Binance exchange review

Cryptocurrencies

Binance offers a large selection of over 350 cryptos, including some of the biggest ones on the market such as Bitcoin, Ethereum and Ripple. 

In contrast, Gate.io offers over 1,400 cryptos on its platform, while Coinbase offers more than 200. However, compared to its competitors, Binance has low trading fees and a versatile range of payment methods available.

Payment methods

You can deposit and withdraw in CAD. Binance doesn’t explicitly outline limits for all payment methods but does state on its site that deposit and withdrawal limits are subject to KYC tiering. 

In contrast, Gate.io requires KYC checks to buy, sell and trade cryptos but verification is categorised into three stages. The company asks for your full name, country of residence, date of birth and ID number in order to pass KYC1. Once KYC1 is approved, you need to complete facial verification via desktop webcam or by scanning a QR code on the mobile app. You then need to submit a picture of the front and back side of your passport and once this is complete, KYC3 will ask you for proof of address, which can be a utility or council tax bill, lease agreement, bank account statement or voter registration letter. 

Similarly, Coinbase requires KYC verification to buy, sell and trade cryptos and the company asks you for a selfie, proof of identity, which can be a drivers licence, government-issued ID or passport, as well as proof of address, which can be a utility bill, correspondence from a government department or bank account statement. However, for Canadians with dual U.S citizenship, the company notes that it doesn’t accept U.S passports or U.S permanent residence cards as forms of ID. 

CashtoCode eVoucher 

You can’t fund your account with a CashtoCode eVoucher as this isn’t offered at Binance. 

Trading fees

Binance is well-known for having the lowest trading fees on the market and while there are no deposit fees, the platform does charge differing rates of withdrawal fees for all 350+ listed cryptos, with each rate being determined by the blockchain network of the crypto itself. 

The trading fee structure is tiered and based on a maker/taker model, with higher volume trades being subject to lower fees and a 25% fee discount offered for using BNB coins in trade. Also, it’s cheaper to withdraw funds using BNB at a cost of 0.000005, while Bitcoin, for example, comes with a 0.0002 withdrawal fee and Ethereum, 0.0012. 

Staking

Binance offers a program that allows users to stake any of the 27 eligible cryptos and the rewards you earn depends on the amount staked, with annual percentage yields (APYs) of up to 16%. For instance, you can earn up to 7.4% on your Solana.

Is Binance exchange safe?

As an Over-the-Counter (OTC) exchange, Binance has been in operation since 2017 and amassed over 120 million users. 

A low percentage of users (17%) rate Binance with five stars on Trustpilot, which is a low indicator of safety. In addition, the platform experienced large-scale controversy in October last year when $570 million worth of Binance’s own token, BNB, was stolen through a cross-chain bridge hack. 

The most common issues raised are related to accounts, deposits and withdrawals, however people praise them for low trading fees, a great selection of available cryptos, as well as the ability to earn fee discounts through BNB.

Security

Binance has a range of measures in place such as account access controls that limit withdrawals to only certain IP addresses or wallets and 24-to-48 account freezes as part of security measures. The platform algorithmically tracks all accounts using real-time monitoring in order to prevent money laundering and financial crime, while 10% ($1 billion) of all trading funds are stored in a SAFU in order to reimburse users in the event of a hack.

In comparison, Gate.io is known as one of the most secure crypto exchanges in the world as it has comprehensive security measures in place including a self-developed digital asset trading system, third-party anti-malware services, an encrypted transport data layer, web application firewall (WAF) systems, internal audits, institutional-grade multi-signature wallets and DNS servers.

Coinbase uses a wide range of industry-standard security practices such as holding customers' assets 1:1 in custody, end-to-end encryption for all user data and annual third-party audits. Coinbase was one of the first companies in the world to be granted a coveted Bitlicense from the New York State Department of Financial Services (NYDFS). In addition, the company also implements Anti-Money Laundering controls and adheres to Office of Foreign Assets Control (OFAC) standards.

How to start trading at Binance exchange?

Registration

You need to create an account in order to register with Binance and this can be done by:

1. Visiting the homepage and inputting your email address or using the Google sign-in option.
2. You then need to verify your email address.
3. After verifying your email address, you can create a password.
4. You then need to enter your phone number to receive an SMS verification text message.
5. After verifying your phone number, you have to complete KYC verification.
6. Upon successful registration and passing verification, access to all functions of the site including higher limits are available to you.

KYC

After filling in your account details, you need to go through KYC verification and this process is required for anyone who wants to buy, sell or exchange cryptos on Binance. Passing KYC checks also unlocks functionalities such as the platform’s native DEX and the crypto staking program. 

You must provide a clear and visible picture of the front and back side of your documents such as proof of address and passport. In addition, you may even need to complete face verification via desktop webcam or the Binance app.

Customer support

Despite being the largest crypto exchange in the world according to trading volume, customer service options are limited at Binance with only an online Help Center that displays FAQs and a live chat function.

Binance uses a ticketing system where you need to fill in an online form detailing what type of account you have, whether you’re using the desktop platform or mobile app, language preference, your home address, as well as a subject, description and attachment option. For users who are dealing with emergency account issues, there’s no way to speak with customer service on the phone. However, this is compensated for by the 24/7 live chat function that’s available in 18 languages. 

Conclusion

Binance is recommended to users who are looking to buy, sell or exchange a wide selection of cryptos with low trading fees. However, their company has dealt with lawsuits from all over the world, including a legal case with the CFTC that alleges Binance was involved in insider trading. The exchange has also faced serious regulatory issues with the Financial Conduct Authority (FCA), Japan Financial Services Agency (JFSA) and Thailand’s Securities and Exchange Commission (SEC). 

But if you don’t mind this, Binance can still be a great option if you’re looking for a wide selection of cryptos and payment methods, staking rewards and fee discounts which is a major differentiating factor and unique selling point (USP) for the platform. Binance could improve its service by providing customer phone support and implementing more comprehensive security measures.  

Alternatives of Binance

Gate.io secured state licences in the U.S after receiving regulatory approval to operate as a blockchain and digital asset infrastructure provider in December last year. This allowed the company to offer its exchange platform and digital asset trading services to retail and institutional clients across the country. The platform also has a range of comprehensive security measures in place.

OKX received regulatory approval last year from the Dubai World Trade Centre Authority (DWTCA) and also signed an agreement with the United Arab Emirates Securities and Commodities Authority (SCA) to support the trading of crypto assets within the DWTCA district. The platform also has a range of comprehensive security measures in place such as API private key features and an OKX Risk Shield security fund containing more than $700 million. 

Similarly, Crypto.com has secured regulatory approval in the UK and France and its platform has a comprehensive range of security measures in place stemming from the company’s ISO 22301:2019, ISO/IEC 27701:2019 and ISO/IEC 27001:2013 certifications, which are the highest level for both NIST Cybersecurity and Privacy Frameworks, as well as SOC 2 standards. Furthermore, the company holds any assets you deposit onto the platform within institutional-grade reserve accounts.

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