Binance 2021 Review | The Ascent by Motley Fool – Motley Fool


Binance is one of the world’s largest cryptocurrency exchanges, with access to hundreds of cryptocurrencies and advanced features for experienced investors. The functionality on its U.S.-based platform, Binance.US, is much more limited. Read our full Binance review to determine whether it’s the right trading platform for you.

Top perks

Low fees

Binance doesn’t offer fee-free trading. However, its fees are low compared with even the best crypto exchanges that charge fees and commission. The highest spot trading fee you’ll pay is 0.1%.

Earn up to 10% on holdings

Through Binance staking, you can earn rewards on funds held in your Binance.US account. It’s similar to an annual percentage yield on a savings account, but without the security you’d get from a bank. Reward amounts vary by currency between 0.5% and 10%.

Large crypto selection

Binance is one of the largest cryptocurrency platforms in the world. It gives users around the world access to more than 280 currencies. This includes 10 DeFi tokens, stablecoins, Bitcoins, and altcoins. Binance.US users in the United States, however, have access to just over 50 coins.

What could be improved

Limited features and selection in the U.S.

U.S.-based users access Binance through a dedicated platform, Binance.US. The features on the U.S. platform are more limited than those available worldwide. You can buy and sell seven cryptocurrencies for USD, and you can trade more than 50. That’s a lot less than Binance’s worldwide selection of nearly 300 coins.

International users have access to a Binance Visa debit card that spends from their crypto account. The full platform also offers short-term loans, margin trading, and futures trading. These features aren’t available in the U.S.

Not for beginners

Binance is a complex platform designed to help experienced traders maximize their profits. Its huge market selection and in-depth dashboards would be overwhelming and difficult to navigate if you’re just getting started in crypto investing. Binance.US offers a “basic” trading view aimed at beginners, but it doesn’t include any guidance to help you understand what you’re looking at.

You can use Binance via desktop, mobile, or web-based app. Each option lets you:

  • Buy, sell, or trade
  • Set up recurring buys
  • Access live tracking and alerts, and portfolio insights

It’s a centralized exchange so you’ll need to provide some personal information to verify your account before you can get started. Binance.US accounts are available to users in the U.S. in all states except Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. If you don’t live in the U.S., you can use its general platform.

Buy crypto

Binance comes with a robust set of features and dashboards that can be a lot to take in. Its Buy Crypto page makes it easier to wade through the noise and make simple transactions. It’s a clean interface where you can simply buy, sell, or convert crypto.

From this screen, you can initiate a one-time or recurring buy of any available coin. You can purchase crypto with USD from your Binance account balance, a connected bank account, or a debit card.

Earn rewards with staking

If you stake certain currencies, Binance pays rewards. It’s a bit like earning interest on a savings account — you leave your currency in your Binance account, and it will earn money. Current estimated annual rewards (akin to an APY) on Binance.US are:

  • QTUM: 1%-2%
  • EOS: 0.5%-1%
  • ONE: 2%-3%
  • VeChain: 1%-3%
  • XTZ: 6%-7%
  • ATOM: 6%-9%
  • ALGO: 8%-10%

Be aware that unlike a savings account, which is FDIC insured, if Binance or the currency fail, you would lose your money.

Trust Wallet

The Binance platform doesn’t have a built-in wallet. Instead, it officially recommends Trust Wallet, a decentralized, software (hot) wallet that supports more than 40 blockchains and hundreds of thousands of currencies.

OTC trading

Binance offers advanced traders a dedicated over-the-counter interface. You can use it to trade directly with other users outside the exchange.

Binance leads the Crypto-Safe Alliance to demonstrate its commitment to security. It’s an anti-fraud platform dedicated to cooperative threat and security monitoring across the Bitcoin, Ethereum, TRX, and EOS blockchains (with more being added as the alliance grows).

When you buy with USD, Binance connects to your external bank account via Plaid, a company that securely transfers data from financial institutions.

Binance supports two-factor authentication (2FA) through SMS and Google Authenticator. It also supports universal two-factor authentication (U2F) through authentication hardware such as Yubico YubiKey.

Binance accounts include a security feature called Address Management. This lets you limit where you can withdraw funds by setting authorized wallet addresses. When you enable this feature, any new address requires an email confirmation before you can withdraw funds to it.

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About the Author: Kate