Binance is the world’s largest cryptocurrency exchange and wallet with a market capitalization on the Binance coin of $1.3 billion. The company, founded by Changpeng Zhao in 2017, was initially headquartered in China but moved out to Japan after the Chinese government banned cryptocurrency trading in September 2017. Today it has an office in Taiwan and another one in Malta and deals in more than 100 cryptocurrencies globally. It is a low fee crypto-to-crypto exchange service provider. The Binance coin or BNB was introduced last year and in a period of merely a year or so, it is one of the top performing cryptocurrencies in the industry today. This year the service provider announced that traders in certain regions can use dollars, their debit and credit cards for buying cryptocurrencies on Binance. As per the policy of the company, they plan to buy back some of the Binance coins every quarter from 20% of their profit and destroy the coins.
Faced Common Issue Binance
Some of the common issues faced on the Binance platform include:-
1. Log in failure is a common issue raised by users. There have been some delays in sending or messaging the code required to confirm log-in.
2. Surprise maintenance has been another common issue that users find difficult to understand with Binance. Many have in fact complained that the system maintenance happens without any warning or prior intimation and many others have complained that post the maintenance, the alerts just stop working or the App would freeze and there would be temporary shutdown of the system.
3. Problem with scammers trying to swindle and cheat is another issue that persists with Binance. In fact the official Twitter handle of Binance had warned its traders last year that online criminals and frauds were asking people to deposit some coins in certain addresses that were impersonification of Binance official accounts. All these activities were being carried out by promising gifts in return. In the aftermath, Binance officially denounced such accounts and alerted traders and users not to be attracted by such propositions because Binance as a policy never asks traders to send coins to any account without any reason. It also warned traders to be careful of such spam because it could mean losing coins and tokens.
4. In May 2018, many users complained that they logged into their accounts to find that their altcoins were sold off to BTC, especially those traders and users who had API keys issued to their accounts. In immediate action Binance put out a confirmation that the issue was related to API’s via third-party and that all the funds of the compromised accounts were safe. They also went ahead and put a hold on withdrawals during the time the investigation was being carried out so that the compromised funds could be safe and untouched.
Pros and Cons of Binance
The Binance coin is a new coin introduced only last year. The pros and cons of the BNB or the Binance coins are:-
a. Since the Binance exchange was already a known name in the cryptocurrency market, the fact that the BNB coin was introduced by them makes the coin more credible and trustworthy in the market.
b. About 1.4 million BNB transactions or blocks are processed in a second. This is way faster than Bitcoin and other older cryptocurrencies in the world.
c. For the first four years of operation, Binance has announced attractive discounts to traders who trade on the Binance exchange with the BNB coin. Though the discount rates will diminish with passing years, at the moment it is proving to be of great advantage to traders.
d. The transaction fee is a mere 0.1% of the total transaction value making it one of the cheapest in the cryptocurrency market today.
e. The BNB coin can be used by Binance traders to pay for the Binance exchange charges procured against its services, rather than getting it deducted from their trading account or balance.
a. The BNB coin is limited to and heavily dependent on the Binance exchange and at the moment.
b. The buy-back policy of BNB coins by the company is also perceived to be a disadvantage that can lead to crashing of prices.
c. Binance is comparatively a new exchange and therefore there is no track record of continuous success for the company – as it is too early to gauge the success.
d. Since the company is based in Malta and not a developed country like the US or the UK can prove to be a disadvantage for attracting traders and investors from these regions, especially North America and the developed European countries.
How to work Binance Exchanger:
Binance supports numerous crypto coins including Bitcoin, Ethereum, Dash, EOS, Litecoin, GAS, NEO and more.
1. Anyone interested in using the services of Binance first needs to sign-up and create his/her account on the platform.
2. Level 1 creation of account is simple and needs no verification. In this level the withdrawal limit is 2BTC daily. Level 2 account creation requires the user to be verified by the company. The user has to upload his photo id too. There are variable upper limits to this level and needs to be worked out with the Binance platform.
3. The verification and account creation can take some time. Once the account is successfully created and verified, users need to fund their account using a digital currency. Users need to use the Funds menu and the Deposits/Withdrawals’ link to deposit funds into the wallet address. Once the funds are confirmed deposited, trading or exchanging can start to happen.
4. Users can trade on this platform using BTC, BNB, ETH and USDT. To exchange, use the Exchange> Basic or Exchange> advanced link. You are required to select the cryptocurrency that you wish to trade in.
5. Once the desired currency has been selected and it loads up, users can see the buy and sell prices, both on the same screen. Using a user-friendly dialog box present underneath the graphs on the screen – green for buy and red for sell – users can buy or sell currency and then use the Funds> Deposits/Withdrawals to withdraw the currency value to a digital wallet.
Is It safe:
Dealing in cryptocurrency has danger associated with it and users are always warned of carrying out crypto transactions at their own risk. Having said that, Binance even after being a new cryptocurrency exchange has been able to attain popularity throughout the world because of credible dealings and policies. Though the security aspect of the platform is still something that not many are too sure off they do follows the 2FA system for wallet security – there is a password and a code sent by SMS to authenticate users. The users are also required to load their photo ID and a selfies with the Photo ID for Level 2 account creation. However, because scamming is a universal problem, traders are always requested to save their cryptocurrencies in cold wallets rather than leaving them on the platform itself. This is mainly due to two reasons – one, it is not difficult for scammers to access your password and code and second, the server of the exchange can get hacked anytime. The platform also has a good support staff working for them – the team is responsive and offers professional help through emails and online forms. The exchange does not support live chat and it also does not provide a contact number for traders to contact the support team.