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What is Binance?

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For those who are relatively new to the cryptocurrency trading ecosystem, Binance is probably one of the best-known names.

Launched in June of 2017 in China by Changpeng Zhao (CZ) who himself has an extensive history in online trading systems.

In a very short time, it became the biggest cryptocurrency exchange.

Although Binance was founded in China, it decided to move offshore last year in response to Chinese government regulations.

They moved to be jointly located in Hong Kong and Singapore and have more recently decided to make a move to Malta.

The Binance team is split across the world, and they have regional offices in numerous countries around the globe with the bulk of their workforce located in Asia.

Is Binance safe?

Cryptocurrency exchange security is most important to the majority of traders.

There is a long history of exchange hacks, and this is perhaps one of the biggest concerns for the exchanges themselves. 

Firstly, Binance makes use of fully secured communications with 256-bit SSL certificates.

This will help ensure not only that your connection is free from “man in the middle” attacks, but it will also help you identify a phishing website.

Even if a hacker can get access to your password and login credentials, then the other protections that Binance has could help you.

They have mobile two-factor authentication as well as numerous email verifications for logins and withdrawals.

We will go through these steps in the next lesson where we will explain the process of registration, verification and setting up the security measurements. 

From its opening, all the way to the time of writing this lesson, February 2019, Binance hasn’t been hacked.

They suffered numerous attacks, but their team managed to get it done quickly and so far they are doing a fantastic job.

There were a couple of hacking attacks that but the targets were users, not an entire exchange.

Because of leaking their login information to others, hackers were able to get to their accounts. 

However, now what is the most significant power of this exchange, even if a hacker manages to login to your account, if you set up your security measures such as Two-step verification and e-mail verification, it will be tough for a hacker to steal your funds.

It will give you enough time to request a password change or to block withdrawals.

One of the most important things is that Binance stores your coins on cold storage.

It is an offline wallet that can’t be accessed without private keys.

Assuming that Binance did an excellent job about securing these keys, even if the exchange is hacked, the vast majority of coins are safe from hackers.

As we went through security measures, we can say that Binance is a pretty safe place to buy/sell your coins.

If the coins you are buying do not have their wallet where you can own private keys, Binance is considered a safe place to store them.

Offering, at the moment of writing, more than 440 cryptocurrency pairs, they are probably the exchange with the most coin pairs listed out of all of the major exchanges.

With more than 150 coins listed on the exchange, you have access to a vast majority of valuable coins since out of 2000 coins that are currently in existence, less than 100 have some value.

Although they have an extensive range of coins to trade, Binance does not just take any odd coin, and they do have particular requirements when it comes to coin listings.

They want only to include coins that have met strict developer requirements.

What are the fees on Binance?

When it comes to trading fees on Binance, they operate a standard 0.1% trading fee which is pretty decent considering that some exchanges charge you 0.25% or even 0.5%. 

Binance will not charge you any fees for incoming transactions.

However, they do apply variable fees on outgoing transactions.

These are based on network fees that Binance will have to pay for miners to propagate your transactions.

So, when you are receiving coins on your Binance account, you will not be charged any fees.

However, when you are sending coins from your Binance account, you will be charged fees that vary and depends from coin to coin. 

How does Binance support do its work?

Responsive support staff is another critical requirement for most cryptocurrency traders.

Binance only has one avenue for reaching out to the support team, and that is through the use of an online ticketing system. 

The average response rate is about one hour, but in extreme situations when there is an increase in support demand, you can wait for response up to 6 hours.

Because their team is growing consistently, the support response could be even faster in the future. 

The fact that some exchanges respond to your support ticket after day or two gives Binance advantage over these exchanges.

Assuming all from the above, we are talking about a crypto exchange that is becoming a leader in the crypto industry.

They are at the moment crypto exchange that allows only crypto to crypto exchange, but soon they are coming with new features that will allow conversion from crypto to fiat and vice versa.

At the moment, you can buy any coin you want with your credit card.

Because of all these features, we highly recommend you considering opening an account on Binance and choosing Binance for buying and trading cryptocurrencies.

Check out next lesson where we will go in deep on how to open an account, verify and secure your account, how to deposit and withdraw money, how to buy and sell coins and much more.