If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Important note: On June 5, 2023, The SEC filed 13 charges against Binance and its CEO Changpeng Zhao for securities violations. We recommend staying away from Binance while this all shakes out -- consider another top cryptocurrency exchange instead.
Binance is one of the world's largest cryptocurrency exchanges, boasting low fees, access to hundreds of cryptocurrencies, and advanced features for experienced investors. However, the SEC has accused it of deliberately misleading investors and attempting to evade U.S. securities laws. Plus, Binance is not available to U.S. customers -- if you live in the U.S., you'll need to use Binance.US. Read our full Binance review to determine whether it's the right trading platform for you.
This cryptocurrency exchange is a good fit for: Advanced cryptocurrency traders around the world who want access to a broad range of advanced features and aren't worried about regulatory issues.
Binance doesn't offer fee-free trading. However, its fees are low compared to even the best crypto exchanges that charge fees and commission. The highest spot trading fee is 0.1%. Given that the costs on some crypto platforms to first deposit money and then buy crypto can total over 5%, the low fees are appealing.
Binance offers various ways to earn passive income, with varying degrees of risk. The platform has a number of different ways to earn interest on your crypto and pays higher rates than most other exchanges. With any interest-earning options, it's important to understand the risks involved before jumping in. Investors lost significant amounts of money in 2022 following the collapse of crypto-earn platforms that generated high yields by taking undisclosed risks with people's funds.
Binance is one of the largest cryptocurrency platforms in the world. It gives users access to over 350 tokens and thousands of trading pairs. This includes decentralized finance (DeFi) tokens, stablecoins, Bitcoin (BTC), and altcoins.
Binance makes it easy to set a limit order to buy or sell crypto at a specific price. It has a "convert" function for beginner users, and an advanced trading interface with charting tools for more experienced traders. Its Bitcoin futures section lets people speculate on whether the price of Bitcoin will rise or fall. It also sells leveraged tokens, which let customers multiply their positions in a particular currency. Trading with leverage is a risky strategy, because it can amplify losses and, in some cases, cause traders to lose their entire position.
Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. Since March 2002, Stock Advisor’s average stock pick has seen a 542.28% return — nearly 4x that of the S&P 500! (as of 1/10/2023). Learn more and get started today with a special new member discount.
Binance has found itself in regulators' crosshairs in a number of countries, including the U.S. In June 2023, the SEC brought a series of charges against Binance, Binance.US, founder Changpeng Zhao, and other related entities. Speaking about the allegations, SEC Chair Gary Gensler, said, "The public should beware of investing any of their hard-earned assets with or on these unlawful platforms." Binance says it will vigorously defend the platform.
Binance has a separate platform in the U.S. called Binance.US with fewer features and cryptocurrencies. Binance.US trades over 150 cryptocurrencies, and does not offer futures trading or leveraged tokens. Binance.US accounts are not available in Hawaii, New York, Texas, or Vermont.
Binance is a complex platform, designed to help experienced traders maximize profits. Its huge market selection and in-depth dashboards could be overwhelming and difficult to navigate if you're just getting started in crypto investing. Binance does have a simpler interface designed for first-time investors, as well as a wealth of educational resources. However, if someone simply wants to buy Bitcoin for the first time, there are several more accessible platforms.
If you're new to cryptocurrency investing: Gemini is an extremely accessible platform with a good range of cryptocurrency products and educational resources. It has a strong reputation for security and is available throughout the U.S.
Rating image, 4.50 out of 5 stars.
4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
$0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader)
The SEC has taken action against a number of top crypto platforms in the past, often for trading unregistered securities. The accusations it makes against Binance go a lot further than this and warrant more attention when it comes to keeping your funds safe. The SEC is accusing Binance of wash trading, misleading investors, and creating an "extensive web of deception." Moreover, it says, "Zhao and Binance exercise control of the platforms' customers' assets, permitting them to commingle customer assets or divert customer assets as they please." In plain language? It is saying that assets you leave in a custodial wallet on the Binance platform could be sent to a third party without your knowledge. Binance says all client assets are "safe and secure" and promises to vigorously defend against these allegations.
Binance's regulatory woes could present another issue for investors. The banking partners who make it possible for you to deposit fiat (traditional) money are increasingly reluctant to work with the exchange. Binance lost its U.K. banking partner in the spring of 2023. Paysafe, which processes euro transactions for Binance, will cease working with the platform in September. If Binance can't find other payment service providers, it will be increasingly difficult for investors to move money on and off the exchange.
Security is important when you're trusting your funds to a crypto exchange, especially given the number of hacks we've seen over the years. Binance says it has the following security features:
Binance is a fully functioning cryptocurrency exchange with a huge range of services. You can use Binance to:
Be aware that Binance's broad range of products and tendency to act first, seek forgiveness later, have gotten it into hot water with several regulatory bodies around the world. Binance does warn users of the risks involved. But ultimately, it gives retail investors access to risky products like margin trading. It is users' responsibility to manage the risk.
Binance offers a custodial wallet on its platform. It also recommends Trust Wallet, a hot (internet-connected) wallet that supports thousands of cryptocurrencies on most major blockchains. It is easy to withdraw assets from Binance to a Trust Wallet or other external crypto wallet. I find it easy to withdraw from Binance to both my MetaMask and Trust wallets. Unless there are issues with a specific blockchain, it usually completes withdrawals in less than 10 minutes and the costs are minimal.
You can use Binance via desktop, mobile, or its web-based app. It's a centralized exchange, so you need to provide some personal information to verify your account before you can get started.
Binance charges fees for trading, buying, and selling, as well as some withdrawals and deposits.
Deposit fees depend on the currency and method of payment. It's often free to make a bank transfer, but there's usually a fee for a debit card payment. In many countries, Binance allows credit or debit card payments, bank transfers, and peer-to-peer payments.
You can withdraw money to a bank account in a fiat currency, or withdraw crypto to a wallet or another exchange. Minimum withdrawal amounts and fees vary, based on your withdrawal method and currency. Please note, Binance suspended GBP deposits and withdrawals in May 2023. Its euro partner, Paysafe, has said it will stop working with Binance in September 2023.
Your trading fee percentage depends on your trading volume in the past 30 days and the amount of BNB you hold. Maker orders -- those that add liquidity to the market -- also get lower fees than taker orders, which remove liquidity.
Anyone can get a 25% discount on the trading fee by paying in the platform's native currency, Binance Coin (BNB).
|30-DAY TRADE VOLUME (BUSD)
|MAKER / TAKER
|Less than 1,000,000
|0.10% / 0.10%
|1,000,000 to 4,999,999 and at least 25 BNB
|0.09% / 0.10%
|5,000,000 to 19,999,999 and at least 100 BNB
|0.08% / 0.10%
|20,000,000 to 99,999,999 and at least 250 BNB
|0.042% / 0.060%
|100,000,000 to 149,999,999 and at least 500 BNB
|0.042% / 0.054%
|150,000,000 to 399,999,999 and at least 1,000 BNB
|0.036% / 0.048%
|400,000,000 to 799,999,999 and at least 1,750 BNB
|0.030% / 0.042%
|800,000,000 to 1,999,999,999 and at least 3,000 BNB
|0.024% / 0.036%
|2,000,000,000 to 3,999,999,999 and at least 4,500 BNB
|0.018% / 0.030%
|More than 4,000,000,000 and at least 5,500 BNB
|0.0120% / 0.0240%
Binance users can access over 350 cryptocurrencies. For me, this was one of the biggest appeals of Binance's platform -- I could find relatively small cryptos on the exchange and buy them with minimal hassle. However, I stopped using Binance to buy and sell crypto earlier this year because of its regulatory issues. Binance also has its own Binance Coin, and its own stablecoin, BUSD.
You'll find thousands of trading pairs on the site, including various fiat-to-crypto options. It has all the popular cryptocurrencies, including almost all the top 50 by market capitalization. These include Bitcoin, Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA).
Binance is quick to list new cryptocurrencies. It also offers customers early access to new projects through its Launchpool and Launchpad product. Newer cryptocurrencies do carry more risk, so investor caution is recommended.
RELATED: Check out The Ascent's list of the best places to buy Binance Coin.
Make no mistake, the SEC's charges against Binance are serious. However, it could take some time for the case to play out in court and it's too early to speculate on the outcome. To some degree, Binance has been able to continue with business as usual so far. However, the accusations of fraud are concerning. Plus, if banking partners stop working with Binance, it could seriously impact customers' ability to deposit and withdraw funds.
The SEC says that a number of popular cryptocurrencies are operating as unregistered securities. According to the SEC, a product is a security if, "There is the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others." It argues that major cryptos like Solana and Cardano fit this definition. Securities have to follow strict rules about how they are traded and how they share information. If the SEC wins this argument, it will have serious implications for how cryptos operate in the U.S.
Our Cryptocurrency Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2024 The Ascent. All rights reserved.