- Today’s spotlight will be on a centralised crypto exchange, Binance.com.
- This post is not sponsored nor affiliated with Binance.
- Follow Hegion.com for independent opinions & alternate news about crypto.
Binance (International) is a centralised crypto exchange. What is a centralised crypto exchange? According to Investopedia –
The first and most common type of exchange is the centralized exchange. Popular exchanges that fall into this category are Coinbase, Binance, Kraken, and Gemini. These exchanges are private companies that offer platforms to trade cryptocurrency. These exchanges require registration and identification, also known as the Know Your Customer, or Know Your Client, rule.
The exchanges listed above all have active trading, high volumes, and liquidity. That said, centralized exchanges are not in line with the philosophy of Bitcoin. They run on their own private servers which creates a vector of attack. If the servers of the company were to be compromised, the whole system could be shut down for some time. Worse, sensitive data about its users could be released.
The larger, more popular centralized exchanges are by far the easiest on-ramp for new users and they even provide some level of insurance should their systems fail. While this is true, when cryptocurrency is purchased on these exchanges it is stored within their custodial wallets and not in your own wallet that you own the keys to. The insurance that is provided is only applicable if the exchange is at fault. Should your computer and your Coinbase account, for example, become compromised, your funds would be lost and you would not likely have the ability to claim insurance. This is why it is important to withdraw any large sums and practice safe storage.
Why choose Crypto Exchange?
Investing or trading in cryptocurrencies can be intimidating at first. Many associate crypto with scams in the past and will continue to do so. However, technology and increase in crypto adoptability has given rise to more stable crypto exchange like Binance.com. There are certainly other exchanges out there but our spotlight is on Binance today.
Editor’s note: Please note that Binance.com operates independently from Binance.us
The foremost concern when trading and purchasing cryptocurrencies is safety and security. Whether you intend to purchase and hold long term, want to trade frequently, are interested in anonymity or privacy, or simply want ease of use, the following exchanges are the best for any use case you may have.
You may have heard of the phrase: "Not your Keys, Not your Coins"
Yes, although this is true, you have to choose a reputable and trustable exchange where you are able to do your trades, deposit or withdraw. A good crypto exchange like Binance.com will allow you to conduct crypto trading in a seamless and professional setting. It is paramount that you conduct your due diligence before committing to any crypto exchange.
Binance – From the Lens of Investopedia
Fees: 0.1% for the taker side and 0.1% for the maker side. This scales down with trade volume to 0.02% for both sides of the trade. Using Binance’s native cryptocurrency, BNB, lowers fees by 25%.
The Binance exchange is an exchange founded in 2017 with a strong focus on altcoin trading. Binance offers over 100 different trading pairs between different cryptocurrencies. It does offer some fiat-crypto pairs, but most of its pairs are between cryptocurrencies.
- Lower fees than other commonly used exchanges
- Large variety of cryptocurrencies and trading pairs
- More advanced charting
- Geared for more advanced users
- Binance US has fewer trading pairs than its international counterpart, though it still has over 100 trading pairs
- 22 U.S. states, like New York, are not supported by Binance US
Currently, Binance dominates the global exchange space, making up a significant portion of crypto trading volume daily. The exchange only allows for U.S. Dollar deposits by global users via SWIFT, but it does allow you to directly purchase a select number of cryptocurrencies with a credit or debit card. Deposits using over 20 other fiat currencies are allowed, including the Euro.
Binance is best suited to people who would like to trade or invest in lesser-known altcoins. For example, Coinbase offers 46 different cryptocurrencies to trade while Binance has over 50. It may seem like a small difference, but each coin offers users more opportunity. Binance is the ideal exchange for anyone who would like to trade altcoins or anyone who wants more advanced charting than most other exchanges.
Binance – From the Lens of Observer
Bitcoin is probably the most well-known cryptocurrency in the world but there are dozens and hundreds of other types of coins that are a solid investment. Binance allows you to invest in these other altcoins so you can make money without competing with millions of other buyers.
Offering 600 different trading pairs between different cryptocurrencies with a few offerings of fiat/crypto pairs, Binance is on the top of the global exchange space doing a larger portion of crypto trading each day. While this exchange doesn’t allow for USD deposits you can purchase a set amount of cryptocurrencies with different payment methods including a credit card or debit card or through EUR or GBP purchases.
While Coinbase only offers 22 different cryptos, disclaimer, Binance offers investors over 150 different altcoins to choose from. If you’re interested in investing in something different and having a whole different set of altcoins to work with, Binance is one of the best choices. They also give you some more advanced charts for advanced traders and exchange rates so you can accurately track your investments or easily buy Bitcoin.
- Lower feeds when compared to other exchanges
- Wide range of altcoins
- Advanced charting
- Designed with advanced users in mind
- Fewer trading pairs
- Some US states are not supported by Binance
Whatever you may crypto exchange you may choose, ensure that you are comfortable with the way they operate, read up users experience and conduct due diligence carefully. Kindly note that this article is not a call to action to Binance and is NOT a financial advise in anyway whatsoever. Trading in cryptocurrencies is high risk and losses may exceed deposits.