Is Binance Safe and Legit and If So How To Use it?
Our Detailed Review
Binance exchange has taken a pivotal lead in listing successful ICOs on its platform since its inception. The exchange is open to users from across the globe; who are enthusiastic about the revolutionary trade in Bitcoin and the altcoins.
Cryptocurrency trading has grown by leaps and bounds over the course of the last 12 months to a height of 323billion USD as at March 2018. More people are getting into crypto trading, and Binance is a major beneficiary of this development.
Part 1: What is Binance?
Binance is the largest cryptocurrency on earth by volume of transactions. It has more than 6 million users as at the end of January, 2018. The exchange supports more than 272 cryptocurrencies issued around the globe.
The growing number of users on the exchange to a large extent is a confirmation of the confidence enjoyed by the platform from users. Binance was launched after an ICO in July, 2017 and has grown to be the cryptocurrency platform with the biggest worldwide following.
Part 2: Is binance safe and legit?
Is Binance safe?
The safety premise of Binance rests on its deployment of cutting edge technology for its back-end and front-end operations. The operational architecture boasts of multi-layered and multi-capacitated algorithms in order to preserve transaction integrity.
Binance is hosted on servers across the globe with nodes in South Korea, the British Virgin Islands and China. The distributed server methodology is a pointer to users that a robust platform is available to process transactions.
Customers have no reason to fear the unknown as each account is safeguarded using the 2 factor authentication method. In other words, apart from logging into your account with a password, a secondary confirmation precedes every transaction.
The fortunes of the company have brightened over the past few months with strategic business decisions. It avoided a row with the Chinese government by blacklisting IPS traceable to the country. As its servers are now hosted outside China, users of the exchange can be assured of interrupted service.
Is Binance legit?
Binance is headed by developer Changpeng Zhao, who cut his teeth as a technical director with blockchain.info. The company was launched after an open and successful initial coin offering. In other words, everything about the platform is in the public domain.
As the company‘s fortunes progresses, some worthy news have emerged. It is worthy of note that it is quoted on coinmarketcap portal as the largest of the ten leading global exchanges,
Part 3: How does Binance work?
Having opened an account, you will have access to your token wallet, which will enable you receive deposits or transfers from anyone or platform. When you make deposits or receive transfer of cryptocurrencies you do not pay any fees, but, trading and withdrawals attract a range of fees.
The practical tools needed for trading of cryptocurrencies are available on the Binance platform. When you log in to your account, navigate to the exchange tab at the middle, and click on it. This will give way to the ‘Basic and ‘Advanced’ exchanges.
The ‘Basic’ exchange is for beginners while the ‘Advanced’ is for experienced traders. When you click on the ‘Basic exchange tab, the interface will appear as shown below on the Image 1.
When you click on the ‘Advanced ‘exchange tab, you will see the interface as shown on Image 2.
Here is the ‘Basic’ exchange interface:
Here is the ‘Advanced’ exchange interface:
While the ‘Basic’ and ‘Advanced’ exchanges have different interface, they can be used for the same purpose.
The two exchanges are used for the purpose of trading on Binance. The interface makes it possible to set market, stop-limit, and limit orders.
Part 4: Binance trading information
Binance fees and limits
On Binance exchange, fees are charged for withdrawals and trading. Trade occurs when swapping one token for another or when making a cryptocurrency conversion. Deposits are not chargeable, and this includes receiving payments or transfers from other wallets or marketplaces.
There is a standard fee of 0.1% for all transactions, and this is reduced to 50% of fees payable when using BNB as the deductible currency.
For each withdrawal made on the major currencies, the applicable fees are:
- 01 LTC for litecoin
- 0005BTC for Bitcoin
- 01 ETH for Ethereum
- 34BNB for Binance token (BNB)
- Here is the link for the due rates in respect of other currencies.
The table below shows the minimum withdrawal limits for each cryptocurrency:
|Coin||Name||Minimum Withdrawal||Transaction Fees|
|BNB||Binance Coin||0.06||0.33 BNB|
|BCC||Bitcoin Cash||0.002||0.001 BCC|
|HCC||HealthCare Chain||0.001||0.0005 HCC|
Available cryptocurrenciesYou can read more here on the range of Binance Fees
The major cryptocurrencies on the exchange are BNB, BTC, ETH and USDT. These cryptocurrencies are paired against the other 268 altcoins on the exchange. There are 117 pairs for Bitcoin trades, Ethereum has 114, and USDT has 6 pairs.
The purpose of the pairing is to make it possible for the various altcoins to be exchangeable and convertible. If convertibility is not possible, many altcoins would lose market relevance.
All countries are supported by Binance exchange, except China.
Customer support is available in English, Chinese, Korean, and Japanese languages.
Although the larger part of cryptocurrency transactions originate in South Korea, a growing traffic is generated from other nations.
Part 5: How to use Binance?
To use Binance, every user has to login each time to execute a transaction. When you enter in your account ID and password, the captcha challenge will emerge. Here is what it looks like:
You will need to move the slider from the left to the right in order to fit in the puzzle as it appears. Having logged in, you can decide what next to do.
You need to have funds in your account to be able to carry out a trade or buy other altcoins. Do not forget that fiat currencies cannot be used for transactions.
The likes of Korean Won, American Dollars, Japanese Yen or British Pounds cannot be used on the exchange.
You can read more here on what to do to deposit funds on Binance exchange.
Selling on Binance Exchange
- As a marketplace, you can sell your cryptocurrencies on Binance, and this is done by tapping on the exchange tab.
- After clicking on the basic tab, the market data will appear
- Select the cryptocurrency market you are using-ETH/BTC, NEO/BTC, etc
- After selecting the pair, you have to click on the sell tab
- Remember to select the type of order you prefer
- When the order is completed through a sale, you are notified
- You can see the detailed explanation on selling on Binance here.
Trading on Binance involves buying and selling of cryptocurrencies. To trade will require that you choose your pair carefully. You can read more on trading on Binance in this article.
Withdraw from Binance exchange
To withdraw from Binance exchange requires selecting the cryptocurrency you desire to send to a recipient’s wallet address. Remember that you cannot get fiat currencies on Binance.
- You will need to have a destination wallet address
- Enter the amount of tokens you are sending
- Make sure that the recipient wallet is a compatible one. You cannot send ETH to a BTC wallet.
Read more on how to use Binance here.
Part 6: Binance comparisons and alternatives
Binance vs Bitrex
Bitrex and Binance are top performers in the cryptocurrency exchange market, and signup is easy and simple. Fees are higher on Bitrex than Binance with transaction fees at 0.25% compared to 0.1% on Binance. You can reduce the fees on Binance to 0.05% if you use BNB for deductible fees.
In terms of platform performance and responsiveness, Binance is way better than Bitrex, which is known for messy charts and a slow pace. Bitrex gives the user anonymity in sell orders.
Read more on Binance vs Bittrex.
Binance vs Gdax
GDAX is one of the top performing cryptocurrency exchanges and is in a prominent position in user rankings. Binance is a bigger exchange with more users, and the global leader among cryptocurrency exchanges by market capitalization.
While Binance has two exchanges to cater for beginners and experienced traders, GDAX is not so accommodating. The GDAX exchange is better suited for professional and experienced traders. Trade is permissible on major cryptocurrencies on GDAX while Binance supports up to 272 tokens.
GDAX transaction fees are at 0.25% for BTC and 0.3% for LTC, ETH and BCH. On Binance, fees are 0.1%, and are discounted by a further 50% for users with BNB as deductible currency.
Read more on GDAX VS Binance.
Binance vs Poloniex
Poloniex is an older exchange on the cryptocurrency scene than Binance, but, both are in a prominent position in users’ rating. Binance has grown a larger market share than Poloniex with more users across the globe.
Poloniex and Binance do not accept cash deposits, and only cryptocurrencies can be added on the exchanges. User experience on both platforms is alike and commendably rated.
Poloniex charges 0.15% to 0.25% for a range of users while Binance charges 0.1%, which is discounted to 0.05% for BNB deductible fee signups.
Read more on Poloniex v Binance
Binance vs Coinbase
Coinbase is very popular in the world of cryptocurrencies but it is not open to users from many countries. Binance is the world leader in cryptocurrency exchange, and is open to users from many countries on earth.
Coinbase accepts several payment forms such as bank deposits, debit and credit cards, PayPal as well as cryptocurrencies. On the other hand, Binance accepts cryptocurrencies only.
Coinbase fees are considered very high at 4% transaction fees with additional fees for bank transfers and card processing charges. Binance rates are low at 0.1% for transaction fees, which is reduced by 50% for users with BNB payment option.
Read more on Binance vs Coinbase.
Kucoin is an alternative to Binance and it is also new to the exchange marketplace. The company has its ERC-20 token known as KCS or Kucoin Shares.
Kucoin has an incentive for users who adopt KCS for trading fee payments. The discount offered for KCS is 30 % for deductible fees. A further bonus of 50% of fees paid is given to the user in KCS.
The offer of KCS bonus to users is yielding results as more people register on the Kucoin exchange.
The base currencies used for trading is BTC, KCS, ETH and USDT.
Read more on Kucoin Review
Poloniex is an alternative to Binance, and it operates out of USA. It has a worldwide popularity, but, is dogged by poor platform responsiveness.
Poloniex is respected for its predictability, and for its survival in the marketplace to date. The platform can boast of liquidity and a stable processing of users’ withdrawals. Traders who love the appeal of margin trading will find this exchange a great fit.
ETH, XMR, BTC and USDT are the base currencies used here to pair other altcoins
Changelly is an exciting exchange that accepts fiat currencies from users. Its business model is a break from the tradition of Poloniex and Binance. Users can buy cryptocurrency here with debit cards, credit cards, PayPal, and Skrill, etc.
Changelly is integrated to notable cryptocurrency players like Jaxx, Bitrex, and Coinmarketcap.
Users can open account here without a need for verification, and this is its global appeal. Changelly is also known to update its trading pairs constantly. Want to know more about Chanelly? Just check this Changelly review article.
Read more here on Binance alternatives.
|Coinbase Review||3.75%||Great||Email+ Coinbase “Community”||Buy|
|LocalBitcoins Review||1.0%||Good||Quick responses to online support tickets||Buy|
|Paxful Review||0% from buyer, 1% from seller||Good||Forum,live chat and email.||Buy|
|BitPanda Review||1.0% to 4.0%||Good||Buy|
|CEX.IO Review||0.5% to 2.0%||Great||Buy|
|Bitbond Review||1.0% to 2.5%||Good||Buy|
Part 7: How is Binance support?
The customer support offered by Binance is web-based, and users need to log in to have their complaints resolved. On the support page, there are FAQs that users can query by entering the keyword into the search bar.
Users whose complaints are not resolved by the database of FAQs are required to fill a support ticket. Responses are given to each ticket within 48 hours.
However, at high peak periods, responses might take longer. On the average, many users consider the customer support offered by Binance as good.
Part 8: Conclusion
Binance is a safe marketplace for trading cryptocurrencies, and the extensive server distribution across the globe is a harbinger of hope.
Users of the exchange can expect stable services for buying, selling, and trading of cryptocurrencies.