Binance is arguably the most popular cryptocurrency exchange. They allow their users to trade futures and buy cryptocurrencies with fiat currencies too.
|US Residents Allowed||Yes, on Binance.US|
|Exchange Type||Centralized (They have a DEX too)|
|Exchange Token||Yes, Binance Coin|
|Withdrawal Limit Without KYC Documents||2 BTC|
|Credit/Debit Card Purchases||Yes|
|Trading Fees||Not Fixed | See Fees|
Start and Founder
Binance started on July 14th, 2017, by Changpeng Zhao, also known as CZ in the crypto community, who is still the CEO.
The exchange was located in Malta; however, Changpeng Zhao talked about their transition into decentralization, meaning that everyone works on the exchange is currently working from home, coffee shops, etc.
You can add two-factor authentication to protect your account — which we highly suggest.
The exchange has an insurance fund to cover losses in case there is a malfunction or a hack — please note that this is not used to bail out your losing trades.
The combined total loss could be bigger than the insurance fund can cover, so please do not store your cryptocurrencies on an exchange.
We strongly recommend everyone to use a hardware wallet.
Binance launched an ICO back in 2017, and like most other coin offerings at that time, it was a massive success too. Since then, it went up by over 250x, making it one of the most successful ICOs of all time.
BNB’s main purpose is reducing trading fees on Binance.com; however, it’s also used as a currency in various applications.
The team behind Binance also added a burning mechanism to increase the tokens value, where Binance destroys some of their coins in each quarter, based on the exchange’s trading volume.
The main focus of Binance is to branch out to as many fields as possible.
They already own a decentralized exchange, a futures platform, the biggest altcoin exchange, coinmarketcap, multiple local cryptocurrency exchanges, and probably many more to follow.
Frequently Asked Questions
Pros and Cons
- Wide variety of cryptocurrencies
- Biggest all-around cryptocurrency exchange
- Gives you the ability to margin trade
- Low fees
- Gives you the ability to trade futures contracts
- Has an OTC desk
- US residents have to use a different site with limited cryptocurrencies
- Not insured
- Has been hacked before
Binance has a general 0.1% trading fee without BNB, which goes down to 0.075% if you decide to pay the fee using BNB; however, that can go down even further based on your trading activity and the amount of BNB you hold.