Most cryptocurrency exchanges are initially backed by venture capitalists. But Binance took the unconventional method of obtaining their initial capital through a public Initial Coin Offering (ICO) of their own cryptocurrency called Binance Coin (BNB), which is now a strategy emulated by many new and even established exchanges. Since the ICO, the company has attracted bigger investments from venture capitalists to fuel its bigger ambitions. The company, led by Zhao Changpeng as the CEO, started as a China-based exchange and later moved to Japan.
However, over the years, it has established several branches in Europe, Africa, and Asia, and is currently headquartered on the island of Malta. With some of the lowest exchange fees and support for multiple currencies, the exchange has attracted a huge customer base in a very short period.
The Service Platforms
From day 1, Binance has offered its exchange services through various platforms including its web-based platform, Android and IOS apps and a Windows 10 based PC app. In fact, for users in China, there is an option to trade using the country’s popular WeChat messaging platform. One of the biggest plus points of this exchange is its support for wide varieties of altcoin. In addition to the popular types of cryptocurrency including Bitcoin, Litecoin, Ethereum, Ripple and its own Binance Coin, the company supports over 1200 altcoins. This feature has made it very popular among cryptocurrency backers and investors. The company uses one of the most advanced technologies in trading, allowing it to handle over 1.4 million transactions every second. The company also offers secure cryptocurrency wallet services.
In many ways, Binance seems to be targeting users familiar with cryptocurrency and trading bigger volumes, rather than new users with lower balances. The platform can prove to be overwhelming for new users, but not as much for the more advanced users. There are basically two layout options for users: Basic and Advanced. The Basic version basically has the order data is displayed vertically while the Advanced version has a dark background and the order data is displayed in a more convenient manner.
The security of the Binance platform is indeed very robust. Accounts are secured by two-factor authentication using Google Authenticator or SMS. The verification system of the exchange is also very uncomplicated, with an email signup enough to begin trading a limited amount of cryptocurrency, with higher limits than most other exchanges. However, the exchange isn’t FDIC insured, which has effectively excluded it from the very lucrative US market. In early 2018, the platform was in the news about potential security breaches and hacking attempts. However, it was later found that the breach wasn’t as big as initially publicized. Since then, the authorities at Binance have claimed to have made improvements to make the system even more secure. Expert users have also reported that the exchange is indeed a lot more secure compared to its early days. Currently, Binance is compliant with the CryptoCurrency Standard (CCSS) Best Practices as well as the ISO/IEC 27001:2013 standards.
Users have the option to register two types of accounts. For registering an account in Binance users need to go to their website and click on the ‘Register’ button on the top right corner. On the page, you will be required to enter your email account and password and then once all the necessary information is filled, click on the ‘Register’ button below the form. Check your email inbox for their verification link and proceed to the further registration processes. After the process is complete you can Enable 2-Factor Authentication to secure your account. For trading more than 2 XBT per day, you will need to submit official identity documents with your full name and a photo ID, along with proof of residence.
Performing transactions through the platform
With the registration complete, you can start trading immediately. For depositing your existing cryptocurrency balance to Binance’s platform you need to click on the ‘Deposit Withdrawal button and select the currency that you want to deposit among the list. Once this option is chosen, a unique wallet code is created by Binance that’s different for each currency. Be sure to put your balance in the dedicated currency wallet address to ensure that there is no loss of your funds. This wallet address can then be used to transfer funds from your existing wallet by executing the transfer through the blockchain.
For buying or selling any cryptocurrency through Binance, users need to click on the ‘Exchange button’. Once in the exchange page, users have two options: create a custom order or buy/sell at market rate. For the custom order, you can quote your desired price and choose the units of the cryptocurrency that you want to buy. This option is especially useful for experienced traders. Meanwhile, you can also buy at the market rates by clicking on the ‘Market’ tab.
All deposits to Binance are free, while other trading and withdrawals are charged a maximum of 0.1% per transaction. However, if you use the exchange’s own Binance Coin during any transaction, you will get a massive 50% discount on the exchange fees. However, there are minimum charges for withdrawal of your balance to your wallet outside Binance, which can sometimes prove to be expensive.
Compared to most other big exchanges, Binance has really good customer support service. There are not just individual support teams for different user platforms like Android, iOS, and PC, but there are multilingual teams that support several languages. Besides a very detailed FAQ page, there is also a very active community of the exchange in Reddit. The support team is really responsive and most queries are answered within 24 hours.
If you believe the word of the experts, sooner that later Binance will be the most valuable cryptocurrency exchange in the world. The company has already begun processes to accept fiat currency in its system and that could make the exchange even bigger in the future. However, users may be somewhat discouraged by the slightly higher withdrawal charges and its exclusion from the USD payment system. Yet, despite the downsides, for users valuing privacy, Binance can be considered a really good choice.