Binance
Based in: Unknown
Founded: 2017
URL: https://www.binance.com
Rating: 8/10
Binance is generally considered trustworthy with some caveats.
Key Facts
Binance was founded in July 2017 by Changpeng Zhao, a Chinese-born Canadian businessman. Today, Binance is one of the largest and most well-known cryptocurrency exchanges in the world. Initially launched in China, the company later relocated its operations to more crypto-friendly jurisdictions in response to regulatory pressures. Today, Binance operates globally and offers an extensive selection of services, including spot trading, futures trading, margin trading, staking, savings, and even tokenized stocks.
One of Binance's standout features is its huge selection of cryptocurrencies. The platform supports hundreds of digital assets, including major coins like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), as well as numerous altcoins and lesser-known tokens. This broad offering makes Binance appealing to both beginner and experienced traders looking for a diverse range of trading pairs. Binance's liquidity is another important factor—since it has one of the highest volumes of daily transactions in the world, traders benefit from tight spreads and minimal slippage, especially when executing large trades.
Binance is also known for its competitive fee structure. The platform uses a tiered fee system, where users can receive discounts based on their 30-day trading volume or by holding Binance Coin (BNB), the exchange’s native token. These low fees make Binance an attractive choice for high-frequency traders and those looking to maximize their profits. Moreover, Binance frequently runs promotions and events offering further discounts or rewards, such as referral programs, trading competitions, and more.
The exchange provides a wide range of advanced features, such as futures and options trading, margin trading with leverage, and staking for users looking to earn passive income by locking up their digital assets. For those who are not as experienced in trading, Binance offers a simpler version of its platform, known as Binance Lite, which simplifies the user experience and makes buying and selling cryptocurrencies more accessible to newcomers. Binance also offers educational resources, including articles, webinars, and courses, designed to help users understand crypto trading and investment strategies.
Security is a priority for Binance, and the platform implements various measures to protect users' funds and personal information. These include two-factor authentication (2FA), withdrawal whitelist features, and cold storage for a majority of customer funds. Despite these efforts, Binance has faced a few security breaches in the past, including a notable hack in 2019 where hackers stole over $40 million worth of Bitcoin. In response, Binance quickly reimbursed affected users and continued to improve its security protocols.
However, Binance has faced increasing regulatory scrutiny from global authorities. In recent years, several countries, including the United States, the United Kingdom, Japan, and others, have raised concerns about Binance’s operations, citing issues such as operating without proper licenses, offering certain services without compliance with local laws, and concerns about money laundering. Binance has taken steps to address these concerns by enhancing its compliance efforts, implementing more robust Know Your Customer (KYC) procedures, and working to obtain necessary licenses in key markets.
