Binance Review: Pros, Cons, and Cost of Trading

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Since its launch in 2017, the Binance Exchange, founded in Hong Kong, has been one of the world’s largest centralized exchanges. However, the crypto exchange has experienced significant changes and troubles in recent times. One of the most notable changes is Binance’s departure from the United States market due to regulatory issues.

Our review provides an in-depth analysis and evaluation of Binance’s features, fees, security measures, user interface, and customer support. As always, we encourage our readers to research and carefully evaluate any risks before investing in cryptocurrencies or using any cryptocurrency exchange.

Binance has always been one of the best crypto exchanges, where the vast majority of traders transact their crypto portfolios. In terms of daily trading volume, Binance is one of the largest trading platforms in the world.

Binance Exchange Review: How Well Does it Work with Crypto Signals?

Many good things have happened for Binance signals and Binance automatic trading bots. It is not just about making a crypto portfolio anymore. Binance futures or leverage trading is just as good as Bitmex! So, instead of just focusing on crypto portfolio strategies, you can take powerful leveraged crypto signals with a Binance trading bot.

Do note we go over the pros/cons and like Binance but are 100% honest with what we don’t like in this Binance Review. We don’t pull any punches and apologize if Binance finds any of what we state unfair. It is not…

• Binance.com – Original exchange, many altcoins, and margin trading options
• Binance.us – A separate platform transformed into a crypto-to-crypto-only exchange

As we wrote in our “Top Cryptocurrency Exchange” post, Binance.com is too big to fail. Hence, it is the top exchange by sheer volume alone, so keep this in mind.

Also, we wish to stress that Binance is an Asian exchange by pedigree; this puts a few risks in your corner.

Asian exchanges have a very bad history of being hacked, but in our Binance review here, thus far, Binance has been able to prevent any real damage from hack attempts on them. Considering their size, they have done a great job! Let’s take a look at Binance’s transparency.

Binance Crypto Exchange – Transparency & Proof of Reserves

Being the largest crypto exchange in the world in terms of trading volume, Binance has a lot of responsibility, especially when it comes to maintaining transparency in its financial affairs and setting an example for smaller crypto exchanges to follow.

After the Terra UST debacle in May 2022, Binance started its monthly BUSD reserve holdings reports in August. This was one of the first examples in recent crypto history of a crypto company bringing more transparency to its reserves.

It’s important to note that Binance did not have regular Proof of Reserves audits conducted previously. However, after the FTX collapse, CEO Changpeng Zhao emphasized that Binance would help to rebuild the lost trust with Proof of Reserves reports.

As a starting point, Binance has shared the addresses for its hold and cold wallets, where it holds its reserves. It has also recently topped up its industry-leading SAFU fund, established in 2018 to protect Binance users in case of an extreme liquidity crunch. Binance’s emergency insurance fund now stands at $1B in fiat currencies.

In this review, we will go over many portions of what you as a trader can expect, as well as the pros and cons of their many features/functions. We will also guide you through some important gotchas that might hurt you if you don’t know.

Key Features of Binance.com

There are several key reasons why you want to use Binance.com. The primary is that you are NOT a U.S. citizen, which makes up roughly half of all crypto traders.

Another key reason is simply cheap commissions. Binance charges .10 on average less in some instances, depending on the coin you trade. You compare that to most other exchanges, which range from above that at 0.15 to 0.20 in cost. For example, Coinbase, which is criminal in their .50, charges a whole 4x above Binance. So, Binance leads in cheap trading fees.

Popular coins, Coins, and more coins. This is the other reason Binance is very popular: they have a wide selection of coins to trade. Now, their listing costs have been prohibitive and outright criminal as how they shake down groups for their listing fees.

Still, the wide range of cryptocurrency trading pairs you can trade on Binance.com is one of the biggest reasons why it’s a top crypto exchange. Note that Binance.us has fewer trading pairs than its global counterpart.

The Good – Low fees, many Altcoins & higher security.

In this Binance review, let us first talk about the good of the platform. Binance is popular because of its FEES, selection of coins, easy onboarding/signup, and somewhat easy-to-use interface, but it has no frills and does not stand out.

• 0.10% = Cheap commissions
• Large selection of Altcoins
• Binance Coin and Advanced trading tools
• Easy Onboarding/Signup
• Debit card/Credit card and Bank transfers/ deposits
• Margin/Leveraged Trading
• History of being a secure platform
• Easy-to-use interface for trading

The above summary is why Binance is so popular, mainly because they combined everything super fast and undercut everybody else, made the profits on the backend with the listing, and focused on what worked vs. their competition, which, in my opinion, has been mostly asleep or is just plain silly. To Binance’s credit, the crypto signals community has picked up on Binance’s leveraged crypto trading and is supporting Binance’s automatic trader signals in droves.

Fees Explained

The Binance fee structure accommodates casual users and high-volume traders. While debit card and credit card transactions incur a fee of 4.5%, the platform offers significantly cheaper alternatives for users seeking to minimize costs. Bank transfers and deposits, for instance, can be as low as 0%, depending on the country and the bank, making it one of the most cost-effective options in the market. Moreover, Binance rewards its users with spot trading fees as they attain higher VIP status or Binance Coin (BNB), solidifying its position as a leading platform for those prioritizing low transaction costs starting at 0.10%.

Regulation

Now, they have had the extreme advantage of not being regulated in the past, allowing users to sign up and trade with ease and without tax penalties for most countries. In our opinion, that will end, creating another problem for Binance in the future.

Customer Support

Binance support relies heavily on an AI-driven FAQ bot to quickly resolve common issues. If the bot doesn’t provide a solution, you can escalate to a live chat with a customer service agent. Logging into your account is the best approach for more complex issues, ensuring your problem is addressed. While Binance’s support is generally effective, response times can vary, especially during high-traffic periods.

The Bad – Listing fees, delistings & second rate interface.

• Overcharged many groups on listing fees in the past = Shook down
• Delists coins on a whim when no longer profitable for them
• There are many issues with scam coins being offered in the past on their exchange
• A second-rate trading interface that has somewhat improved over time

Still, they have very cheap fees and a large selection of coins.

It is ironic how much they have charged past coins, yet Binance has quickly delisted tokens at will as soon as it does not benefit them. So, they have no rules to protect traders or coins and use them to make a buck. Once that money flow seems to dry up, they tell them to hit the road.

Junk coins & need for education

This equals scam coins being offered/pump and dumps and unsavory groups with no ethics. Later, Binance can punt and say, “Opp’s bad people. Okay, we delist; it’s not our fault!” Again, if the U.S. government were to investigate, another area would cause them issues.

Last is their platform, though not as high a quality as Bitmex, which has proven somewhat more secure than their Asian hacked counterparts, which adds to their reputation. The platform is easy to use but, in my opinion, not super high quality or very intuitive, with natural functionality for trading.

They have made strides to educate their users, but as we will note below, not that much. Many don’t even know how to use the hedging mode on the Binance Futures side of their platform, which would reduce costs and issues for most traders. There are likely other features traders are unaware of, especially on the Binance Futures/margin side.

Exploring the BNB Chain: The Backbone of the Binance Ecosystem

BNB Chain represents a significant evolution in the blockchain landscape, resulting from the merger of Binance Chain and Binance Smart Chain (BSC). This powerful ecosystem is meticulously designed to support decentralized applications (DApps) and smart contracts, making it a highly attractive platform for developers and users alike. With over 538 DApps already built on the BNB Chain, its versatility spans various sectors, including artificial intelligence, the metaverse, and gaming. The chain is renowned for its impressive transaction speeds and remarkably low fees, providing a cost-effective solution for developers seeking to innovate. Additionally, BNB token holders can engage in staking, which not only enhances network security but also offers rewards, further encouraging community participation and fostering decentralization. Through its robust infrastructure and user-centric features, BNB Chain is poised to drive the next wave of blockchain innovation.

Why Use the BNB Token?

The BNB token is the native cryptocurrency of the Binance ecosystem. Launched initially as an ERC-20 token on the Ethereum blockchain, it has since transitioned to the Binance Chain after its introduction in April 2019. The BNB token serves multiple purposes within the Binance platform, including:

• Transaction Fees: Users can pay for trading fees on the Binance exchange with BNB, often at a discounted rate compared to fiat or other cryptocurrencies.
• Token Burns: Binance regularly conducts token burns to decrease the total supply of BNB, aiming to increase its value over time. These burns are based on Binance’s trading volumes, and they are strategically executed every quarter.
• Staking and DeFi: Binance Coin BNB also allows holders to stake their tokens within the Binance ecosystem, providing a way to earn rewards through decentralized finance (DeFi) activities.
• If you want more, read our in-depth article about the BNB token.

Margin Trading on Binance

This was introduced in the past year or so and is both good and bad. The costs of their charges are not very transparent and fluctuate from one coin to another. Also, volumes have been spotty, and unless you are trading top 10 coins, I would likely avoid this chamber of secrets in your trading if you are not an experienced trader.

They obviously are tweaking the margin/leveraged trading for their profits to the detriment of their traders. I don’t like what I see here; they should work to improve this to create a fairer structure.

Now you do get to trade margin on many altcoins, and for those degenerate gamblers, maybe you think this is great! Is it? If Binance were to report on the win/losses of the average trader’s profit/loss, the numbers would likely be horrible.

So please examine the 100x margin trading they offer in great detail first so you are not disillusioned over time.

Binance Review: FAQ “Margin Trading” HEDGE MODE

This is a key feature of Binance that every trader should be aware of. In our Binance Review, we want you to understand this as it will clear up many headaches for most in the future.

Unlike Bitmex, the currency is not fixed to Bitcoin for leveraged trading on Binance. This is where trouble can start for many traders.

Hedge mode allows you to overcome this by holding both long and short the same coin/position. So, if you like to hedge your bitcoin on Binance in your margin account there, you can create a 1-on-1 hedge.

Binance.us the good, bad, and ugly

Binance.US, the American crypto trading platform of the global cryptocurrency exchange Binance, decided to leave the U.S. market in 2023 due to increasing regulatory pressures. The Securities & Exchange Commission (SEC) accused the company and its CEO, Changpeng Zhao, of mishandling customer funds, misleading investors and regulators, and breaking securities rules. In response to this pressure, Binance.US’s banking partners cut off their relationship with the exchange, suspending U.S. dollar deposits and withdrawals. This led Binance.US to halt its operations in the country and transition to a “crypto-only” platform.

New Management

Changpeng Zhao, known as CZ, stepped down as Binance’s CEO and was sentenced to four months in jail. He pleaded guilty to enabling money laundering through his cryptocurrency exchange. Zhao admitted to failing to implement an adequate anti-money laundering program. The court in the US found this negligence significant, although less severe than initially sought by prosecutors.

Zhao agreed to pay a $50 million fine as part of a settlement with the U.S. government. This concluded a multiyear investigation into Binance, which also involved paying $4.3 billion in fines and forfeitures. Despite his legal issues, Zhao retains an estimated 90% stake in Binance.

Richard Teng, who joined Binance in August 2021 and has over three decades of experience in financial services and regulation, succeeded Zhao as CEO in November 2023. Before Binance, Teng was CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market and held senior regulatory roles in Singapore. He now leads Binance, focusing on compliance, innovation, and global market expansion.

Summary of our Binance Review

In summary, our Binance review highlights significant challenges faced by Binance.US following increased regulatory pressures that led to its withdrawal from the U.S. market in 2023. The resignation of CEO Changpeng Zhao amid legal troubles and the appointment of Richard Teng, a seasoned professional in financial regulation, signal a potential shift in the exchange’s approach towards compliance and operations. Despite the recent turbulence, Binance remains a major player in the global cryptocurrency market, emphasizing innovation and global expansion. The review underscores the risks and opportunities inherent in a rapidly evolving landscape, suggesting that future governance and regulatory adherence developments will be crucial to Binance’s sustainability and reputation in the crypto space. We still believe that Binance is one of the best-centralized crypto exchanges for beginners and experienced traders. But as always, the best way to hold your crypto long-term is to use self-custody and use the exchange for trading.

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