Binance Review 2021 | Fees, Pros, Cons | Bitcoin Exchange

About Binance

Binance is currently the world’s largest cryptocurrency exchange by trading volume. It was founded by Changpeng Zhao (known by his initials CZ) in China in 2017. Since then, the platform has established itself as one of the most reliable players in the crypto space.

In September 2019, it launched a separate dedicated platform for its US customers, registered with FinCEN, and fully compliant with the US’s regulatory framework.

Notably, Binance is also considered as one of a handful of cryptocurrency exchanges that do not fake volume or engage in wash trading activities. The company continuously seeks to ensure transparency in its operations.

Over time, the exchange has proven itself reliable and responsible to its customers and has lived up to set standards and regulations, cementing its reputation in legitimizing cryptocurrencies as an asset class.

Overall, Binance keeps up to date by covering all significant industry advances and upgrades, having established itself as the most widely used gateway to markets of digital cryptocurrencies.

Binance’s reputation in the industry

What makes Binance particularly attractive is its extensive list of supported crypto-assets and their trading pairs, including the industry’s hallmarks like Bitcoin and Ethereum, as well as smaller and micro-cap tokens. Each token must fulfill Binance’s standards and criteria just to be considered for listing (and can also be de-listed for violating the terms).

In 2019 Binance exchange experienced a sophisticated cyberattack (it was hacked). Thieves stole $40 million in Bitcoins at the time, but thanks to Binance’s SAFU fund, all losses were covered by the exchange, and Binance reimbursed traders immediately. This act significantly strengthened Binance’s reputation in the cryptocurrency industry.

What is Binance’s SAFU fund? SAFU, the Secure Asset Fund for Users, is an emergency insurance fund. On the 3rd of July, 2018, Binance announced the Secure Asset Fund for Users intending to protect the investors’ funds on the exchange. Thus, Binance allocates 10% of all trading fees received into SAFU to protect users and their funds in extreme cases. All SAFU funds are stored in a separate cold wallet.

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Binance’s native token BNB (Binance Coin)

Another aspect of Binance that makes it appealing is its competitive trading fees (a flat rate of 0.1%), further reduced by holding the platform’s native token, Binance Coin (BNB). The token had been issued and distributed in an ICO with the launch of the exchange (as an Ethereum ERC-20 token, the ICO itself raising ~$15 million at the time). To know more about the fees on the platform, check our Binance fees guide.

Binance offers an incentive to pay transaction fees in BNB by offering a 50% discount in the first year of membership, decreasing every subsequent year for five years. The token is not just limited to that, though, as one can also use it to invest in ICOs which participate in Binance’s Launchpad program, for example.

Tip: Whenever it comes to using a crypto exchange or any asset exchange for that matter, there’s going to be some little balance left behind after trades. However, Binance has a solution to this problem. It offers a convenient option to swap your tiny balances and convert them into BNB. Here’s a guide on How to Convert Small Balance to BNB. Alternatively, watch the video below.

Watch the video: How to Convert Small Balance to BNB on Binance

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How to open Binance account?

  1. Create account. Head over to the Binance main web page (for the US citizens here) and register with an e-mail address and a password. Remember to use common sense when choosing a password; make sure it’s long enough and alphanumeric, including both upper and lower case letters and numbers. It is also advisable to set up two-factor authentication (2-FA) as an additional security measure, installing Google Authenticator on one’s phone for the purpose. This makes it so that each time you log in or perform any operation (such as to request withdrawal of funds; read our How to Withdraw from Binance guide for more details), you will need to enter a unique number sent to you on your phone to confirm it is you.
  2. Confirm your personal details. Undergoing a simple Binance Know-Your-Customer (KYC) process is also required, which includes providing a full name, home address and country of residence, and date of birth upon which one gets redirected to a third-party verification and KYC services provider (NetVerify) where to complete the process one must upload a copy of a government-issued ID (which can be an ID card, a passport or a driver’s license). Know-your-client and anti-money-laundering procedures are crucial for obtaining regulatory approval to launch and operate as a legitimate and trustworthy exchange in most jurisdictions worldwide (with a few notable exceptions that provide precisely the opposite of that tending to be tax evasion havens and/or cybercriminal hubs). Check our in-depth step-by-step Binance Know-Your-Customer (KYC) guide for more details.
  3. Add funds. Fiat deposits via bank accounts [temporarily suspended EUR deposits via SEPA bank transfers since July 7, 2021] and/or credit/debit cards are supported in a select number of countries; otherwise, one ought to first purchase Bitcoin or Ethereum elsewhere (most commonly Coinbase) and then deposit them to their Binance wallet address for that particular asset. Once one makes a deposit (usually confirmed in no more than 20 minutes), one can start trading.
  4. Start trading and investing. Go to the ‘Exchange’ button at the top of the screen and choose between the ‘Basic’ or ‘Advanced’ trading platform interface. If you are just starting and don’t have any previous experience trading, the first option gives a quick view of the market trading pairs and it is recommended before jumping to the more advanced one.
Open Binance account

Adding funds to your Binance account

Not until too long ago, Binance had been primarily a crypto-to-crypto exchange with no fiat on and off-ramps, meaning that one had to buy cryptocurrency Bitcoin or Ether elsewhere and then deposit it to Binance.

Over the last year, though, limited support for bank accounts and credit/debit card deposits have been added through third-party payment processors and service provider partner companies (like Simplex in the EU or BAM for their US operations). Both Mastercard and Visa are accepted, although the client may incur an additional charge if the native currency is anything other than USD or EUR. Standard processing fees are 3.5% with a 10$ minimum which is slightly lower than Coinbase’s 3.99%.

Watch the video: How to buy Bitcoin and many other cryptocurrencies with a credit or debit card on Binance

Simple video explaining how to buy digital assets on Binance with banking card.

Classic vs Advanced interface

The Classic interface (previously named basic) is more straightforward and understandable for beginners or those who like simplicity. The dashboard still gives you all the needed options to perform a buy/sell trade. It has a simple order book on the left with ‘Buy’ and ‘Sell’ buttons where one specifies the number of tokens to buy/sell or puts a price for which to buy/sell as many tokens.

Classic trading interface on Binance exchange. Recommended for beginners.
Classic trading interface on Binance exchange. Recommended for beginners.

The Advanced interface is more or less identical in functionality to what traditional trading platforms look like, with more sophisticated charting tools and advanced order types (such as stop-loss, stop-limit, etc.)

Advanced trading interface on Binance exchange. Recommended for beginners.
Advanced trading interface on Binance exchange. Recommended for beginners.

On Binance, there is access to more than 500 trading pairs, and when a trade completes, it becomes visible in one’s Binance account balance. It is generally advisable to keep funds on the exchange only when and if actively trading, otherwise if it is used just to hold an asset long-term with no intentions to trade Binance is not meant as a custodian. One is better off transferring their funds on to an external wallet – ideally, for more significant amounts, a cold storage one.

Watch the video: How to make the most commonly used “limit order” on Binance

Trading with “limit orders” on Binance exchange.

What is a “limit order”? A limit order is an order with a specific “limit price,” which means that Bincance will only execute it once the market price reaches the price you set or better. Limit orders can be used to trade at lower or higher than the current market price, presuming the market reaches the price you have set. However – if you do not want to wait until the asset’s price reaches a specific level and wish that your “limit order” will be filled – you can always use a “market order” to fill your position instantly with the best current market price.

Binance offers an API that allows one to connect their account to any programmed trading bot or application and have them trade on one’s behalf in automating strategies and automatically responding to signals and events (taking advantage of arbitrage opportunities across exchanges, etc.).

Watch the video: How to execute all types of trades (LimitMarketStop-LimitOCOCross MarginIsolated Margin) on Binance

User-friendly tutorial on how to trade on Binance.
Start trading on Binance

Customer support and communication

Customers can submit ticket requests via the account portal. Still, Binance has a good, active in-account live chat and social media presence on Twitter, Telegram, and Reddit, which may often provide quicker responses.

Any important announcements are usually broadcast on the official Binance Twitter account (there is also a separate helpdesk for customer service inquiries at @BinanceHelpdesk). Simultaneously, the Telegram group channels are always quite active and responsive to any questions and queries.

Additionally, @BinanceResearch provides current institutional-grade analyses and more in-depth insights for more sophisticated traders and investors.

It’s worth mentioning that Binance has been busy drastically expanding its customer support (CS) team to ensure the highest service quality. According to the CEO, the platform’s CS team has recently grown 5-fold.

Margin trading and Futures

Margin trading has also been introduced, and one needs to specifically apply for a margin account, making sure they understand the risks involved. Customers use the BNB token as collateral against funds borrowed at a margin rate of 3:1. Noteworthy, platforms like BitMex offer up to x100 leverage, while Binance offers up to 20x leverage as of July 19, 2021).

Trading of futures contracts has been another addition. It requires that one uses his regular Binance account to open a Futures account, again, ensuring he understands the risks involved and what forward and futures contracts on underlying assets are. It is important to note that on July 26, 2021, Binance announced, that it delists AUD, EUR and GBP cross and isolated margin pairs, with timeline shown as below:

  • At 2021-08-10 02:00 (UTC), Binance Margin will suspend EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, BCH/EUR, YFI/EUR, ETH/GBP, BTC/GBP, GBP/BUSD and GBP/USDT cross margin borrowing, and suspend EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, ADA/EUR, BNB/EUR, DOT/EUR, XRP/EUR, XLM/EUR, LTC/EUR, LINK/EUR, BCH/EUR, SXP/EUR, YFI/EUR, ETH/GBP, BTC/GBP, XRP/GBP, BNB/GBP, GBP/BUSD, GBP/USDT and BTC/AUD isolated margin borrowing.
  • At 2021-08-12 02:00 (UTC), Binance Margin will conduct an automatic settlement, cancel all pending orders, and then delist EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, BCH/EUR, YFI/EUR, ETH/GBP, BTC/GBP, GBP/BUSD and GBP/USDT cross margin trading pairs, and EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, ADA/EUR, BNB/EUR, DOT/EUR, XRP/EUR, XLM/EUR, LTC/EUR, LINK/EUR, BCH/EUR, SXP/EUR, YFI/EUR, ETH/GBP, BTC/GBP, XRP/GBP, BNB/GBP, GBP/BUSD, GBP/USDT and BTC/AUD isolated margin trading pairs.

Risk Warning: Margin trading carries a substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movement. The information here should not be regarded as financial or investment advice from Binance. All trading strategies are used at your discretion and at your own risk. Binance will not be liable to you for any loss that might arise from your use of Margin.

Both long and short leveraged positions are available on Bitcoin and Ethereum as the underlying and as paired with Tether USD (USDT) – both the required collateral and the products themselves use Tether USD price (a stablecoin pegged to the value of the US dollar as a useful fixed-value instrument in these markets).

Related video: Explained: What Are Binance Margin & Futures Contracts?

Both Margin and futures use leverage to amplify the trading result. What are the differences between Margin and Futures Contracts? Find out in this video.

On June 3rd, 2021, Binance launched the ‘Cooling-off Period’ option on Binance Futures, so traders can use it to temporarily disable Futures trading to prevent compulsive trading and practice self-discipline.

Cryptocurrency staking (earn passive income)

Binance exchange also provides cryptocurrency staking services that run on a proof-of-stake consensus (such as Algorand, Tezos, Cardano, Polkadot, and Ethereum 2.0). By staking a specific cryptocurrency – you can earn passive income without any hassle.

To make things easier for you, we have even prepared a simple step-by-step guide on how to stake Ethereum 2.0 on Binance. Please note that the staking procedure is similar for all digital assets.

Cryptocurrency staking is the process of locking up a portion of your assets to qualify to earn staking rewards (interest), participate in the governance, and verify the transactions within a specific decentralized network. In some ways, this is similar to how a traditional company works. Shareholders have stakes within a company, which gives them the right to vote in the management and directorship of a company. Staking rewards can vary from 5% to 30% APR depending on which coin the user is staking. Learn more: How to stake cryptocurrencies?

Stock tokens (ceased)

On April 12, 2021, Binance launched the tradable stock contract a zero-commission fee enabling traders to trade tokenized versions of mainstream stocks. The exchange has onboarded electric vehicle manufacturer Tesla (NASDAQ: TSLA) as the first stock under the flagship feature.

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Tradable stock tokens are a new concept. Investors now have an opportunity to diversify their portfolio by venturing into both the crypto and the traditional stock market without having to leave the Binance platform.

Important: On July 16th, 2021, Binance announced that it ceases support for stock tokens on the exchange, effective immediately. Therefore, stock tokens are unavailable for purchase on, and it will no longer support any stock tokens after 2021-10-14 19:55 (UTC).

Binance’s decentralized exchange

Binance also runs a decentralized type exchange (DEX) which follows a different operational logic from the centralized counterparts. DEXes are non-custodial (one has direct control over his funds and trades directly from his wallet) and run and execute trades directly on the blockchain.

As such, they are considered more secure, much less vulnerable, and susceptible to manipulation but not as consistent in terms of transaction fees and speed of execution (due to the underlying architecture on which they run). At present, the tradable assets and pairs available tend to be limited to the ecosystem of the chain the exchange runs on and the limitations of cross-chain interoperability.

In the case of Binance’s DEX, it was launched in March of 2019 on its own dedicated Binance chain, using BNB as its native platform currency, which it migrated from its Ethereum ERC-20 token standard to a BEP-2 format on the Binance chain.

As mentioned already, there are significant structural and technical differences between centralized and decentralized exchanges. There are still hybrid constructions that centralize the order book and matching engine but keep the execution of trades and transactions on-chain, making them close to the speed and efficiency of centralized ones while maintaining the security guarantees of decentralization.

Pros & Cons


✔️ Established industry presence

✔️ Excellent reputation

✔️ Safe & secure

✔️ Many trading options (spot, margin, P2P, stock token, and more)

✔️ It has its own exchange token (BNB), which gives you many exclusive rights such as launchpad investing eligibility, lower trading fees, the ability to convert low [other] crypto balances into BNB, and more.

✔️ More than 500 crypto assets and pairs tradeable

✔️ Many useful features

✔️ Numerous payment options available

✔️ Active social channels

✔️ Great customer support


❌ Perhaps not ideal for complete beginners

❌ Lacking phone customer support

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