The cryptocurrency niche has grown at a supersonic rate especially from 2016 as more people start appreciating the benefits of decentralized networks. However, this growth is facing serious challenges that risk eroding gains achieved since 2009 when Satoshi Nakamoto launched Bitcoin. The main challenges involve the acquisition, buying, and trading cryptocurrencies in the exchanges.
Most exchanges, like the cryptocurrency trading platforms, are so much profit-oriented that users often pay so much in fees. Other issues of such exchanges include:
- High transaction fees
- Delayed payments
- Lack of motivation
- Slow transactions
Binance cryptocurrency exchange is designed to address the above issues. Though the operational model at Binance has made the exchange win global admiration, regular hacking attempts have left users very worried. This Binance review digs deep into the Binance system to analyze its mechanics and establishes whether it is the best exchange out there.
What Is Binance Exchange?
Binance is a Chinese cryptocurrency exchange started by Changpeng Zhao and Yi He in mid-2017. They wanted to make trading direct, easy, and cheap so that all people with an interest in cryptocurrencies could join.
A few months after launching, Binance relocated its servers to Hong Kong and then to Malta following the Chinese administration’s combative policies towards cryptocurrencies. While these threats rammed on Binance when it was at infancy, it decisively weathered the storm and emerged a stronger platform.
By July 2018 when Binance was celebrating its first “birthday”, some of the key achievements included:
- More than 143 tokens and over 350 trading pairs.
- Mobile trading platform.
- Over 900 million airdrops and fork tokens.
- 24/7 customer support.
- Availability in multiple languages.
Binance Is a 4.9 Star Platform
This Binance exchange review established that Binance is a highly dynamic platform that forges the way as others follow. The Binance exchange, like a fully decentralized cryptographic network, runs fully multiple labs that identify, incubate, and operationalize new trading ideas.
The high rating of the platform also stems from its commitment to draw everybody into the blockchain niche. The commitment to use all means possible to pull down the cost of transactions and successfully wading through difficult times to deliver the best user experience has endeared Binance greatly to its community.
How Binance Works
a. The Binance Trading Accounts
Binance is a decentralized cryptocurrency exchange. Users who want to trade on the platform are, therefore, required to open trading accounts in order to access the trading features.
Unlike other exchanges that offer a lot of trading accounts, Binance only provides two main accounts: Level One and Level Two. The main difference in the two levels is the amount you can withdraw and the level of analysis offered.
- Level One Trading Account/ Basic: This account level requires users to provide information such as their name, proof of location, gender, email address, and date of birth. The account comes with a daily withdrawal limit of 2 Bitcoins and basic presentation of standard price lists.
- Level Two Trading Account/ Advanced: This account provides more advanced analytics such as trading chart ledgers as well as the latest trends of the listed exchanges. The daily transaction limit is 100 Bitcoins.
b. How To Trade At Binance
After selecting the preferred account and setting it up, trading can start immediately. The process requires some understanding of cryptocurrencies, crypto trends interpretation, and long-term targeting.
Here are the five main steps to guide you start trading at Binance. The video at the end of the list will also help you to get started.
- Complete the signup process.
- Enable the two-factor authentication process.
- Deposit funds you want to trade at the exchange.
- Extra a buy or sell transaction.
This video is a demonstration of how Binance works to get you started. It outlines how to navigate through the site from the signup stage through to trading the preferred coins.
Binance exchange provides users with a long list of coins and many currency pair,s including ETH/BTC, ONT/BTC, OAX/BTC, and ARD/BTC. Therefore, you only need to pick a listed cryptocurrency and hit its pair with Bitcoin to start selling and trading.
The Binance Coin and Exchange Transaction Fee
Binance has a very low transaction fee of 0.1% that makes it one of the cheapest exchanges on the market. However, it launched its native token referred to as BNB to help pull down the transaction costs and incentivize traders.
During the Binance coin review, it was established that BNB is an ERC20 standard Altcoin that utilizes the Ethereum blockchain. This helps to provide an additional layer of security for BNB holders because all transactions are decentralized and have to be verified by miners on the Ethereum platform.
As mentioned, BNB is used by Binance to motivate users by pulling down the transaction fees. When you pay transaction charges on Binance with BNB, a hefty discount is provided. Here is the schedule for the discounts:
- In the first year after launching Binance, users on the platform paying transaction fees with BNB got 50% discount (this means a reduction from 0.1% to 0.05%).
- In the second year, traders using BNB to pay for transaction fees get 25% discount.
- The discount reduces to 12.5% and 6.25% in the third and fourth years respectively
To keep the BNB value high, Binance targets to use 20% of the profits made to buy some of the BNB from the open market.
- The exchange lists many coins.
- Offers the lowest transaction charges in the industry.
- The exchange is one of the most secure in the industry.
- Binance platform is led by a highly enthusiastic team.
- Very high scalability of up to 1.4 million transactions per second.
- The exchange provides advanced metrics for users to make timely moves.
- No leverage trading.
- Does not support fiat or credit cards.
- It is not very easy for new traders to use.
From this Binance review, the platform has come out as a reliable and highly progressive option for serious traders. While some complaints about delayed payments and even others tagging it Binance as a scam, the argument appears not genuine.
During the review, the platform’s support was fast in providing answers to queries about delays, payments, and even future plans. Indeed, you can even opt to talk to the support for insights before venturing into the platform.
Whether you have been in cryptocurrency trading for some time or want to join now, this is one great platform that is run with the focus of promoting better user experience. Do not hesitate to join and become part of the community, trade many cryptocurrencies, and keep the bulk of the profits through the generous discounts. That being said, you are advised to Do Your Own Research (DYOR) before making a decision.