Binance Review 2023: Low-Cost Cryptocurrency Trading

The number of cryptocurrency exchanges seems to never end. And that can makes choosing one more difficult. 

Some exchanges aren't actually available in the U.S. For those that are, there are often wide differences in the number of coins available supported and fees that are charged on trades.

Binance is available around the globe, supports 50+ coins in the U.S., and charges rock-bottom fees. In this article we'll take a closer look at Binance and why you might want to consider it. If you're a US-based investor, you would use the Binance.US version of Binance.

Who Is Binance?

Binance is a cryptocurrency exchange that was founded in 2017 (in China) and is based in Malta. It has operations in the U.S. and Singapore. According to CoinMarketCap, Binance is the largest crypto trading platform in the world both in terms of trading volume and weekly site visits.

Binance.US launched in September 2019 and is based in San Francisco. In 2023, the SEC filed charges against Binance and its founder alleging they were operating an unlicensed broker-dealer.

What Do They Offer?

Binance allows its users to trade, buy, and store cryptocurrency. For individuals, its trading services are divided into basic and advanced. It also offers institutional trading with a volume-based fee structure.

In addition to crypto trading, Binance offers staking (with annual rewards of 0.5% to 10%) and mining pools to its US customers.

Binance.com Vs. Binance.US

Binance.com might seem like the place to get started trading on Binance. However, U.S. customers will need to use a different website, which is Binance.US. Unfortunately, the U.S. site has far fewer supported currencies and available features.

While there are over 350 cryptocurrencies available to trade on the global platform, Binance.US currently offers 50+. That's still more currencies than many other U.S.-based exchanges offer, however, and is right on par with Coinbase. 

Beyond the differences in available currencies, here is a list of a few more Binance.com features that are notably absent on the U.S. site.

• Crypto savings accounts
• Crypto loans
• Stock tokens (NEW)
• Margin trading
• Derivatives
• Debit card
• Liquidity swaps

It should also be pointed out that Binance.US is not yet available in seven U.S. states: Connecticut, Hawaii, Louisiana, New York, Texas, and Vermont.

Binance Wallet

Binance provides its own software wallet called the Trust Wallet. It supports 40 blockchains and 160k+ assets. It also currently has very strong reviews on both iOS and Android. However, users aren't required to use the Trust Wallet. You're free to move your assets to any cryptocurrency wallet of your choosing.

Customer Support

Like many cryptocurrency exchanges, customer service is lacking. To submit an inquiry to Binance, you start with the chatbot and eventually find a link for submitting your question. Responses are via email, but you’ll probably wait a while for an answer.

Binance uses two factor authentication (2FA), which is fine when companies know how to use it without making it a hindrance. Binance seems to fall into that unfortunate latter group, as many users have difficulty dealing with their 2FA implementation.

Is The Platform Secure?

The global Binance website was hacked in May 2019. Hackers stole 7,000 Bitcoin, worth $40 million at the time. Binance said that its users were made whole. It should be noted that the U.S. site has never been hacked.

Like other cryptocurrency exchanges, Binance is not FDIC or SIPC insured. However, it does have SAFU which is an emergency asset fund to compensate users if their funds are stolen from the exchange. SAFU is funded by 10% of all trading fees on the platform. Funds for SAFU are stored in a separate cold wallet.

Are There Any Fees?

Yes — Binance charges a 0.1% spot trading fee for most pairs, which is lower than many other exchanges. The instant buy/sell trading fee is 0.5%.

Binance has its own blockchain and coin — the Binance Coin or BNB. Trading with BNB will be lower cost than other methods. If you use BNB, there’s a 25% discount on trading fees.

There are no fees for deposits that are made via ACH transfer. However, a rather hefty 4.5% fee is charged on all debit card deposits.

Binance Bonus Offers

Right now, Binance is no longer offering any sign up bonuses.

How Do I Open An Account?

U.S. residents can visit the Binance.US website to open an account. Until you verify your identity, there will be restrictions on using the platform, such as withdrawal limits. 

Level 2 verification unlocks all features and requires the following: Full name, country, gender, a photo of your passport, or government-issued I.D.

Is It Worth It?

Binance may be best suited for more experienced traders. With a focus on fast transaction times, users should be able to take advantage of some of the best crypto prices on the market. It also has low fees and is one of the few exchanges to support NEO. 

However, beginners will probably find Coinbase easier to use despite being more expensive. And it should be noted that while Binance doesn't offer a crypto savings account or a rewards-earning crypto debit card to its U.S. customers, other platforms do. Compare cryptocurrency exchanges here >>>

Binance Features