Comprehensive Binance Review Guide From A To Z
Cryptocurrency investors in the United States have several notable exchanges to choose from. One of these exchanges is Binance US. This exchange is operated by recognizable companies in the cryptocurrency world, namely Binance.
In this review, we’ll focus on the exchange’s technical details, including the trading volumes, fees, security features, activity limits, as well as customer support.
What is Binance?
Binance US is an exchange launched by Binance, one of the biggest exchanges in the world.
This exchange brings the same cutting-edge tech and world-class trading features loved by crypto traders-under full US regulatory compliance.
Binance US was launched to bring crypto trading to US-based cryptocurrency enthusiasts. Binance exchange was launched in 2017. The name Binance is a combination of ‘binary’ and ‘finance’. This is why Binance US just added the US instead of changing the name.
The exchange has been accepting traders in the United States since it was launched. However, once regulators began grumbling about the exchange, the exchange decided to launch Binance US, which would comply with local regulations.
The platform was launched by Changpen Zhao and He-Fi. After co-founding the platform, Zhao went ahead to get a tattoo of the Binance logo on his forearm. This was proof of his commitment to the exchange.
Based in San Francisco, the exchange operated by the US-registered company BAM Trading Services, which acts as its official partner. The relationship of Binance US with the global Binance Company is strong enough for Binance US to be designated as its ‘arm’. Yet, Zhao claims he has no ‘legal titles’ or any ‘operational role’ in it.
Binance US is headed by Catherine Coley, a former executive at Ripple.
Coley is leading the company from San Francisco—the birthplace of the company. Though Binance, the parent company, officially resides in Mata, they also have physical locations in Jersey, Hong Kong, Singapore, and Uganda.
The size of Binance US is unknown. But an article mentioned that 30% of the company’s traffic in early 2018 came from the US—and ever since the regulations began, the number dropped to 15%.
This is a significant drop, and maybe many users decided to by a VPN to access their favorite exchange. In any case, US residents can easily trade on Binance US.
Lastly, although Binance US operates in the United States, it does not cover all states. However, the Binance US officials promised increased coverage to ensure that all states in the country are covered.
Opening a Binance US Account
Step 1: ‘Sign Up’ for an account. This process is quick and easy.
You’ll be required to provide your email address and password, then verify your email.
Step 2: you’ll be required to complete the KYC procedure. First, you’ll go through four types of verification.
- Basic verification of your personal account- this requires you to submit your name, gender, birth date, address, and social security number, with deposit/withdrawal services catering to digital assets only and daily withdrawal limit amounting to $5,000 equivalent in crypto.
- Advanced verification for your personal account- After the basic verification, you’ll be required to submit your Driver’s license/passport/green card/state ID in addition to a proof of address in the form of a bank statement or utility bill. After this step, your daily withdrawal limit will be increased to $1 million equivalent in crypto.
- Fiat account verification- This level combines requirements for the above levels in addition to submitting a completed questionnaire.
You can deposit fiat with the platform through two options: deposit via an automated cleaning house (ACH) account and via a wire.
The withdrawal limit is $1000 with ACH or $1000,000 with wire.
Depositing and Withdrawing Funds on Binance US
Depositing funds on this exchange depends on your account verification level as mentioned above.
The process of depositing is quick. Just go to the Binance US homepage and click on your user profile. Next, select an appropriate option from the dropdown menu in the provided dashboard.
If your digital assets are held on other trading platforms, they will not be automatically transferred to Binance US. Transferring a digital currency from other wallets requires you to use the deposit address on the account as the target address.
After selecting the digital currency you intend to deposit, you can either copy the address or scan the appropriate QR deposit code.
Wallets also support insights into deposit and withdrawal history.
Supported Assets on Binance US
Binance US supports several digital currencies including XRP, BTC, ETH, BNB, LTC, BCH, and Tether.
This is not the final list since the exchange designates it as ‘Phase 1’ digital asset offering. The exchange has promised to add more digital currencies down the line. The exchange hopes to garner broader support in the US by enabling trading of USD for popular digital currencies.
However, experts expressed concern when Binance US added Binance Coin on the platform, stating that this may prove controversial in the United States. While Binance US is described as a subsidiary, the exchange’s business model might draw attention from the U.S. Securities and Exchange Commission based on the fact that BNB acts as a utility token and security.
As such, the coin could pass the Howey test for being security, and potentially become a snag in the company’s path to establishing itself in the US.
New Asset Addition Policy
Initially, Binance US wanted to list more than 30 digital currencies, with those deemed most important included in the ‘Phase 1’ list of added digital currencies.
Some have noted the absence of high-profile Binance IEOs from this list as well as lack of support for Tron.
Binance US also has not initially supported projects such as BitTorrent, Fetch.AI, Celer, and Matic Network, despite having these raise capital on the platform’s Launchpad.
For the planned Phase 2, Binance US has promised to consider each new listing candidate asset, provided they meet the following criteria from its Digital Asset risk Assessment Framework:
- Whether the digital currency will affect the platform’s ability to comply with applicable legal requirements, including without limitation, US AML/CFT, and securities laws and their regulations for implementing.
- Whether the candidate asset’s core team has a clear strategy to solve a real problem and make the world a more efficient place.
- Whether the candidate asset’s community has a record of reaching compromises and consensuses to move the project forward, and how well the asset’s core team interacts with the community members.
- Whether the candidate asset’s market supply and demand are reasonably fair and likely to meet the platform’s quantitative standards.
- Whether the candidate asset is technologically secure to transact and/or realistic to build.
While the current digital currency support leaves room for improvement, you should remember that it’s still early to make the final judgment on the platform’s policy.
Users of the platform who have unsupported assets are advised to use the services of other custodians in any form while these currencies await approval.
Binance ranks the largest cryptocurrency exchange in the market, but Binance US is much smaller given that it only serves one country. That said, the exchange is still active enough to rank among the top 15 exchanges on a regular basis.
The platform handles $5-10 million daily.
Binance US Liquidity
Liquidity is a good way to evaluate an exchange. The speed at which digital currency can be bought or sold without affecting its price.
By extension, exchanges with high liquidity can offer faster trades and better prices to users. Trading volumes provide good insight into this, but they are not the most direct way to measure liquidity.
Binance US has $4 million of liquidity. The exchange continues to improve its liquidity in practical ways. For instance, Binance US recently partnered with Tagomi, a crypto brokerage company, to onboard more investors and improve its liquidity.
Binance Referral Program
Immediately after Binance US exchange went live, the platform launched its Referral Program with a range of rewards being available to the customers and their referees under certain requirements.
After logging in, you’ll find unique invite links, with your friends being required to sign up using the referral link to become eligible for rewards.
The referral program offers the following benefits and is limited to personal account owners on the platforms:
- Completing fiat account verification and handling at least USD $100 in trading volume (buying and/or selling with any trading pair) to receive $15 USD.
- The same reward is available to users whose friends also complete fiat account verification and achieve $100 USD in trading volume.
- Referrals can be seen to an unlimited number of users, with the exchange reserving the right to change this position in the future.
- Referees are required to sign up through the link provided or the referral ID provided.
After the launch of Binance US, up until November 1, 2019, the trading fees on the exchange remained zero for all supported trading pairs.
This move is one of the company’s efforts to eliminate barriers to broader adoption of crypto assets.
Once this initial interval expired, the exchange introduced a uniform fee schedule, with flat-free amounting to 0.10% per trade for personal accounts. This means that if your buy $100 worth of BTC, the exchange will charge you $0.01.
The fee schedule for corporate accounts was also adjusted based on the associated trading volume.
Additionally, the exchange is compatible with desktop and mobile-based web access. No matter what type of client is served, the platform guarantees access to Binance’s matching engine which supports up to 1,400,000 orders per second.
Pros & Cons On Binance US
Binance US customer support is quite effective. The exchange allows customers to raise issues through different channels including email, different social media platforms, and even on the exchange through a live chat.
Additionally, the exchange has a FAQ and Help section where customers can find answers to many questions and even receive guidance to help them solve any issues they have.
After sending an email to the exchange’s customer support, they replay in about 24 hours, which is quite impressive compared to other major exchanges. The customer support team also communicates with users on various social media platforms, allowing them to raise any issues and they provide answers and solutions in real-time.
The major issues are referred to email, where a customer is allowed to open a ticket and raise their issue.
Binance US is a relatively exchange but it has shown the potential to reach greater heights. The platform was created after Binance.com decided to relocate due to the US crypto regulations. The exchange has listed a few major cryptocurrencies but has promised to continue adding more.
Additionally, Binance US offers high security for its user’s funds and impressive customer service. The account opening process is simple, and the interface is user-friendly for beginners and experts alike.
Moving forward, it remains to be seen where Binance US is headed, as it continues to add more coins.