Binance is one of the best cryptocurrency exchanges. It is renowned for its low trading fees, vast array of supported cryptocurrencies and services.
- 600+ cryptos to trade
- Low trading fees
- Automated trading bots
- Comprehensive service
- Was hacked in 2019
- Customer service needs improvement
Binance Review Overview
Binance is a leading exchange that is by far the largest of all the cryptocurrency exchanges by trading volume. Find out the pros and cons of Binance and why so many people trust this exchange in this Binance review.
As you would expect from a large company in any industry, Binance is one of the best exchanges. As a result it is jam packed with a lot of different service and features you can use.
This makes Binance a one stop shop for everything you could possibly need. In fact it is one of the most appealing things about the exchange. Secondly their fees are incredibly competitive and some of the lowest in the industry.
Statistics of Binance:
Additionally it has the highest average liquidity in the industry. That is to say how easy it is to convert your crypto into cash. It even has a uniquely structured insurance fund. Most importantly to compensate clients just in case the exchange gets hacked and funds are stolen.
Binance operates several exchanges under the same brand name. These are the general .com address, Binance US, Binance Singapore and Binance Jersey (Europe).
Binance Review: Services
Binance offers a host of services and features. You probably are most likely interested in the following services:
- A classic simplified exchange area
- Trading area
- Earn passive income through Crypto Earn
- Crypto loans
- Mining pools
However most people use Binance as an exchange and would like to use the simplified exchange area.
It is hidden which might make it frustrating for beginners. To use it you just need to go to the menu at the top and hover on ‘Trade’. In the drop down you should select ‘Convert’.
Binance Review: SAFU
There are other exchanges that have insurance to cover losses in case of a security breach. Like for example Coinbase, although you can count the exchanges that have insurance on one hand.
However exchanges usually pay for insurance and it is outsourced to a third party outside of the exchange. Binance’s insurance fund is structured differently. It is called SAFU and is short for Secure Asset Fund for Users.
SAFU is an internal emergency insurance fund. Every time a client makes a trade, Binance takes a percentage of the fee and places it in the fund.
Binance already had to rely on this emergency fund because they were hacked in 2019. You will find out more about the hack further down this Binance review.
Consequently thanks to the fund they compensated all their clients. Binance still maintains the fund. As a result it gives clients peace of mind knowing their funds are safe.
Binance Customer Service
As we researched for this Binance review we noticed that this exchange has a good amount of complaints about support. However just to make sure we are fair it is not terrible. Quite a lot of exchanges, even good exchanges get criticised for their customer service or lack thereof.
There are some public complaints online on Trustpilot. Moreover customers here give Binance a poor overall score.
However if you consider they have millions of customers the few thousand complaints here are a small fraction. Most Binance customers are happy with the exchange.
What we find problematic is that Binance do not directly address customer complaints on Trustpilot. On the other hand some other exchanges (not many) directly communicate with customers on Trustpilot. As they do this they actively try to resolve customer issues. If they did this it would improve the overall perception of the brand.
Binance have what they call a live chat features on the site. However it is a chatbot which is okay to a degree. If you have a more complex issue you have to resort to a live chat agent.
You can access a live agent by selecting any of the questions that come up in the chatbot. Underneath the answer you can click ‘unresolved’. As a result it will connect you to a live chat agent as you can see here:
Binance Review: Hack
Unfortunately Binance does not have a squeaky clean reputation for security. It was hacked back on the 7th May 2019 and the thieves made off with $40 million. Additionally the hackers managed to get hold of API tokens and 2-Factor Authentication codes.
It was a difficult situation for the exchange to face. However they did a good job at dealing with the crisis. So although it was not great, they did manage to retain their reputation with the way they handled the situation.
How Binance Handled the Hack
- Firstly Binance immediately noticed that 7000 BTC was removed from the exchange. This is because they had internal systems in place that set off alarms.
- Once they realised what happened they were transparent and told customers promptly about the heist. Additionally they halted all deposits and withdrawals for a week until they could conduct an analysis.
- They also conducted a full security review of the system and the data.
- Moreover they let their customers know that they were going to get compensated for any stolen funds. Binance relied on their SAFU fund for this. This is an internal insurance fund that Binance set up for situations like these. As a result no Binance clients lost any money.
Binance Review: Security
Since Binance was hacked already you would want to know if they have their act together. To clarify Binance have a number of security features in place. Additionally after the hack they implemented several anti-phishing measures.
The security features they have are both on the platform side and from the user side. Their security features are pretty good and similar to other exchanges that take security seriously. However the top pic for us regarding security features is always the Kraken exchange.
- Cold Storage – most funds are stored offline in cold storage.
- Real Time Monitoring – all withdrawals, password and 2FA resets and email changes are monitored. Any unusual activity will alert systems to suspend withdrawals for 24-48 hours.
- Organisation security – has advanced security measures including multisignature and threshold signature schemes.
- Advanced Data Encryption – sensitive user data is encrypted whether it is stored or in transit.
- 2-Factor Authentication – this includes hardware, app-based, SMS and email methods.
- Access Control – You can manage devices or enable API access and whitelist IP and wallet addresses.
- Security Notifications – You can enable email or notification security alerts when there is any suspicious activity detected on your account. Additionally you can restrict third party access to your account.
To conclude this security review, whenever there is an exchange that supports hardware 2FA we suggest you use that method. It a method I use myself and is by far the most secure method. Yubikeys are excellent security keys. You can buy Yubikeys and check out how to use a Yubikey on Binance.
One of the best things about Binance which got people flocking to the exchange are the fees. Binance has some of the lowest fees in the industry. However the more your trade and the more BNB balance you hold in your account, the more you will save on fees.
Spot Trading Fees
|30d Trade Volume||BNB Balance||Maker / Taker|
|Less than 1,000,000 BUSD||0 BNB||0.1% / 0.1%|
|Greater than or equal to 1,000,000 BUSD||and 25 BNB||0.9% / 0.1%|
|Greater than or equal to 5,000,000 BUSD||and 100 BNB||0.8% / 0.1%|
You can save more on fees the more you trade and hold BNB. However we are assuming that most will not go over the 5 million mark. Additionally if you use BNB to make your trades you can get another 25% discount on the fees.
Spot Trading Fee Discount When Trading BNB
|Maker / Taker Standard||Maker / Taker|
25% off trading with BNB
|0.1% / 0.1%||0.075% / 0.075%|
|0.9% / 0.1%||0.0675% / 0.075%|
|0.8% / 0.1%||0.06% / 0.075%|
Futures Trading Fees
We do not recommend you trade on futures because it is very risky. Futures use leverage which is dangerous. So if you do not have experience with trading futures we recommend you should stay away.
With futures trading the fees will depend on whether you are trading with USDT or BUSD.
Futures Trading Using USDT
|30d Trade Volume||BNB Balance||USDT Maker / Taker|
|Less than 15,000,000 BUSD||0 BNB||0.02% / 0.04%|
|Greater than or equal to 15,000,000 BUSD||and 25 BNB||0.016% / 0.04%|
|Greater than or equal to 50,000,000 BUSD||and 100 BNB||0.014% / 0.035%|
Futures Trading Using BUSD
If you use Binance’s own BNB, the fees are lower. The maker and taker fees are -0.01% and 0.023% respectively. These are flat fees that are applied to any amount you trade.
Moreover Binance say if you use BNB to make the trade you get a further 10% off. However this is only in the case of the taker fee. So the maker and taker fees are -0.1% and 0.0207% respectively.
Binance US vs Binance
Binance US and Binance is the same. However the US has strict legislation so Binance has to make sure it is in line with the SEC.
As a result Binance US has:
- More strict identity verification requirements.
- Much less cryptocurrencies available for purchase. In fact privacy coins are not available because the US does not like that they are not easily tracked.
- Less services available.
If you are a US citizen and want to sign up for Binance you can only sign up with Binance US. The exchanges has thorough KYC verification and they will direct you to Binance US.
Binance offers a crypto card which is a crypto backed visa debit card. Like any other crypto cards you can use it anywhere around the world that accepts Visa cards. Certainly this makes spending crypto super easy.
However for now you can only top up your card with British Pounds or Euro from your wallet. By time Binance will surely include support for other fiat currencies.
The Binance Card comes with some benefits:
- Zero Fees – the card is free which means you will not get charged any processing or administrative fees.
- Cashback Rewards – You can get up to 8% back when you spend using your Binance card.
- Your Funds are Insured – All your funds are safeguarded by Binance’s SAFU insurance fund.
The two best thing about the Binance card is that unlike other crypto cards funds are insured. This gives customers peace of mind especially considering the frequency of exchange hacks.
Plus there are no fees which is good because no one likes paying additional fees. However for any big spenders the rewards are not that great in comparison to other crypto cards.
In fact rewards are capped at €500. As a result you might want to check out some other crypto cards to compare other options.
With the Binance card you can convert and spend Euros and 10+ cryptos. That includes:
- Cardano and
Binance Card Cashback Rewards
Rewards are paid out in BNB. You can use this BNB you receive for anything you like. That includes using it towards other purchases or you can trade it for other cryptos.
The cashback rewards are based on a couple of things. Firstly your card level and on the amount of BNB you have in your Binance wallet.
Qualifying Card Level for BNB Monthly Average Balance
|Card Level||BNB Monthly Average Balance*|
BNB Rewards and Monthly Cap
|Card Level||BNB Rewards for Your Purchases||Monthly Cap|
Binance Review: Binance Academy
Binance has an academy where they cover a range of topics you can learn.
At the Binance Academy you can learn about:
- Cryptocurrency in general,
- Learn about the different coins Binance supports on its platform and
- How to use the different services Binance has to offer.
Apart from the CoinStove learning section which we are still developing, we think that the Binance academy is pretty good. It covers a good range of topics like for example Bitcoin, altcoins, consensus, cryptography, mining, technical analysis and more.
However one critique we have is that sometimes it uses technical language. So for beginners it is harder to understand and it does not simplify the information enough. You have the option of either reading their articles on the Binance Academy website. Or you can have a look at the Binance Academy YouTube channel.
Binance Trade Bot
Binance is one of the few exchanges that has a trading bot. A lot of people are ecstatic with this feature because they can automate their trades and let it run 24/7. Additionally you can easily customise the Binance trading bot to suit your purposes.
Binance Demo Account
Learning how to trade requires not just theory, but also some practice. Others might want to test some rules before you commit to putting money on your trade. For this reason Binance have a demo account you can use specifically for futures trading.
The Binance demo account is exactly the same as the futures trading account. To clarify that also includes all the coins available and the live price charts. Like this you can learn as if you are on the real exchange.
Most importantly you can learn how to trade and not use your own money while you practice. Instead you use fictitious funds with no risk involved. Binance provide you with 10,000 USDT as soon as you create your Binance demo account.
Binance Mining Pool
You might want consider mining cryptocurrency instead of buying or trading. You can still get good rewards from mining.
One thing you need to keep in mind is that if you mine alone it is much harder. You do not stand a chance of winning much crypto rewards. In fact your chances are quite remote. Even if you had to use an ASIC miner.
As a result joining a mining pool is your best option. This is because you share mining power with the pool and you get a small portion of the mining reward. Additionally what makes it appealing is that the rewards are consistent.
If you join the Binance mining pool you can mine: Bitcoin, Bitcoin Cash, Ethereum or Litecoin. The mining fees vary for the different cryptos.
Binance Pool Mining Fees
|Bitcoin Cash BCH||2.5%|
The mining fees are not bad, but there are mining pools that charge lower mining fees. Specifically for Bitcoin, Bitcoin Cash and Litecoin.
However the mining fee is not the only thing you need to think about when you pick a mining pool. You also have to factor in the proximity of the server to your country of residence.
Additionally you have to find out the minimum pay out level. If the level is high then you will not get income at regular intervals. To clarify the more regular the payment the better it is.
In that respect the Binance pool has no minimum pay out level. They pay out every day. So although they might charge a slightly higher mining fee it is worthwhile.
Binance DEX – Liquid Swap
Binance are really committed to offer their users as many services as possible. In fact it is interesting that they introduced a DEX (decentralised exchange) to their platform.
They already offer an exchange service which is centralised. However they built a DEX to offer a decentralised version which they called Liquid Swap. It not only serves as an exchange, but you can also earn interest on your crypto through staking.
The types of coins available for staking and the rate you can earn varies from time to time. However the staking rates on Liquid Swap are relatively decent. They average between 5-10% which is pretty good considering.
You can of course earn higher rates elsewhere on other cryptos. On the other hand you have to keep in mind that higher rates means more risk. It depends on your risk appetite.
Binance have several social media channels where you can follow them. They are:
Binance was founded by Changpeng Zhao. He is a developer that had worked on developing several projects that helped him gain the expertise to establish Binance. Zhao worked on:
- High frequency trading software for stockbrokers at Fusion Systems
- He worked with blockchain.info and
- At OKCoin as the CTO
As a result of his experience he launched Binance successfully in 2017. Within a few years Binance grew to become one of the leading cryptocurrency exchanges.
Changpeng funded the launch of Binance by creating an Initial Coin Offering (ICO) for investors. Subsequently he created Binance Coin (BNB) to give to angle investors and founding members of Binance.
Binance has many offices around the world. It is registered in the Cayman Islands.
Binance Review: Conclusion
To sum up this Binance review we think Binance is a great exchange. I would not necessarily give it a top score, but it is definitely up there with the best. The fact its customer service needs some more improvement and that it was hacked are two negatives.
However Binance overall offer a great service. The low fees are the most appealing aspect of this exchange. Additionally it has the huge range of cryptos you can trade and acts as a one stop shop. Binance has everything you could possibly need.
Another fantastic plus is the insurance fund. For me this is another really appealing aspect of the exchange. In fact since this fund already worked out well for them it gives me confidence that my funds are safe.
Albeit not that I would leave funds there for a long time. However if I do leave funds in the account for a while I have confidence that they will be okay.