We love crypto and to buy them we need an exchange. And, not just “any” exchange, but an exchange that offers tools, user experience, support and much more.
That’s why, today, I have chosen to review Binance exchange.
Binance is located in HK and is known for its crypto-to-crypto trading. It is a new exchange and has already become popular among traders who are looking to trade in different coins and ICOs. The growth has been tremendous, and it is already in the top 20 by volume. Another factor that made Binance popular is its low transaction fees.
In this article, we will go through all the different aspects of Binance and try to evaluate it from the viewpoint of a new user and as well as an experienced trader. So without any delay, let’s get started.
- 1 How Binance works
- 2 Binance Advance Trading Look (for Experienced Traders)
- 3 Trading fees: Binance Saves you a lot of money
- 4 Things to know before using Binance
- 5 Customer Support of Binance
- 6 How to get started with Binance
- 7 How to buy any coin in Binance
- 8 Binance Cons (and how to overcome it)
- 9 Bittrex vs Poloniex vs Binance: Which you should use?
- 10 What if You Use/Not Use Binance
- 11 Final Thoughts on Binance
How Binance works
To get a grip of Binance, we need to understand how it works. The first thing is to register an account with Binance. Registration is easy and can be done in few minutes. Once done, you will be asked to enable 2FA either by using Google Authenticator.
Note: Before you enable 2FA using Google Authenticator, make sure that you backup your secret key as it can come handy if you lose your smartphone or require access to the secret key for accessing your account.
After you login, you will see two options under 'exchange.' Basic and Advanced. As you might have guessed until now, advanced option offers in-depth analysis on the digital currencies. Let’s take a quick look at how Basic and Advanced views look like.
Binance Basic Look: Binance UI - Is it too Complex? No, No
The basic version is easy to use.
Binance Advance Trading Look (for Experienced Traders)
For experienced traders, this is how it looks. It may look a little complex and is recommended only for experience crypto traders.
This leads us to the great dashboard that Binance offers. The dashboard provides useful information including distribution history, two-factor authentication options and much more.
You can enable/disable 2FA from the dashboard as well. It is highly recommended that you activate 2FA before you start trading on Binance.
You can also set BNB to pay for fees from the dashboard.
They have currently activated the stop-limit options. With Binance, you can limit, market and stop-limit orders, which is a good thing. It minimises your loss and maximises your profit. These are great tools for anyone who knows how to use them effectively. Also, I would not be surprised if new tools are added to the platform in future.
Trading fees: Binance Saves you a lot of money
Low trading fees are important for the growth of any exchange. In this regard, Binance is very competitive and only charges 0.1% fee for each trade. Moreover, it should be noted that you can get a discount of 50% if you use their token BNB for trading. The discount is huge and it brings down the overall trading fees to just 0.05% which is one of the lowest in the exchange ecosystem.
Cryptocurrencies that you can buy on Binance
Binance is popular for supporting a wide range of cryptocurrencies. You can easily find the most popular ones including Bitcoin, Litecoin, ETH, and so on. Other coins that Binance supports are as follows:
And many more.
Most of the new coins hit Binance within the first two weeks. This also gives a chance to the new users to buy any new currency before others.
Things to know before using Binance
Binance is a little different from other exchanges. For starters, you need to make sure of the following points before using it.
- It is a crypto-to-crypto exchange. This means that you cannot deposit USD directly and buy coins on the platform. You need to buy BTC or ETH from sites like Coinbase or Koinex. And transfer your BTC/ETH to Binance and exchange it with altcoins.
- There are transfer limits set to accounts. For accounts that have no verification are classified as Level 1. They can do withdraw upto 2 BTC each day. For verified accounts, daily withdrawal limit is 100 BTC. Level 2 accounts also require 2FA to be enabled. It is advised to all our readers to verify their accounts before they start trading.
- Binance gives free Gas for holding NEO in their wallet. Apart from Binance, only Kucoin gives free Gas.
- Binance team is superb and way ahead of any other exchange. They support all the forks. It means, you just need to hold your BTC on Binance and they will keep crediting free coins.
Customer Support of Binance
Support on Binance is on the negative side considering it is a new exchange. It has garnered a lot of attention and it is necessary for Binance to hire more support personals and get things done. We also need to consider the fact that it is non-English company and they are still doing a great job to cater to the audience outside China.
They provide an online form to submit tickets if you encounter any problem. However, if you think you need instant support, you can try out their social media platform pages such as Reddit, Facebook to get answers.
How to get started with Binance
- Click here and create an account now
- Upload your KYC documents
- Get verified and start trading.
How to buy any coin in Binance
- Create your account.
- Sign into your account.
- You will see this. Click on the respective pair (say you clicked on BTC LTC pair)
4. How to buy and sell on Binance? The values in red color are sell orders and that in green colors are buy orders. If you want to buy immediately, you should choose the value lowest number (in red color) and if you want to sell immediately, you should enter the first value that you see in green color (see the image below). You can also enter manually and the order will get executed when the value matches with the buy/sell price. You will also see an arrow mark before your order.
Binance Cons (and how to overcome it)
Binance does not let you trade in fractions when the price of the coin is less. So, before you start using Binance, you need to buy BNB tokens and set the mode of transaction fee payment (as BNB tokens). On doing it, the fee would be deducted in the form of BNB tokens (and not the one you are buying or selling).
If you do not do that, your coins (which are in fraction) may get stuck there.
Bittrex vs Poloniex vs Binance: Which you should use?
Well, when I started to purchase coins, I used Poloniex a lot. But then I shifted to Bittrex as I found a better UI in Bittrex. No doubt the volume is more in Poloniex and Bittrex. But lately, customers have been complaining a lot of Bittrex that they do not provide quick support. Also, the transaction charges are higher than Binance. Hence, I think Binance is the best option and you should also start using Binance from now.
What if You Use/Not Use Binance
This is what Sam from our Facebook group wrote:
I recently started using Binance and let me tell you what, my break evens once I enter a trade are very near than when I trade on Bittrex which is super great.
Lets assume you're buying a altcoin using satoshis in Bittrex. Let's assume the value of the trade is 1000USD.
1. Bittrex - Takes 0.25% fee that's 1000*0.0025 = 2.5USD when you buy anything and same 2.5USD or little less/high when you sell it. So you lose $5 for each trade you do on Bittrex.
2. Binance - Takes 0.1% fee when not using BNB tokens. That's 1000*0.001 = 1USD when you buy anything and same 1USD or little less/high when you sell it. So you lose $2 for each trade you do on Binance without BNB Tokens.
3. Binance(Fee paid with BNB) - Now if you purchase a handful of BNB tokens and trade with it on Binance then you're fee is just 0.0005. That's 1000*0.0005 = 0.5USD when you buy anything and same 0.5USD or little less/high when you sell it. So you lose just $1 for each trade you do on Binance with BNB Tokens.
By doing this you will also get rid of the decimal thing issue. Binance, in my opinion, is better for small traders as fee is low, risk of not breaking even during the learning curve+less amount of fee is great
Final Thoughts on Binance
Considering the age, popularity and the growth of Binance, it is easy to say that it has covered a lot of ground in a very less time. People generally term Binance as a good alternative to Bittrex and that’s a great achievement for a new exchange.
Not only that, Binance has also raised $15 million in ICO in July 2017, and the team also look strong, especially the CEO of the company, Changpeng Zhao. He has an impressive resume that can only help the company grow in the right direction.
So, should you use Binance? Ofcouse, Yes! If you are in India, then the platform can be used to buy coins that are not available on Indian exchanges.
Let us know what do you think about Binance. We are listening!