Binance - Introducing Binance and its advantages and disadvantages

Introducing Binance and its advantages and disadvantages

Erfan Cryptocurrency July 7, 2021

The online exchange market has become so hot due to the growing number of cryptocurrencies. Sometimes users have trouble choosing between them. Some exchanges are suitable for beginners while others are for experienced users. So choosing a suitable exchange is very important for traders. Today we are going to review Binance Exchange and its benefits, so stay tuned for the rest of this article.

What is Binance?

Binance is an online exchange that supports crypto-to-crypto trades. In fact, trading in this exchange is not possible through common currencies such as the US dollar or the euro. The exchange started operating in China in 2017, but due to strict digital currency rules in China, the exchange moved to Japan.

Chang Peng Zhao, also known as CZ, who previously worked with the Tokyo Stock Exchange, has developed the Binance exchange project and is currently the CEO of the platform. Prior to its launch, the exchange raised its required capital through an initial coin offering (ICO). In fact, an ICO is like a crowdfunding, in which a group of people invest to start a company, except that the funds required for the initial offering of the coin are made through digital currencies.

Binance Exchange raised about $ 15 million in the initial public offering of the coin, in exchange for which it provided investors with its own digital currency, the BNB. This digital currency is actually a token built on the Ethereum blockchain. Binance Exchange has had a very successful start and now the daily transactions of this exchange are on average more than 5 billion dollars, which has made Binance the largest exchange for trading Altcoins.

Binance Exchange grew so fast that in January 2018, its managers were forced to suspend the registration section of the new exchange due to the influx of users to open an account.

Benefits of Binance Exchange

1- Countless altcoins

The variety of digital currencies available in Binance Exchange is one of the reasons for its high popularity among users. In fact, there are more than 100 different cryptocurrencies on this platform. The exchange supports popular cryptocurrencies such as Bitcoin, Ethereum, LiteCoin, Monero and..

2- Low fee

Another positive feature of it, is that the crypto-to-crypto transaction fee in this exchange is very low to other platforms. Customers pay 0.1% of each trade as a commission fee to the platform, in fact if you trade 1 Ethereum Unit (ETH) you will only be deducted 0.001 ETH.

Deposit in it, like most other exchanges, is always free, but withdrawals (Withdraw) from the account are subject to a fee. This fee is different for each currency code and varies according to their value. For example, the LiteCoin Digital Currency (LTC) withdrawal fee at the time of writing is about 0.01 LiteCoin, but if the value of this digital currency increases, the account withdrawal fee at this exchange will also increase. In other words, this fee is not in US dollars (or another country’s currency). It is directly related to the price of LiteCoin.

There is no limit to recharging your deposit account in Binance Exchange, but if you withdraw cryptocurrencies worth more than 2 bitcoins, you must first verify your account. You can do this by sending proof of identity such as a passport.

3- Awards

Binance Exchange offers various rewards such as free digital currencies such as WAVES and ONT or luxury cars for its users.

4- Coin Initial Coin Launch Pad (ICO)

New currency codes are on the Binance platform as soon as the initial coin offering campaign is completed. Which is why the exchange is so popular with most cryptocurrency companies. Of course, keep in mind that Binance Exchange does not list any type of cryptocurrency in its buying and selling list, and old cryptocurrencies must also show their capabilities to be included in this exchange list.

5- Security

The issue of security in Binance exchange is so important that users must adopt the two-step authentication method (2FA) to open an account. Two-step authentication is a high-level security method that sends a special code to a user-approved phone number before each login, recharge or withdrawal. Binance, like other exchanges, has implemented the CCSS security standard on its website to protect user accounts.

6- High volume of transactions

Since Binance is one of the most popular exchanges available for buying, selling and trading digital currencies, it has always hosted a large volume of transactions. This is an important factor for traders so that they can sell their assets immediately if needed. The technology used in the Exchange is able to process 1.4 million transactions per second.

For example, if a cryptocurrency has a low trading volume, there are not enough sellers for it, so traders have trouble buying it. On the other hand, if more people are looking to sell it, then it will be easier to buy it.

7- Mobile application

It is like other major exchanges in the world, has a mobile application for Android and iOS that you can easily do your trading with the help of this application.

Disadvantages of Binance Exchange

1- Poor support

Users’ opinions about the Exchange support are different, in general, users can contact this exchange via email and online chat, but some users have reported long delays in responding to this exchange. This may be due to the large number of customers, so that the Exchange will improve its customer response as soon as possible.

2- Lack of support for Fiat currencies

One of the biggest disadvantages of the Exchange is that users can not use traditional payment methods to top up their account. While other reputable exchanges such as Quinx, Kraken and Livecoin offer their users the possibility of paying by credit card and even bank transfer or PayPal.

It is not possible to top up the account in the exchange through Fiat currencies, so novice traders can not experience buying cryptocurrency for the first time in this exchange. In fact, to trade, you must first purchase cryptocurrencies such as Bitcoin or Ethereum using Fiat currencies and deposit them into your account. The Exchange recently backed several Fiat currencies such as the US dollar, the euro and the British pound. Keep in mind that withdrawing Fiat currencies is not possible in it and users can only withdraw their assets in the form of cryptocurrencies.

How to use Binance Exchange

1- Register in Binance

1. Open the main page of the Binance website in your browser and click on the Register option.

2. Enter your email address and choose a strong password for your account.

3- Your account is ready after confirming the email address.

4. When you first log in to your account. A notification will be sent to you regarding the activation of two-step authentication. Be sure to select the option to send the code via google authenticator at this stage.

2- Charging the account

1- Hover the mouse over the Wallet option in the top menu and click on the Spot option from the drop-down menu.

2. From the opened list, find the currency you want to deposit to an exchange office and then click on the Deposit option in front of it.

3- A unique payment address will meet you. Note that each digital currency has its own address, which means that if you send Ethereum

to the Bitcoin address, your entire charge amount may be lost.

4. Copy the charge address by clicking on the Copy Address option.

5- In this step, you have to transfer your desired digital currency to the account through wallet.

6- After transferring money, the account will be charged within 10 minutes. To ensure the transferring, you can check the Transaction History option from the Funds drop-down menu.

7- After charging the account, your Total Balance and Available Balance will be updated.

Start trading in Binance

It is possible to buy and sell more than 100 types of digital currencies in the Exchange. In the following example, we will review how to buy LiteCoins (LTC) ciphers together; You should note that the same way you buy other currencies.

1- Drag the mouse of your computer system on the Trade option and click on the Classic option.

2- In this step, in the right part of the search section, you can enter your desired digital currency and move to another market. This market is on BTC / USDT by default.

3- As soon as you click on the desired currency pair, you will go to the trading page.

4- At this stage, you can easily make your purchase or sale with the help of Box Trade. Which includes various options. Just enter your desired price and number and then click on the buy or sell option to create your order.

There are two general options for buying or selling

Option one

Enter the exact number of coins you want. For example, to buy 10 litecoins, you must enter this amount in the Amount section.

Second option

You can also choose a percentage of your account balance (Balance) to buy. For example, if you have 0.05 bitcoins deposited into your account, you can exchange the whole with liteCoins by selecting the 100% option from the bar chart.

Also use the Market tab for quick buy or sell (at market price).

How to withdraw from Binance

1- Drag your mouse on the Wallet option from the menu and click on Spot.

2- At this stage, if you have not enabled two-step authentication, the money changer will ask you to increase the security of your account by completing this method.

3- Now you have to select the desired currency you want to withdraw from the list in front of you and this time click on Withdraw:

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