Figuring out where to get started in crypto investing can be pretty overwhelming. New investors can easily get lost in the sea of jargon and complicated blockchain-related information.
That’s why we’re going to start at the very beginning: choosing a trustworthy exchange to buy, sell and hold your crypto assets. Today, we’re going to take an objective look at everything that you need to know about the crypto exchange: Binance.
In This Binance Review
What is Binance?
Binance is the world’s largest crypto exchange by daily trading volume. It was founded in 2017 by Changpeng Zhao, who is now the 11th richest man in the world. The initial growth of Binance was so large, the exchange had to suspend new registrations until it could host the growing number of users.
Since 2017, Binance has continued to offer one of the largest selections of digital assets in the crypto market, as well as the highest amount of liquidity (meaning that you can buy and sell your crypto more easily).
As of today, Binance offers over 300+ cryptocurrencies for purchase – including its own Binance coin – the largest selection of trading pairs in the world as well as over 40+ different fiat currencies,
This means that investors from around the world can purchase everything from Bitcoin (BTC) and Ethereum (ETH) down to a completely random new altcoin, all while transacting in almost any major currency — making Binance one of the most functional exchanges for any seasoned investor.
To get a better understanding of Binance, let’s use a classic Pros & Cons list to weigh up the verdict.
Pros & Cons of Binance
- The “Lite” Option: If you’re new to cryptocurrency, then you may find Binance a little overwhelming, as it’s practically overflowing with features. To address beginner invesotrs Binance introduced a “lite” option on their mobile app, which turns the usually complex experience of navigating the Binance platform into an extremely beginner-friendly and simple to use crypto app.
- Solid Choice for Australian Users: Binance tends to list crypto prices on its platform and app in US dollars, however if users opt into the “lite” option, they can select to view assets in AUD. Furthermore, the exchange charges 0 fee on Australian Dollar deposits made via PayID or OSKO and all fiat deposits and withdrawals are instant.
- Massive Selection of Major Tokens & AltCoins: Perhaps one of the most frustrating experiences is getting completely set up on a new app or platform and then realizing that the random, niche altcoin your mate mentioned to you isn’t actually available on this app you’ve just signed up for. You most likely won’t have that problem with Binance, as it offers over 300+ digital assets, covering all of the weird and wonderful tokens you could possibly ask for.
- Packed With Different Features: Binance offers more advanced investors a massive selection of unique trading features such as staking, margin trading and leveraged futures. If you’re looking to trade different cryptocurrencies in a range of different pairings or fiat currencies, then Binance is the exchange for you. It has recently created its own NFT marketplace.
- Extremely Low Fees: Binance offers some of the lowest fees in the business charging just 0.1% per trade, offering a further 25% discount for users who choose to transact with Binance Coin (BNB).
- Can Be Complicated: As Binance is aimed more towards seasoned investors, complete newbies may find interacting with the platform a little difficult initially. If you are just looking to buy and hold different cryptocurrencies long-term, other more beginner-friendly exchanges such as CoinSpot, Swyftx or Digital Surge may be a better choice.
- Poor Customer Service: While Binance is loaded with features, customer service is lacking when compared to other exchanges like CoinSpot, Swyftx or Digital Surge. While these large Australian-owned exchanges all offer some form of LiveChat customer support Binance does not, meaning that technical or administrative issues can often be frustrating to resolve.
Binance Fees Explained
Fees are ultimately how crypto exchanges and platforms make their money, so it’s really important for investors to understand how much they’re paying every time they make a trade. Fee structuring can be pretty tricky, as platforms often like to disguise hidden costs in the form of strange fees.
Here are the main types of fees that users of Binance will come across:
Binance Deposit Fees
The first fee that crypto investors will encounter is the deposit fee. This is because investors need to deposit funds before they can start trading. For Australians, Binance only offers two methods through which to deposit AUD funds: Bank transfer or via PayID / Osko.
- Deposits & withdrawals via PayID & Osko are completely free.
- Deposits & withdrawals via bank transfer may incur a variable fee of up to 3.5%.
Binance Transaction Fees
Binance offers some of the lowest trading fees in the world crypto, charging just 0.1% on all trades, while offering investors a 25% discount if they purchase crypto using Binance Coin (BNB) which is the native token of the Binance ecosystem.
Is Binance Safe to Use?
No matter your experience level, the security and safety of the platform used to buy and sell digital assets is usually a top concern for crypto investors. Binance is one of the world’s highest security crypto exchanges, despite suffering an attack in 2019 where US$40 million of Bitcoin was stolen. Binance quickly reimbursed all investors that lost funds and upped their security protocols.
Binance is now officially ISO 27001 certified, which is one of the highest information security clearances possible. All Binance activity is further protected by 2FA (two-factor authentication) that requires investors to enter a code generated on their registered mobile device to sign in to the Binance platform.
Binance also stores most of its digital assets offline in crypto wallets in cold storage, meaning that even if the exchange were to be hacked, the majority of its assets would be physically inaccessible to hackers.
If Binance isn’t exactly what you’re looking for, there are plenty of alternatives. The alternatives listed here are ranked in order of similarity and preference for using Australian Dollars.
- CoinSpot: Australia’s largest cryptocurrency platform with more than 350 digital assets available.
- Digital Surge: Another Australian exchange with more than 200 cryptocurrencies that operates natively in AUD. Has a quick verification process but higher fees than Binance.
- Swyftx: Also an Australian platform with more than 260 digital assets available. Swyftx offers slightly lower trading fees and also allows users to ‘stake’ their crypto assets to generate passive income.
- Cointree: An Australian operated exchange and fully AUSTRAC-regulated. Offers similar features to Binance but with a smaller selection of tokens and slightly higher fees.
- Coinbase: Possibly the most well-known exchange in the world. Investors can trade a variety of different cryptocurrencies but fees are high and all values are denominated in USD.
- eToro: Offers commission-free crypto trades with the added bonus of social and copy trading.
Overall Binance Conclusion
Binance is by far one of the best crypto exchanges for any investor to use. Binance’s platform is built with the functionality for both beginners and experts alike, and offers a blanket fee of just 0.1% on all trades. Binance is one of the most comprehensive platforms offering over 300+ different tokens, and is packed with extra features like staking, futures, margin trading as well as its own NFT marketplace.
Furthermore, Binance is the world’s largest crypto exchange by daily trading volume meaning that investors can always access a high liquidity marketplace. Despite suffering attacks in the past, it has recently received ISO 27001 certification (extremely high information security). Binance is also registered with AUSTRAC actively preventing financial crimes, scamming and any other unsavoury business from occurring on the platform.
Finally, Binance’s selection of over 300+ different cryptocurrencies is one of the widest ranges in the world. Investors will be able to purchase all of the major crypto assets, such as BTC, ETH, BNB, XRP, ADA, as well as just about any altcoin that you could think of.