The exploding popularity of cryptocurrency has raised many concerns, with some analysts calling all of the cryptos a scam or nothing more than a Ponzi scheme. However, for every crypto-doubter, there is an ever-growing crowd of crypto enthusiasts hailing it as the future of finance. At the forefront of the crypto future is Binance, the worldʻs largest crypto exchange.
Binance has over 15-million users, extremely high trading activity, and asset liquidity available 24/7, 365 days a year. With minimal transaction fees, pro-level charting, P2P and OTC trading, margin accounts, and access to hundreds of the most innovative cryptocurrencies, Binance is a clear leader. However, with crypto already under fire for malicious activity, and billions of dollars changing hands every day, it begs the question: Is Binance safe?
Binance Company information
| Official Website | Binance.com |
| Founded | 2017 |
| CEO | Changpeng Zhao |
| Number of Employees | 3500 |
| Revenue | $800m |
| Location | Cayman Islands |
| Customer Service Contact | Support Ticket requests only |
| Social Media | Facebook, Twitter, Youtube, Instagram |
What is Binance?
Binance is a global exchange where you can buy and sell hundreds of cryptocurrencies. It was founded in China in 2017 by Changpeng Zhao, also known as “CZ,” who remains CEO to this day. Binance is separated into two different markets, Binance.com and Binance.us, due to American regulatory pressure. Binance.com has over 300 coins, while Binance.us is constrained to only 58.
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How does Binance work?
Binance facilitates the buying and selling of crypto in two ways. First, Binance offers OTC (Over-the-Counter) trading, which provides large amounts of liquidity at set prices as the market moves. OTC only matters for people moving hundreds of thousands of dollars at a time and need that much liquidity.
Most people will be using P2P (Peer to Peer) trading. Basically, people can place bids on coins and tokens. If itʻs what a seller is asking, then Binance facilitates and secures the transaction. Binance itself is not necessarily the people selling the crypto in this case; They are just the middleman taking a minimal fee for making it happen.
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Is Binance safe and legit or a scam?
Binance is the world’s largest crypto exchange, and itʻs legitimacy can be verified by the hundreds of thousands of daily transactions. However, Binance is a major target for hackers around the world. On May 7th, 2019, hackers stole 40-million dollars worth of Bitcoin (roughly 2% of Binanceʻs BTC holdings). While Binance covered what was stolen, it is the largest hack in Binance history. To Binanceʻs credit, they stop dozens of hacking attempts a day and have never had another successful hack.
Binance is heavily targeted for phishing scams, a malpractice where hackers create a look-alike site or email to get you to expose your username and password. Binance is also one of the primary targets for key-loggers, which can record passwords and send them back to the hacker. So, knowing all of that, Binance is as safe as your internet habits are. There have never been reports of malware, data selling, or theft coming directly from Binance.
To keep yourself safe from outside attacks:
- Always check to make sure you are on Binance.com or Binance.us.
- Remember that a Binance employee will never ask for your password.
- Donʻt recycle passwords.
- Use 2-Factor Authentication.
- Regularly scan for malware.
- Do not access Binance through a public unsecured wifi network.
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Is Binance trustworthy and reliable?
As of 2021, Binance is under investigation from the United States Department of Justice and the Internal Revenue Service on allegations of money laundering and tax offenses. Despite the ongoing investigation, Binance.us is still fully operational.
Binance does not seem to have the best reputation online. At over 2500 reviews on Trustpilot.com, Binance has just a 2-star average. Many people have given it a 1-star rating, complaining about how they could not withdraw funds, and customer support was of no use. Even a quick scroll through the 1-star reviews will show hundreds of angry investors claiming Binance is a scam. While several hundred disgruntled reviewers may seem like an enormous amount, remember that Binance has over 15 million active users who make regular trades without issue.
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Who Should Choose Binance?
Binance is the go-to exchange for the majority of crypto traders and holders. Binance is best for people that:
- Want access to liquidity
- Want to purchase crypto with a bank card
- Want to invest in altcoins
- Want to trade using margin
- Want minimal fees
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Binance App Review
Binance has support for both IOS and Android devices, with 4 1/2 stars across 200,000 reviews on both platforms. For small trades and regular buys, the Binance app will cover most of your needs. For serious traders, youʻll want to be on a desktop browser, as the app does favor a streamlined experience over offering as many tools as the full site does.
Many of the negative app store reviews have more to do with Binance customer service than the app’s user experience. Everything on the app is very intuitive. You can quickly search up the crypto you want to invest in, and in seconds you can have a buy order filled right from your phone.
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Is Binance Insured and Regulated?
All fiat funds deposited to Binance are insured up to $250,000 by the FDIC. It is important to note that the SIPC does not back Binance.US, which means that your crypto is not insured in the same way a stock would be by a traditional brokerage. Binance does have a special fund devoted to paying back investors known as the “Secure Asset Fund for Users” (SAFU). 10% of all trading fees are allocated away for worst-case scenarios. While SAFU can easily cover a small-scale hack, like the 2019 incident, it would not be nearly enough to cover the entire user base.
There are no protections if a crypto transfer to an outside address goes wrong. There is no insurance if you mistakenly send the incorrect crypto to the wrong kind of wallet or if you made any form of human error. The exchange does not offer any form of insurance for its users’ deposits or withdrawals – You’re out of luck if something goes wrong with sending crypto into or out of your Binance account.
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Binance Fees and Costs
Binance has some of the lowest trading fees out there. When you compare Binance to other exchanges that can charge flat rates of $5 plus a percentage, Binanceʻs fees attached to each transaction are relatively small. Binance primarily makes its revenue from the sheer volume of transactions that they facilitate and banking and credit card fees. There are no signup fees, and you can buy a fractional amount of most cryptos with just $5.
- 0.1% spot trading fee
- 4.5% for debit card transfers
- 0.5% Instant Buy/Sell fee
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Does Binance have good customer service?
Binance.com makes it seem like it’s pretty easy to get a hold of them with their ticket function. With support tickets, you can fill out what problems you are having, and within a few days, tech support will either resolve your issue or send you an answer.
Online reviewers seem to have a widely different experience. There are hundreds of angry complaints and 1-star reviews that are upset at the Binanceʻs customer support. It seems to be one of the significant issues with the platform. There have been reports of several week-long ticket times or no response at all.
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Supported Countries
Binance.com is supported globally. However, it is banned on an individual, institutional level, with some banks banning transactions. It is always a good idea to check with your bank before transferring money or using a debit card to prevent your account from getting temporarily suspended.
In America, Binance.us is banned in 7 states, including:
- New York
- Connecticut
- Texas
- Hawaii
- Idaho
- Vermont
- Louisiana
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The pros and cons of Binance
Pros:
- Low trading fees.
- Access to the most popular cryptocurrencies.
- High-level tools for charting and setting buy/sell orders.
- You can withdraw your crypto to an outside wallet.
Cons:
- Limited altcoin selection in the U.S.
- The pro trading tools may be overwhelming for beginners
- Complicated I.D. verification process
- Customer service may not be beneficial
Binance Careers
According to former Binance employees, due to the salaried nature of Binance, many found themselves working an exceptional amount of hours with little recompense. It is said to be an extremely fast-paced environment. According to Glassdoor.com, they are looking to hire five more employees in the cyber security space.
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Best Binance Alternatives
- Robinhood has zero fees but is limited to only a few cryptos, and you cannot withdraw to a personal wallet.
- Webull has all the limitations of Robinhood but better access to charts and buy/sell orders.
- Coinbase is the direct competitor to Binance.US. Coinbase has higher fees, more liquidity, and a better reputation with the American government.
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Additional FAQs
Do I need my own wallet for Binance?
You can store your coins and tokens directly on Binance. However, you may wish to transfer them out for an added layer of security. You can use Binanceʻs external browser and app-based wallet known as Trustwallet or any other desktop or cold storage wallet.
How do I get verified on Binance?
You’ll need a government-issued I.D. like a passport or driver’s license and to upload a picture of your face to confirm your identity and get approved for trading.
What is Binance Coin?
BNB token is a cryptocurrency that Binance launched in July 2017 and has since risen to the 4th largest crypto by market cap. It is centered around Binance Smart chain tech to create a unique crypto ecosystem.
Is Binance.com available in the U.S.?
As of 2019, Binance.com is not available to U.S. citizens. Binance issued a warning for existing users to transfer their assets to Binance.US or an external wallet address.
Can I buy Dogecoin on Binance.US?
Absolutely. Doge and 50+ more of the top cryptos are available on Binance.us