I’d say that Binance and Coinbase are the world’s most popular crypto exchanges. And while Coinbase is dedicated to beginner users who buy bitcoin for the first time, Binance is an exchange for traders with high ambitions.
This exchange offers all the tools a professional trader can dream of!
I have written this “Binance review 2020” to show you what to pay attention to while using the exchange, how to set up an account, make deposits and withdrawals and how to buy cryptocurrency for euros and pounds. Keep on reading, here’s what I’ll cover:
Binance Review Summary
Binance exchange originally came from China, where it was founded by Changpeng Zhao (better known as CZ) in July 2017. Zhao’s company, Beijie Technology created the exchange after a successful ICO project that brought the company $15 million in revenue. After the turmoil with the government, the exchange’s headquarters were moved to a more European-friendly island of Malta.
In a very short period of time the exchange grew extremely dynamically and became much more than just a simple cryptocurrency exchange. CZ has built a wide “Binance ecosystem”, containing various products and services to make it easier and more accessible for people from different legal systems who operate in the blockchain industry.
Binance is currently the largest cryptocurrency exchange in terms of trade volume and number of users.
Every cryptocurrency trader will sooner or later set up an account here, especially as it can still be done to a certain level anonymously, without verification.
How to create a Binance Account?
Creating and maintaining a Binance account is completely free of charge.
Please make sure you are on the right website before you register and provide your details. The address of the exchange is https://binance.com
The page will automatically be displayed in your language based on your IP address. If your language is not supported or you are using the VPN, start by changing the settings in the upper right corner and then click the yellow button [Registration].
Registration is very simple, all you need to do is enter your email address, create a unique password and then click on the link sent to you in the email.
In the registration form you can also provide a Binance Referral ID, with which you are awarded a kickback or, in other words, a discount on every transaction you make on the exchange in the future.
By entering our code (YZ0IVH3D) you will receive a 10% discount.
How to enable Two-Factor Authentication on Binance?
After logging in, you will receive many security tips from Binance, including a recommendation to install an antiphishing extension to your browser.
The most important thing, however, is to install and use the 2-Step Verification. If you already have an account on another exchange and use this security tool, simply add another exchange. If you don’t have one, don’t skip this step – it is generally recommended to use 2FA from the first login.
How to enable Two-Factor Authentication on your account?
- Download and install the Google Authenticator app on your smartphone
- Use the app to scan the QR code or type it in manually
- Note the key on paper. The key can be useful in the future (e.g. if you lose your phone) to recover access to your account
- Enable the Two-Step Verification
From now on, every time you log on to Binance and withdraw funds, you will be asked to provide a one-time code.
If you decide to skip the 2FA on the first login, remember that you can always go back to editing your security settings.
Before you start trading on Binance
This may be surprising, but it’s true.
In order to buy cryptocurrency on Binance, traders first set up an account on another exchange (e.g. Coinbase, Coindeal, Bitbay), deposit Euro or USD, buy bitcoins and then send them from one exchange to another to purchase the desired cryptocurrency on Binance.
While doing so, in theory, they make 2 mistakes.
First of all, bitcoin is not the best coin to be transferred, the fees for withdrawals are usually too high, thus depleting much of your capital. For this purpose it is better to choose ripple (XRP), lisk (LSK) or dash (DASH).
Secondly, funds should not be transferred directly from exchange to exchange. The safe and secure way of transferring your cryptocurrency is to do so from an exchange A to your external wallet (e.g. Ledger hardware wallet) and, from there, to an exchange B. The disadvantage of this solution is that you will pay twice the transfer commission which makes no sense for small amounts, but if you transfer really large amounts you should consider this.
In practice, this way of transferring funds to Binance through another exchange is a common method to get lower operating costs.
How to buy cryptocurrency with EURO on Binance
We often come across the opinion that Binance is the world’s largest crypto-to-crypto exchange.
Slowly, however, this is no longer relevant. And although the number of available altcoins is still staggering here and Binance is the market leader, its exceptionally limited offer is no longer true.
Binance has opened up to traditional currencies.
Today you can buy cryptocurrency in seconds with your Mastercard or Visa card.
You can also deposit currencies such as Euro, or Pound sterling on Binance and then withdraw them from the exchange via a partner of your choice such as ADVcash, Payeer or Epay Wallet.
In addition, Binance offers a wide range of third-party payment options in cooperation with many intermediaries (Banxa, Simplex, Koinal) for handling fiat currencies. You can also buy cryptocurrencies through Bank Transfer from local vendors.
In fact, there are a lot of options to deposit and withdraw fiat currencies.
You just have to be aware that Binance is not a party to the transactions with fiat currencies (except for the purchase of cryptocurrencies with a Visa card). As a platform, Binance only enables them through the services integrated into the exchange.
The advantage is that you don’t have to set up an account on another exchange, the disadvantage is that the commissions and costs you incur are much higher.
The option to buy cryptocurrency for Euros (or other traditional currencies) using VISA and Mastercard cards is very useful when you want to save time.
And although the real commission on card purchase is difficult to determine (dynamic commission, known only during order execution), our experience shows that it ranges from 1% to 2%. Such a loss of capital can be accepted when the price of BTC and altcoins increases at a rate of several or more percent per day. If you want to have cryptocurrency in your Binance wallet within a few dozen seconds, the option of purchasing with the card is for you.
How to buy cryptocurrency with EURO on Binance Jersey
Do you want to buy bitcoin or other cryptocurrency for Euros or Pounds on Binance but you are not convinced about Advcash, Payeer or Epay?
There is another solution: Binance Jersey
This is a separate exchange within the Binance group, registered on the tiny island of Jersey, which is one of the most famous tax havens. Jersey is part of the Channel Islands, which are located between France and the United Kingdom. Legally, Jersey is not part of the European Union or the United Kingdom, but the United Kingdom is responsible for defending its territory. Gambling companies also use this convenient jurisdiction.
Binance Jersey looks similar to the classic Binance exchange, but the amount of functionality has been reduced to a minimum. The main purpose of the binance.je platform is to attract traders buying pairs of EUR and GBP and to enable them to buy selected, most popular cryptocurrencies
The question that comes to mind is: can you connect your Binance.com account with your Binance Jersey account?
In fact, these are 2 separate cryptocurrency exchanges with separate accounts, different rules, different offer and price list.
Binance.com is considered to be a cheap exchange.
The fee for each transaction is only 0.1% and can be even lower if certain conditions are met.
What are these conditions?
The commission can be reduced by having Binance Coin (BNB) on your account, a token of the exchange.
The fee reduction function is enabled automatically, no additional steps are required, the commission will be simply charged from our BNB balance.
If you plan to use this crypto exchange systematically, it is worth taking advantage of this discount and spending part of the money on Binance Coin – the commission will then be reduced to 0.075%.
By the way, there is another advantage to Binance Coin on the exchange: you can convert small amounts of different cryptocurrencies, in total worth less than 0.001 BTC, to Binance Coin (you can do this once a day). This is a very useful function, which will allow you to get the fluidity of small amounts of cryptocurrencies that you have on your account e.g. as a result of a crypto airdrops.
In addition to its flagship product, the cryptocurrency exchange, Binance offers a number of different platforms and solutions, useful for cryptocurrency investors.
These are features that you must use while trading on the exchange, but it is worth getting acquainted with them in order to realize what role Binance wants to play in the development of the whole cryptocurrency and blockchain industry worldwide.
You can access them by clicking on the menu bar in the upper left corner of the page, next to the Binance logo.
Let’s see what’s hidden behind the most popular tabs.
Binance Academy – a platform at a completely different address https://www.binance.vision where Binance compiles videos, articles, quizzes on technical analysis and blockchain technology. Certainly worth a look.
Binance Info – something similar to the popular CoinMarketCap service, i.e. a platform with a turnover ranking and basic information about all the cryptocurrencies available on the market. Not necessarily.
Binance Labs -business incubator, support for projects based on blockchain technology. The application form is not too complicated – all you have to do is to describe your project well, the measures taken so far towards the goal and what problem you wish your project to solve. The cooperation is established only by the most talented and selected creators.
Binance LaunchPad – a platform that allows for cooperation in the launch of Initial Coin Offering (or ICO) project on Binance (the next update will enable the continuation of the project on the Binance exchange)
Trust Wallet – Binance’s official wallet. Previously it functioned as an independent, multifunctional wallet first developed in the United States. According to Binance, the acquisition of TW was to provide greater security for users who transfer their funds to external wallets. Trust Wallet is a mobile wallet that is installed on smartphones with Android or iOS software
Binance Review 2020: Conclusion
The Binance exchange is the absolute leader of all rankings on the cryptocurrency market: the biggest, the best, the most trusted by the community.
By creating an account here, you will be able to trade several hundred cryptocurrencies, enjoy sufficient liquidity, take part in contests, benefit from crypto airdrops, leverage trading and many other advantages that you cannot find on other exchanges.
Remember, however, that Binance is ideal for those who already have some experience in cryptocurrency trading. Apparently, the exchange looks a bit complicated and can be difficult to navigate for a beginner (to put it more straightforwardly, it scares everyone who visits it for the first time).
After setting up an account with Binance, give yourself some time to get acquainted and used to the whole system. Be persistent and the benefits of trading will make up for your initial difficulties.