Is Binance Trustworthy (Binance Review 2020)

It is of course no secret to those involved in the industry and others who are enthusiastic about cryptocurrency that crypto exchanges up until now lack being regulated.

This, unfortunately, as much as gives a wider margin to them to work, it also on the other hand opens the way to scam and risky dealing, in the shade of absence of a clear, straightforward law labels to regulate that business and chase those who run such exchanges when they fail to meet the compliance labels. Hence, most of traders feel insecure in their trading, having concerns about whether they are opening their accounts with the right exchange or not.

This comes from our high appreciation to the trust our readers put on us, which we exchange with our commitment to our honour in the market.

In this review, we talk about Binance. We will analyse one of the top 5 cryptocurrency exchanges.

Since traders have parted in two teams for this cryptocurrency exchange between with and against, here we are trying to answer the main question — “Is Binance scam or reliable? Can I trust Binance?

How to open Binance crypto exchange account?

https://www.binance.com/en/register?ref=37418028

To open an account with Binance, all you need is a username, E-mail address and a password. Account opening with Binance requires going through the KYC procedure. After opening an account, you will sent an activation link to your E-mail address. Click on it, and you will a message confirming that your account was activated. Once your account is up, it is recommended to enable a two-factor verification procedure (2FA) — Google or SMS authentication in your account dashboard. At this stage, your account will have been opened, but will have not been authenticated yet until you submit a verification document — usually a government-issued ID. An unverified account, which is in level 1, can only make a 24-hours maximum withdrawal of 10 BTC. To upgrade, you need to verify with the required document as stated above. Verified accounts can withdraw up to 100 BTC every 24 hours. For security purposes, Binance offers its clients 5 ways to verify their accounts.

Login Password (Compulsory)

Anti-Phishing Code (Optional but necessary)

API (Optional but necessary)

SMS Authentication (Optional but necessary)

Google Authentication (Optional as well, but can go as an alternative to SMS verification)

On Binance, you can not fund your account with fiat currency. You are only able to deposit cryptocurrency funds. For depositing, there are no fees. However, the amount withdrawal is dependent on whether your account is verified or not.

https://www.binance.com/en/register?ref=37418028

TRUST/REPUTATION

Binance is one of the most popular, if not the most popular, Crypto exchanges in the entire cryptocurrency and blockchain industry. Binance was launched in 2017 by developer Changpeng Zhao and has become very useful to traders and Hodlers of crypto assets for crypto-crypto exchange. With its very low transaction fees and high variety of available coin offerings and diverse crypto pairs, it has grown to become the largest crypto exchange since early 2018. Binance has more than 100 coins to offer its clients. Apart from its size and low transaction cost, is Binance reliable, easily accessible, user-friendly and secure? The following will provide more information gathered on Binance.

In less than two years, Binance has grown to become one of the biggest and most trusted exchanges in the industry. It has over 9 million users worldwide and made up to a billion dollar profits in 2018. Its CEO Changpeng Zhao is well experienced in the industry. Before starting Binance, he established Fusion systems, a company that built high frequency trading systems for brokers, in 2005. He also worked shortly with OK Chain as CTO after he left the popular crypto wallet blockchain.info in 2013, where he worked as one of the first three members.

Binance has adopted some measures to curb account hacks. The company has three other verification processes aside from username and password to make sure that traders’ accounts are safe from intruders.

In less than two years, Binance has grown to become one of the biggest and most trusted exchanges in the industry. It has over 9 million users worldwide and made up to a billion dollar profits in 2018. Its CEO Changpeng Zhao is well experienced in the industry. Before starting Binance, he established Fusion systems, a company that built high frequency trading systems for brokers, in 2005. He also worked shortly with OK Chain as CTO after he left the popular crypto wallet blockchain.info in 2013, where he worked as one of the first three members.

Binance.

Binance has adopted some measures to curb account hacks. The company has three other verification processes aside from username and password to make sure that traders’ accounts are safe from intruders.

Is Binance Reliable or a Scam?

Binance is far from being a scam, Due to the history of its founder, its size and popularity, the exchange is known to be one of the reliable crypto exchanges. In 2019. Binance Jersey, aimed to expand the company’s European reach. It was created to be an independent company of its own and offer fiat-crypto pairs with Euro and GBP among that currencies to be traded. Also in 2018, Binance launched Binance Uganda to be the first fiat-to-cryptocurrency exchange. Binance is expected to expand its reach this year, and even get stronger and safer.

Fund Security

The details of how to keep funds, the banks they use, whether traders’ funds are segregated from theirs are not provided on their website. However, the company has proven many times that your funds are safe with them. Binance came under a phishing and API attack in early 2018. The Binance team moved swiftly as soon as this was discovered. They quickly disabled withdrawals and froze the affected funds. Eventually, they were able to identify the malicious contents and recovered the stolen funds. The affected accounts got their stolen funds back. This act, kind of boosted traders’ confidence in the company and shows that they are reliable.

Liquidity

When it comes to liquidity, no crypto exchange can match Binance. The exchange has some more advanced trading fee structures that are helpful for traders who trade more volume. While they are based on the maker-taker model, they have been designed to incentivize traders to act more like market makers and also to provide the exchange some liquidity.

The screenshot below shows a detailed breakdown of the Binance fees that are based on the maker-taker model. They have been structured on different levels based on your trading volumes.

When liquidity is provided to the Binance exchange order books, you are being rewarded with a lower trading fee. Conversely, if you take liquidity away from the order books, you will be charged a slightly higher fee.

Binance Trading Fees

Binance’s trading fee is determined according to the trading volume over a 30-day period (in BTC) and BNB balance. The fee structure of Binance is the lowest among the major crypto exchanges. This is a huge cutting edge. They operate a standard 0.1% trading fee. This fee is very attractive to a trader who doesn’t need an immediate fiat liquidation and for large-volume traders. Most of their competitors charge in the excess of 0.2%. For traders who trade more volume, Binance has an advanced fee structure in a taker-maker model. There is also an additional 25% discount if a trader trades a coin pair involving Binance’s token BNB e.g BNB/BTC. This means that a trader will only be charged 0.075% as trading fees if he trades BNB/BTC and buys BTC.

Binance Taker-Maker Fee

An order that trades immediately, by filling partially or fully, before going to the order book is a ‘taker’ trade. These traders are never recorded in the order book, therefore taking volume away from it. ‘Maker’ orders, on the other hand, go directly on the order book partially or fully. These orders add volume to the order book. ‘Taker’ and ‘maker’ orders attract different fees. The following show Binance’s maker-taker charges.

As the tables above show, takers are being rewarded with lower trading fees for they provide liquidity to Binance order books. Makers on the other hand, have to pay a bit higher fee for they take liquidity away.

Binance Deposit Fees

Deposit fees, as one would have expected, are free. However, it’s normal that the sending wallet pays blockchain fees with cryptocurrencies.

LEGAL STRUCTURE

Binance is not known to be regulated by any reputable agency though it did sign MOUs with any government. After strict regulations pursued the company from relocating its headquarters to Malta, it signed an MOU with the Malta stock exchange in 2018. Months earlier, it had signed a similar MOU with the government of Bermuda. The entire cryptocurrency market is largely unregulated because of the risks involved. However, Binance has a huge global appeal among crypto traders and users.

User Interface

The growing popularity of Binance crypto exchange stems from multiple factors which include having an appealing user interface. Created by experienced professionals in the crypto space, the platform gives users, new as well as professional traders access to a variety of trading tools, charts and security features.

WITHDRAWALS

The withdrawal fee is dependent on the blockchain transaction fee. It is often updated based on the current blockchain condition and seems to be fair enough.

CUSTOMER SUPPORT

While the Binance customer support is available in various languages such as English, Chinese, Korean and Japanese, the team is responsive and capable of offering professional assistance to customers in need.

At the moment, however, there is no live chat or telephone support available. You can reach out to the support team through the use of an online ticketing system. Once a support ticket is submitted, it will be delivered to the relevant team and their responses are made via email.

Support is also available in the form of a basic FAQ.

https://www.binance.com/en/register?ref=37418028