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Binance is currently the world’s leading crypto platform that has earned the trust of millions of crypto traders around the globe to achieve a feat of over 95 billion daily trading volume.
The platform was established in 2019 by iconic crypto entrepreneur Changpen Zhao, popularly known as CZ in the crypto industry in China before he moved out to Cayman Island due to strict regulations from the Chinese government.
The platform easily integrated and found it way to the top in the crypto industry due to several innovative features it offered to crypto traders although there are some downsides to the use of the platform.
This article will look into the pros and cons and give you the best answer to the question, what are the pros and cons of Binance?
Brief Overview Of Binance
Since we have looked at the brief history of the platform, it is only necessary to further look at what Binance is built upon.
Binance is accessible through its websites and mobile apps in over 100 countries excluding the US. The company operates a different platform in the US, Binance.us to obey the policies of the US government on cryptocurrency activities.
The disadvantage of this is that Binance.us offers fewer features than the main platform of the company, Binance.com.
The platform supports all major cryptocurrencies with more than 175 tradable assets and a total of 600 coins available on the platform. In addition to this large supported crypto assets, the platform also support over 24 fiat currencies which make it one of the platforms with the highest supported cryptocurrencies.
Binance also offers significant low fees to its users who also enjoy the free deposit feature on the platform. Its trading features are also exceptional and have continued to attract more traders to the platform.
Let’s move on to discuss some of the advantages and disadvantages you should expect when using Binance.
Pros and Cons of Binance
| Feature | Pros | Cons |
|---|---|---|
| Supported Cryptocurrencies | Over 600, including a wide variety of popular and obscure coins | Some popular coins, such as Ripple and Monero, are not supported |
| Trading Fees | Extremely low, at 0.10% for both makers and takers | Fees can be slightly higher for large trades |
| Ease of Use | Easy to use for both beginners and experienced traders | The learning curve can be steep for some features |
| Features | Margin trading, staking, lending, futures trading, options trading, NFT marketplace | Does not offer as many features as some competitors |
| Customer Support | Excellent, with 24/7 live chat and email support | Can be slow at times |
| Overall | An excellent choice for both beginners and experienced traders | Not as many features as some competitors |
1# Easy sign-up process
Signing up on Binance is as easy as ABC and takes only some minutes to be completed. You can sign up on the platform using your e-mail (with password), Google account, or Facebook account.
Afterwards, you will need to complete some verification processes by providing more details about yourself, submitting a means of identification, and taking a selfie of yourself. All these verification steps can be done without hassle and if you like, postpone them to a later day.
2# Low transaction fees
This is one of the major pros of Binance and is a major reason the platform has been attracted to more users in recent years. Binance charges only 0.1% on any transaction done on its platform and provides its users with an opportunity to reduce the fees by either trading more than 50 Bitcoins (BTC) in a month or holding over 50 BNB in their accounts.
3# Free Deposits
Users are also allowed to deposit on the platform without paying a dime. This is common with most crypto exchange but usually available to particular users on those platforms unlike Binance.
4# Supports Multiple Payment Options
The platform supports several payment methods which include direct bank transfer, credit/debit card, ACH, Wire Transfer, PayPal, and so on to give users more alternatives when depositing and withdrawing from the platform.
5# Supports A Wide Range Of Withdrawing Cryptocurrencies
Only a few other crypto exchanges can withstand Binance in terms of supported crypto assets as the platform supports all major cryptocurrencies and fiat currencies.
Recently, the platform introduced support for NFTs which enable users to buy and sell their NFT assets on the platform.
6# Excellent Customer Support
Binance has a dedicated telegram channel that users can utilize to communicate with its support team amidst other methods such as e-mail and ticket support. You can always be sure to get an instant help whenever you face an issue on the platform.
7# Safe And Secure
There are several excellent security features that have been implemented by Binance following its hack in the past. The platform also secured over 80% of users’ funds and coins offline to further strengthen its security framework.
Apart from the listed advantages of using the platform, there are still a lot of benefits you will enjoy from using Binance that will be discovered after registering an account on the platform.
Cons of Binance
The following are the disadvantages of using Binance:
1# Not regulated (Decentralized)
Binance.com is a decentralized crypto platform while Binance.us version of the platform is centralized and regulated according to the US requirement on crypto.
2# Hack Record
Binance was hacked in 2019 and lost about 7000 Bitcoins to the hackers. However, the company has improved its security framework and insured its platforms following the attack.
3# Not available globally
The platform is currently available in over 100 countries and might not be accessible in certain countries.
4# Not friendly to some beginners
Users who are totally naïve to cryptocurrency might find the platform too advanced due to the numerous advanced features included on the platform.
5# No phone support
The platform does not provide its users with any hotline which appears as a downside to some users.
FAQs
Is Binance trustworthy?
Yes, Binance is a very trustworthy platform and has several security features to show for it.
Is Binance better than Coinbase?
Coinbase is based in the US and is more beneficial to US residents than users from other supported countries. Since Binance offers more advantages to a global audience, it is better than Coinbase.
How do I cash out my Binance?
There are several supported payment options on Binance which users can utilize to cash out. The method you use to cash out solely depends on you.
Conclusion
From the above, it is clear that the pros of Binance exceed its cons which confirm the platform to be safe and reliable. The fact that the platform is still improving on its services in order to provide its users with even better services and products is another pointer to its exception in the crypto industry.
It is left to you to carefully assess the pros and cons of Binance before deciding if the platform is right for you.
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Idris Ya'u
Idris Yau is an entrepreneur and a seasoned finance and marketing content writer. He brings you unbiased reviews about products and answers to your finance questions.
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