Binance needs no introduction among users of cryptocurrency exchanges – not least because this exchange accounts for one of the largest trading volumes in the world. For example, only in the last 24 hours, the trading volume on Binance amounted to more than 9 billion dollars (according to CoinMarketCap).
Most traders prefer to buy and sell pairs through the main Binance website, but the exchange also offers a trading app. This app is free to download and is compatible with both iOS and Android. As with eToro, you will have one account that can be used across all devices.
One of the outstanding features of Binance is the availability of a large number of cryptocurrency pairs. At the time of writing, there were more than 600 pairs.
This means that the user gets access to cryptocurrencies of all shapes and sizes. For example, if you are looking to trade currencies like Bitcoin , Ethereum or Bitcoin Cash , you will be offered a huge number of pairs. Also, if you want access to less liquid projects like Troy, Polymath or Status, Binance has them too.
Binance does not offer CFD products. Instead, you will be buying and selling cryptocurrency in the traditional sense of the word. However, you will still be trading in pairs.
You have decided to open a position in Bitcoin vs. Ethereum. So you will need to open a transaction with ETH / BTC.
Suppose the pair is valued at 0.0348. This means that for every 1 ETH you will get 0.0348 BTC.
As with real currencies, the value of ETH / BTC can rise and fall by the second.
So you need to think about where the price of the pair will go: up (a buy order) or down (a sell order).
If you place an order through the Binance trading app, the position will remain open until you decide to close it. After that, your profit or loss will be determined by the correctness and amount of your position.
In addition to spot trading pairs, the Binance app also provides access to more complex products. These include open- ended futures contracts that allow you to use leverage.
Since Binance ‘s derivatives structure goes beyond traditional trading rules, the platform can offer leverage of up to 1:125. This means that an account balance of $200 will open a trade with a maximum value of $25,000.
Meetings and commissions
In terms of trading fees, the Binance platform is very competitive.
The highest trading fee charged by the Binance app is 0.1% . This amount is charged on both ends of the deal. For example, let’s say you opened a BTC / XRP transaction for $500. It will cost you only $0.50 commission. If you then sell the pair at $550, you will pay a commission of $0.55. This is a very competitive rate.
But you can reduce trading fees to even lower rates if you use BNB coin . This is the internal cryptocurrency token of the Binance network .
If you’re going to trade perpetual futures contracts through the Binance app, fees start as low as 0.02%.
However, if you plan to deposit fiat currency into Binance using your credit card, the price can be quite high. It is approximately 3.5% per transaction or $10.
On the other hand, if you can deposit using cryptocurrency, Binance does not charge any fees. From the point of view of withdrawal of cryptocurrency, the fee will be similar to the fee for mining the blockchain of the corresponding coin or token.
Security and regulation
Binance is not regulated by any government agency. This means that you cannot be 100% sure of the safety of your money . Binance, on the other hand, has an excellent reputation in its field and, most importantly, processes billions of dollars in trading volume every day.
Although the exchange operates without a license, the security of your account is ensured by a number of safeguards. These include 2FA (two-factor authentication), address whitelisting, cold storage, anti-phishing tools and “SAFU”.
The latter designation stands for “secure asset fund for Binance users” (Secure Asset Fund for Users). This is a reserve that is gradually replenished. If misfortune happens and Binance is hacked, the reserve will be used to compensate the victims.