Since the rise of Bitcoin in 2009, investors have gained a keen interest in the world of cryptocurrency and the potential wealth to be made from it. On 17 March 2010, the defunct BitcoinMarket.com was the first bitcoin exchange in existence. On 22 May 2010, Laszlo Hanyecz made the first real-world transaction using Bitcoin to buy two pizzas in Jacksonville, Florida, for 10,000 BTC. This marked the first time that Bitcoin was used as a form of exchange.
Since then, this rise in interest in the trade of Bitcoin has been astronomical. Numerous trading platforms, exchanges, and brokerages have sprung up. The unfortunate thing is that many of the so-called trading platforms are at best insecure and inefficient, and in some cases, even fraudulent.
When ranking a genuine trading platform, several important factors are taken into consideration, which include User-friendliness, security, trading options, and much more. Based on these criteria, several platforms stood out in 2020, but the exchange platform that stood out amongst the rest was Binance.
What is Binance?
Currently, the largest cryptocurrency exchange in the world in terms of trade volume, Binance, was founded by crypto innovator Changpeng “CZ” Zhao in 2017. Initially operating out of Hong Kong, the platform moved to Malta due to some unfriendly regulations set up by the Chinese government. The platform currently offers over 260 cryptocurrencies making it one of the most flexible exchange platforms operating on the market. Binance offers its services to users worldwide, with some exceptions, such as the United States. The platform allows a minimum deposit of $100 and enables users to make deposits or withdrawals through debit/credit cards, bank transfer, PayPal, and Skrill. It is known for its competitive transaction fees, high liquidity, large trade volume, and exceptional security.
Trading services offered
Binance offers one of the world’s most user-friendly trading platforms. Currently, the platform does not support the use of fiat currencies. This allows the platform to avoid government regulations or legislation that may affect their ability to trade freely.
Binance offers users two basic trading interfaces. The “classic” mode provides a more straightforward interface that displays only trading pairs and a quick view of the market. This allows users to switch pairs easily and make smart trades.
The “advanced” mode offers a broader range of options for users. It displays advanced charting options and analysis for users who prefer a more in-depth analysis.
Supported Currencies
Binance only accepts crypto deposits, no deposits using fiat currencies are allowed. It currently supports nearly 200 cryptocurrencies, including Bitcoin, Ripple, Ethereum, Binance Coin, Lite Coin, and much more.
Though Bitcoin is the most commonly traded currency on the platform, all other altcoins are fully supported for both deposits and withdrawals. They recently partnered with Simplex to allow users to buy 17 different cryptocurrencies with a credit card. This comes with a service fee of 3.5%.
Transaction fees
One thing Binance is known for is its highly competitive transaction fees. It is known for its attractive transaction fee. The Binance platform operates at a flat rate of only 0.1%. Other exchanges collect fees of at least 0.2% and higher. This may seem insignificant, but trading higher volumes can accumulate to a large number of coins.
Deposits are 100% free (except for blockchain fees and if you deposited with a credit card). Withdrawal fees are also competitive and are updated regularly, depending on the prevailing market prices.
Another great thing about the platform is that it gives a 25% discount on the trading fee when trading with the native currency BNB.
Withdrawals
Withdrawing from the platform is quite easy. Fill in some documents known as a Know Your Customer (KYC) form. These documents are required to authenticate your identity and prevent any fraud or theft entirely.
The withdrawal system is straightforward. Level one verified accounts can only withdraw a maximum of 2 BTC per day, while level two verified accounts can withdraw a maximum of 100 BTC per day.
Security
One of the essential features to look out for when choosing a trading platform is its level of security. With the numerous trading platforms out there, it is hard to find one with adequate protection. Binance has top-not security, such as the Know Your Customer (KYC) initiative and its Two Factor Authentication (2fa).
Another great feature is their emergency insurance fund, which helps cover users in the unlikely event their funds are stolen from the platform.
Customer Support
The customer support system of the Binance platform is second to none. They offer 24/7 customer support services through their email account. Sometimes, it may take some time to reply due to the sheer bulk of messages they get every day.
The platform is multilingual and currently supports up to 15 different languages. This allows it to reach out to a wide range of users from all over the world and cater to their every need.
Shortcomings
Several users have complained about being unable to access their funds due to technical errors with the 2fa process and the sluggish nature with which the platform responds to this issue. Some users have said this issue can be addressed by using the Authy tool instead of Google Authenticator.
Another critical issue is their slow customer service response time, which may take several days to respond to even the most basic customer queries.
Other Reputable Trading Platforms
Besides the Binance platform, there are several other trading platforms known for their reliability, user security, and excellent customer service. A few honorable mentions are:
- Coinbase Pro
- Bitfinex
- Bittrex
- Gemini
- Kraken
Conclusion
Binance has been a leading trading platform of 2020, offering users the chance to trade is a safe, fair, and supportive environment. Crypto trading might be the next big investment opportunity; therefore, investors should keep a close eye on this great platform. Remember that all forms of trading carry some level of inherent risk, so trade wisely.
