Binance Review 2024

Binance is the largest cryptocurrency exchange by trading volume, technological advancement, and the range of services offered for active trading and investment in cryptocurrencies. It was founded in 2017 in China and has since been continuously growing. For a long time, the founder and main face of Binance remained Changpeng Zhao, who also owns the OKCoin platform.

Binance stands out from its competitors in many respects. The platform regularly demonstrates the highest trading volume, which has now closely approached the $80 billion mark. The number of trading instruments offered is 1,682, with a vast diversity of coins, totaling 395. Additionally, over its existence, Binance has supported a wide range of fiat currencies, totaling 46.

Furthermore, Binance offers a plethora of additional services – an NFT marketplace, a launchpad for crypto startups, P2P exchange, cryptocurrency staking, etc. The exchange offers more favorable trading conditions for clients who hold its native token, BNB, which consistently ranks in the top 5 cryptocurrencies by market capitalization. In recent years, Binance has actively worked with local cryptocurrency exchanges to improve the integration and availability of Binance Coin (BNB) in different regions, especially in Latin America. It has even implemented cross-exchange liquidity agreements to strengthen BNB's position in the global market.

Binance Rating

Binance is rightly considered the leader of the industry, providing a very high level of services and a wide list of opportunities. The table below contains the rating of every aspect of the platform’s operation.

Total score	9,4
Commissions	8
Security and regulation	9
Markets	10
Passive income	10
Account opening	10
Deposit and withdrawal	8
Trading platforms	10
Analytics	10
Education	10
Customer support	9
Bonuses	9

Binance Pros and Cons

Binance is the leader, but not in all aspects. The exchange offers many benefits, but still has some drawbacks, which we will also mention, as this review aims to provide impartial information about the platform and give you the fullest picture.

Basic information

Binance is well-known, in part, due to its powerful advertising campaign, the scale of which significantly surpasses its competitors. As part of its global expansion strategy, Binance has invested in key regional cryptocurrency exchanges and fintech companies. Through the Binance Charity Foundation, the company has supported various humanitarian initiatives, including assistance to Ukraine. Nevertheless, there are still those who have never heard of it. Let's highlight the most important points:

Binance charges rather flexible fees. Initially their level is average, but as the volume increases they can be considerably reduced. Also, the fees are lower if you use BNB. Let’s review the pros and cons:

Binance trading fees

Binance charges fees both for spot trading and futures trading. The rates cannot be called the best in the industry; they are rather average. Let's consider the fees in the Spot and Margin markets:

The higher the trading volume, the lower are the fees, which is a great advantage for active traders. However, in order to reduce the fees considerably, you will have to achieve rather high volume indicators.

There is also an option to reduce your fees by 25% when using BNB; it applies to spot and to future trading.

Binance non-trading commissions

There is no fee on deposits in cryptocurrency and the withdrawal rates are determined by the blockchain network only. If your deposit is in fiat money, the fee will be floating, up to 3.3%. Also electronic payment systems are available; for example AdvCash or Payeer can be used for depositing funds with no fee charged.

The exchange does charge a withdrawal fee. For every currency, there is a different fee. For example, if you withdraw to a USD card, the fee is fixed at $15. Withdrawals in cryptocurrencies are also charged with a fee. Here are the most popular ones:

• BTC – 0.0005BTC
• ETH – 0.005ETH
• USDT – 6.55USDT

For the clients with small amounts, a fixed withdrawal fee may turn out to be rather inconvenient, while for large amounts, it will definitely be a big plus.

Average commission compared to competitors

The best way to evaluate the level of the fees is to compare the exchange to its competitors:

The rates of Binance commissions and fees can be considered average; they do not match the level of the best offers in the industry, although they are better than those charged by the majority of competitors.

Margin lending

Binance provides clients with an opportunity for margin trading. This means that the traders can use borrowed funds provided by the company. For example, if you have 1 BTC, you can trade 3 BTC with the provided loan. This raises your potential profit, but also the risks.

On the Binance cryptocurrency exchange, different cryptocurrencies are classified into tiers based on their liquidity, and each tier has its own borrowing limits. As the debt amount increases, the maximum available leverage decreases, and the required maintenance margin rate and the minimum initial margin rate increase.

In Cross Margin Pro Margin mode, the margin level is calculated as the ratio of the user's net capital to the total required maintenance margin and is divided into several different levels.

Cross Margin Pro Margin Level = ∑Net Equity / ∑Maintenance Margin,Please refer to FAQ for detailed information.

More detailed information on margin trading, including various levels and limits, can be found in the relevant section on the official Binance website.

Example:
The user borrowed 13 BTC and 13 ETH. Suppose that BTC price = 30,000 USDT and ETH = 3,000 USDT, then the required Initial Margin and Maintenance Margin are calculated as follows:

• USDT value of BTC Liability = 13 * 30,000 = 390,000, which falls in Tier 3. USDT value of ETH Liability = 13 * 3,000 = 39,000, which falls in Tier 2.
• Required ∑Initial Margin =∑Initial Margin required by BTC liability + ∑Initial Margin required by ETH liability= 50,000*11.12%+(100,000-50,000)*14.29%+(390,000-100,000)*20%+ 30,000*11.12%+(39,000-30,000)*14.29% = 75,327.1 USDT
• Required Maintenance Margin = ∑Maintenance Margin required by BTC liability + ∑Maintenance Margin required by ETH liability = 50,000*5%+(100,000-50,000)*7%+(390,000-100,000)*8%+ 30,000*5%+(39,000-30,000)*7% = 31,330 USDT
• Required Maintenance Margin can also be calculated in a faster way by using the Maintenance Amount. Liability token Maintenance Margin = Token Liability in USDT* Maintenance Margin Rate - Maintenance Amount. So the Required Maintenance Margin = ∑Maintenance Margin required by BTC liability + ∑Maintenance Margin required by ETH liability= (390,000*8% - 2,000) + (39,000*7% - 600) = 31,330 USDT

This example illustrates the importance of understanding the mechanism of margin trading. The initial margin is the collateral that a trader must provide to open a position, and the maintenance margin is the minimum level that must be maintained to avoid the liquidation of the position. Such calculations help manage risks and determine how much funds need to be maintained in the account to support trading positions. It's important to remember that margin trading amplifies both potential profits and potential losses. Therefore, traders should be cautious and always consider their risk level and experience in trading on financial markets.

Over the years of its existence, Binance cryptocurrency exchange has grown to be an undisputed leader of the industry with its name known to every person, who is interested in cryptocurrency. The exchange has not been involved in any major scandals and the reviews about the platform are mostly positive. There was an incident involving the theft of funds, but the exchange learned from it and improved its security, including by introducing two-factor authentication. Additionally, the exchange holds licenses in 34 US states.

In 2022, the company increased the staff of its security and compliance team by 500%, invested over $500 million to support innovations in the Web3 and blockchain space through Binance Labs. During the so-called "crypto winter," the company established a $1 billion Industry Recovery Fund, promising to increase the contribution to $2 billion if necessary.

At the same time, the holding itself is registered in an offshore jurisdiction; only certain companies of the holding are licensed. The company is officially called Binance Holdings Limited and it is registered at Sertus Chambers, Governors Square, Suite # 5-204, 23 Lime Tree Bay Avenue, P.O. Box 2547, Grand Cayman KY1-1104, Cayman Islands. Prior to that, Binance was registered in Hong Kong and Malta. Such moves happen often and they are mostly due to the changes of the law, as the cryptocurrency industry still does not have the level of regulation that is usually typical for other financial markets. On the one hand, such jurisdiction makes the operation of the company easier and the tax burden lighter, while on the other hand not all clients are prepared to open accounts and put money into an offshore exchange.

The management is aiming to expand the geographical presence of Binance, actively obtaining licenses, where it is required.

In 2023, Binance underwent significant management changes due to the departure of Changpeng Zhao, related to an investigation in the USA. Zhao agreed to pay a bail of $175 million, leaving $15 million in the court's trust and stepped down from any management role in the company while retaining his status as a major shareholder.

Following these events, Binance faced a massive outflow of funds amounting to about $956 million, which caused concern among users and impacted market stability. In response to these challenges, Binance is considering changing its strategies and business models, strengthening anti-money laundering measures, and improving the transparency of its operations.

Throughout 2023, Binance actively expanded in Southeast Asia, including Vietnam, the Philippines, Malaysia, Indonesia, Thailand, and Singapore, forging partnerships with local players and striving to obtain VASP and EMI licenses.

Binance invested in local fintech sectors and the banking industry and also acquired strategic stakes in local cryptocurrency exchanges, such as MX Global in Malaysia and HG Exchange in Singapore. The company continued to support various initiatives, including charity through the Binance Charity Foundation and investments in blockchain technology capabilities.

Binance offers its clients a very large list of trading instruments. It is not the largest there is, but the platform is not chasing this record. Usually the cryptocurrencies that pass the inspection in terms of their reliability and legality are admitted to the exchange. This allows the platform to prevent ‘image’ losses due to listing dubious projects.

Pros and cons of market diversity on Binance

Let’s review the pros and cons of the list of markets the exchange offers:

For a long time, the Binance exchange offered its users its own stablecoin, BUSD, which is fiat-backed and pegged to the US dollar. However, in 2023, Binance announced the gradual discontinuation of support for BUSD by February 2024. This decision was made after Paxos, the issuer of BUSD, stopped issuing new BUSD tokens. Users are encouraged to convert their BUSD into FDUSD (First Digital USD), another stablecoin supported on the platform. A 1:1 conversion is offered through the Binance Convert feature.

Notably, there are also interesting crosses between altcoins and ETFs.

Binance Markets

Let’s review and compare trading instruments offered by Binance and the competitors of the exchange:

Binance provides great opportunities for earning passive income. It will require either capital or equipment. Let’s take a look at the offers:

Binance Launchpad

What it is: Binance Launchpad acts as a platform for Initial Coin Offerings (ICOs) and token launches. It aids crypto project developers in launching new tokens and raising funds by providing access to Binance's large user base.

Functions: Launchpad conducts thorough selection and vetting of projects, offering investors quality and reliable options for investing in new cryptocurrencies.

Advantages: Users are given the opportunity to participate in the early stages of projects, which can lead to high returns if these projects are successful.

Binance Launchpool

What it is: Binance Launchpool is a platform that allows users to earn new tokens by staking their cryptocurrency assets.

Functions: Users can stake their funds in special pools on Binance and receive new tokens in return. This is a way to earn from staking, where users can simultaneously support new projects.

Advantages: Launchpool provides a simple and less risky way of obtaining new tokens, as well as helps in distributing these tokens among Binance's wide audience.

Both platforms strengthen the Binance ecosystem by offering new opportunities for investment and earning to users, and effective tools for raising capital and community engagement to crypto project developers.

It's noteworthy that at the beginning of 2024, there were more than 80 launched projects available for participation on the platform.

The Binance exchange has also created the Binance Pool mining platform. It provides users with opportunities for mining various cryptocurrencies, including Bitcoin (BTC) and other popular coins. Binance Pool is closely integrated with other Binance services, including spot and futures trading, as well as staking products.

Key advantages of Binance Pool:

Low Fees: Binance Pool offers some of the lowest fees in the market, making it an attractive choice for miners.

Support for Various Algorithms: The platform supports multiple mining algorithms, giving miners flexibility in choosing the most profitable option.

Community and Support: Miners in the Binance Pool can take advantage of the resources and support of the Binance community, as well as access to educational materials.

Binance Referral Program

Binance cryptocurrency exchange offers a very simple and convenient system of referral bonuses that allows you to make passive income by referring new clients. You only need to generate a referral link in your personal account and send it to the future client of the exchange and that person needs to use it during registration. After that, the commission will be calculated in real time mode and will be credited once an hour. You can also specify some settings:

• The referral rate
  It is set depending on the daily volume. If it is less than 500 BNB the referral rate is 20. If it is higher than that, the referral rate can be up to 40%.
• You can also share the commission with the invited friend.
  You can also set it up on your own.

Notably, there are different links for spot and futures markets. They can also be generated as a QR code, as this technology is becoming increasingly popular.

Opening an account on Binance literally takes a couple of minutes. First, basic features will be available and you will need to verify your account in order to have access to wider features. Verification of documents may take up to 2 days. Once it is complete, you will be able to use the full range of the services offered by the exchange and with rather extended limits.

Residents of which countries can trade at Binance

The situation with client service and account registration changes constantly due to the pressure of the authorities. Nonetheless, Binance cryptocurrency exchange manages to get some limitations lifted. At the moment, registration is prohibited for the residents of Belarus, Iran, and North Korea. This, however, is a standard list for many platforms and not only cryptocurrency exchanges.

A separate company was established for the US residents, which obtained licenses for each state and this process continues. Despite the statements about stopping the services for the clients from Europe, registration for EU residents is currently available.

How to open an account on Binance:
a step-by-step guide

In order to become a client of the exchange, you need to access binance.com and take several simple steps:

Step

1

Click Register www.binance.com

Step

2

Provide your email and come up with a password. Pass security verification (anti-spam).

Step

3

The account has been created. Now you need to verify your ID. Select Individual.

Step

4

Provide your name, country/area of residence. Next, enter your mobile phone number, where the text message with a code will be sent. Also provide your date of birth.

Step

5

After you’ve entered the code, you will be assigned Level 1. This means that you can trade and withdraw cryptocurrency with a daily limit of $2,000.

Step

6

Next, you need to pass personal verification.

As you can see, everything is simple and clear. You shouldn’t experience any difficulties. In order to have all trading features and expanded limits, upload documents for verification. Usually, it does not take longer than 2 days for Binance specialists to verify your documents and upgrade your status.

Minimum deposit on Binance

Binance Account types

Trading possibilities of Binance clients depend on the volume of information they provided about themselves. There are three verification levels:

Binance cryptocurrency exchange boasts one of the longest lists of supported fiat, which includes 46 currencies. Here are the most popular ones:

• USD – US dollar.
• EUR – Euro.
• GBP – British pound.
• CAD – Canadian dollar.
• CHF – Swiss franc.
• AUD – Australian dollar.
• MXN – Mexican peso.
• UAH – Ukrainian hryvnia.

There is also a long list of cryptocurrencies. It is important to see which blockchain network you choose when making a deposit. The most popular coins are:

• BTC
• ETH
• EOS
• BNB
• USDT

Deposit and withdrawal options and processing time

Let’s review the information about fees in the table below: