Pros & Cons
- Hundreds of cryptocurrencies supported for trading
- Several languages supported
- Highly secure and robust in terms of cyber security
- Amazing rewards program and bounty program
- Android app reportedly buggy
- Withdrawal time frames lengthy for some altcoins
- Two-factor authentication only available for Chinese phone numbers
- Parts of user data collected as declared in privacy terms and conditions
Our Expert Rating
Average User Rating
- Bitcoin cash and Bitcoin gold both available for trading
- Low trading fee of just 0.1%
- Multiple countries around the world supported
- Several cryptocurrencies accepted for deposits
- Country Where Binance is Based
- Available Currencies
- Bitcoin, Ethereum, Litecoin, +45 more coins
- Extremely Low, or Low, or Average or High or Extremely High
- Deposit Methods
- Withdrawal Methods
Binance Exchange – Is it safe
Cryptocurrencies are all the rage these days. The surge in price of the Bitcoin has taken the world by storm and has sparked unprecedented interest among common folk who are investing in cryptocurrencies to reap significant profits. Considering the demand for such currencies and also all of their undeniable inherent advantages, it is no wonder that cryptocurrencies are booming, and not just in terms of value, but also in terms of the sheer number of different crypto coins being introduced into the market of late.
At the time of writing, there are nearly 1200 different official cryptocurrencies listed as being recognized and in circulation. This number is growing exponentially, it was only about 800 just weeks ago. So, the question that may pop into your head at this point is – how or where do all of these umpteen currencies get their liquidity from? The answer – cryptocurrencies exchanges!
As the name suggests, cryptocurrency exchanges are where you may, typically, buy and sell cryptocurrencies for either other cryptocurrencies or for traditional fiat currencies. There are several cryptocurrency exchanges on the World Wide Web that offer different features and advantages. One such cryptocurrency exchange that has grabbed the attention of investors is Binance!
Why Binance is in the CoinTrust Trust list
Binance is one of the most trusted and popular crypto currency exchanges in the world and it has millions of users registered on it from around the globe. It has two factor authentication and also the latest encryption technology to make sure your information is always safe.
Further, personal experience with Binance has helped to build my trust in the exchange. I had no issues with withdrawing my money as and when I pleased.
What is Binance?
Binance has two platforms. On one hand, it is an online cryptocurrency exchange where you can trade cryptocurrencies and on the other, it is a cryptocurrency in itself. Binance wrapped up their initial coin offering in July 2017 which makes it a comparatively newer exchange and crypto coin. The name Binance has been coined courtesy of the merger of the words Binary and Finance, Ergo, Binary + Finance = Binance.
Their mission statement is to ‘Power the future of crypto finance’. This is a Chinese company and like Bittrex and Poloniex (two popular crypto exchanges), Binance is centralized. Binance claims to be better than their centralized competitors. They allege that they have not only identified the breaking points and cons of centralized cryptocurrencies exchanges, but are rapidly solving these issues single handedly.
The problems that they are tackling range through a number of different issues, and include, but are not limited to the following:
- To improve efficacy in terms of software/technical architecture
- To make a more robust platform in terms of cyber security
- To enhance market liquidity
- To strive for impeccable customer service and satisfaction
- To achieve globalization in terms of languages and regions supported
Binance – Salient features?
Many of us are aware of these existing problems when it comes to centralized cryptocurrency exchanges, however, what we may not know is – what are the solutions to these issues? So, to shed some light on how Binance is taking on these issues, let us take a brief look at some of the features that Binance has incorporated to solve exactly such drawbacks.
- Matching Engine– To begin with, in terms of giving the user a more seamless user experience. Binance has ingeniously improved their technical architecture by employing one of the most powerful matching engine’s we have come across in the industry. They claim that their matching engine can process a staggering 1,400,000 orders every single second! With processing power like that, you certainly will not come close to testing the patience of everyday users.
- Device Coverage–The masterminds behind Binance are not green behind the ears, and they certainly aren’t naïve. They are well aware of the fact that people use different devices from desktops, to laptops to smartphones to access their cryptocurrency exchanges and wallets. They have left no stones unturned in terms of the devices they support.
- Multiple languages supported – For an online exchange that has hardly been around for a year, Binance already supports English, Chinese, Japanese, Korean and Spanish. We don’t expect this list to stop growing anytime soon.
The brains behind Binance
Need to place the team name, and their linked din or wiki profile for eg have a look at how they done it here https://coinsutra.com/binance-cryptocurrency-exchange/
- Changpeng Zhao – CEO
- Roger Wang – CTO
- James Hofbauer – Chief Architect
- Paul Jankunas – VP of Engineering
- Allan Yan – Product Director
- Sunny Li – Operations Director
The exchange’s team members are experienced individuals who have been exposed to both the finance and the crypto currency industries for decades on end. Not only do they have the best partners and contacts, but they come together to form a formidable, diverse, eclectic and highly capable team. The current CEO is Changpeng Zhao who has a treasure of experience in the line. He worked from 2013 – 2014 as the head of development for Blockchain, he was a partner at Fusion Systems from nearly 8 years from 2005 through to 2013 and has been the CEO at Binance since June of 2017.
The CTO of the company is Roger Wang, James Hofbauer is the Chief Architect and Paul Jankunas is the Vice President of Engineering.
Given these high-profile personalities behind the company, it is clear to see that Binance is by no means another scam exchange, it is legitimate and its company members are professionals who comprehend the risks associated with the business, the challenges that they need to overcome and most importantly, how to provide atop – quality service and crypto coin to their customers.
Brieft 50 words on this and then list the most popular Coins you can buy there and at the end place remain total count, for eg +50 More coins
Deposit, Withdrawals and Transfer limits
Small write up on this and the verification process in order to increase the limits.
Binance– The working business model
Binance have published their whitepaper to the public to achieve absolute transparency. However, if you happen to know a thing or two about how cryptocurrency exchanges work behind the scenes, then you may come across something rather odd in the Binance whitepaper and think to yourself – why would a cryptocurrency exchange require an initial coin offering at all?
To be able to comprehend this and their business model overall, you will first need to wrap your head around their token economics. BNB is the symbol for Binance’s crypto coin which is known simply as the Binance Coin. The Binance Coin is an ERC20 token and there are a fixed number of these coins in supply – a total of 200 million. 50% of these total coins were essentially dispensed during their initial coin offering in June of 2017. Therefore, the 200 million BNBs in circulation can be segregated as illustrated in the below table –
|Number of BNB||Participant|
|100 million BNBS||Distributed during ICO|
|80,000,000 BNBs||Shared amongst founding members|
|20,000,000 BNBs||Bought by investors|
Now if you take a closer look at these numbers, you start to get a clearer picture as to why Binance had an ICO. It all makes sense – the ICO served to kick start the development process and expedite the large – scale adoption of the coin via fee incentivization for its users. This way, everyone benefits.
The key to making the exchange really tick is the fee incentivization! Binance as a cryptocurrency exchange allows for you to pay the fees using Binance Coins. Exchange fees, withdrawal fees, listing fees, etc. may all be paid through BNBs. Further, when you do opt to use BNBs to pay these fees, you stand to receive a substantial discount which is not offered if you choose any other payment method or medium to pay your fees. The discount rate being offered for the first year is a staggering 50%, the second year will offer a discount of 25%, the 3rd – 12.5%, 4th – 6.75% and no discount from the 5th year onwards.
Another strategy as per the Binance whitepaper is that Binance, once every three months, will dedicate 20% of their profits to actually buy back Binance coins until they have acquired as much as 50% (100 million BNBs) back and destroyed them. To ensure transparency around the buy back, the company has even declared that they will make these transactions visible on the public ledger (blockchain). This way, even though there were a total of 200 million BNBs in circulation to start with, there will eventually only be 100 million left, this way, all of their users are bound to profit as it will lead to the sky rocketing of the value of each BNB.
How to buy Binance coins
After considering the start studded personnel behind the company, and their simple, yet genius white paper strategy, it is a no brainer to invest in some Binance coins. So, if you are wondering how you can go about getting your hands on some BNBs, we have got your back.
First, as you may have already guessed, the preferred place to buy BNBs is on Binance itself. The crypto exchange allows you to purchase Binance coins for either Bitcoins or Ethers.
Your second and only other option as of now is a crypto exchange called Ether-Delta. You can buy BNBs for Ethers on this online crypto exchange.
Binance and BNBs – Final words
After having seen countless cryptocurrency exchanges come and go, we can tell you a good exchange when we see one. Binance, is one such cryptocurrency exchange which is here for good. Needless to say, if the exchange is successful then so will the Binance Coin itself.
Obviously, you do not have to take our words for face value. Here are some reasons to justify our faith in this cryptocurrency exchange
Business model – The business model has been analyzed the world over and especially by competitors who you can rest assured have searched desperately for flaws, loop holes and kinks. The fact that they haven’t been able to find anything of substance bears testimony to the fact that this business model, while simple, is effective and fool proof. From an economics vantage point, the business model satisfies the principle of supply and demand at its core, and it assures that the value of the coin is only headed one way – upwards.
Rate of growth– When you look retrospectively at many of the cryptocurrency exchanges that came in and just could not sustain themselves there is a clear pattern. Most, if not all, of these crypto currency exchanges have had a hard time becoming popular and breaking into the top crypto currency exchange lists. However, with Binance, the exchange is already being touted as one of the best in the world and has secured a place among the top ten exchanges (in terms of volume). What is even more astonishing is that Binance has been able to achieve this in a matter of mere months.
In fact, at this rate, our projections put Binance in one of the top five crypto currency exchanges in the world in terms of volume in the very near future, we are talking months!
Globalization – Despite being based out of China, this a truly international operation. Right from their upper most management personnel to the languages they support. Binance is not targeting any particular customer base, they want to take over the world. The fact that they support multiple languages and will continue to support more languages and regions as the years roll on by will only add to their success and rise the value of the BNB further.
Fee Incentivization–Binance’s strategy to allow users to pay transaction and processing fees using BNBs and offering them mouth watering discounts for doing so is simply genius and effective. If that doesn’t work, Binance has made it clear that they will use their profits to buy back 50% of their BNBs in circulation and destroy them – this is a sure shot way to create a huge surge in the price of your crypto coin.
Given all of these factors and their fool proof business model, it is easy to see that Binance is one of those cryptocurrency exchanges that will make it big!
David is a forex trader and writer who has spent the last few years giving his opinion and spreading news about oncoming markets and trading tips. Besides from being a trader he is also a lifelong Everton fan and enjoys spending free time watching his beloved team in the premier league.