Binance is the largest crypto exchange in the world, although it has only been around since 2017. The Maltese cryptocurrency trading platform has managed to find millions of users worldwide in just a few years. They turn over sums in the tens of billions every day.
In order to expand its supremacy in the crypto market, Binance (바이낸스) is regularly expanding its ecosystem. For example, almost a year ago, the crypto exchange bought the information platform Coinmarketcap for an estimated 400 million US dollars. There, Binance is listed as the best crypto exchange with a stock market rating of 9.9 out of 10 points.
The selection of coins
Binance has over 150 other coins in its luggage that investors can trade there. Not even the big US competitors like Coinbase or Kraken can keep up. The BSDEX, for example, only offers four of the coveted cyber currencies.
Clear fee policy
The low fees are also part of Binance’s recipe for success. With only a 0.1 percent trading fee per trade, the platform is one of the cheapest. Investors only pay a total fee of 5 euros for a Bitcoin purchase of 5,000 euros. Coinbase charges a fee of 74.50 euros for an investment of the same amount.
Due to the high trading volume on the Binance platform, the spread, i.e. the difference between the buy and sell price, also remains low. Otherwise, there are almost no fees on Binance. When it comes to account management, the safekeeping of coins and deposits via Sepa transfer are free services.
In addition to the Sepa transfer, investors also have the option of paying by credit card. It’s quick, but there are fees of 1.8 percent of the total amount. Binance also offers other payment methods such as Adv Cash, Etana, or Klarna. Deposits via PayPal are not possible.
Is Binance suitable for beginners?
The many functions of the platform can act as a deterrent, especially for inexperienced investors. Although the website is largely in German, the various technical terms, such as spot market, raise questions at first. Investors, therefore, need some time to find their way around the platform.
The German crypto trading platform BSDEX, on the other hand, is better suited for beginners. The surface there is well structured and therefore easy to handle even for inexperienced users. Nevertheless, it is also possible for beginners to safely acquire crypto assets on Binance.
Buy Bitcoin with Binance in just a few steps
- Opening an account: To register on Binance, users need an email address and a password. Immediately afterward, investors should verify themselves, because this is the only way it is possible to deposit euros. Binance requires a photo ID, a selfie, authentication via webcam, and proof of your current residential address.
- Deposit: Under the tab “Buy cryptos” there is a bank deposit. The recommended deposit method is Sepa bank transfer. There are no fees for this, but it can take one to three business days for the money to be credited. Investors choose the amount they wish to transfer and are then given the address of the clearing account where the money should go.
- Buy Bitcoin: Find Bitcoin in the Markets section and then under Fiat Markets. Type BTC into the search field and the trading pair BTC/EUR will appear. In the trading view, investors can specify the amount of Bitcoin under the chart and then buy it. With only 0.1 percent trading fees, Binance is one of the cheapest crypto platforms for buying cryptocurrencies.
The storage in the wallet
After the purchase, the coins are initially on the exchange platform. In principle, they are safe there, but anyone who has invested larger amounts should reduce the risk of a hacker attack to a minimum and transfer the digital currency units to an offline wallet. Recommended providers include Trezor or Ledger. However, such offline wallets are not suitable for daily trading. An alternative would be Binance’s Trust Wallet. This is a mobile, digital wallet on which investors can store and buy cryptocurrencies.
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Two-factor authentication, for example, ensures security on the platform. This means that investors have to enter a second code in addition to the password, which is regularly regenerated. According to Binance, all partner banks are regulated, but this does not apply to Binance itself. Nevertheless, the many users and the high liquidity speak for the seriousness of the provider.