Binance Exchange Review with Pros and Cons – Is it Safe?

Binance is arguably the most popular altcoin exchange, currently based in Malta. It is also slowly starting to become the best all-around exchange out there.

If you would like to read the review of their Fiat-to-Crypto Exchange, click here.

Table of Contents

  1. When did they start?
  2. Do we know the founders?
  3. Does it have an exchange token?
  4. How secure is it, is there 2FA, etc.?
  5. What’s the withdrawal limit for unverified/verified users?
  6. Is it insured, if not, is there a backup fund?
  7. What does the exchange focus on?
  8. Is it a centralized or a decentralized exchange?
  9. Does it hold IEOs?
  10. What are the 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 is currently located in Malta, with the support of the Government of Malta.

THE TOKEN

They held an ICO to sell their token, which is called the Binance Coin (BNB). The token has sold out entirely, and since then, it went up by over 250x, making it one of the most successful ICOs of all time.

The BNB tokens main purpose is reducing the trading fees on Binance.com; however, it’s also used as a currency in many applications.

The team behind Binance also added a Burning Mechanism to increase the tokens value, where Binance destroys BNB each quarter, based on the exchanges trading volume. They will stop doing that when 50% of the total supply is burned, leaving 100 million BNB at the end.

It was one of the few cryptocurrencies that kept its value the best during the 2018 bear market.

Screenshot of Binance.com's trading pairs, sorted by highest volume.
With the newest Binance 2.0 release, not only they added margin trading, but they also updated their old dated UI, to a new modern one.

SECURITY

You have the option to add 2FA, and SMS authentication, as well as whitelisting your address for withdrawal.

Binance also allows you to verify yourself, which will bump your daily withdrawal limit from 2 to 100 BTC.

Please do not share your login information, or authentication codes with anyone, even if they say that they are from Binance. Since it’s the biggest exchange, scammers are targeting its users strategically. 

BACKUP FUNDS

Binance is not insured; however, on July 14th, 2018, they created a Secure Asset Fund for Users (SAFU).

Every trade you take, 10% of the trading fee goes into that fund, to make sure that they will be able to cover any hacks that happen on the website.

There was a security compromise on May 7th, 2019, where the hackers were able to steal a bit over 7000 BTC, luckily the exchange was able to cover the whole theft with the SAFU Fund, so no user balances were affected.

THE EXCHANGES FOCUS

Binances main focus is its centralized exchange, which is mostly based around altcoin trading.

They have a Decentralized Exchange (DEX) too, which went live on April 23rd, 2019.

You can use their launchpad to participate in IEOs (Initial Exchange Offerings) launched by them too.

They have successfully launched a few products already, like BitTorrent, Matic, and Harmony.

Binance also has a dedicated Fiat-to-Crypto Platform, you can see the review of it by clicking here.

Margin Trading is also available on their platform, since July 11th, 2019. To be able to use this feature, you will need to verify yourself, plus you have to live in one of the countries where it’s not blacklisted (the United States is blacklisted.)

In September 2019, the Binance brand had two additions, the first one is their futures exchange, called Binance Jex, and the second one is their own dollar-backed Stablecoin, called Binance USD (BUSD).

FEES

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.

Disclosure: The links in this review are referral links, which means that at no additional cost to you, you are helping this website to keep running, and that allows us to work on quality, fact-based reporting. We are trying our hardest not to include any shady exchanges with fake volumes, or questionable practices. You will only find exchanges that we would also personally use. We did not contact any of them before writing these reviews, and we rated them to our best knowledge.

Binance

8.4

Ease of Use

8.5/10

Security

7.5/10

Fees

9.3/10

Pros

  • Lots of cryptocurrencies
  • Backup fund in case of hacks
  • Good customer support

Cons

  • No withdrawal to bank accounts