Binance cryptocurrency exchange offers one of the lowest cost methods of investing in crypto. Traders looking to minimize what are often high costs at other brokers often choose to look to Binance. Though the fees are low, they come with some drawbacks, such as very minimal customer support. Regardless, Binance has proven to be one of the most popular cryptocurrency exchanges available.
For the purposes of this article, we’ll talk about Binance.US, which is the version of Binance that operates within the USA.
Binances strength lies in its commission structure. Fees start low and only get low. Binance uses a volume-based pricing model and gives more discounts if a trader uses their proprietary cryptocurrency to trade.
One criticism of Binances pricing is that it can be fairly confusing.
Generally, a user will pay a 0.1% fee for trading. But, Binances volume-based model can reduce these costs, based on your 30-day trading volume. Binance has 11 pricing models, which it names VIP 0 to 10, depending on the trader’s 30-day volume. Additionally, Binance uses a maker-take model that rewards traders that add liquidity to the market, and charges slightly more to those who reduce liquidity.
The cryptocurrency exchange allows users to instantly purchase crypto, but at a 0.5% fee. Ideally, a user should allow a bank transfer to go through and avoid those fees, rather than paying immediately with debit or credit card.
Despite the complexity of Binance’s pricing, it does transparently post it under the FAQ of its website. This is often compared with Coinbase, which doesn’t list the full details of their pricing model.
Though Binance doesn’t have as many cryptocurrencies on selection as Coinbase, it does offer more than general financial apps such as Revolut, Robinhood, and Webull, all of which have been dipping their toes into the crypto sea. With over 50 cryptocurrencies available, the big players are all present such as Bitcoin, Eth, Solana, and more. Also available is the proprietary cryptocurrency Binance Coin. Along with these, are a selection of altcoins.
This is still not a great offering compared to Coinbase, which boasts over 100 cryptocurrencies.
Binance allows its users to trade directly from one cryptocurrency to another, so you won’t have to cash out or into a stablecoin before moving to another coin. This is a much more efficient way of making transactions and also allows traders to bypass fees.
This cross-trading is not available on all coins, but Bitcoin for example can be swapped with 10 other coins.
Binance also allows traders to earn staking rewards for holding coins with the exchange. Binance shares all staking rewards with traders and it doesn’t charge for the staking program, unlike other exchanges. These rewards accrue daily, but distribution takes place monthly.
Binance has come under fire for its poor customer service. Clients can contact support only through a ticket/email – no phone or live chat. This can make complex issues quite tricky to get resolved and is often frustrating.
More than 50 cryptocurrencies are available.
Low trading fees.
Not available in a few states U.S. states.
Fewer crypto-to-crypto currency pairs than on the global Binance site.
Protecting Yourself on Cryptocurrency Exchanges
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