Is Binance the best cryptocurrency exchange for your investments? We’ve put together this review to answer that question. Keep reading to get the information you need to figure it out.
Binance was launched in 2017 and has grown to have more than 28.5 million global users. Its 24-hour peak trading volume was $76 billion, and it generated $20 billion in revenue in 2021.
Binance has grown in popularity because, in large part, because it’s the preferred platform for leverage trading. But it also has a robust spot trading platform and offers many different cryptocurrency assets to choose from.
One thing to note is that Binance serves every country but the United States. For customers in the U.S., Binance has a different version of its platform, which it calls Binance.US. The main difference is that U.S. residents can’t leverage trade on the platform due to legal constraints.
Is it safe to buy on Binance?
Binance is a safe platform to buy on. It wouldn’t have been able to become the largest cryptocurrency exchange in the world if it wasn’t trustworthy.
Binance also offers extra security features like two-factor authentication (2FA), which users can enable to give themselves an extra layer of security from would-be hackers.
It is worth mentioning that Binance has been hacked in the past. There was a major breach in 2019 that resulted in 7,000 Bitcoins being stolen from the exchange. But nothing similar has happened since then.
Binance’s trading fees are some of the best in the industry. Regular users pay 0.1% for both maker and taker trades, which compares favorably to platforms like Coinbase and FTX.
It’s also possible to get even lower fees on Binance. But in order to do that, a user needs to exceed a 30-day trade volume of at least $1 million and they must hold a certain number of BNB – the company’s native cryptocurrency token.
The lowest fee level on Binance is 0.02% for maker trades and 0.04% for taker trades. But you need to have a trading volume in the billions and more than 5,500 BNB to qualify – putting these levels out of reach for the vast majority of people.
- Low fees
- Wide selection of cryptocurrency assets
- Margin and spot trading
- Integrated staking
- Powerful trading tools
- Wide variety of derivative trading pairs to choose from
Is Binance beginner friendly?
Binance is a powerful platform that traders can use to achieve many different goals. But all of that power comes at a cost to new users, who may find it difficult to use the platform.
The exchange has multiple wallets, which users need to transfer their assets between based on the type of trading that they want to do. It’s also pretty difficult to navigate between all of the different types of trading execution pages for a new user.
That means Binance is definitely not the most beginner-friendly exchange. But it does have a lot of benefits that make it a platform that’s worth learning how to use – especially if you plan on doing margin or leverage trading in the future.
Do they offer a wallet?
When you create a Binance account, you’ll have several wallets tied to that account right away. There are different wallets for your spot trading, derivatives trading, and several other types of trading.
But these aren’t external wallets. You can’t use the assets in them on web 3.0 applications like Aave or Lido. If you want to access those types of applications, then you would need to withdraw the funds from your account and place them into an external crypto wallet to do so.
Binance has a mobile app that’s fairly similar to its web app. It’s available on both Android and iOS devices.
One of the cool things about the app is that it has a button you can tap to switch your layout between Lite and Pro interfaces. The Lite interface is useful for beginners who just want to make some basic trades, whereas the Pro interface will be a better fit for experienced investors who want extra functionality.
This feature actually makes Binance’s mobile app easier to use for beginners than its website. So you may still be able to use Binance if you’re a beginner who is primarily going to invest on your phone.
The bottom line: Should you use Binance?
The answer to this question depends on the type of trading that you want to do and your cryptocurrency investing experience level.
Binance is the leading platform for experienced traders who enjoy things like margin and derivative trading. But not everyone who buys cryptocurrency is a trader. You might be a passive investor who is just interested in getting some exposure to Bitcoin and Ethereum.
If you don’t plan on trading very much and you’re easily overwhelmed by complicated interfaces, then Binance may not be the best option for you. An alternative like Coinbase, which is super easy for beginners to use, could be a better fit.
Compare Binance before you invest
Whether you think that Binance is the right exchange for you or not, it’s important to compare your other options to it before making a final decision.
There are many different cryptocurrency exchanges to choose from. Each has its own layout, features, and security levels. The option that ends up being best for your goals could be different than what you initially suspected.
That’s why we’ve put together our crypto exchange comparison tool. It makes it super easy to compare the most important features across multiple cryptocurrency platforms. So no matter what you care most about, you can quickly get the answers you need to make a decision about your investing journey.
But don’t take our word for it. Try the tool yourself to experience its value directly.