Binance

Binance – What is behind it

The subject of this article is the exchange for crypto currencies called Binance. In 2018 it was the world’s leading crypto currency exchange. Registered users have the opportunity to trade a variety of different crypto currencies. The declared vision of the company is to “increase the freedom of money worldwide”.

Important company data from Binance at a glance

  • Daily transaction volume of over 2 billion US dollars
  • Capacities for the execution of 1.4 million transactions per second
  • More than 10 million users worldwide from over 180 countries
  • 151 different coins and 396 currency pairs on offer
  • The website is available in 18 different languages

The history of Binance

Binance was founded by the software developer Changpeng Zhao. The crypto currency exchange was initially founded in China. Shortly thereafter, however, the company moved its server and headquarters from China to Japan in September 2017 in order to escape the ban on crypto currency trading imposed by the Chinese government. In March 2018, Binance opened several more offices in Taiwan.

At that time, the company also announced its intention to relocate its headquarters to Malta, as regulations had now become stricter in Japan as well.

On May 7, 2019, Binance declared that it had been the victim of a “major security breach”. Hacker attacks stole around 7,000 Bitcoin worth around 40 million US dollars from the company. According to his own statements, however, all customers had been compensated.

Security and regulation of Binance

At this point we come to an aspect that should not be neglected. We are talking about the security and regulation of the crypto currency exchange.

On February 21, 2020, the Malta Financial Services Authority issued a public statement in response to various media reports describing Binance as a Malta-based crypto-currency company. This statement stated that Binance “is not authorised by the MFSA to operate in the field of cryptocurrency and is therefore not subject to regulatory supervision by the MFSA”. Nevertheless, the company’s registered office in Malta is declared by Binance as its official headquarters.

However, it is not unusual for companies in the crypto sector not to be subject to any corresponding regulation. This does not mean that Binance is not a reputable provider. According to its own statements, the company learned from the hacker attack and strengthened its security measures.

For example, to use fiat currencies for deposits or withdrawals, it is necessary to go through a KYC process. And for withdrawing more than 2 Bitcoin in one day, a verification process must also be performed.

Binance is also currently pursuing the goal of obtaining a corresponding license in the USA.

And last but not least, the size of the company speaks for the fact that Binance is a serious provider in the cryptoscene.

Payment methods with Binance

The first step is to capitalize your account with Binance in order to be able to trade the crypto currencies available there. Originally, it was not possible for a long time to make a classic deposit using euros or other currencies. During this time, it was only possible to deposit and withdraw using the various crypto-currencies offered by Binance.

In the meantime, however, there is also the option to deposit or withdraw with fiat currencies. Basically, the deposit by bank transfer is recommended. While there are no fees for a deposit, a withdrawal by bank transfer costs 1 Euro. It is also possible to make a deposit by credit card, but in this case a fee of 3 percent is charged.

Alternatively, the payment methods Payeer-Wallet, AdvCash-Wallet and Etana are also available.

In order to increase the limit of a deposit to 500 euros, a corresponding identity verification by means of a photograph is required.

How trading works on Binance

Before more near on the trade offer of the crypto stock exchange is dealt with, first still another view is to be thrown on it, how the trade runs off on Binance. In the course of this it is to be pointed out in the following, how one comes from the opening of an account finally to the trade.

Account opening

In principle, there are two ways to open an account with Binance: firstly by entering an e-mail address and secondly by entering a cell phone number.

Setting up two-factor authentication

This is followed by a request from Binance to set up a two-factor authentication (2FA) for the purpose of securing the account. This requires downloading a corresponding application (Google Authenticator) on a mobile device.

This ensures a high level of security by requiring the user to enter a corresponding code via the aforementioned app each time he or she logs in or requests a deposit.

Deposit

In the next step you can already deposit. As already mentioned, there is thereby the possibility of depositing with crypto currencies or however with Fiat currencies. For the deposit of Fiat currencies a verification is necessary, for the deposit of crypto currencies from other platforms (for example Coinbase, etc.) a corresponding QR code or a Wallet address is available, over which the respective digital currencies can be deposited.

Trading

After the deposit has been successfully made, trading can finally begin. A form of trading can then be selected via the “Spot” tab. The different ways of trading on Binance will be discussed in more detail later in this article.

The range of tradable crypto currencies

The range of tradable crypto-currencies at Binance has been continuously expanded in recent years. Traders now have access to more than 540 different crypto-currency pairs.

With the trade over Binance it applies to consider thereby only whether the in each case desired crypto currency is paired with the before deposited crypto currency. If this should not be the case, it must be exchanged first into another, suitable currency.

After successful completion of a trade, the acquired crypto currency then appears in the Binance account.

The digital currencies available for selection in the crypto exchange can be viewed at any time on the Binance website under the Markets tab.

The Binance Wallet Overview

The Wallet tab on Binance provides an overview of the different types of accounts. These are briefly described below.

Main account

The wallet overview of the main account gives information about the own Fiat credit as well as crypto credit. From there a deposit, a withdrawal or a trade can be initiated. And also a view into the wallet history is possible via the main account.

Margin Account

Margin trading is now also possible on Binance. Margin trading offers a higher profit potential than traditional trading, but it also involves higher risks. In order to control the risk level, there is the possibility to define a margin level.

Futures

Furthermore, futures can also be traded at Binance.

Savings Account

Crypto currencies can be saved in the Savings account. Here daily earned interest as well as a possible trial savings fund bonus are displayed.

BPLAY

BPLAY offers “social crypto currency games” to registered users. A login on bplay.org and a subsequent link to your own Binance account is required.

JEX Account

Binance JEX provides traders with numerous innovative financial products such as options, futures and spot trading as well as insurance. JEX also needs to be connected to the Binance account.

WazirX Account

The WazirX account is specially designed to trade USDT (theter) with Indian Rupees (INR).

Binance offers these trading options

Binance offers its customers several different ways to trade crypto currencies.

Basic

Basic offers the easiest way to trade selected digital currencies. All you need to do is specify which of your own currencies should be converted into which target currency.

The transaction is usually completed within a very short time.

Classic

The classic version offers traders a simple and easy-to-use interface.

Functions such as limit trading, market trading or stop-limit trading are also available.

Advanced

The user interface in advanced trading is basically similar to the classic version. In contrast to this, however, a variety of other tools can be used.

The fee structure of the crypto currency platform

An important role with the view of the cryptocurrency exchange Binance plays certainly the fee structure. The arising trading fees at Binance depend on the so-called trading fee level. There are 10 different levels (VIP 0 – VIP 9), each with different conditions.

For the vast majority of private investors only the conditions of level VIP 0 (monthly trading volume up to 50 BTC) are relevant. The fees of the crypto stock exchange consist of a Maker/Taker fee structure. These fees are always due when a cryptocoin is bought or sold and amount to 0.1%.

Compared to other crypto currency platforms, these are very fair conditions. Another offer:

By the acquisition of the internal Binance Coin (BNB) the Taker and/or Maker fees can be reduced by 25 per cent. In this case, these coins can be used to pay the trading fees. This reduces the original fee of 0.1 percent to 0.075 percent.

However, this discount is expected to be reduced to 12.5 percent in the near future.

The Binance Academy

An interesting area – especially for beginners in the field of crypto currencies – is the Binance Academy. Here numerous articles on the topics of block chaining, trading and security are made available free of charge. In various playlists, for example, the basics of trading with crypto currencies are explained from the bottom up. Many articles are also supported by corresponding video material, which helps to illustrate the sometimes complex issues in a comprehensible way.

Apart from that, Binance also offers a variety of tutorials, which should simplify the understanding of crypto currencies and the trade with them.

The mobile application of Binance

For interested investors and Trader, which would like to take up the functions and achievements of the crypto currency exchange also from on the way, there is a mobile application. The download of this App is offered thereby on Google Play, Android and in the App Store. The intuitive design of the application serves a high user-friendliness and enables a comfortable control of the own assets.

The Binance Blog

On the website of Binance there is also a blog, which deals with different developments on the cryptomarkets. The crypto currency platform publishes thereby usually weekly several articles in regular intervals. Apart from articles about different crypto currencies as well as their developments and economic backgrounds Binance offers partially also articles about internal company processes and innovations.

Social media

In addition, Binance is also represented on numerous social media.

In addition to channels on Instagram, Facebook & Co., the crypto exchange also operates a telegram chat, for example. These telegram groups are offered in many different languages, joining is free of charge and possible at any time. The primary goal is to create a global community in which traders, regardless of their nationality, exchange information and give tips.

Blockchain Charity Foundation

A special feature of Binance is the Blockchain Charity Foundation. Together with selected partners such as The Malta Community Chest Fund or Finance Center for South-South Cooperation, the Crypto Exchange supports non-profit projects. By collecting donations up to the current time of consideration already scarcely 900 Bitcoin of 1687 donors could be acquired.

The Binance customer service

When evaluating Binance, it goes without saying that the company’s customer service should not be overlooked. In the event that questions or problems arise with the crypto exchange, Binance provides its customers with the so-called Support Center. Here they have several options to choose from. Firstly, there is a FAQ directory, which deals with the most frequent questions or problems (for example regarding account management or deposits or withdrawals).

The Binance Beginners Guide also contains 9 articles on the basic operation of Binance. Accompanied by an illustrative video, readers can learn about the setup and purpose of two-factor authentication (2FA) or the different types of orders on Binance.

Last but not least, there is also the possibility of submitting a support request to the Binance service team if the corresponding problem cannot be solved in any other way. Here, the respective issue can be described briefly and forwarded directly to the support team. The support team will then process the problem within a reasonable period of time.

Unfortunately, the crypto currency exchange does not yet offer a telephone service.

Previous experience with Binance on the Internet

Finally, we will take a look at previous experiences with Binance on the Internet. The extensive range of different coins is emphasized positively in many places. And also the fees and trading conditions are above average compared to other providers. The bottom line is that Binance can definitely be recommended as a reputable provider with a clear conscience. The rapid development of the crypto exchange since its introduction in 2017 is also fascinating, which is why Binance is one of the largest crypto currency exchanges in the world, with an average daily trading volume of around USD 2 billion.

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