Binance Review – Exchange Features, Trading Fees and Security

Exchange Reviews / 03.07.2019

Binance is a centralized, custodial, cryptocurrency exchange and blockchain ecosystem. The network is the largest exchange in terms of market capitalization globally. The network is available in all but 15 countries at this time and handles over $2 billion in USD trading volume daily on just its US-based platform. 

Wisely, the exchange operated for years as a purely crypto-to-crypto exchange. By not offering crypto to fiat pairs, the exchange operated in critical markets with little oversight. These early years gave the team the ability to expand its features, coin selection, and user base. It was at that time the network went through all the regulatory hoops to offer fiat pairing.

Benefits of Binance

There are a lot of benefits Binance users enjoy. The network introduces an interactive trading window that is easy to navigate and flexible. You can browse through all your trading activities and other features at a glance. Here are some additional features that make it so popular.

  • Liquidity

As the largest exchange in the world, users enjoy massive liquidity across the market. You can execute large trades in seconds with minimal spread due to the constant influx of new capital into the exchange. This liquidity also helps the exchange to retain accurate prices.

  • Easy to Use

Anyone can trade on Binance. The developers took great care to remove all the technical barriers to joining the blockchain sector. The interface is clean and straightforward to understand. 

  • Huge Coin Selection

Few centralized exchanges offer the number of coins found on Binance. The network provides 100+ cryptocurrencies to trade. Keenly, the exchange is known for listing exciting projects following the completion of their ICOs

  • Regulated

As a fully regulated global cryptocurrency exchange, Binance excels. The network is licensed to operate in all major economic sectors of the globe. Users enjoy added consumer protections since the exchange became regulated.

  • Fiat Onramp

Obtaining regulatory approval was step one in the exchange’s goal to offer fiat-to-crypto trading pairs. Now, the network provides an excellent selection of ways to fund your fiat account. You can use bank transfers, debit, and credit cards. 

How Does Binance Work?

Binance is a centralized, custodial exchange. The network operates as a middleman that facilitates the trading of your crypto assets. To trade on Binance, you need to fund an exchange wallet. Your funds remain on the exchange until you withdraw them to your personal wallet. 

  • Margin

Advanced users can trade with margin on Binance. The advantage of margin trading is that you increase your ROI potential. Margin trading is only recommended for experienced traders because you also multiply your losses. 

  • Lending

Binance has taken a step into DeFi (decentralized finance) with its latest lending protocols. Users can stake their cryptocurrency in these lending pools and earn rewards based on the amount and how long they provide liquidity. Other users can take loans from these pools. These loans are repaid with interest that is split between the liquidity provider and the exchange.

  • Derivatives

Binance expanded its operations into derivatives. The network offers both options and futures contracts. Derivatives are better for traditional financial institutions because they allow them to participate in the crypto market’s profits without directly buying any cryptocurrency. 

  • Leveraged tokens

Another exciting technology the exchange offers is leverage tokens. These tokens are digital representations of popular coins such as BTC. They feature a certain percentage of leverage versus the original asset. Leveraged tokens provide investors with the ability to enjoy increased liquidity without the risk of liquidation.

  • Binance Visa Card

The exchange offers traders a Visa card that allows them to spend your crypto globally. Cardholders can convert and spend their favorite cryptocurrencies at more than 60 million merchants worldwide. 

  • BNB Token

The BNB token is the native exchange token of the network. This token was one of the first exchange tokens and the most successful to date. BNB launched in 2017 to much fan fair after securing $15 million in days of its crowdsale. BNB allows users to save on trading fees and adds to the liquidity of the entire exchange. 

  • Binance Chain

Originally, BNB lived on the Ethereum blockchain. After only a few months, the network launched the Binance chain. This decision gave developers more control over the coin and its technical aspects. In September 2020, the Binance Smart Chain launched. This fourth-generation blockchain is designed to run parallel to Binance Chain

The Binance Smart Chain provides cheap transaction fees that reach as low as 1 cent. This high-performance network is capable of producing a block every 3 seconds. Keenly, it also enabled the creation of smart contracts and the staking mechanism for BNB.

  • Launchpad

The Binance Smart Chain also ushered the Launchpad IEO (Initial Exchange Offering). BNB users can buy IEO tokens at these cooperate fundraising events. IEOs are now more popular than ever.

  • Binance VIPs

If you have 50 BNB or more and trade 100 BTC worth of assets over a 30-day period, you are eligible for the lowest tier of Binance VIP. VIP traders receive extra discounts. Specifically, you cut the Maker fees down to 0.020% and the Taker fees to 0.040%. If you own over 500 BNB, you can even endorse other users and receive 40% of the commissions they generate.

History of Binance

Binance launched in Shanghai, China, in early 2017. The founder of the exchange, Changpeng Zhao, was well known in the trading sector. He helped to develop high-frequency trading systems for the stock exchange. Binance saw immediate success. By early 2018, Binance had become the most active exchange in the world. Today, the network has more than 10 million users, 600 employees, and made $500 million in profits in its first year alone.

Binance – An Expansive Blockchain Ecosystem

Binance has shown no signs of slowing its expansion. The exchange continually updates its features and coins to keep it on the cutting edge of the sector. For these reasons, the Binance exchange is set to remain a dominant exchange in the market for many years.

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.