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Binance Review & Fees: What Is the Best Crypto Exchange? – DataDrivenInvestor


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Considering the trading volume of the different crypto exchanges, you will notice that Binance has by far the largest trading volume. Although the crypto exchange has only existed since 2017, it has quickly become the market leader. This is probably because you can trade over 600 different cryptocurrencies on Binance. These include Bitcoin, IOTA, Ethereum, Ripple (XRP), EOS, Cardano (ADA), and many more.

Binance — Photo by Kanchanara on Unsplash, edited by the author

The company was founded in 2017 by Changpeng Zhao, a Chinese-Canadian businessman. Zhao is a developer who was working on high-frequency trading software before founding the trading platform.
In the beginning, Binance was based in China, but as regulation increased, they decided to move to Malta.

Binance Review amp Fees What Is the Best Crypto
Changpeng Zhao — forbes.com

Now, more than 30 million crypto fans use the platform, resulting in an average trading volume of more than 20 billion US dollars. According to the platform, around 1.4 million transactions are carried out per second.

The exchange includes a whole set of features, including:


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  • Binance Beacon Chain (BC) and the Binance Coin (BNB)
  • Binance Earn: The Staking and Lending Program
  • Binance Smart Chain (BSC)
  • Binance Credit Card
  • Binance Launchpad
  • Binance NFT Marketplace

Furthermore, it is possible to store the purchased coins directly on the Binance server. This means that an internal wallet is provided by the platform. However, you can also store your coins in an external wallet.

Binance has even launched its own cryptocurrency on the market with the Binance Coin — BNB. If you use the Binance Coin on the platform, you will be charged less for certain services and have special advantages.

Pros

  • Largest crypto exchange in the world
  • Deposits are possible via FIAT currencies (Euro, Dollar)
  • Over 600 cryptocurrencies to trade
  • High liquidity even for smaller coins
  • Apps + Website for all platforms

Cons

  • Not so fluent User Experience, especially in the beginning
  • Room for improvement in the customer support
    However, there is still room for improvement in customer support.
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Stats — binance.com

Trading Coins

The platform supports the trading of more than 600+ coins and tokens and new projects are constantly being added via the launchpad. Among them are of course Bitcoin (BTC), Ethereum (ETH), Binance USD (BUSD), USD Coin (USDC), Tether (USDT), WAVES, Stepn (GMT), Tron (TRX), Solana (SOL), BNB, Cardano (ADA), Ripple (XRP), Dogecoin (DOGE), Avalanche (AVAX), Near Protocol (NEAR), Polkadot (DOT) and many more.

Fees

Comparing the Binance fees with the fees of other exchanges, it becomes apparent that the Binance fees are relatively low. The trading fees come in different tiers.
Binance fees depend on how much BNB you hold and how much balance you hold within a month (30 days).

1658762925 278 Binance Review amp Fees What Is the Best Crypto
Fees — binance.com

Binance fees differ between maker and taker fees. Taker Fee is used for a market order that is executed immediately. With the maker fee, on the other hand, an entry of the limit order is written once in the order book — there is no immediate execution. In general, the maker or taker fee, as shown above, is 0.1 percent.

Usability

Creating an account is fairly easy. The same applies to proof of identity: documents can be scanned and uploaded in just a few minutes within the app. The menu navigation is more or less clear for all apps — regardless of whether they are web, desktop, or mobile versions.
The mobile version also has a so-called “Lite” mode. In this reduced mode, only core functions are available: Buying and selling cryptocurrencies, making deposits and withdrawals, and exchanging cryptocurrencies. As a result, the Lite mode is kept very clear, which should make it especially attractive for trading beginners.

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Build your crypto portfolio — binance.com

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Security

Centralized exchanges carry the inherent risk of becoming a victim of hacker attacks. Even Binance no longer has a completely clean reputation in this regard. In 2018, there was a leak of customer data from the platform. At the beginning of 2019, a hack took place in which 7,000 BTC were stolen. However, the customer deposits remained safe. That’s because the platform has a fund called the Secure Asset Fund for Users (SAFU) to protect customer funds. The company pays 10 percent of all trading fees to the SAFU. (read more)
Furthermore, the platform has security features such as two-factor authentication (2FA), anti-phishing codes, and a whitelist for withdrawals.

Support

Support is one of the areas where the industry leader still has to catch up.
At the moment, only the contact form is available. Test and experience reports show that a response can be expected after about two to five hours. There is no live chat or telephone hotline. This means that if questions and/or difficulties arise, a certain waiting time has to be accepted.
Especially in times of high demand, it can take several days until you receive an answer to your request.

In addition to the core business — trading — numerous other features have been added, from pool mining and future trading to the company’s crypto debit card: There is hardly a crypto topic in which binance is not active. Of course, this includes various applications from the DeFi sector but also trading with leveraged tokens.
With hundreds of supported cryptocurrencies, Binance has the largest coin offering among centralized crypto exchanges. The platform supports up to 1.4 million orders per second, making it one of the fastest in the crypto space. In terms of functionality, Binance also meets the expectations. From spot and futures trading to staking and mining to savings accounts for BNB, USDT, BUSD, and various DeFi coins. For some time now, Binance has also been offering a crypto debit card in cooperation with Visa. This makes it possible to pay with cryptocurrencies at over 60 million merchants.

Binance Earn: Staking & Lending

Like many other crypto exchanges, Binance also offers a staking program. Here, users can deposit their crypto assets with a fixed interest rate and are rewarded with payments for doing so. Different models are available:

  • Locked Staking: The own crypto coins can not be staked for a preset
    period (90+ days).
  • Flexible Staking: Here, users can determine how long the staking period should be.
  • Fixed Savings: this method is very similar to locked staking, but offers a much shorter period (7 to 15 days).

In addition, the crypto exchange provides a special form of staking with the NBB Vault. Users can participate in several projects at the same time via the native token and thus maximize profits.

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Binance Credit Card

The Binance credit card is a debit card where the expenses are debited from the reference account immediately. This means that Binance Card holders do not have an actual loan. The Binance Visa Card is linked to its wallet. The card wallet is comparable to a reference account for a debit card, through which all debits and transactions are made. Therefore, to be able to pay with the card, a sufficient balance on the card wallet is required.

Earn up to 8% BNB Cashback everytime you spend*

Even though the Binance Visa Card is a crypto debit card, it can be used like a normal debit card. However, an account on the crypto exchange is required for use. The Binance account is then linked to the Visa Card from Binance.
There is no annual fee, but cash withdrawals are charged at a rate of up to 0.9%.

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Binance Card — binance.com

Cashback

Binance offers special incentives to credit card holders for holding Binance’s own token BNB. This means that the more BNB a credit card holder holds, the more benefits they can enjoy when using the credit card. The card’s cashback system in offers especially attractive conditions here. To receive the cashback, the token must be held for at least 29 days.

  • 0 BNB = 0,1 % Cashback
  • 1 BNB = 2 % Cashback
  • 10 BNB = 3 % Cashback
  • 40 BNB = 4 % Cashback
  • 400 BNB = 5 % Cashback
  • 250 BNB = 6 % Cashback
  • 600 BNB = 8 % Cashback

The Binance NFT Marketplace

Since June 2021, Binance has been offering its own NFT marketplace, in which various projects of Non Fungible Tokens (NFTs) are offered. These include Big Time Studios, whose developers have been involved in projects such as Fortnite and Call of Duty. The move-to-earn game STEPN can also be found on the Binance marketplace with a special sneaker NFT collection. In addition, so-called mystery boxes featuring random NFTs can also be found in the Binance NFT Marketplace. Furthermore, there is an additional platform for Initial Game Offerings (IGOs), through which various blockchain gaming projects can introduce themselves and sell their first NFTs.

1658762926 374 Binance Review amp Fees What Is the Best Crypto
NFT Marketplace — binance.com

The crypto exchange runs on the in-house Beacon Chain — a blockchain that experts often refer to as Ethereum 2.0. It replaced the previous Binance Chain in early 2022 and enables, among other things, cryptocurrency staking and extensive use of the governance system.

While the Beacon Chain is mainly used in the area of staking and governance, the Binance Smart Chain (BSC) takes on other tasks. These include, above all, securing and preserving the consensus protocol, whereby Binance relies here on the Proof of Staked Authority (PoSA).

In addition, the BSC allows access to a multi-chain system and scores with compatibility with the Ethereum Virtual Machine (EVM). At the same time, the technical aspects of the blockchain continue to be worked on, which is why regular improvements and updates are published. The Binance Smart Chain primarily enables the use of smart contracts and thus the development of a variety of decentralized applications (dApps).

In addition, the company relies on its native token, called the Binance Coin (BNB). The utility token reduces trading costs on the crypto exchange, for example, but in addition, it can be used to make payments on several other platforms. These include the Metaverse Decentraland, the play-to-earn video game Axie Infinity, and the travel platform TravelbyBit.

By the way, if you want to save Binance fees, you should have a look at the Binance Coin.

Originally, BNB was introduced to pay trading fees at Binance. For regular users of the crypto exchange, BNB is an interesting means of payment because you get a 25 percent discount on trading fees. And: BNB can be used to invest in Initial Exchange Offerings and thus new crypto projects on Binance’s IEO platform: the Launchpad.

The coin was launched in July 2017 through an Initial Coin Offering (ICO) in which 20 million BNB was issued to angel investors, 80 million to project collaborators, and the remaining 100 million to ICO participants.

Funds raised from the sale of BNB were used for exchange development, branding, and marketing.

Binance Coin was launched to strengthen the cryptocurrency platform and promote its activities to create a sustainable ecosystem. The coin can be used for a variety of purposes, including the payment of the listing fee, exchange fees, trading fees, or other fees that a user may incur on the exchange.

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However, due to the strong price increases of BNB in recent days, the token has now also become an object of speculation.

While the price of the Binance Coin was still at US$0.10 at the end of 2017, it went over the US$30 mark at the beginning of 2021, or over US$100 in February 2021 and over US$500 in April 2021. Crazy.

In total, there were 200 million BNB tokens, but regular burns artificially short the amount — now only about 154 million BNB are circulating.

At the moment, Binance Coin is ranked 5th in the top cryptocurrencies according to market capitalization. Besides the fact that one can make lucrative profits with the Binance Coin, the cryptocurrency may also be interesting when used directly on the platform. Since Binance does not payout in FIAT currencies, one can use Binance Coin here. It is also possible to use Binance Coin for the Binance Smart Chain — the Binance Smart Chain is the direct competitor of Ethereum, but it is more performant in a direct comparison (but not as decentralized as Ethereum).

Originally, BNB was based on ERC-20 tokens on Ethereum, but it now runs on the in-house (native) Binance Chain. ERC- 20 is the technical standard for smart contracts used to implement tokens on the Ethereum blockchain.

The platform Cake DeFi provides an easy and user-friendly way to generate passive cash flow on your crypto portfolio. This is done in three different ways, called lending, staking, and liquidity mining. All you have to do is to sign up for the platform, top-up money via credit card or transfer cryptocurrencies, and put your assets to work. Read more.

You receive a 30$ signup bonus upon your first top-up with the following referral code:

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Another way to earn passive income with crypto is Curve in combination with Crypto.com Cashback. Take a look at This Is How You Can Add Every Card To Google/Apple Pay

During my Binance test, I was positively surprised by the intuitive control of all features. Trading and depositing is so simple that even Crypto beginners can get started quickly and easily.
From my point of view, Binance offers a whole range of practical features that can convince both beginners in crypto trading and also experienced users. The many tools for trading are really handy but could use better guides, even though most features come with an illustrated guide. A positive aspect was the wide repertoire of different cryptocurrencies, which can be traded at fair conditions thanks to transparent fees. Binance Staking works easily, the VISA card is a nice addition and those looking for exclusive NFTs will also find what they are looking for here.

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All in all, however, Binance can stand out from the competition in my opinion based on the variety of offerings alone. Also, the performance of the Binance Smart Chain is impressive. So if you are looking for a crypto exchange, you should take a look at Binance.


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