RESEARCH & ANALYSIS
FOR THE CRYPTO ECONOMY.

Binance

Binance Exchange Review

Centralized

Binance Exchange Rating Analysis

  • Binance is probably the world’s most important crypto exchange today. Following its successful ICO in 2017 and subsequent launch, it seems to have made all the right moves to position itself as “the native crypto-trader’s exchange”, which is to say that most people choose Binance for their trading or investing activities over practically all other exchanges. It consistently reigns as the volume champion, boasting trade volume numbers all other exchanges can only dream of – and these volumes are believed to be mostly genuine, which means the exchange does not manipulate numbers for higher rankings like other shady exchanges do – it simply doesn’t have to.
    We’ll take a look at what makes Binance so attractive, and the reason it ranked as high as it did on our rating system. One important thing to note: no exchange is perfect.

    Starting with the User Experience, Binance has managed to create a seamless experience from its launch, and is continuing down this path these days as it redesigns the entire website and incrementally allows more users to test out the new interface. We believe Binance’s workflows are indeed among the best in the industry, and it easily gains a high score in this category.
    The only downside to Binance’s user experience is its customer support: When we contacted them, requesting information about their team, we received the reply: “CZ is the team”. This is a bit concerning, and we will further expand on it when we reach the Team score.

    Binance’s performance is as good as it has to be: for an exchange that supports millions of users and a mind-boggling amount of transactions each second, Binance has built he adequate infrastructure to support it all, and it is holding up surprisingly well when you take into account the immense loads put upon it. True, theses systems are not without their faults, and we have seen some cases of Binance going under unplanned maintenance, although it has always explained the reasons for that after-the-fact and are improving from incident to incident; as a leading corporation should.

    On the features front, Binance’s twin champions are its immense amount of assets available to trade and its trading incentives, the first is maintained using the exchange’s constantly shifting regulatory status, which allows it close to full autonomy when choosing which assets to list, and the second is the winning combination of its token, BNB, and trading competitions and promotions, which make use of newly listed assets, the token BNB and other mechanisms to promote user trading on the platform. Binance also recently introduced margin trading, although it is currently far from being intuitive, with difficult to understand funding mechanisms, insufficient support documentation and no ability to lend funds, only borrow.
    Other exchanges frequently copy Binance’s moves since they proved themselves so effective in growing the exchange, and we don’t see these stopping anytime soon.

    Another notable feature of Binance is its recently launched Binance Chain, a blockchain-based platform with Smart Contracts capability, which welcomed the exchange’s token BNB in open arms as its native currency. Binance have started to heavily promote the platform and offer fat bribes to projects as incentive for migrating their activities from other platforms over to Binance Chain, and Ethereum is among the platforms from which most projects are being solicited.
    The rising of Binance Chain has also introduced the Binance DEX, a self-proclaimed Decentralized Exchange, although in practice it is not at all decentralized, but merely an exchange in which user self-custody their assets, using software and platforms provided by the company Binance.

    The Binance team is, contrary to most criteria in this rating, hard to find. The company’s CEO, Changpeng Zhao, or CZ in short, is among the most outspoken businesspeople in the crypto industry, and has built a very positive public image and a significant following on social media. However, as talented as CZ may be (and trust us, he is an excellent businessman), he is not running the exchange alone: we estimate the number of employees of Binance to exceed 200 people worldwide, and it is quickly growing.
    This magnitude of a company requires more than a single qualified person to manage and lead, but so far we haven’t had luck in understanding who are the key members of Binance’s team – you could say aside from CZ, most of the team is deliberately staying in the shadows.
    In our perception, an exchange of such magnitude also carries a responsibility to the public in terms of transparency standards, and we do not accept the current situation. We believe, at the very least, Binance should construct a Team page to display on their site, with prominent members’ pictures and brief career descriptions.
    We at Cointelligence have reached out to Binance multiple times to attempt to cooperate on the matter for the benefit of both our userbases, but have received no answers. It appears they are a bit too busy coming up with new ideas for trading competitions.

    Finally, Binance’s Trust score is a bit above average. While the exchange certainly does its best to safeguard user funds, sometimes its best is simply not enough: In early May 2019 it has hacked for 7000 BTC, around $40M at the time. All customers who lost funds were fully reimbursed by Binance’s self-managed insurance fund maintained specifically for such an event.
    Even though in the end the only one punished for the hack was Binance itself, it is a reminder the the biggest exchanges in the industry also carry a much bigger “bullseye” on their back than other, less-significant exchanges, and it is better to assume attackers are constantly looking for new ways to gain access to the incredible amounts of funds deposited in Binance. The exchange does keep much of the users’ funds in cold storage and provides several means for users to protect their accounts.

    However, Binance will forever be followed by a dark cloud, threatening its continued operations – or at least until it chooses to settle down. We are talking about the company’s refusal to give up one distinctive feature: no KYC or identification for users, up to a daily withdrawal limit of 2 BTC. The fact that the exchange will simply not give up this feature has got it into regulatory trouble in multiple jurisdictions during its short lifespan, but the exchange dealt with it in the best way they saw fit: to leverage their ability and power to create what the industry now calls “regulatory arbitrage”, meaning Binance’s ability to position itself in several jurisdictions around the globe, at every point in time serving its current interest. Most notably, after receiving scrutiny by Japanese authorities while it was based in Singapore, the exchange has since settled in Malta, a country known for its desire to attract foreign businesses in order to generate tax revenue. It is safe to assume Binance will not easily give up this status quo they value so much (and apparently, the rest of the market does too), and will go to extreme lengths to preserve this situation.

    To conclude, Binance is without a doubt one of the most important crypto exchanges in the world today, and we don’t see this situation changing anytime soon. It always strives to provide its customers with the best service in the business, the most freedom within the walls of a centralized exchange, and a unique, seemingly regulatory-sterile environment to do whatever you please with your money (most choose to invest in wild altcoins). Binance does most of these things right, and had much luck and a head-start at doing so, and is now focused on maintaining its status as the world’s leading altcoin exchange. Time will tell how and if Binance can preserve the current situation, but we are betting their strategy is to eventually convert the company from corporate to a true decentralized community, a DAO, if you will, and break free from current legal definitions. This, however, is a topic for another discussion, and right now Binance remains one of the best options for crypto traders today.

    Binance Exchange Review, Trading Fees, Deposit and Markets

    • 24h Trading Volume

      84065.717 BTC

      • Binance Total Trading Pairs

        517

        • Binance Margin Trading

          No

          • Binance Deposit fees

            Free

            • Binance Fiat Deposit

              None

              • Accepted Payment Method

                Crypto to Crypto Only

                • Binance Native token

                  Yes

                  • Native token smart contract

                    Binance Coin (BNB)

                    • Binance Trading Markets
                      • Binance Stablecoins trading

                        Binance Withdrawals

                        • Daily Withdrawal Limit

                          100 BTC

                          • Binance Withdraw fees

                            Fee schedule see here.

                            • Binance Withdraw fees discount

                              Using BNB, 25% discount to your trading fee.

                              • Proof of Reserves

                                N/A

                                Binance Overview

                                • A Binance exchange review reveals that Binance is the biggest blockchain and crypto asset exchange in the world as measured by trading volume (since early 2018), Binance has launched Binance Dex and Binance Chain in 2019. The word “Binance” derives from the words “binary” and “finance”. Binance was founded by Chinese-Canadian, Changpeng Zhao, who is also leading the company as CEO. Zhao has proven to be a business executive who knows how to effectively balance the demands sets by customer service and regulations. One of the reasons why it is such a popular and widely used crypto exchange.

                                  The system architecture used by them consists of multi-tier and multi-clusters, including a certified matching engine. This offers safety and stability and allows for the processing of 1.4 million orders per second – something that contributes to the high liquidity offered. A Binance exchange review also reveals that they offer both multi-coin and multilingual support. The Binance exchange platform can also be used on all known operating systems, including the web and mobile web, Android, iOS, macOS and Windows. In addition, the underlying platform has been deployed at more than 30 other exchanges. A testament to the reliability of the platform.

                                  Binance also enjoys the support of a strong and capable team backed by proven products and superior technology. A Binance exchange review also reveals that they have good relationships going with many industry leaders as can be seen from the list of those who are willing to support therm. Binance exchange features include basic as well as advanced features. They also offer debit and credit card payments that can be used to purchase cryptocurrencies, starting with BTC, LTC, ETH and XRP.

                                  Binance Exchange KYC and AML

                                  • Binance Exchange KYC and AML

                                    Nationl ID
                                    Passport
                                    Driving License
                                    Proof of Residence

                                    • Binance AML policy

                                      AML Policylink

                                      • Binance Restricted Countries

                                        Afghanistan,China, Congo (Brazzaville), Congo (Kinshasa), Cuba, Democratic People’s Republic of Korea, Eritrea, Iran, Iraq, Ivory Coast, Kyrgyzstan, Lebanon, Libya, South Sudan, Sudan , USA: New York (NY) Georgia (GA), Connecticut (CT), New Mexico (NM), Hawaii (HI) and Washington (WA).

                                        Binance IEO launchpad

                                        Stage Start date End date Fundraising
                                        Matic Network

                                        Matic Network

                                        Apr 24, 2019 - Apr 24, 2019 N/A
                                        Gifto

                                        Gifto

                                        Dec 14, 2018 - Dec 14, 2018 N/A
                                        Bread

                                        Bread

                                        Dec 26, 2018 - Dec 26, 2018 N/A
                                        BitTorrent Token

                                        BitTorrent Token

                                        Nov 1, 2018 - Jan 28, 2019 N/A
                                        Fetch AI

                                        Fetch AI

                                        Feb 25, 2019 - Mar 2, 2019 N/A
                                        Celer Network

                                        Celer Network

                                        Mar 19, 2019 - Mar 24, 2019 N/A
                                        Harmony

                                        Harmony

                                        May 27, 2019 - May 29, 2019 $23M
                                        WINk

                                        WINk

                                        Invalid date - Invalid date $6M
                                        Elrond Network

                                        Elrond Network

                                        Apr 1, 2019 - Jul 1, 2019 $5.15M

                                        Binance Exchange Additional Information