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Sunday, October 1st
Binance has a long history as a cryptocurrency exchange, though a somewhat dodgy one at that. According to major financial publications, there has been a significant outflow of capital from Binance since the collapse of FTX: though this is reflective of cryptocurrency uncertainty more generally. As the largest in the world, it's unlikely that Binance will go the way of FTX. That being said, how does their exchange stack up for the average crypto investor?
In the U.S? Use Binance US
Before going further, keep in mind that as a U.S. user, you are only legally allowed to access Binance U.S., which has a smaller selection of about 125 cryptocurrencies, and doesn't offer margin or futures trading. Binance's shenanigans with Binance U.S. have led to extensive and ongoing legal troubles (more below).
Some of the lowest transaction fees out there
A key plus to using Binance U.S. are their low/no trading fees. Trading specific ETH pairs on Binance - of which there are many - will incur no trading fees, which is a nice benefit. Their base-rate maker/taker fees clock in at a wonderfully reasonable .075% if you pay the fees with their in-house coin, BNB.
Standard withdrawal fees
While their trading fees are welcoming, however, their withdrawal fees are an annoyance, though a standard one. As of writing this review, BTC withdrawal fees amounted to $27, where withdrawals of fiat currency cost $10-$15. While withdrawal costs are dynamic, and change daily based on demand and processing costs, they also are a critical factor in determining your exchange.
Binance also offers staking through their exchange: supporting proof-of-stake coins and projects with your cryptocurrency and receiving a percent reward. Binance's staking is secure, and your staked coins are stored in a cold-wallet. Keep in mind, however, that as Binance was under investigation for the selling of unregistered securities, there is no telling how long such programs will last for U.S. residents.
Potentially overwhelming, but well integrated
For those newer to trading, Binance's extensive trading interface may be overwhelming. However, their simplified integrations with TrustWallet (an easy-to-use hot-wallet) and "Pay" (their in-house crypto payment service) mean that you can seamlessly buy, transfer, and pay from Binance's ecosystem. In addition, both "Pay" and Trustwallet have earned overall positive reviews, which often cite their ease of use.
Bad customer service
Binance's customer service is quite frankly terrible, which is unfortunately common across digital brokers and centralized cryptocurrency exchanges. Customers frequently report being locked out of their account at random, with Binance automatically rejecting verification documents. This technical problem is compounded by an incredibly slow, understaffed and unhelpful customer service team. In short, if you use Binance, don't be surprised if your customer service ticket takes a while to be answered.
A pattern of regulation skirting
It's important to note that Binance has a dodgy history with regulatory compliance. According to reports from major financial news organizations, "BinanceUS" was set up as a de-facto subsidiary of Binance meant to deflect regulatory attention (it was termed the "tai chi" strategy in internal company meetings). This was coupled with the general allowance of money laundering and suspicious activity on its platform, as well as actively coaching "VIP" users how to avoid U.S. regulations. As such, Binance was being sued by the Commodities Futures Trading Commission (CFTC) and was under investigation from the SEC and IRC due to its role in facilitating money laundering.
Don't let your coins loiter
Binance saw a massive cash-outflow since the FTX scandal. Combined with the fact that - as of writing this review - Binance blocked all bitcoin withdrawals twice in 24 hours due to high withdrawal volume, Binance's U.S. services may very well be undergoing further change. While it is highly unlikely Binance will collapse like FTX, such episodes are a good reminder to always secure your crypto, and never leave your coins sitting in an exchange.
Best for day-trading
With standard withdrawal fees and low exchange costs, Binance is best for day traders making frequent transactions with few qualms about Binances' regulatory sidestepping. If you're outside of the U.S., it gets even better with robust futures and margin trading, and expanded staking options. But, with its history of legal troubles and poor customer service, more casual investors should perhaps think twice before using Binance.
Are you interested in buying cryptocurrency? Want to know what all the fuss is about? Do you want to make sure you're a part of the next financial craze that sweeps the nation? When it comes to cryptocurrency, there's a lot to know - both good and bad. But it's not rocket science.
Obviously, one of the primary reasons that people to get involved in crypto is the potential for financial gain. Cryptocurrencies have experienced substantial price increases in the past, leading to significant profits for early adopters and investors. Conversely, cryptocurrencies have also experience significant decreases in value. With such a volatile asset, the old adage "buy low, sell high" has never been more true.
Another reason people have turned to crypto is for financial freedom: Cryptocurrencies offer the possibility of financial freedom by providing an alternative to traditional financial systems. They operate on decentralized networks, which let you have more control over your money and bypasses the need for intermediaries such as banks.
If you want o to buy cryptocurrencies, then you need to open an account with a crypto exchange. Cryptocurrency exchanges are a sort of marketplace where buyers and sellers can connect and transact with various digital assets. Exchanges typically offer a wide range of cryptocurrencies, which can let you diversify your investment portfolio. There are literally hundreds of crypto exchanges available to you - it's enough to make your head swim.
Good crypto exchanges provide a user-friendly and accessible platform for you to trade digital currencies. They can also display real-time price information, which let you monitor market trends and make informed decisions more quickly. The best exchanges implement robust security measures in order to protect your funds and personal information. They will employ encryption, two-factor authentication, and possibly cold storage solutions to safeguard assets from theft or hacking attempts.
So which crypto exchange is the best? That's a tough question to answer, as exchanges - just like cryptocurrency itself - are currently in flux. Whether you're looking at security breaches, lawsuits and regulatory side-stepping, exploitative data harvesting practices, consistently poor customer service, high-profile collapses such as FTX, irresponsible crypto lending like Gemini, or payment-for-order flow profiteering, the crypto-scene is not for the risk averse, and not for those unwilling to do their homework. However, if you are going to be trading crypto, it is well worth your time to do the research to ensure the security of your investments, and the quality of the exchange you choose to utilize.
If that wasn't enough to make you pause, consider that a whole slew of exchanges are being sued by the SEC and the CFTC. Whatever your position, the future of crypto is being actively negotiated in the U.S, as the SEC and CFTC (Commodities and Futures Trade Commision) wage regulatory battles over the status of cryptocurrency as an unregistered security.
In short, there is a lot to consider when choosing a cryptocurrency exchange. By doing some digging on your behalf, we at TopConsumerReviews.com hope to help you find the right exchange in an increasingly volatile landscape.
Before you start with our list, here are some critical points to keep in mind:
That might seem like a lot to keep in mind. It's natural to feel some anxiety when choosing an appropriate exchange, but don't let it discourage you! Taking the time to find the right exchange can pay (and protect) your dividends down the line. Here at Top Consumer Reviews, we've waded through the best (and worst) of what's out there, and have found the best exchanges for your consideration.
Select any 2 Crypto Exchanges to compare them head to head
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