Beginner’s Guide to Binance
Hello, Jack here.
Today I am writing a financial topic, one of the very hot topics today, which is a cryptocurrency. I would like to introduce you to the most popular cryptocurrency trading platform today – Binance.
Binance is a popular cryptocurrency exchange which was started in China but recently moved their headquarters to the crypto-friendly Island of Malta in the EU. Binance is popular for its crypto to crypto exchange services. The company is still fairly new on the market. But it has managed to gain a lot of popularity thanks to its impressive number of Initial Coin Offering listings, professional attitude and friendly CEO and also due to its low trading fees.
In my review, I will attempt to outline everything that I must know about Binance, including how it works, the crypto pairs that you can exchange, trading fees/limits, security aspects, and customer support.
How the Exchange Works
Those who visit Binance for the first time will quickly notice that the platform offers two options for digital currency trading- basic and advanced. Neither the basic nor the advanced versions are bound to be easy to use for complete beginners. However, anyone with a background in digital currencies. With a bit of knowledge into how exchanges work should be able to use the platform and its different services.
The main differences between the basic and advanced editions are: The enhanced version provides a more in-depth technical analysis of value. At this point, the control panel for the basic version offers several charts and charts for pairs with which you can trade, order books and trade history.
This is what the basic view looks like:
Basic View is nicely designed and well organized. All the information you need should be clearly presented with prices on the left. Central chart with buying and selling boxes. Transaction history is displayed on the right so you can quickly see what the latest trade price is.
And this is what the advanced view looks like:
The advanced view uses dark themes and makes the trading chart bigger. The latest prices are shown on the right with buy-sell boxes below.
Which you choose is a matter of preference really. I like the lighter colored basic view and find the layout a little easier to use.
Binance Signup & Login
To use the exchange, users will first have to create an account. The process behind this is fairly simple and straight-forward. You don’t have to verify your account for level 1 which is a 2BTC daily withdrawal limit. For level 2 which allows up to 100BTC per day. You need to upload a photo ID and wait till you are approved. There are higher limits still, but you will need to contact them directly to arrange that.
Verification times may vary depending on how busy the site support staff is. So make sure to plan in advance if you want to withdraw larger amounts. Make sure this step is complete before submitting it. Trade large sums of money on the exchange.
Now, that this is out of the way, users can go ahead and fund their Binance account. While you can choose from a multitude of digital currencies. It is recommended that you stick with either BTC or ETH.
At “Markets” on your account, you visit the “Wallet” -> “Deposits” link at the top of the site, click choose what kind of money you want to send in to trade, then you give your wallet address. You can then send your funds to this address to start trading on the platform. Depending on the currency you send, it may take a different time to appear. This depends on the monetary blockchain. Some currencies like Ethereum are faster than Bitcoin which can take a while.
Now that your account is funded, you can simply start trading, exchanging and investing in various digital currency pairs. Binance offers plenty of choices, as they support all major digital currencies, but also numerous ICO listings and their respective tokens.
At this time, the platform can only be used to generate limit and market orders. This has been considered a disadvantage by some, as many expected trading options that would be more advanced. Following the placement of your order, simply wait for it to be fulfilled according to the terms that have been set.
How to Trade on Binance
Trading on Binance is fairly straight-forward if you have used any other cryptocurrency exchange before. To get started, make sure you have deposited some funds – there are options for trading pairs in BTC, ETH, BNB, and USDT. Once you have your funds, at the top-right menu, select “Exchange” > “Basic” or “Advanced” to load the trading screen. We will be using the Advanced view.
Supported Crypto Currencies
Binance has often been praised for its wide variety of support coins. Traders can use the platform for multiple digital currencies, including. But not limited to Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, EOS, NEO, Ripple and more. As mentioned before, Binance also supports numerous tokens, as part of ICO listings. With this in mind, traders can use the platform to trade these tokens for a profit as well.
Binance is currently very quick to add new coins. Tokens after their ICO which usually means you can purchase them cheaply which allows for greater profit down the road.
They currently offer trading pairs in BTC, BNB, ETH, and USDT.
Binance ICO & BNB Coin
Another thing to note is the Binance Coin, which was issued during their own ICO. The Binance coin can be used to pay fees. It will also feature in their future plans to create a Decentralized Exchange where it will form one of the key base currencies. Buying a Binance coin seems like a good investment for the future. Exchanges plan to use their profits to redeem part of the money each quarter and destroy them. Thus reducing supply and making them more valuable for holders.
Binance Fees & Limits
At the time of writing, Binance charges an average fee of 0.1% on each trade that a user makes. Those who choose to pay via the Binance token can get a 50% discount on the trading fee. Which is absolutely great news. These are surely some of the lowest fees available at this time.
Withdrawal fees tend to vary for each digital currency. For instance, 0.0005 is charged for Bitcoin withdrawals, and 0.005 is charged for ETH withdrawals. Here are some examples to give you an idea of the fees you will be paying for withdrawals:
When it comes down to transfer limits, there is no limit on the number of coins that you can deposit. However, without getting verified, users are limited in terms of how much they can withdraw. Verification will establish you as a level two user, thus lifting these limits and providing a lot more freedom. The verification process requires users to provide Binance with their full name, country, gender, a photo of passport/government-issued ID, and even a selfie with the passport.
Is Binance Safe?
While Binance is one of the newest cryptocurrency exchanges available on the market. It has quickly managed to attain a high level of trust from its users and the digital currency community. However, the exchange does not give users enough information on how to guarantee money. But we want to believe that security is taken seriously. Two-factor authentication is available and is always a nice sight. It is however known that the platform offers a multi-tier and multi-tier system architecture.
Binance Customer Support
For an exchange to be successful, it requires a great customer support team, capable of answering all user questions and requests in a timely manner. While the support area on Binance could use a little work, the team is responsive and capable of offering professional aid to traders in need. Support tickets are submitted via an online form featured on the website, and responses are made via email. There is currently no live chat support, nor a phone number where customers can get in touch with the support team.
It should be noted that customer support on Binance has been known to be slow to respond to customer requests. This is a familiar phenomenon with most of the large exchanges and is due simply to the volume of users and the amount of support staff. The exchanges have grown at an explosive rate this past year and the companies simply haven’t been able to keep up with demand. Binance grew fast especially, going from launch to the largest exchange on the planet in a few short months. They have to be carefully vetted and trained due to the technicalities and security requirements involved – unlike other traditional companies where staff can be trained quicker.
Some things to bear in mind are double-checking wallet addresses, make sure you are sending the correct cryptocurrency to its corresponding address on the site. Mixups with wallets are one of the biggest mistakes people make when using exchanges. Other things to note are, try a smaller test payment first if you plan to transfer large sums – it may cost you a little more in fees but will be worth it for peace of mind.
If you do need to contact support, make sure you provide them with enough information to be able to help you the first time. Include wallet addresses, times of transactions and any other information you think they might need to help speed up the process.
Buying Bitcoin with Australian Dollars
On March 20, 2019, Binance announced the launch of Binance Lite Australia, the continent’s first fiat gateway to the world of cryptocurrencies which provides secure, reliable, and easy to use way to buy Bitcoin with cash in Australia.
The cash-to-Bitcoin brokerage service operates via a network of over 1,000 newsagents across Australia, and currently allows anyone to buy Bitcoin using Australian Dollars (AUD), and there are plans to include additional digital currencies and fiat purchasing options in the future.
Users must first undergo account verification on Binance Lite, and after being successfully verified, users can place online orders and deposit cash at their nearest newsagent, in order to receive their pre-ordered Bitcoin.
The Binance Lite brokerage service is operated by InvestbyBit, an independently operated subsidiary of the Binance.com cryptocurrency exchange. The service aims to simplify the process of purchasing cryptocurrencies and make digital assets such as Bitcoin readily accessible across Australia.
- Fees A 2.5% transaction fee (50% discount applied) plus GST on the transaction fee for each purchase is currently being charged as an introductory rate. Therefore, for a $50 order, the transaction fee will be $1.22 and the GST will be 10% of the transaction fee, which is $0.12.
- Limits The system is currently in its Beta phase, and the minimum purchase amount has been lowered to $30 with the maximum purchase amount capped at $1000. These limits may change over time and only multiples of $10 are being accepted, such as orders for $50, $60, $70, etc.
First-time customers are required to go through a one-time Know Your Customer (KYC) document verification. When using the service, it’s necessary to follow the instruction prompts after the order page and go through the verification.
In order to complete the verification process. It’s necessary to submit 1 or 2 forms of government-issued ID documents as a Passport, Driver’s Licence, or Medicare card, in addition to your residential address. Any returning customers, have completed KYC verification. They will be sent directly to the order summary page after opening a new order.
Each account is associated with a mobile phone number and users should make sure to use it once the verification process is completed for the first time. Anyone who chooses to use the new number will be required to complete the ID verification process again.
Paying by Debit and Credit Card
Binance allows users to make debit and credit card payments for cryptocurrencies via a partnership with Simplex. It’s possible to purchase Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP tokens by Visa and MasterCard and the benefits of using a debit or credit card on Binance include:
- Swift Transfers: Average 10-30 mins for cryptocurrency to reach your wallet
- Low Fees: only 3.5% per transaction or 10 USD, whichever is higher
- Convenient: Visa and MasterCard accepted
At the start of May 2019, Binance suffered their first Hack which we covered here on Blockonomi. In short, a hacker was able to gain access and bypass some of their security measures using key user information, including API keys, used by trading bots and third-party portfolio managers. They were able to withdraw over $40million worth of cryptocurrency from the exchange.
Binance decided to fully cover these losses using their “SAFU” security fund and reimbursed all users of any losses they suffered.
The fact that Binance covered these losses, gives us more confidence in their honesty and integrity but also underlines the important fact that you should follow security best practices and only keep small amounts of crypto on exchanges. Make use of Hardware wallets to store your funds securely as it seems even the biggest exchanges are not immune to this type of attack.
Currently, the matching engine of the exchange is capable of processing approximately 1.4 million orders each second, hence making it one of the fastest exchanges available on the market. Additionally, the exchange works on all forms of devices, including web, Android, WeChat, and HTML5. Non-English speakers will be happy to know that Binance offers multiple-language support in Chinese, English, Korean and Japanese.
Based on everything that has been outlined so far, Binance is undoubtedly the leading Cryptocurrency Exchange and offers great fees and awesome digital currency support. As it reportedly has access to abundant resources and partners, chances are that Binance will continue to evolve and offer great digital currency exchange services to its clients. We are happy to recommend Binance and have added it to our list of the Best Cryptocurrency Exchanges.
We have continued to update this review since Binance was first launched ( we were one of the first to offer a review of the platform at the time ). And as time has progressed, time and time again Binance has proven to be one of the very best, if not the best, exchanges available. Their CEO Changpeng Zhao (CZ for short) has been part of the cryptocurrency community and shown high standards of integrity. Binance the exchange has continued to innovate, bringing new products to market and new options for purchasing and trading cryptocurrencies to all corners of the globe.