Binance, despite being relatively new ha quickly grown to become the biggest cryptocurrency exchange in the world based on volume.
When it comes to the world of cryptocurrency exchanges, but do not think for a moment that this means it is something that you should just ignore and stay with something that is more established. Instead, this is an exchange that is capable of promising a lot when it comes to the cryptocurrencies it allows on its network, but how smoothly does it run and does it deliver on what it promises?
This exchange is run by a company based in Tokyo, and it was established in mid-2017. For some, this means that it has had the opportunity to look at what other exchanges are doing wrong and to then rectify it. However, there can be little doubt that this exchange has started to make huge in-roads and is proving to be rather popular within the blockchain community.
What Binance Offers.
Binance has made it clear that their main focus is on crypto to crypto trading only. That means that they only accept deposits and withdrawals to be made with cryptocurrencies, but they do currently offer 48 different options across their platform which is increasing all the time.
Upon creating your account, you are then given two options when it comes to trading, the basic option and the advanced version even though there are only subtle differences between the two. In fact, the advanced option primarily allows you to study more in-depth charts when it comes to the markets and trades, so it will ultimately allow you to make a more accurate decision as to which option you should be investing in.
When it comes to the actual trading options, then they have restricted it to limit and market orders. For some, this is at odds with the way in which their interface is so complicated although it does keep things simpler than it could have been.
The interface provides you with current buying and selling prices as well as how the price has fluctuated. All of this is information that you would expect to find on an exchange, so in this respect there is nothing too different with Binance.
The Cryptocurrencies available on the platform.
Binance does offer an impressive array of cryptocurrencies on its platform, and it certainly exceeds a number of other exchanges. It has pairings for Bitcoin, Ethereum, and also Tether with an extensive list of altcoins also available. This also includes IOTA with Binance being one of only two exchanges that actually allow trading in that currency.This multitude of options does mean that there is enough scope for trading on this exchange which does indeed draw a significant number of customers to its platform.
The Ease of Being Able to Transfer Money.
Binance does not allow any fiat currencies on its platform, but at the same time there are no limits in place when it comes to the cryptocurrency that you are then able to trade. Also, you are free to deposit as much as you like, and they do not charge a fee for this part.
However, they do set you with a particular tier and this does have an impact on your withdrawal limits for any given day. For tier 1, you are able to withdraw up to 2BTC per day while on tier 2 you can withdraw up to 100BTC per day. In order to move from tier 1 to tier 2 you simply need to pass their verification process which includes offering two verified pieces of identification.
From ICO To Biggest Exchange In The World
The platform was initially launched through an ICO which managed to raise $15 million. Ofcourse one of the advantages to having an ICO for a project based around cryptocurrency is that you’re pretty much guaranteed to gain a lot of users initially. The exchange has quickly grown to become one of the biggest cryptocurrency exchanges in the world with daily volume in the Billions of dollars every day.
They’ve also proven themselves to be much more professional than most of their competitors and have dealt with any hacking attempts extremely well.
The fees will often be the area where there is real concern for buyers and sellers as they can vary a great deal depending on the exchange in question. However, in this instance the fees that they charge on Binance are very straightforward.
At this moment, they charge a flat rate of 0.1% per trade. This drops to 0.05% if you use their own token in order to complete the action with this meaning that they charge a fee that is one of the lowest in the entire cryptocurrency industry.
Other Key Points About Binance.
Binance is new, as we have previously stated, but it did gain an impressive number of customers in next to no time thanks to their ICO. However, they do appear to miss some certain pieces of information that may have been quite interesting to most investors or traders. This includes details on the security of the funds that you would be putting into the platform, and considering the issues that have occurred in other exchanges you would like to think that this would have been seen as being important.
It’s starting to almost become commonplace for a cryptocurrency exchange to also have a buy-back program with Kucoin also having similar, and Binance is no different in connection with their own token. They state that if you use their BNB token, then you will receive a 50% discount on fees for your first year with this then reduced to 25% for the second, then 12.5% and finally 6.25%. This ofcourse offers a high incentive for users to hold the BNB token.
Also, Binance is looking at using 20% of its profit in order to implement its buy-back program of its tokens from the open market. By doing this, it pushes up the price for other investors, which may very well be an important factor to take into consideration.
Conclusion About Binance.
So, what can we conclude about Binance? Well, quite a lot to be honest but we have to state that this exchange may to take some getting used to individuals that are new to the world of cryptocurrencies. The interface that you are presented with is far too complex for new people to understand, and there is a very real chance of mistakes being made when it comes to the trade.
Also, there is no real difference between the two versions making it pointless but that is not a big issue.
However, you cannot argue against the fees that they charge as well as the number of coins that are on the platform as both of those are very impressive. That is where Binance wins over other cryptocurrency exchanges.
So, should you use it? Well, if you want to save money on fees and you do not want to use fiat currencies as funding options, then this is certainly something that is worth checking out. There are enough traders on their platform to make it worth your while and the transaction itself does tend to go smoothly enough to merit you giving it a shot. The fees without using their token are already low, so you may want to give that part a miss if you already deal in a number of currencies as that would only prove to complicate matters even further.