Binance is one of the largest, reliable and trusted centralized crypto to crypto exchange. Binance is a popular Chinese exchange whose C.E.O is Changpeng Zao (CZ). It was founded in 2017 and was originally based in China, then they moved to Japan, and currently, their headquarters are based in Malta, Europe. They have good market pairs with enormous volume and liquidity. The name Binance is a combination of the names Binary and Finance. The exchange list over 100 cryptocurrencies and currently offers trading pair in BTC, BNB, ETH, and USDT. The cryptocurrency offered include but not limited to NEO, BTC, GAS, Zcash, ETH, LTC, EOS, bitcoin gold, bitcoin cash, Ethereum classic, ripple, and Dash.
At the time of this writing, Binance is one of the top 5 exchanges regarding volume in CoinMarketCap. It has mobile apps for both Android and iOS which allows users to trade, send and receive currency from the comfort of their smartphones. The website is available in English, Chinese, Korean, Portuguese, Deutsch, and Vietnamese among other languages. It aims to solve centralized exchange shortcomings like poor technical architecture, poor customer service, poor market liquidity, insecurity, and Poor internationalization and language support.
- Binance ICO: Binance raised money to open the exchange via an ICO and raised $15M. They gave investors their crypto token BNB which is built on the Ethereum blockchain. The BNB token can be traded on the exchange or paid to the platform to cast a vote in the community poll to determine the coin to be added in the exchange next. Also, it can be used as a method of paying your trading fee. BNB token will also be featured in the Binance plan of creating a decentralized exchange and will be one of the main currency on the platform. The exchange will use their profit to buy back a section of the BNB tokens every quarter and destroy them hence decreasing the supply and making them more valuable for holders.
- Team: The founder of Binance has good experience in cryptocurrency and was the CTO and co-founder of OKcoin, founder, and CEO of BijieTech before he started working in Binance. Binance has a good and experienced team from leading institutions like SBI Group and Morgan Stanley. Reputable developers have access to abundant resources and partners. The Binance mission is ambitious, and it focuses on becoming a Decentralized Exchange and an ICO launching platform. Some of the high profile people who have funded Binance are Da Hongfei NEO C.E.O and Roger Ver of BTC.
- Fees: Binance have extremely friendly fees in the industry, and they charge 0.1% on the value of the trade. Deposit is free, and users can get a 50% discount in trading fee by paying using BNB token. Withdrawal fee varies depending on the currency; for example, a 0.005 fee is charged for withdrawal of ETH while 0.0005 fees are charged for BTC. Binance is unlike other exchanges which categories users based on their trading volume or by the method which they enter or exit a transaction.
- Transfer Limits and Verification: In Binance, you can only deposit digital currency funds and not fiat currency is accepted. There is no limit on the amount to be deposited but the amount to be withdrawn depends on the user's stage of verification. In the first stage, no verification process is required, and users are only asked for an email address. Users in this level can only withdraw up to 2BTC worth of crypto in a day. The second stage requires users to submit their full names, Picture of ID card, a selfie with a photo of ID and a note. After the information is submitted and verified users can withdraw up to 100BTC per day. The verification is only required to be done by big traders, and Binance is required to ask for all this information due to the laws and regulation around cryptocurrency trading.
- Security: Binance has a good security system. The website uses Cryptocurrency Security Standard (CCSS) which is an industry standard for major exchanges that protect users accounts. Users are required to set up a Two Factor Authentication (2FA) when registering accounts. It is a security level that sends you a unique code to your phone whenever you trade, withdraw or want to log in. It is recommended that you store your funds in a hardware wallet like Ledger S Nano and only deposit in Binance when you want to trade because exchanges and accounts can be hacked.
- Customer support: For any exchange to be successful, great customer support is a major factor. Customers’ requests and questions should be answered promptly. Binance offers a couple of FAQs and articles to help users get adequate knowledge of how the exchange works. Customer support can be contacted via live chat or email; there is no phone support. The exchange has continuously grown to have a large number of users not equating to the number of support staff, and this has affected the support by making it slow. Customer support staff of exchanges are required to be trained and carefully vetted due to the security and technical requirements of the platform. Users are urged to provide enough information when contacting support which may be relevant to help them solve the problem fast.
- Trade volume and Liquidity: Binance has a high trading volume, and a lot of trade happens on the platform. It also has high liquidity due to multiple trading pairs. It has become a popular exchange where users can sell/buy or trade altcoins. It is an added advantage to the users because they have a good chance of selling their cryptocurrency as they please. There is no margin trading in Binance.
- Future developments: Recently, Binance did announce a Binance chain and a decentralized public exchange (DEX). It will support nearly all cryptocurrencies. The Binance Chain will majorly focus on liquidity, ease of use and better performance. The platform wants to transition from being a private company to being a community. BNB token will also be upgraded to be a native coin, to exist independently on its blockchain main-net.
Binance is a good exchange despite being relatively new in the market. Its merits out-ways the demerits. It is secure and easy to use and has never been hacked. The exchange is also open to everyone despite being a company majorly focusing on the Chinese market.