Binance Exchange Review: Pros, Cons, and Cost of Trading

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Review overview

ACCURACY
9.5
SUPPORT
8.5
PRICE/PERFORMANCE RATIO
9.5
EDUCATION
8.9
UNDERSTANDABILITY
9.3
TRANSPARENCY
9.5

This post is also available in: Português

Since its launch in 2017, Binance has been one of the world’s largest cryptocurrency exchanges. However, the 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. However, some review aspects could not be updated due to recent changes and challenges. 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 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 trader bots. It is not just about making a crypto portfolio anymore. Binance has leverage/futures just like Bitmex! So, instead of just focusing on crypto portfolio strategies, you can take powerful leveraged crypto signals with Binance Autobots.

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 Exchange Review: 5% off coupon
  • Binance.com – Original exchange, many altcoins, and margin trading
  • Binance.us – 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 really 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, which was established in 2018 to protect Binance users in case of an extreme liquidity crunch. Binance’s emergency insurance fund now stands at $1B.

Binance Exchange Review: Exchange the world
Binance “Exchange the World”

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.

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 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 their FEES, selection of coins, easy onboarding/signup, and a somewhat easy-to-use interface but no frills and not a standout.

  • .10 = Cheap commissions
  • Large selection of Altcoins
  • Easy Onboarding/Signup
  • Margin/Leveraged Trading
  • History of being a secure platform
  • Easy-to-use interface for trading

The above 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.

Now, they have had the extreme advantage of not being regulated in the past, which allowed them to have users sign up and trade with ease and no tax penalty for most countries. In our opinion, that is going to end, and it equals another problem for Binance in the future.

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
  • Many issues with scam coins being offered in the past on their exchange
  • A second-rate trading interface that has not improved over time

If the U.S. were to ever go after Binance for how they shook down companies using their popularity to make deals, well, I would not be surprised as what they did in the past was a black eye to the crypto community. 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 been very quick to delist tokens at will as soon as it does not benefit them. So, basically, they have no rules to protect traders or coins and just use them to make a buck. Once that flow of money 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 just 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, say, 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 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 futures/margin side of their platform.

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.

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

Binance Review “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 allowing you to hold 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 Exchange Review: Binance.us

Binance.us the good, bad and ugly

Binance.US, the American branch 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 originally 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.

Frequently Asked Questions

Is Binance still the best to use?

Binance is still the top player, but other exchanges like Coinbase and Bitvavo are good exchanges from which to buy and sell your crypto. It all depends on your location and wants and needs.

Can I use Binance with Signal Providers?

Most Signal providers offer Binance Signals. Some are even specialized in them, like Binance Killers.

How does Binance handle transactions and user security?

Binance prioritizes user security through robust cybersecurity measures and a transparent transaction process. The platform uses advanced security technologies to protect user data and funds, and it continuously updates its systems to handle the latest security challenges in the cryptocurrency ecosystem.

Disclaimer

This article is for educational purposes only. We are no financial advisors. The information provided from SmartOptions is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be best for your individual needs and risk tolerance.

Please do your own research and never let anyone trade your account for you. We do not support or advertise Fund Management in any kind of manner. We solely review signal providers, their work/analysis/provided education. Please read this disclaimer and leave the website if you disagree with it.

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Rico Chette
Rico Chettehttps://smartoptions.io
Ricco Chette is nothing like what you could imagine, a fighter for the lost, weak and marginalized. Rico blazes a trail of truth often with a bullet or a glass of wine. You might think you know Rico, but you don’t… Lover of Crypto, Freedom and the Truth. Hear HER ROOOOAAAR!!!
Since its launch in 2017, Binance has been one of the world's largest cryptocurrency exchanges. However, the 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...Binance Exchange Review: Pros, Cons, and Cost of Trading