Is It Legit? What Are Binance Pros and Cons?

Binance is the most popular cryptocurrency exchange and the largest by trading volume and has served millions of users.Whether you are new to cryptocurrency trading or familiar with other exchanges, the Binance trading platform can be a great place to start or diversify your portfolio. 

Since you are considering using Binance for crypto trading, it is only right that you know the ins and outs of the exchange. So, in this Binance Exchange review, we will cover its pros and cons, trading methods, key features, and fees, and provide a detailed guide on how to open a Binance account as a beginner.

What is Binance Exchange?

Binance Exchange is one of the top centralized exchanges that gives traders access to tools and various markets, over 350 cryptocurrency assets, and 1300+ trading pairs. Although Binance has been in the industry for over half a decade, within the first six months of launch, it became one of the largest cryptocurrency exchanges in the world.

Over the years, it has expanded its services to about 180 countries while serving 90+ million users in those regions. Like other crypto exchanges, Binance platform offers services for crypto holding, listing, fundraising, de-listing, and withdrawing cryptocurrencies. 

To facilitate these transactions, the platform has a blockchain-based token, Binance Coin (BNB), and offers discounts to users who pay using this native cryptocurrency token.

Apart from these features, Binance has an In-App NFT marketplace, a comprehensive learning platform, and opportunities for users to earn passive income. But before we dive into more details about the features and services, here is an overview of Binance Exchange and some of its offerings:

Pros and Cons

Binance pros are:

• 500+ supported assets
• 1300+ supported trading pairs
• Low transaction fees
• Multiple trading options and order types
• Reputation (Popular crypto exchange platform)
• Robust Security and KYC
• Supports Fiat-crypto Transactions

Binance cons are:

• Binance.Us is limited
• The Binance platform might be confusing for new users
• Lawsuits and regulatory challenges in many countries 
• Customer support could be better.

Binance Pros Explained

1. 500+ Listed Cryptocurrencies to Choose From: Binance Exchange offers more than 350 tradable coins for all its customers. This gives crypto traders and investors many options. They can decide to trade or buy popular tokens or Meme coins, GameFi, and even AI coins. If you are in the United States using Binance.US, you have fewer options, around 150 coins to choose from.

2. Multiple Trading Pairs: Binance has over 1,300 trading pairs from which traders can choose. Binance Exchange has 1329 pairs in its Spot Trading markets, 460 pairs for Perpetuals markets, and 460 for Futures markets. Some of these pairs include BTC/USDT, BTC/FDUSD, XRP/USDT, ETH/USDT,  USDC/USDT, SOL/USDT, 1000PEPEUSDT, and BTCUSD_250328.

3. Low fees: Unlike other crypto exchanges, Binance offers low trading fees, so you don’t have to worry about splurging a significant amount of your investments and earnings on transaction fees. Additionally, you could get even more discounts if you use the Binance coin, BNB.
4. Multiple Trading Options and Order Types: Binance Exchange offers various trading options, including peer-to-peer, margin, and spot trading. The platform also has many order types, including limit order, market order, stop-limit order, stop market order, trailing stop order, post only order, and one-cancels-the-other order.
   
5. Popular Crypto Exchange Platform: Over the years, Binance has built a reputation as one of the top crypto exchanges. Though it has experienced certain challenges, it is still a great choice for traders, especially those who are familiar with crypto trading.
6. Robust Security and KYC: Binance enforces various security measures to protect users. For instance, the platform requires a strong password during registration and 2FA for all sensitive operations, such as logging in and transferring funds. They also encrypt data in storage and in transit to ensure that only you can access your personal information. In addition to these measures, Binance has a strict Know-Your-Customer (KYC) and Anti-Money Laundering (AML) policy.

7. Supports Fiat-crypto Acquisitions: Binance users can easily convert your local currency into digital assets. Some supported fiat on Binance include GBP, AUD, BRL, EUR, USD, ZAR, and RUS. You can make these fiat-crypto deposits using bank transfers, online banking, e-wallets, credit/debit cards, and Google/Apple Pay.

Binance Cons Explained

1. Binance.Us is Limited: Binance.US is a separate exchange operating under different regulations for Binance traders in the United States. Due to these strict regulations, the platform is more limited than the global exchange. It supports about 158 coins and 170+ trading pairs. Binance.Us was established in 2019, and it is only available in 38 states; traders in Hawaii, Texas, New York, and Vermont cannot use the platform. Traders cannot trade futures or invest with a margin account on Binance.Us.

2. Binance Exchange May be Confusing for New Users: Binance offers features, trading options, supported cryptocurrencies, and services. While this provision may be exciting for experienced traders, it can be confusing for people who are new to the crypto space. In fact, even traders who are familiar with the platform might feel overwhelmed due to all the options available.
3. Lawsuits and Regulatory Trouble in Multiple Countries: Binance has faced many regulatory and legal issues in multiple countries. For instance, Binance and its CEO, CZ, pleaded guilty to unlicensed money transmitting and anti-money laundering violations charges on November 21, 2023.

This happened a month after Binance paused all U.S. dollar deposits, withdrawals, and trades in response to the Securities and Exchange Commission (SEC) lawsuit filed against Binance.US on June 5, 2023.

Additionally, traders in many countries either don’t have access to Binance, or some features may not be available in their region. These challenges and others have raised concerns among investors and traders, leading them to consider other cryptocurrency exchanges.

Key Features of Binance

Binance Exchange has many features that traders can use for different purposes. From spots, futures, and perpetual markets to the Web3 ecosystem, you can complete any crypto activity with Binance. Below is a closer look at some Binance features.

1. Trading Options

As an exchange, Binance gives users the flexibility to trade how they want. The platform supports P2P Trading, where users can buy and sell crypto without intermediaries. Additionally, users can trade crypto against stablecoins and speculate on the future of cryptocurrency prices to earn massive rewards.

2. NFT Marketplace

Non-fungible tokens are unique digital assets representing ownership or proof of authenticity of a specific item, such as artwork, music, video, or collectible. Binance offers a marketplace for traders to browse, mint, sell, bid on, and purchase NFTs from digital creators.

Listing NFTs on Binance is free, and the platform supports many of the most popular NFT collections on BNB Chain, including BULL BTC CLUB, TUD NFT, Dummy NFT, and Golden Ape Club. Binance also hosts regular initial game offerings (IGOs) where players can buy gaming NFTs from exclusive projects before anyone else.

3. Binance Web3 Wallet

Binance is an all-in-one crypto marketplace. In addition to offering an exchange for users to trade crypto and fiat, Binance has a built-in Web3 wallet. This interface enables users to easily switch to and explore the Web3 ecosystem and decentralized finance (DeFi).

Binance Web3 Wallet is a convenient channel for decentralized applications (dApps). It allows Binance users to manage cryptocurrencies, participate in exclusive airdrop campaigns, execute cross-chain token swaps, and interact with various blockchain platforms.

4. Binance Earn

Binance provides multiple ways for users to earn passive income while trading. One such feature is Simple Earn, an easy-to-use investment feature that allows users to deposit crypto assets in return for a yield.

Through this feature, Binance supports deposits of about 300 cryptocurrencies, and users can earn up to 52.9% Annual Percentage Rate (APR) on their deposits. You can either commit your deposit to a fixed period or opt for flexible staking, which allows you to redeem your tokens at any time.

5. Binance Launchpad

Binance Launchpad is a token launch platform that helps blockchain startups to raise funds for new projects. In addition to helping crypto startups, the Launchpad enables investors to discover and keep track of promising crypto projects before they enter the mainstream.

6. Binance Launchpool

Binance Launchpool is a platform that allows users to deliver funds into a liquidity pool by staking their crypto tokens and earning new ones for free. The feature is perfect for investors who want to generate passive income while trading. Note that your returns depend on the amount you stake and the total number of tokens committed to the pool. 

6. Binance Referral

Binance features a popular referral program, which allows current customers to refer new users to the platform in return for rewards and bonuses. Binance currently has two referral programs: standard and lite. The standard referral program gives you 20% lifetime discounts on trading fees.

Meanwhile, the lite program offers 100 USDT trading credit. Use this referral code: P8DEY0JB to open a Binance account and get full access to lifetime discounts on trading fees and other exclusive rewards that are normally unavailable to users signing up without a referral ID.

7. BNB Vault

Binance offers many investment products, and the BNB Vault is one of its simplest. BNB Vault is similar to the Launchpool but with extra perks. It allows users to stake their BNB to earn a variable APR (currently 0.35%) while also earning rewards via Binance Launchpool and other yield-bearing products.

Binance Trading Platform

Binance started as a trading platform, and it has maintained its position in helping investors trade crypto effectively with many options. Here is a breakdown of the major ways to trade on Binance Exchange.

1. Margin trading

In simple terms, crypto margin trading allows users to borrow digital assets to trade cryptocurrency. It is also known as leveraged trading and Binance added it as part of its trading offerings in 2019. With this feature, you can open larger positions than you normally would not by borrowing funds from third parties.

When you borrow assets to trade, you must pay a daily margin fee, which goes to the margin lender (third party you borrowed from). Luckily, you can choose from over 600 supported trading pairs and up to 10X margin.

2. Spot trading

Binance’s main feature is its spot trading platform, which you can use to trade 350+ cryptocurrencies and 1329 thousand trading pairs. Users can easily buy or sell cryptocurrencies instantly with this feature, and you can also set recurring buys if you are looking at the dollar cost average (DCA).

If you are a more advanced trader, Binance provides more advanced features for spot market to support order types and charting features. These features allow you to set limits, market, stop-limit orders, and more.

Binance Fees and Charges

Binance fee structure is competitive, a huge selection of transaction types, and an advanced set of tools for experienced investors. Here is a rundown of the fees Binance charges for different trading activities.

1. Deposit Fees

There are no deposit fees on Binance. However, each coin has a minimum deposit requirement, which can change depending on the Blockchain network you choose for the transaction.

2. Withdrawal Fees

For fiat currencies, the fees and limits depend on the fiat currency you are withdrawing and the transfer method you choose. Depending on your location, each currency has specific minimum withdrawal amounts and fees, starting from free to 5.50%.

For crypto withdrawals, the fees and withdrawal limits depend on the Blockchain network conditions. So, Binance adjusts the prices according to how busy the network is, making costs fluctuate. Nevertheless, each cryptocurrency has a flat withdrawal fee, e.g., 1 BNB, 0.0005 BTC, 0.005 ETH, and 0.001 LTC. 

3. Spot Trading Fees

Binance charges are based on a tiered system, from regular users to VIP 9. For regular users, a 0.10% maker and taker fee is charged for spot trading. But Binance now runs zero-fee trading for BTC spot trading pairs and ETH/BUSD pairs.

Your fees reduce slightly if you are trading USDC, makers still pay the standard rate, but takers pay 0.095%. If you increase your trading volume over 30 days or hold a significant amount of BNB in your account, your spot trading fees will drop to as low as 0.00825% maker and 0.01725% taker.

4. Futures Trading Fees

For USD-M and COIN-M Futures, regular users pay 0.02% for maker fees and 0.05% for taker fees. Higher VIP levels enjoy lower charges, with VIP 9 paying 0% maker and 0.017% taker fees. Also, if you use BNB to cover your costs on USDT-M, ETH/BTC, and USDC-M Futures, you can get an extra 10% off.

5. Margin Trading Fees

Binance margin transaction fees also follow the maker-taker model. The maker and taker fees start at 0.1% for regular users, but if you choose to pay using BNB, your fees drop to 0.075%. Higher VIP levels enjoy lower costs based on their 30-day trading volume and BNB assets. Other fees are interest rates charged by the hour on the loans. 

6. NFT Fees

Listing, browsing, and bidding on NFTs on Binance is free. Binance charges fees for NFTs sold starting at 0.9%, but like markets on Binance, these fees drop as you reach higher VIP levels, reaching as low as 0.1%.

How Many Countries Does Binance Support?

Binance is available to traders in about 180 countries, including Australia, South Africa, United Arab Emirates, and Turkey. However, it is unavailable in some countries due to regulatory restrictions and compliance requirements. These countries include the United States, the United Kingdom, and Canada.

Does Binance Work in USA?

No, the global Binance platform does not work in the USA. However, Binance established an extension of the platform, Binance.Us operating under BAM trading services, specifically for crypto traders in the US.

Is Binance and Binance US the Same?

No, Binance and Binance US are not the same. Binance is the global cryptocurrency exchange while Binance US was launched in 2019 by the parent company Binance to comply with U.S. regulations and cater to American users.

Is Binance Available in New York?

No, Binance Exchange and Binance US are not available in New York. If you are a New York resident seeking to trade cryptocurrencies, consider alternative exchanges like Coinbase or Gemini; they are fully licensed in the state.

Is Binance Legit and Safe?

Yes, Binance is legit and safe. Though it has faced significant breaches and regulatory issues, the exchange is committed to protecting user assets and information. Often considered as one of the best crypto exchanges in the market, Binance uses industry-leading security protocols, including two-factor authentication and SSL encryption, to protect users’ data and accounts.

Binance also has an address whitelisting feature that restricts withdrawals to only pre-approved addresses. When you enable this feature, your account can only send funds to these whitelisted addresses. This will prevent unauthorized access and losses in a phishing attack or hack.

That’s not all. Binance uses MPC (Multi-Party Computation) technology for its Web3 Wallet. This technology governs every transaction and removes single points of failure to ensure that your assets are safe.

In addition, features, such as wrong address protection and malicious contract detection on Binance, will notify you if a token or blockchain carries a security risk at the time of the transaction.

Is Binance in Trouble?

Yes, Binance has faced many regulatory issues in various countries. But besides regulatory issues, it has also been involved in scandals and significant lawsuits, like the one filed against Binance.Us by the SEC in June 2023. 

Also, Binance and its CEO, Changpeng Zhao, pleaded guilty to anti-money laundering violations and other charges on November 21, 2023. Binance agreed to pay $4.3 billion to settle charges, while Changpeng Zhao stepped down as CEO and agreed to pay $50 million toward the settlement.

Even in the midst of these lawsuits, there have been no cases of Binance misappropriating user funds or engaging in market manipulation. So, you can have peace of mind because your information and the money in your crypto wallet are safe.

How to Use Binance

Binance offers its services as a mobile application for iOS and Android, browser-based websites, and a desktop application for Mac and Windows. 

To start using Binance, you need to open an account. But, before we get into the step-by-step process of registration, use this Binance referral code P8DEY0JB during registration to qualify for a $100 trading fee rebate and 10% discount on all your future trades for life.

How to Open a Binance Account?

Step 1: Click Open Account button below to start Binance or download the Binance app, and register using your email address, mobile phone number, Google account, or Apple ID.

Step 2: Check the “agree with Binance terms of service and privacy policy”, and click “Next” to proceed. Binance will then send a verification code to the email or phone number you added. Enter the code number and click Submit.

Step 3: Create a strong password (at least 8 characters, including uppercase letters and numbers).

Step 4: If you didn’t use the registration link in step one, add our Binance referral code here manually to get rewards. After that, Binance will ask you to complete your verification. Click “Continue” to start the verification process.

Step 5: Once you finish the KYC verification process, it can take a few hours to two days to have your account verified and ready for use.

How to Trade on Binance?

At this point, you must have completed the KYC verification process, so the next step is to:

1. Deposit funds into your Binance account. You can do this by transferring cryptocurrency from another wallet or using the supported traditional payment methods.
2. Use Binance Academy to learn the basics of cryptocurrency investing, market orders, limit orders, stop orders, and margin trading.
3. Start Trading: Choose the pair you want to trade—a pair of cryptocurrencies you can trade against each other—e.g., BTC/USDT, ETH/USDC, or ETH/BTC. Decide whether you want to buy (long) or sell (short). Set your order type (market or limit). Specify the amount you wish to trade and confirm your order.

Since you are new to crypto, we recommend that you do thorough research before you start trading on the Binance app. Also, start with a small amount of money you are willing to lose because cryptocurrency trading is risky and you might make mistakes as a beginner.