App Store, and Android APK, allowing traders to trade from anywhere. The platform is compatible with both iOS and Windows computers.
Binance features fantastic software that is User-friendly for novices as well as expert traders. Binance Lite, which is perfect for newcomers, and Binance Pro, which offers you access to tons of sophisticated features and trading tools, are both available within the same app and can be toggled between with the touch of a button.
Image 4: Mobile Trading Platform on the Binance website
Image Copyrights reserved to Binance
For individuals who are serious about crypto trading, this is the platform to Use. The Binance cryptocurrency trading experience, is optimized for Windows or macOS.
Image 5: Desktop Trading Platform on the Binance website
Image Copyrights reserved to Binance
This is Binance’s standard platform. You can use it to put in limit, stop, and market orders. Leverage is an option when trading a variety of combinations. The following are the five key markets: Bitcoin (BTC), Altcoins (ETH, TRX, and XRP), Binance Coin, Bitcoin (BTC, BNB), PAX, and Stablecoins (USDT, TUSD, USDC, BUSD), and Margin, where we may trade with leverage.
Binance’s professional platform is far more comprehensive than the basic exchange. It lets us select our favorite indicators, see the progress of our orders in real-time, and select the leverage we want to apply.
Binance is well-known for its extensive cryptocurrency roster, which includes over 500 options for non-US consumers. The Binance.US exchange, on the other hand, only supports 60 currencies. The trading instruments available may change based on the Client’s country of residency. Furthermore, the trading instruments offered by Binance may differ depending on the trading platform you choose.
They presently provide BTC, BNB, ETH, and USDT trading pairings. It is now very quick to add new cryptocurrencies and tokens following their initial coin offerings (ICO), which means you may buy them for a low price and profit later on.
Table 3: Most popular currencies of Binance & Binance. The US
 Most Popular currencies of Binance |
 Most Popular currencies of Binance.US |
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Lite coin (LTC) Ethereum (ETH) Bitcoin (BTC) Dash (DASH) Cosmos (ATOM) Cardano (ADA) VeChain (VET) Compound (COMP) Doge coin (DOGE) Binance Coin (BNB) VeThor Token (VTHO) Harmony (ONE) Matic Network (MATIC) |
Aave (aave) Algorand (ALGO) Band Protocol (BAND) Dash (DASH) BNB(BNB) Cosmos (ATOM) Harmony (ONE) Nano (NANO) Polygon (MATIC) Tether (USDT) Zcash (ZEC) Shiba Inu (SHIB) Lite coin (LTC) |
It’s also important to mention the Binance Coin, which was released during its own ICO. The Binance coin may be used to pay fees, and it will also be one of the primary basic currencies in their future aspirations to construct a Decentralized Exchange.
Purchasing the Binance currency appears to be a smart long-term investment because the exchange aims to use its revenues to buy back a percentage of the coins every quarter and destroy them, limiting the availability and enhancing the value for holders.
Image 6: BNB coin on the Binance website
Image Copyrights reserved to Binance
Binance has its trading platform for trading cryptocurrency futures. You have the option of trading perpetual or quarterly contracts, with a payoff in coins or USD stablecoins. It also has an options trading platform where you may trade European-style vanilla crypto-currency options.
Binance Earn is a unique tool that allows you to stake currencies to begin earning interest. Savings, Locked Staking, and Launch pool are the three most common ways to earn interest.
Binance Launchpad is the exchange’s token launch platform, with the intent of combining blockchain projects with the larger cryptocurrency community and allowing firms to raise financing while interacting with Binance’s wide customer base.
The platform makes Use of the exchange’s native BNB token, which pays Users for storing it and allows them can engage in token sales using it. The number of lottery tickets you can claim is determined by the amount of BNB tokens you have in your Binance account over 20 days of the lottery day, with a maximum of 5 tickets per qualifying account.
You may also trade on margin at Binance. Your borrowing limitations and margin rates are determined by your BNB balance and trade volume. Cryptocurrency margin trading on Binance is similar to any other margin deal. Traders who qualify for margin trading can borrow money to purchase and sell cryptocurrency and crypto-fiat pairings. For Binance traders, the typical margin allowed is 5:1.
Margin trading is only offered for a few trading pairs, with some pairings allowing customers to leverage up to 20x. Cross-margin trading is extremely dangerous since it puts your whole account at risk, whereas isolated margin trading merely puts the trading pair you’re looking at risk.
Image 7: Daily interest rate of VIP levels on the Binance website
Image Copyrights reserved to Binance
You may stake currencies and stablecoins on Binance as well, earning staking rewards on your holdings. Staked assets, on the other hand, are not insured against losses and are not protected by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
You may spend your crypto Using Binance’s crypto debit card when you purchase with your debit card. Your cryptocurrency will be instantaneously converted to the purchased fiat money.
It has teamed up with Visa to create a card that allows you to spend your cryptocurrency at over 60 million retailers across the world. The card is completely free, with no administrative or processing costs, and you may earn up to 8% cash back on qualified transactions. This is a huge step forward in making cryptocurrency a mainstream payment option.
Binance is a peer-to-peer (P2P) exchange that allows users to trade crypto directly with each other in nearly any nation on their terms. If you’re looking to buy BTC Using USD, this is how the P2P exchange appears.
Anyone who has registered as a Binance User has access to Binance Loan. You can borrow for 7, 14, 30, 90, or 180 days, with the option to pay it back early and only be charged for the hours you borrowed. At a rate of 0.001667 percent every hour, interest is computed (0.04 percent per day).
NFTs are growing increasingly popular, and Binance has jumped at the chance to be a part of it. You may now mint, buy, and sell NFTs on Binance’s new NFT marketplace.
Binance Labs seeks for, invests in, and empowers viable blockchain entrepreneurs, businesses, and communities, as well as industry projects that contribute to the overall growth of the blockchain ecosystem. Binance Labs is dedicated to assisting technological teams who have a positive influence on the crypto ecosystem and help to construct the decentralized web.
Binance wallet is Trust Wallet. It lets you manage, receive, and send bitcoins, as well as a variety of cryptocurrencies and tokens, all of which are based on the Ethereum and Binance blockchains.
The simplest method to trade on Binance is to Use the ‘convert’ tool’, which allows you to quickly trade any of the exchange’s 383+ supported currencies or tokens.
Every time a new User is referred to Binance and trades on any of Binance’s spot or futures markets, the referrer will get a commission on fees. Become a member of the Binance Affiliate Program. Whenever you connect Binance with your audience, you may monetize your visitors and earn cryptocurrency commissions. On every transaction, content producers, influencers, and platforms may earn commissions and unique prizes, whether they’re trading Binance Spot, Futures, Margin, or Binance Pool.
Image 8: Referral program on the Binance website
Image Copyrights reserved to Binance
Binance offers a variety of educational resources, the majority of which are available through its Binance Academy. To test your knowledge, there are instructive articles, videos, a glossary, and quizzes. Binance provides several FAQs and articles to help Users become familiar with the exchange and how it operates. Binance Research serves all participants in the digital asset business with institutional-grade research, in-depth insights, and unbiased information.
Image 9: Binance academy on the Binance website
Image Copyrights reserved to Binance
Customers can request tickets using their account site. Support tickets are submitted Using the website’s online forum, and replies are sent through email. There is presently no live chat support available, nor is there a phone number where clients may contact the customer service team. One of the languages supported by Binance support services is Hindi. Other languages include English, Hebrew, Arabic, Spanish, Czech, Chinese, Portuguese, Italian, German, French, Italian, Polish, Romanian, Slovenian, and Russian. The chat page is available every day of the week.
On the other side, Binance has a strong social media presence that has been active during the live conversation, as well as accounts on Twitter, Facebook, and Reedit, which could result in quicker responses. Customer service queries are handled by a separate helpdesk. Likewise, the Telegram group channels are constantly active and attentive to any concerns and queries.
Table 4 : Customer support of Binance
 Customer support of Binance |
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 Facebook |
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 Instagram |
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Image 10: Customer support on the Binance website
Image Copyrights reserved to Binance
Binance has both the advantages and disadvantages which are listed in table 5.
Table 5 : Rewards and Risk of the Binance
 Pros |
 Cons |
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Binance had some of the largest selections of crypto on the market, as well as a wide choice of crypto pairings to trade.
Traders benefit from increased liquidity due to the high trading volume.
Supports crypto and fiat money deposits and withdrawals.
There is a strong focus on security, with a variety of protection measures in place to safeguard investor assets.
Binance's Launchpad allows Users access to newly released currencies and tokens.
Users may earn interest by saving crypto and staking crypto can receive prizes. |
For some, KYC compliance will be an advantage, while for others who prefer anonymity, it will be a drawback. However, Users can trade Bitcoin before finishing the verification procedure. The Binance Futures platform is the only one that offers a demo account. For beginner traders, complex trading platforms might be intimidating, but they deliver for the more experienced trader. |
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