Binance Experiences 2020 – In-Depth Broker Review

Binance experiences 2020 – Test of the well-known crypto exchange

bitcoin tradingBinance is currently one of the largest international crypto exchanges with over 100 supported cryptocurrencies and a trading volume of over one billion euros.

In my test I will introduce the crypto trading platform in detail and share my experience with the provider.

In addition, I will show you with a step-by-step guide the most important points for a successful registration with Binance and the purchase of cryptocurrencies.

The Origins of Binance

The crypto exchange, founded in Hong Kong, was launched in 2017 by Chanpeng Zhao (better known as “CZ”). Since then, the platforms have had a steep rise.

The crypto exchange now ranks among the top 5 exchanges in terms of 24h trading volume as determined by Coinmarketcap.

The original start of the exchange was accompanied by an Initial Coin Offering (ICO). A total of 15 million US dollars was raised by Czs company, Beijie Technology. This provided sufficient seed capital to realize the visions of the founders.

Availability

Due to requirements of the Chinese government, Binance* has now distributed its servers worldwide, to less strictly regulated countries.

Recently there have been discussions about the operation of Binance in the USA. Regulatory authorities there had prohibited the use and trade of Binance.

However, the company reacted immediately and now plans to set up its own servers for the USA by the end of 2019. However, the choice of trading pairs will probably be limited there for the time being in order to meet the requirements of the authorities.

Regardless of this, Binance is available without restrictions in many countries, e.g. Europe and the UK. Trading in euros and pounds sterling is handled by the Jersey-based Binance Exchange.

The Binance Coin (NBB)

With the ICO (Initial Coin Offering), which took place in 2017, NBB issued Binance Utility Token BNB to interested investors. The price per token at that time was 0.1 USD.

Originally launched on the Ethereum Blockhain, the token now runs on its own block chain and offers investors a number of advantages:

  • NBB can be used to reduce trading costs. Binance currently rewards the holding and use of its own coin with a 25% discount on the trading fees incurred.
  • In the future, the decentralised exchange of Binance (Binance DEX) will run via the NBB token.
  • The coin can also be used as a means of payment for the Initial Exchange Offerings (IEO) organised on the platform.
  • This puts it in competition with other smart contract platforms such as Ethereum (ETH) or EOS.
  • Each quarter, a part of the 200 million BNB tokens is bought back and destroyed by Binance through a Token Burn.

Due to the large number of possibilities, Binance Coin is now often seen as a share rather than a classic utility token.

Due to the high acceptance of the stock exchange and always new features, the price in July 2019 was over 30 USD per token!

User-friendliness of Binance

My experience with the operation of Binance* has been consistently positive.

In the meantime, many texts and contents on the site have been translated into German. This makes it possible to use the site even without in-depth knowledge of English.

In general, the crypto exchange has created a new standard with its interface which is “copied” by many other crypto trading platforms. This is of course not without reason.

Basic and Advanced Interface

With the two options “Basic” and “Advanced” a suitable interface is available for every user.

While the Basic version is aimed at beginners and only displays the most important details, the Advanced view offers additional functions.

This means that not only beginners, but also advanced and professional users have all the important trading data at a glance.

Functions for Professionals

In addition to the usual limit and market orders, stop losses can also be set to avoid major losses.

Since mid-2019, crypto trading on margin has also been offered in order to bet on price movements with a leverage of up to 1:20. Bitcoin Futures can even be traded with up to 1:100.

Robust Trading Engine

One reason for the success of Binance is probably the trading engine used. It is extremely robust and works reliably even with very high trading volumes.

Due to the high degree of familiarity, there is usually enough volume to easily find buyers and sellers for your coins and tokens.

Binance App and Windows Client

The crypto exchange now offers apps for the two mobile operating systems from Apple and Goolge in order to trade crypto currencies while on the move.

I myself could only test the iOS version and am very satisfied with it. The interface is perfectly adapted to mobile use, which makes creating orders a breeze.

For those who like to trade from their desktop computer, the client software is interesting.

It is a bit more performant than the browser version and is therefore especially suitable for the professional traders among you.

Cryptocurrencies and Payment Methods

The platform was originally launched with pure crypto trading pairs. However, Binance now also supports Euro and USD inpayments by credit card and SEPA transfers.

The platform makes use of the well-known payment service provider and broker Simplex, which allows the direct purchase with Fiat of the following digital currencies

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Binance Coin (NBB)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Ripple (XRP)

In total, over 100 different coins and tokens can now be bought and sold via Binance.

The trading pairs available are Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), Tron (TRX) and various Stablecoins.

Binance Fees

More and more crypto exchanges are entering the market and ensuring that trading fees remain at a low level.

Binance is competitive here, in any case. For trading crypto currencies, a flat rate of 0.1% is charged for each transaction. Especially if you plan to trade large volumes, every single decimal place counts here.

Binance Fees Saving with NBB Coin

I also recommend you to keep some NBB Coin on the exchange wallet and use it to pay the trading fees.

This will give you an additional 25% discount on the trading fees due!

Deposits and Withdrawals

Inpayments of crypto currencies to the Binance Wallets are of course free of charge. Only the usual network fees apply.

A 3.5% service fee is charged for credit card inpayments via the Simplex service. This is a very common figure compared to other platforms.

Unfortunately, SEPA transfers are not currently supported.

For payouts from Binance to an external wallet, different fees apply depending on the asset. These are within a fair range and are displayed transparently before each transfer.

Binance Limits and KYC Verification

As is now almost common practice, as a new user of trading platforms you must verify your identity.

Not so with Binance!

Non-verified accounts have a payout limit of 2 BTC every 24 hours. I think that many users should be able to cope with this.

If not, the limit can be increased to a total of 100 BTC every 24 hours through verification.

If you want to have more information about KYC, I recommend my article about crypto trading platforms.

Binance Customer Service and Trustworthiness

The CZ stock exchange is now known worldwide and is used daily by many investors and traders.

Changes, planned maintenance and problems are openly communicated through the usual channels such as e-mail and Twitter.

Support requests can only be made by e-mail or automated chat bot. The request must be made in English. Depending on the workload of the employees, however, questions and problems are usually responded to quickly.

Overall, apart from a few exceptions, there is little negative information about the trading platform on the Internet.

I personally therefore consider Binance to be one of the serious crypto exchanges.

How secure is Binance?

Of course Binance, like any other platform, is a popular target for hackers. Where else is there the possibility with a successful hack to earn millions of dollars for themselves.

In July 2019, the last unknown hacker managed to steal coins and tokens worth a total of 80 million US dollars.

Binance’s handling of this incident was exemplary. After a brief pause in trading and the stoppage of payments, the stock market returned to its usual level within a few days.

The stolen deposits were fully reimbursed to all investors. Binance had previously set up a fund that stepped in and took over the damage in such incidents.

Binance Lending

Since August 2019, it has been possible to lend various cryptocurrencies via Binance and receive interest in return.

The interest rate is currently variable between 7 and 15 percent per year! It remains to be seen whether these relatively risk-free and high interest rates will continue to exist or will be adjusted downwards over time.

The following coins can currently be lent:

  • Bitcoin (BTC)
  • Tether (USDT)
  • Ethereum Classic (ETC)
  • Cardano (ADA)
  • Ethereum (ETH)
  • Binance Coin (NBB)

As a user from Germany, however, you should be careful.

For coins that are lent, the holding period may be increased to 10 years before profits from the sale become tax-free.

At least this is the current opinion of some tax experts. However, there is no clear regulation yet, which is why I recommend to assume the “worst case”.

If cryptocurrencies are held purely for holding, the proceeds from a sale are tax-free after only one year. So it is possible that the profits from lending are later reduced by tax payments.

Since the topic of taxes and cryptocurrencies is complex anyway, you should look for a tax consultant who can advise you properly.

Binance Debit Card announced

In March 2020, Binance announced the beta phase of its own crypto debit card.

The card can be used for worldwide payments and is linked to the company’s own Binance Wallet. For this purpose, an additional account will be created, similar to the one already used for margin trading, where you can deposit your Bitcoin and NBB at the beginning.

If you pay with the card in any fiat currency, your crypto-currencies will be used directly and exchanged at the current rate.

The card can be pre-ordered immediately on the Binance homepage*.

My personal Binance Experience

The crypto exchange around Changpeng Zhao has become a permanent fixture in the field of cryptocurrencies.

Due to the large number of trading pairs and the comfortable trading interface, beginners as well as advanced and professional traders get their money’s worth.

The low trading fees – especially when paying with the own token NBB – round off the positive overall impression.

New features are added at regular intervals and existing functions are further improved.