Pros/Cons and Conclusions – Updated For 2023
The crypto economy is an industry that many people are interested in due to its’ constant expansion. However, there are so many various platforms and coins available for you to trade. How does Binance compare to all the other available options?
Keep reading to find out everything you need to know about using Binance in 2021.
What Is Binance? Is it Worth
Binance is one of the leading cryptocurrency exchanges situated across the entire globe. It provides an excellent platform for people to trade on and happens to be the largest exchange for alt-coins trading. The exchange does not accept any real-world money such as Euros or Dollars.
The History of Binance: Everything You Need to Know
Binance was formed in China in 2017, making it a relatively new exchange. The launch of the platform was quite challenging as China has stringent cryptocurrency laws and policies. Due to this, the exchange moved to Japan. This is where it was able to truly thrive and grow as Japan loves their digital and cryptocurrency.
Changpeng Zao is the founder of Binance. Zao had previous experience in the trading world; hence, he developed quite an advanced exchange with regards to Binance.
Binance Exchange: Why Should You
Binance has been quite successful since its’ launch in 2017; however, just like any other platform, it comes with its’ own positive and negative factors. Before deciding to sign-up with any exchange, it is essential to take a look at these points so that you can make the right decision for yourself.
The Pros & Cons of Using Binance
The Pros of Using Binance
- It is a highly established and well-known crypto exchange platform.
- They make use of two-factor authentication, which makes it a safe and secured platform.
- Binance offers more than 100 various cryptocurrencies to trade – you have endless coin options to choose from.
- There are low fees – In fact, these are some of the lowest costs in the industry. You are charged 0.1% on each trade you make.
- It does not cost you anything to deposit funds into the trading account, and you have no limit on how much you deposit.
- Binance exchange gives their regular traders the opportunity to win prizes from time to time. These prizes always change, but they are generally really valuable.
- Binance lists new cryptocurrencies as soon as the initial coin offering is complete. This adds to the fact that it is legitimate as crypto companies want their currency on this exchange.
- There are always various ongoing trades – Which means that you have countless opportunities to buy and sell your cryptocurrency.
- Binance now accepts fiat currencies – Prior to 2021, it was not possible to withdraw or make deposits using fiat currencies. They now accept US Dollars, Pounds, and Euros.
The Cons of Using Binance
- It can be challenging for beginners to use – It is aimed more towards professional traders.
- They do not offer the best customer support – Their team often takes very long to respond to queries. Binance also does not provide phone support at this stage; you have to contact them via live chats or email.
The Binance coin came about as a result of the way that the exchange was initially funded. Money was raised for this exchange through an initial coin offering (ICO). This means that people invested cryptocurrency into the exchange, not real money. This offering managed to earn the company the equivalent of $15 million. The cryptocurrency token given back to the investors for their contribution is known as the Binance coin.
It is essential to note that the Binance coin is, in fact, a token, and it has been developed on the Ethereum blockchain.
There are mobile and desktop apps for Binance, which makes trading very convenient. You can trade on the go and analyze all your progress quickly.
Opening a Binance Account
Knowing about how Binance operates is one thing; learning how to actually use the exchange is also a crucial factor.
If you already have an account with Binance, simply enter your login details to start trading. This only takes a minute or two as you are only required to fill in your email address and password. Thereafter, complete the two-factor authentication, and you are good to go. They cater for convenience.
Binance Sign Up
Signing up with Binance is not a complicated process. There are a few basic steps to complete:
- Go to the website and click on the ‘Register’ option.
- Enter the required information – the main factor is your email address, which is easy enough.
- Create a secure password for your account.
- Confirm your email address so that you can get verified. Once you have been verified, your account has officially been set up!
- Set up the two-factor authentication so that you can receive maximum protection – Simply fill in your mobile number.
Binance Margin Trading
Margin trading involves trading assets through funds that a third party provides. This form of trading is used because it enables you to access larger sums of capital, which gives you greater leverage.
Binance margin trading is a game-changer! It is a volatile tool as you can access other alt-coins and gain leverage on them. You do need to commit a percentage of your overall order value once you initiate the margin trade. There is a limit on the leverage of either 3x or 10x.
Funds need to be deposited and withdrawn from your Binance wallet. Your wallet is where you handle all transfers. The wallet is provided to you when you register. Accessing your Binance wallet is also simple. All you need to do is click on the wallet icon situated on the top right corner of the Binance website. There are no deposit fees.
Binance fees are extremely low! This is a massive benefit of the program. You are only charged 0.1% on each trade if you do not use the Binance coin. For example, if you trade one Ethereum token, you are only charged 0.001 Ethereum. If you are using the BNB, you receive a further discount.
There are no deposit fees.
Binance Vs. Coinbase: Which One Should You Opt For?
Binance and Coinbase are two of the largest cryptocurrency exchanges. If you are looking at getting into trading, both platforms would be a great choice. It is essential to find an exchange that you are comfortable using. They are both reliable and user-friendly platforms that can take your trading to a professional level.
Differences can be drawn between the fact that Binance is Japanese based and Coinbase is based in the USA. Binance does offer over 100 trading coins and utilizes crypto-to-crypto trading. Coinbase only offers over 30 coins, and they use a broker type of trading. You can also expect higher fees on Coinbase.
Using Binance in 2021 is a good choice! It contains all the features that you would expect a decent exchange platform to have in today’s world. With the increased growth in the trading industry, having access to all the different coins they offer gives you an excellent opportunity to learn how to make smart trades.
Where Is Binance Based?
Binance is currently based in Japan. It was initially founded in China; however, it had to be moved to Japan due to the strict laws governing the crypto economy in China.
What Is a Binance Coin?
A Binance coin is the crypto coin issued by the Binance exchange. Its’ symbol is BNB, and it operates on the Ethereum blockchain.
This blockchain has a limit of 200 million Binance tokens.
How to Use the Binance App?
Firstly, you need to log in to your account. Click on the trade option so that you can be taken to the spot trading page. To make trades, you have to ensure that your Binance wallet is not empty. Hence, you have to deposit funds before you can use the app for its’ intended purpose.
You repeat this process when you want to trade. Ensure that you explore the app and familiarize yourself with all the features and settings before making big trades.
Is Binance Legit?
Binance is legit; in fact, it is one of the largest crypto exchanges in the world. There are millions of users on this platform, and many crypto companies get their currencies to be traded on this platform. Binance is also strict in accepting and listing different currencies. There is a solid procedure for approving the listings.
Is Binance Safe?
Safety does not have to be a concern when it comes to Binance. Part of the registration process involves setting up two-factor authentication, which is an added layer of security. Accounts are also protected using CryptoCurrency Security Standard (CCSS). Many significant exchanges use this form of protection.