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  • Binance Exchange Review (2025): Is it the best exchange?

    Binance Exchange Review (2025): Is it the best exchange?

    Binance is a very popular cryptocurrency exchange. It has the largest trading volume and many different cryptocurrencies to trade. Binance also has powerful tools for trading, like leveraged trading and options trading. They also have a lending platform. Binance is always adding new features and this surprises many experts. The CEO of Binance is Zhao “CZ” Changpeng and he is very quick to respond to events. Binance has many different versions, including one for the US called Binance US. This review talks about all the different features of Binance and any problems they have had.

    Sign up for Binance HERE!

    Key Advantages of Binance

    • World’s most popular exchange with the highest trade volume.
    • Offers the largest range of products and services with some not even found elsewhere.
    • Maintains insurance against theft and hacks.

    Key Features and Functions

    Binance (Binance.com)

    Binance.com is the main exchange. It has all the services that Binance offers. Some of the key features are:

    • It supports over 400 different cryptocurrencies including Bitcoin, Ethereum, and niche altcoins.
    • It has the highest trading volume in the world.
    • Binance Launchpad continues to be a platform for new cryptocurrency listings.
    • Advanced Trading Tools: Offers spot trading, futures, margin trading, and options.
    • DeFi Integration: Users can access decentralized finance (DeFi) services via Binance Smart Chain (BSC).
    • Lending & Staking Services: Users can earn interest on their holdings through lending and staking programs.
    • Enhanced Security Measures: Includes two-factor authentication (2FA), cold storage, and anti-phishing protections.

    Binance US (Binance.us)

    Binance US (Binance.us) was Binance’s answer to US regulations barring citizens from trading on Binance. Key features include:

    • Fully compliant with U.S. regulations, ensuring adherence to evolving legal frameworks.
    • Has fiat to cryptocurrency trading pairs. Users can use USD to buy cryptocurrencies directly on the Exchange.
    • Bank account linking is available.
    • Limited cryptocurrency offerings compared to Binance.com, but still supports major assets.

    History of Binance

    Binance was founded by Changpeng (CZ) Zhao in 2017. The name comes from a combination of the words “Binary” and “Finance”. Binance is originally from China. However, due to the harsh crypto regulation procedures in the country, the Exchange moved to more conducive jurisdictions outside China, eventually settling in Malta. The exchange gained rapid popularity, becoming the largest cryptocurrency exchange by trading volume within a year.

    Currently, Binance is based in multiple jurisdictions. Their main site offers support in English, Chinese, Korean, Japanese, Russian, Spanish, and French. Here are some of Binance’s major milestones.

    Major Milestones

    2019: Binance launched Binance USD (BUSD), a stablecoin backed by USD, in partnership with Paxos. It also migrated Binance Coin (BNB) from Ethereum to its own Binance Chain.

    2021: Binance introduced BNB Auto-Burn, a mechanism to reduce the total supply of Binance Coin.

    2022: Binance faced regulatory scrutiny in multiple countries, including the U.S., UK, and France, leading to increased compliance measures.

    2023: Binance expanded its Web3 ecosystem, integrating decentralized finance (DeFi) services and launching Binance Pay, a crypto payment solution.

    2024: Binance surpassed 250 million users, solidifying its dominance in the crypto industry.

    2025: Binance continues to operate globally, with 21 regulatory approvals across different jurisdictions. Despite past controversies, it remains the largest crypto exchange, managing over $100 billion in assets.

    Supported Countries

    The international site Binance (Binance.com) is supported in most countries such as:

    Asia & Pacific: Australia, India, Indonesia, Japan, Kazakhstan, Mongolia, New Zealand, Pakistan, Philippines, Taiwan, Vietnam.

    Europe: France, Germany, Greece, Italy, Poland, Portugal, Romania, Russia, Spain, Switzerland, Turkey, Ukraine.

    Middle East & Africa: Egypt, Israel, Saudi Arabia, South Africa, United Arab Emirates.

    Americas: Argentina, Brazil, Chile, Colombia, Mexico, Peru.

    Restricted or Banned Countries

    Binance is restricted or banned in the following locations due to compliance issues and/or government sanctions:

    • United States: Binance has been banned since 2019, leading to the creation of Binance.US as a compliant alternative. Therefore, US citizens can ONLY trade on Binance US (Binance.us), except for those from the following states: Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. Note however that Binance.us has fewer supported cryptocurrencies and features compared to the international site.
    • United Kingdom: The Financial Conduct Authority (FCA) revoked Binance’s permissions in 2023.
    • China: Binance is not legally supported in China and accessing the platform from within the country carries legal and financial risks.
    • Netherlands: Binance exited the Dutch market in 2023 after failing to secure regulatory approval.
    • Nigeria: Declared Binance illegal in 2023, leading to executive detentions and service restrictions.
    • Canada: Binance left Canada in 2023 due to strict regulations and was fined $4.32 million in 2024.
    • Belgium: Ordered Binance to halt operations in 2023 due to non-compliance with EU financial laws.
    • Other restricted locations: Cuba, Iran, Syria, North Korea, Crimea, and non-government-controlled areas of Ukraine.

    US citizens can ONLY trade on Binance US (Binance.us), except for those from the following states: Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. Note however that Binance.us has fewer supported cryptocurrencies and features compared to the international site. This is so that Binance.us is compliant with US Laws.

    Supported Cryptocurrencies

    Binance.com (Main Exchange)

    Binance.com, the main exchange, offers a range of cryptocurrencies and coins as follows:

    • Binance supports over 400 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), various altcoins and its own cryptocurrency, Binance Coin (BNB). Learn more about Binance Coin (BNB).
    • Stablecoins available: USDT, BUSD, TUSD, and other fiat-backed digital assets.
    • New Listings: Binance continues to add new tokens through its Binance Launchpad.

    Payment Methods

    Binance.com

    Binance accepts payments the folllwing payment methods:

    Fiat Deposits: Users can deposit fiat funds using bank transfers, credit/debit cards (Visa & MasterCard), and third-party payment providers.

    Crypto Deposits: Binance supports deposits and withdrawals in all listed cryptocurrencies.

    Binance Pay: A crypto payment solution allowing users to send and receive digital assets instantly.

    Howevever as of 2025, Binance has restricted debit and credit card payments in several locations due to regulatory concerns and banking policies. Some of the key regions where Binance users face limitations include:

    • United Kingdom: Payments to Binance using Nationwide cards are declined due to regulatory uncertainty.
    • United States: Certain banks have imposed restrictions on crypto-related transactions.
    • China: Binance does not officially operate in mainland China, leading to payment restrictions.
    • Nigeria: Binance faced regulatory challenges, affecting payment methods.
    • Canada: Binance exited the market in 2023, impacting fiat transactions.
    • Belgium: Binance was ordered to halt operations in 2023, restricting payments.
    • Other restricted locations: Cuba, Iran, Syria, North Korea, Crimea, and non-government-controlled areas of Ukraine.

    they can trade with other cryptocurrencies on the Exchange.

    Binance US (Binance.us)

    Binance US supports the following payment methods:

    • Bank Transfers (ACH): Users can link a bank account to deposit and withdraw USD with zero fees.
    • Crypto Deposits: Binance.US allows deposits in over 130 cryptocurrencies.
    • USD Trading Pairs: Users can trade major cryptocurrencies like BTC, ETH, and BNB against USD.
    • Recurring Buys: Users can schedule automatic purchases of crypto on a daily, weekly, or monthly basis.
    • Crypto Conversions: Binance.US offers instant conversion between USD and crypto.
    • Staking Rewards: Users can stake 20+ Proof-of-Stake cryptocurrencies, including ETH, SOL, and ADA.

    Deposit and Withdrawal Fees

    Deposit fees

    Deposit and withdrawal fees for Binance.com and Binance.US differ based on the platform and payment method.

    Binance.com:

    • Deposit fees:
      • Cryptocurrency deposits do not have any fees.
      • Fiat deposits are generally free, but some payment methods may incur processing fees.
    • Withdrawal fees:
      • Cryptocurrency withdrawal fees vary depending on the asset and network conditions. Some examples include:
        • Bitcoin (BTC): 0.0005 BTC per withdrawal
        • Ethereum (ETH): 0.00001 ETH per withdrawal
        • Binance Coin (BNB): 0.00002 BNB per withdrawal
        • USDT (Tether, BEP20): 10 USDT per withdrawal
        • Solana (SOL): 0.002 SOL per withdrawal
        • XRP (Ripple): 0.2 XRP per withdrawal
      • Fiat withdrawal fees depend on the payment method, region, and banking provider.

    Binance.US:

    • Deposit fees:
      • Cryptocurrency deposits are free.
      • Fiat deposits via ACH transfers are free, while wire transfers may have a small fee.
    • Withdrawal fees:
      • Cryptocurrency withdrawals follow the same asset-based fee structure as Binance.com..
      • Fiat withdrawals:
        • ACH transfers in the U.S. are free.
        • Domestic wire transfers in the U.S. incur a $15 fee per withdrawal.
        • International wire transfers incur a $35 fee per withdrawal.

    Click here for the fee structures of Binance.com and Binance US respectively.

    Trading Fees

    Trading fees on Binance.com and Binance.US follow a maker-taker model, where both makers and takers are charged a base fee of 0.1% per trade. Users who hold Binance Coin (BNB) in their accounts can receive a 25% discount on trading fees when paying with BNB.

    Binance.com offers a tiered fee structure based on 30-day trading volume and BNB holdings. Higher VIP tiers provide lower trading fees. For example:

    • VIP 0 (standard users): 0.1% maker and taker fee
    • VIP 1: 0.09% maker fee and 0.1% taker fee
    • VIP 2: 0.08% maker fee and 0.1% taker fee
    • VIP 3 and above: progressively lower fees based on trading volume

    Binance.US follows a similar structure but has different fee tiers. Standard users pay 0.1% per trade, while high-volume traders can qualify for lower fees.

    Trading fees for Binance.com and Binance US are generally 0.1% for makers and takers with the following exceptions:

    • Binance.com and Binance.us: Users with larger trade volume or hold a specified amount of BNB are eligible to become VIPs. Higher VIP tiers give you lower trading fees. There is a 25% trading fee discount if fees are paid using BNB.

    Binance has competitive trading fees compared to some other cryptocurrency exchanges. For example:

    • Coinbase: 0.50% of the transaction plus a flat fee based on the transaction amount. Advanced trading fees range from 0.00% to 0.60% depending on trading volume. Did you know you can avoid their expensive withdrawal fees? Find out more at CoinBase Fees- How to Avoid Them?
    • Kraken: Fees starting at 0.25% for makers and 0.40% for takers. Fees decrease with higher trading volume, reaching 0.00% maker and 0.08% taker for institutional clients.
    • Poloniex: They follow a tiered fee structure based on 30-day trading volume. Standard users pay 0.200% maker and 0.200% taker fees, while higher VIP tiers receive discounts.
    • OceanEX: 0.10%, discounts are offered for payments with their OceanEx coin.
    • KuCoin: 0.10% is their standard fee. Discounts are offered for payments with their KCS coin.
    • Huobi: 0.20%
    • OKEx: Follows a tiered fee model. Regular users pay 0.080% maker and 0.100% taker fees, while VIP users receive progressively lower fees.
    • BitMEX: 0% maker fees and 0.075% taker fees for derivatives trading. Spot trading fees are currently 0% for a limited time.
    • BitFinex: 0.10% (maker) / 0.20% (taker) for crypto-to-crypto and crypto-to-stablecoin trades. Discounts are available for users holding UNUS SED LEO tokens.
    • BitMax (also known as AscendEX): Applies spot trading fees of 0.20% for both makers and takers. Margin and futures trading fees are 0.06% for takers and 0.02% for makers.

    Binance KYC

    Binance requires users to complete Know Your Customer (KYC) verification to access most features on the exchange. There are two levels of verification: Verified and Verified Plus.

    • Verified: Users must provide personal information, a government-issued ID, and complete facial recognition. This level allows deposits and withdrawals up to $50,000 per day, unlimited crypto deposits, withdrawals up to 100 BTC, and unrestricted peer-to-peer (P2P) transactions.
    • Verified Plus: Requires additional proof of address. Users at this level can deposit and withdraw up to $200,000 per day and access all features available to Verified users.

    In 2025, Binance strengthened its KYC policies to comply with global anti-money laundering (AML) regulations. Users in certain regions, such as India, must provide Permenant Acccount Number (PAN) details as part of the verification process. Binance also introduced enhanced KYC requirements for corporate accounts, requiring additional documentation such as source of funds, proof of address, and Politically Exposed Persons (PEP) declarations

    Controversies

    Like any exchange, Binance is no stranger to controversies, making people question if Binance is safe. Let’s take a look at some controversies faced by the exchange.

    2019 Binance Hack

    • Hackers stole 7,000 Bitcoin, worth approximately US$40 million at the time.
    • The attack involved phishing and malware to gain access to user accounts.
    • Binance compensated affected users using its SAFU fund, an emergency insurance reserve.

    2019 KYC Data Breach

    • A hacker claimed to have Binance’s KYC data and demanded 300 Bitcoin in ransom.
    • Binance stated that the leaked data originated from a third-party KYC provider used in 2018.
    • Binance offered lifetime VIP membership and better trading conditions to affected users.

    2021-2022 Money Laundering Allegations

    • Reports suggested that Russian darknet drug market Hydra used Binance for transactions worth $780 million.
    • Binance denied the allegations, stating that the figures were inflated due to indirect crypto flows.
    • Binance strengthened its KYC policies in August 2021, requiring all users to verify their identities.
    • A study found that after Binance’s stricter KYC rules, Hydra-linked transactions dropped from $30 million per month to less than $1 million.

    2023 U.S. Regulatory Crackdown

    • Binance faced multiple lawsuits from U.S. regulators, including the SEC and CFTC, for allegedly violating securities laws.
    • Binance and its founder Changpeng Zhao (CZ) agreed to a $4.3 billion settlement in November 2023.
    • CZ stepped down as CEO, and Binance implemented enhanced compliance measures.

    2025 Allegations of Political Involvement

    • A Wall Street Journal report alleged that CZ acted as a fixer for a Trump-affiliated crypto project, World Liberty Financial (WLF).
    • CZ denied the claims, stating he had no role in WLF’s operations or connections.
    • Binance criticized the report as biased and reaffirmed its commitment to transparent financial practices.

    2025 SEC Lawsuit Dismissal

    • The SEC dropped its lawsuit against Binance in May 2025, marking a shift in U.S. crypto regulation.
    • The lawsuit, originally filed in 2023, accused Binance of serving U.S. users illegally and inflating trading volumes.
    • Binance called the dismissal a major win for crypto, signaling improved relations with regulators.

    Is Binance safe in 2025?

    Binance remains the largest cryptocurrency exchange in 2025, with over 270 million registered users and a total asset value exceeding US$142 billion. Despite past controversies, Binance has strengthened its security measures and regulatory compliance. Here are some security measures used by Binance:

    • SAFU Fund: Binance maintains the Secure Asset Fund for Users (SAFU), an emergency insurance fund valued at US$1 billion to compensate users in case of security breaches. For example, in May 2019, Binance suffered a security breach where hackers stole over 7,000 Bitcoin, valued at more than US$40 million at the time, and the exchange fully compensated affected users using the SAFU fund.
    • Proof of Reserves (PoR): Binance provides real-time proof-of-reserves, ensuring that user funds are backed 1:1 with additional reserves. You can learn more about Binance’s reserves audit by checking out: Binance Audited by Mazars, Confirms Bitcoin Reserves are Fully Collateralized.
    • Advanced Security Features: Binance has implemented two-factor authentication (2FA), IP whitelisting, and cold storage to protect user assets.

    Tweet from CZ on 13th December 2022

    Is Binance safe in 2025? It looks like it is. They paid back victims of hacks, showed they have enough money, and handled big withdrawals. But no exchange is 100% safe. That’s why it is important to take your cryptocurrencies off exchanges and put them in offline hardware wallets. That way, you keep control of your cryptocurrencies.

    Which hardware wallet should you get? Check out our comparison of the top 3 hardware wallets. Or read our reviews for the Ledger Nano X, Trezor Model T and KeepKey.

    Conclusion: Binance Pros and Cons

    Pros

    • Largest Exchange by Volume: Binance continues to dominate the cryptocurrency market, handling over $100 billion in assets globally.
    • Extensive Cryptocurrency Support: Offers trading for over 1,300 cryptocurrencies, including major assets like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
    • Competitive Trading Fees: Maintains low trading fees (starting at 0.1%) with discounts for users who pay with BNB.
    • Advanced Trading Features: Provides spot trading, futures, margin trading, staking, and lending services, catering to both beginners and professional traders.
    • Regulatory Approvals: Secured 21 regulatory approvals across different jurisdictions, improving compliance and user trust.
    • Security Measures: Strengthened security with two-factor authentication (2FA), cold storage, and proof-of-reserves audits to ensure user funds are backed 1:1.
    • Binance Smart Chain (BSC) & Web3 Expansion: Continues to support decentralized finance (DeFi) services, NFT marketplaces, and blockchain innovations.

    Cons

    • Regulatory Challenges: Despite improvements, Binance still faces scrutiny in certain regions, leading to restrictions in countries like the United States, United Kingdom, and China.
    • Limited Binance.US Features: The Binance.US platform offers fewer cryptocurrencies and features compared to Binance.com..
    • KYC Verification Delays: Some users report longer processing times (up to 13 days) for identity verification.
    • Withdrawal Fees: While trading fees remain low, withdrawal fees vary depending on the asset and network conditions.
    • Customer Support Issues: Response times can be slow during peak trading periods, frustrating users needing urgent assistance.

    Sign up for Binance HERE!

    Binance Exchange Review (2025)

    When evaluating a cryptocurrency exchange, several key factors determine its reliability, security, and overall user experience. Binance, as the largest cryptocurrency exchange by trading volume, continues to evolve, offering a comprehensive suite of services while navigating regulatory challenges.

    Services Offered

    Binance provides a wide range of trading tools, including:

    • Spot Trading, Futures, and Margin Trading: Catering to both beginners and professional traders.
    • Options Trading: Advanced derivatives for experienced investors.
    • Lending & Staking: Users can earn passive income through lending and staking programs.
    • Binance Smart Chain (BSC) & Web3 Integration: Expanding decentralized finance (DeFi) services and NFT marketplaces.
    • Binance Pay: A crypto payment solution enabling seamless transactions.

    Cryptocurrency Support

    • Binance.com supports over 1,300 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
    • Binance.US, the U.S.-compliant version, offers around 50 cryptocurrencies, with a strict vetting process for new listings.

    Trading Fees

    • Competitive Fees: Binance maintains 0.1% maker and taker fees, with VIP tiers offering lower rates.
    • BNB Discounts: Users paying fees with Binance Coin (BNB) receive a 25% discount.
    • Fee Comparisons: Binance remains one of the most cost-effective exchanges compared to competitors.

    Security Measures

    • SAFU Fund: Binance maintains a $1 billion emergency insurance fund to compensate users in case of security breaches.
    • Proof of Reserves (PoR): Ensures user funds are backed 1:1 with additional reserves.
    • Advanced Security Features: Includes two-factor authentication (2FA), cold storage, and anti-phishing protections.

    Regulatory Compliance

    • Binance has secured 21 regulatory approvals across different jurisdictions.
    • Binance.US remains compliant with U.S. regulations, ensuring adherence to evolving legal frameworks.
    • Restricted Countries: Binance faces bans or restrictions in regions like the United States, United Kingdom, China, and Canada.

    Final Thoughts

    Binance remains the largest and most influential cryptocurrency exchange in 2025, offering a vast array of services while navigating regulatory challenges. Users should stay informed about compliance changes and consider self-custody options for long-term asset security. Overall, Binance is safe but it is important to avoid storing more cryptocurrencies than needed on exchanges.

    Frequently Asked Questions (FAQs)

    Is Binance still the largest cryptocurrency exchange in 2025?

    Yes, Binance remains the largest cryptocurrency exchange by trading volume, managing over $100 billion in assets globally.

    What is Binance.US, and how is it different from Binance.com??

    Binance.US is the U.S.-compliant version of Binance, offering a limited selection of cryptocurrencies (around 50) compared to Binance.com, which supports over 1,300 cryptocurrencies. Binance.US adheres to strict U.S. regulations, ensuring compliance with local laws.

    Does Binance require KYC verification?

    Yes, Binance requires Know Your Customer (KYC) verification for most features. Users must provide personal information, a government-issued ID, and facial recognition to access full trading capabilities.

    What are Binance’s trading fees in 2025?

    Binance maintains competitive trading fees:

    • 0.1% maker and taker fees for standard users.
    • VIP tiers offer lower fees based on trading volume.
    • 25% discount for users paying fees with Binance Coin (BNB).

    Is Binance safe to use?

    Binance has strengthened security measures, including:

    • SAFU Fund: A $1 billion emergency insurance fund to compensate users in case of security breaches.
    • Proof of Reserves (PoR): Ensures user funds are backed 1:1 with additional reserves.
    • Advanced Security Features: Includes two-factor authentication (2FA), cold storage, and anti-phishing protections.

    Which countries have restricted or banned Binance?

    Binance faces restrictions or bans in certain regions due to regulatory challenges, including:

    • United States (except Binance.US)
    • United Kingdom
    • China
    • Canada
    • Nigeria
    • Belgium
    • Netherlands

    How do I deposit and withdraw funds on Binance?

    Binance supports fiat and crypto deposits:

    • Fiat Deposits: Bank transfers, credit/debit cards, and third-party payment providers.
    • Crypto Deposits: Supports deposits and withdrawals in all listed cryptocurrencies.

    What is Binance Pay?

    Binance Pay is a crypto payment solution that allows users to send and receive digital assets instantly, supporting cross-border transactions.

    What is Binance Smart Chain (BSC)?

    Binance Smart Chain (BSC) is a blockchain network designed for fast and low-cost transactions, supporting decentralized finance (DeFi) applications and NFT marketplaces.

    Has Binance faced any controversies in 2025?

    Binance has navigated regulatory challenges, including:

    • SEC Lawsuit Dismissal: The U.S. SEC dropped its lawsuit against Binance in May 2025, marking a shift in crypto regulation.
    • Political Allegations: Reports suggested Binance’s involvement with a Trump-affiliated crypto project, which Binance denied.

    Binance continues to expand globally, securing 21 regulatory approvals while adapting to evolving compliance requirements

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Binance vs FTX Exchange Comparison Overview: Which is the Better Exchange?

    Binance vs FTX Exchange Comparison Overview: Which is the Better Exchange?

    Which Cryptocurrency Exchange is the “Best”?

    There is a lot to consider when it comes to cryptocurrency investment and trading, and crypto exchanges are a great way to start. It is a good platform for beginners to familiarize themselves with the market as well as for experienced traders to make use of the various products the exchanges offer.

    There are hundreds of crypto exchanges, and everyone is asking. “which crypto exchange is the best?” Everyone wants to get the best bang for their buck, whether it be low trading fees or lucrative products. We will be comparing two of the top and most talked about crypto exchanges in the world: Binance and FTX Exchange.

    FTX EXCHANGE (INCLUDING FTX INTERNATIONAL AND FTX.US) ARE NO LONGER IN OPERATION

    Both exchanges have filed for bankruptcy. Subsequently, the exchange was “hacked” and more than US$600 million worth of cryptocurrencies drained. The hacker is strongly rumoured to be a former FTX employee. For more about how this story unfolded and the latest news, check out these articles:

    What is FTX Exchange?

    Founded in 2019, FTX Exchange is a cryptocurrency trading platform that was built by Alameda Research, a quantitative trading firm that develops specialized algorithms for trading crypto. It has topped many trading charts by volume and is responsible for 30% of the market trading volume on major exchanges.

    The strong trading background of FTX shows that they live up to their claim of being an exchange “built by traders, for traders.”

    FTX is largely focused on the derivative and prediction market, offering a wide array of futures, options, and volatility products with competitive trading rates and discounts for specific users.

    FTX Exchange has been growing significantly over the past year, exploding past the likes of KuCoin and Kraken. They even managed to take market share away from Coinbase as well, which is the number one crypto exchange in the U.S. This is in part thanks to huge venture capital funding that is backing FTX.

    Check out FTX Exchange Guide for a full review and tutorial on how to use FTX Exchange. 

    What is Binance Exchange?

    Binance was founded in 2017 by Chengpeng Zhao (CZ), former Chief Technology Officer of OKCoin who has years of experience developing high-frequency trading software.

    Binance is, by a large margin, the world’s most popular cryptocurrency exchange. It has more than than $25 billion in organic trading volume per day and millions of users worldwide.

    Binance is largely focused on the spot market and has one of the most cryptocurrencies available to trade. It also has powerful trading tools such as leveraged trading, options trading and lending platform.

    For the longest time, the trading platform scene is dominated by Binance, and is held in high regard for being smart and proactive in their planning and actions, not only for themselves but also for developing the crypto industry as a whole.

    Binance has been highly active in collaborating with international regulators to support the development of a regulatory framework and policies for cryptocurrencies. In 2022, Binance as well as FTX has received regulatory approval to set up shop in Dubai and Bahrain.

    This is a significant step since it enables both exchanges to function in accordance with international standards, and meet the criteria of major regulators like the Financial Action Task Force.

    Binance vs FTX Exchange Overview

    In this section, we will take a closer look at what Binance and FTX have to offer and compare them based on these features:

    • Products
    • Supported cryptocurrencies
    • Fees
    • Security

    Products

    Binance and FTX have quite a lot of similarities based on their general offering. But the major difference is that Binance is more focused on the spot market and has more cryptocurrencies to offer, whereas FTX is more focused on the derivative and prediction market and has more volatility products. Therefore, FTX is usually seen as the preferred choice for experienced traders who want a wider (and potentially higher risk/reward) range of products.

    Both exchanges offer products that are exclusive to them. Binance offers Crypto Loans, a P2P market, and Binance Earn, while FTX offers volatility and prediction markets. The addition of FTX stocks makes it the first domestic crypto exchange to provide stocks on its platform, enabling trading of stocks and ETFs by U.S. users.

    FTX’s crypto card is exclusively accessible to US residents via the FTX US platform, whereas Binance’s crypto debit card has gained enormous popularity. While FTX places a greater emphasis on specialized trading products, Binance has more to offer in terms of their Binance Earn, allowing users to earn passive income.

    Both Binance and FTX offers a mobile app for iPhone and Android so users can trade cryptocurrencies on the go.

    Supported cryptocurrencies

    Binance has the highest number of cryptocurrencies that any exchange offers to its users. It currently has 1,300 cryptocurrencies including its own native crypto, Binance Coin (BNB).

    Learn more about Binance Coin (BNB).

    Nevertheless, FTX offers a lot of cryptocurrencies for users to trade, though not as large as Binance’s. FTX supports over 460 cryptocurrencies including its own native crypto, FTX Token (FTT).

    Both exchanges however, are consistently adding to their lists of supported cryptocurrencies, including newly launched tokens.

    Fees

    The rates on both exchanges’ spot trade markets are extremely low, and they continue to decline as volume rises. However, FTX wins out since it assesses 0.02% as a maker fee and 0.07% as a taker fee for tier one accounts.

    This is significantly lower than Binance fees, i.e. 0.1% maker and taker fee. Even after using BNB for trading fees, the user will have to pay a 0.075% fee, which is higher than FTX.

    We can see that FTX is better for trading, and is clearly a winner in this category.

    Security

    One of the most important considerations when choosing an exchange is security. It’s safe to say that Binance and FTX are two of the most secure exchanges in the world.

    Both exchanges use two factor authentication, and they store account funds and data away from online platforms so that they cannot be hacked. They also insure their funds by putting a certain amount of fee away as an insurance fraud.

    Both platforms also employ round-the-clock monitoring and analysis, and in the case of a theft, user funds are protected by the reserves that both firms have in their treasuries.

    FTX is one of the few exchanges that have never been hacked, and while Binance has seen some hacking incidents in the past, both exchanges adhere to the strictest industry security guidelines, with the majority of funds being kept in cold storage. FTX also does third party transaction audits via Chainalysis, giving them a slight edge over Binance.

    However, we must also consider the fact that Binance has been around longer and has a much larger trading volume than FTX, making them a more attractive target to hackers. But Binance has managed to hold their ground and plan for the worst, and is still one of the top performing exchanges despite the bear market.

    Conclusion

    Binance and FTX have quite a lot of similarities based on their general offering. But the major difference is that Binance is more focused on the spot market and has more cryptocurrencies to offer, whereas FTX is more focused on the derivative and prediction market and has more volatility products.

    Binance offers the most cryptocurrencies to trade including new projects such as DeFi, NFT or metaverse gaming. If you are a beginner or looking for new tokens to trade, or even an experienced investor who prefers passive earnings, Binance would be a better option for you.

    If you are an experienced trader who strictly does day trading or skilled at volatility products, FTX would be the go-to for you as it offers all the products traders need, with significantly low fees.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Binance vs Coinbase Exchange Comparison Review: Features, Fees, Services and More

    Binance vs Coinbase Exchange Comparison Review: Features, Fees, Services and More

    Which Cryptocurrency Exchange is the “Best?”

    Cryptocurrency exchanges have been the central trading platform in the crypto space. Traders worldwide have made substantial returns on their investment just from pressing a couple of buttons. This has attracted many others to join in hopes of profiting from trading crypto.

    However, one of the key factors in successful trading is finding the right crypto exchange. With hundreds of crypto exchanges available, everyone is constantly asking “which crypto exchange is the best?” Traders want to make the most of their investments, whether it be low trading fees or lucrative services. In this article, we will be comparing two of the top crypto exchanges in the world: Binance and Coinbase.

    See also: Top Best Cryptocurrency Exchanges of 2023

    What is Binance?

    Binance is the world’s most popular crypto exchange by a large margin. It is rank one in organic trading volume per day ($14 billion at the time of writing) and in website and app user session (87 million visits).

    Sign up and get 20% off Binance fees!

    Key Features of Binance

    This is because Binance is largely focused on the spot market, supporting a wide range of cryptocurrencies for users to trade. On top of that, users can earn passive income on their holdings via Binance Earn. There is also no shortage of trading features for experienced investors such as leveraged trading, options trading, and lending platform.

    Since Binance is not accessible in the U.S., Binance started Binance.US in compliance with U.S. regulations for citizens to trade freely.

    See also: Binance Exchange Review (2022) Best Crypto Exchange?

    Who Founded Binance?

    Binance was founded in 2017 by Chengpeng Zhao (CZ), former Chief Technology Officer of OKCoin who had years of experience developing high-frequency trading softwares.

    Binance’s Milestones

    For the longest time, the cryptocurrency industry is dominated by Binance. The exchange is held in high regard for being proactive and astute in their planning and actions, not only for themselves but also for advancing the crypto space as a whole.

    Binance has been very active in collaborating with global regulators such as the Financial Action Task Force to support the development of crypto regulatory framework and policies. In 2022, Binance has received regulatory approval to set up locations in Dubai and Bahrain, which is an important step as the granted license allows them to operate in compliance with global standards.

    What is Coinbase?

    Founded in 2012, Coinbase is one of the earliest crypto exchanges in the world. Unlike other exchanges, Coinbase is based in the U.S. and subject to its regulations. As such, it is the largest cryptocurrency exchange in the U.S. by trading volume.

    Key Features of Coinbase

    Coinbase is split into several categories catering for different types of users. Coinbase itself is for retail investors, and only offers spot trading, unlike other exchanges which offer other products such as derivatives or futures trading.

    Coinbase Pro is for individual professional traders, and Coinbase Prime is for larger institutional clients. Both platforms provide charting tools, real-time order books, among other tools to help advanced traders make the most of the exchange. Moreover, they also have cheaper transaction fees and more supported cryptocurrencies compared to Coinbase.

    Coinbase’s Milestone

    Moreover, Coinbase was the first crypto exchange to go public on the Nasdaq in 2021, establishing itself as one of the front-runners of the crypto industry. With its market value on the stock market worth $100 billion in 2021, this is an impressive achievement that would further advance the crypto industry as a whole.

    Coinbase Controversies

    However, Coinbase has also had its fair share of controversies, from experiencing outages in the 2020 bull run to insider trading and Securities and Exchange Commission (SEC) investigations this year.

    Nevertheless, Coinbase remains one of the top crypto exchanges in the world and will continue to be in the future. In fact, like Binance, Coinbase is also proactive, and has demonstrated time and time again the ability to turn unfavorable situations around.

    The exchange immediately discovered the root cause of the outage in 2020 and remediated traffic spikes through autoscaling procedures. Additionally, Coinbase has called on the SEC to develop a viable regulatory framework for digital asset securities following the insider-trading incident in July.

    Binance vs Coinbase Exchange Overview

    In this section, we will take a closer look at what Binance and Coinbase have to offer and compare them based on these features:

    Cryptocurrency and Products

    Binance is the winner in terms of the number of cryptocurrencies supported. It has more than 600 coins and tokens compared to Coinbase which has over 100. This is because Binance’s spot market includes many different crypto categories such as GameFi, DeFi protocols, and even meme coins. On the other hand, Coinbase largely focuses on low-risk cryptos with a high market cap such as Bitcoin and Ethereum.

    Both exchanges offer crypto earning products which allow investors to earn passive income on their investments. However, Binance offers more earning products such as liquidity farming, dual investment and DeFi staking, whereas Coinbase is only limited to savings and single token staking. Moreover, Binance also has the edge in maximizing return on investment (ROI). Though most of their products are estimated at APR, they outweigh Coinbase’s APY products.

    See also: APY vs APR in DeFi: What They Actually Mean for Your Rewards

    Moreover, Binance offers a wide array of trading tools such as leveraged trading, options trading and lending platform, whereas those features are only available on Coinbase Pro and Coinbase Prime.

    Fees

    The difference in fees between Binance and Coinbase is quite significant. Overall, Binance charges much less for trading crypto as well as funding your account. At the lowest-tiered account, Binance only charges 0.1% for their maker and taker fee. Its rate go as low as 0.02% at the highest-tiered account, which saves a lot of money for active traders.

    On the other hand, Coinbase charges users an average flat fee of 0.5% per transaction. Additionally, extra fees are also incurred based on the account used in the transaction, i.e. 1.49% for US Bank Account, 2.49% for Coinbase USD Wallet, and 2% for credit/debit card.

    Fortunately, we have a comprehensive guide that would allow you to avoid withdrawal fees. Click here to learn more.

    On another note, since Coinbase is subject to U.S. regulations, users in the U.S. have to pay capital gains tax on profits made and staking rewards. Users are responsible for reporting all profits made as income on tax forms, even if it is just $1. According to Coinbase, if users earn $600 or more through the exchange, Coinbase is required to report those payments to the Internal Revenue Service (IRS).

    Depending on the users’ location, Binance users do not have to pay taxes on their crypto gains. However, Binance.US also complies with U.S. tax laws, which means U.S. users also have to pay capital gains tax. Click here if you want to learn more about crypto tax-free countries.

    Security

    Both Binance and Coinbase have the highest cybersecurity score (AAA) audited by CER, the leading cybersecurity ranking and certification platform.

    Both exchanges require Know Your Customer checks (KYC) in order to open an account, and provide two-factor authentication via SMS or the Google Authenticator app. They also store account funds in cold storage and crypto vaults off the Internet so that they cannot be hacked.

    Though both have similar security protocols, Binance focuses more on access restriction, whereas Coinbase implements biometric access (i.e. fingerprints) for logins. Binance offers address whitelisting and device management to review and secure address books and devices, blocking other entries that users do not recognize. On the other hand, Coinbase has biometric fingerprint logins as well as AES-256 encryption and multi-signature security for digital wallets. This is because Coinbase has its own digital wallet, whereas Binance does not. But Binance partners with Trust Wallet, one of the most secure digital wallets with over 25 million users.

    The main difference between both exchanges is that Coinbase is one of the only exchanges that offers FDIC insurance on USD deposits, insuring up to $250,000 of deposited USD funds which is similar to traditional banks. This also applies to Binance.US but not Binance. User funds on Binance are protected by reserves they have in their treasuries.

    Conclusion

    Although Binance and Coinbase are two of the top crypto exchanges in the world, they offer very different user experiences. With new features being added on a regular basis, Binance offers more than almost any exchange on the market as well lower fees.

    On the other hand, Coinbase is a more reputable exchange on an institutional level. It was the first crypto exchange to be listed on the NASDAQ stock market with its market value reaching more than $100 million. This is an impressive milestone in propelling the crypto industry as whole as it signifies the recognition of cryptocurrency as tradeable securities in the global market.

    Although its fees are high and offer less products compared to Binance and other exchanges, Coinbase has a slight edge in security compared to other exchanges as it is subject to U.S. regulations. It is also one of the few crypto exchanges that has its own self-custody crypto wallet.

    But the bottom line is if you are looking for a wide variety of crypto products, Binance is the pick. Coinbase is better suited for beginners due to its spot market offering more secure long-term investments.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. (https://wbctx.com) As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Binance Steps Up Regulatory Efforts in the U.S.

    Binance Steps Up Regulatory Efforts in the U.S.

    Binance, the world’s largest cryptocurrency exchange by trading volume, has joined the Chamber of Digital Commerce, an American lobbying group, to help establish crypto regulation in the United States. The Chamber of Digital Commerce is a leading blockchain and crypto trade association with members such as Citi, Visa, MasterCard, Dapper Labs, Ripple, and Circle.

    This move comes as U.S. lawmakers are moving aggressively towards regulating the crypto space as result of FTX’s collapse in November as well as the Terra Luna collapse in May. Billions of dollars’ worth of crypto assets were stolen and lost, prompting politicians and regulators in the U.S. to take strict action.

    It is without a doubt that Binance also played a key part in the collapse of FTX. After Binance CEO Changpeng Zhao (CZ) learned of the unethical flywheel scheme that Alameda Research and FTX were taking part in, he announced on Twitter that he would liquidate all of Binance’s FTT holdings, FTX’s native token.

    Shortly afterwards, as investors got hold of the news, they quickly rushed to withdraw their assets, leading to a liquidity crunch in FTX. CZ then announced that Binance had signed a non-binding letter of intent to acquire FTX to help and protect customers, but pulled out the next day after realizing the massive hole in FTX’s balance sheets.

    Despite CZ’s efforts to protect the crypto industry, some believed that Binance is to blame. Former FTX spokesman Kevin O’Leary testified at the Senate Banking Committee hearing, saying that Binance “intentionally put FTX out of business”, even though FTX was already engaging in illegal activities. Regardless, lawmakers and regulators began diverting their attention to Binance.

    According to Reuters, U.S. authorities are currently considering filing criminal charges against top executives of Binance including CZ, relating to money laundering allegations in 2018. However, Binance defended against Reuters, saying that they are attacking Binance’s law enforcement team who have strictly complied with anti-money laundering policies.

    As of now, the U.S. Department of Justice is still divided over whether to prosecute Binance. It is unclear whether they will pursue this four-year long case. Given the circumstances, Binance’s decision to join the Chamber of Digital Commerce is an effort to help establish policies that benefit and protect users, and to provide education and advocacy on the use of digital assets and blockchain-based technologies.

    Binance’s Vice President of Public Affairs Joanne Kubba said that “working hand in glove with policymakers, regulatory bodies, and industry groups like the Chamber is imperative for Binance.”

  • Is Binance SAFE? Funds Fully Audited by Mazars

    Is Binance SAFE? Funds Fully Audited by Mazars

    Binance is tackling to issue of proving where user funds are by using the third-party auditor Mazars, a leading Hong Kong-based auditing firm, to prove independently that user funds held by the exchange are safe and “untouched”. This is particularly important as users are demanding to know that funds are safe (or “SAFU”) and that they can trust the exchange to keep holding their funds. Auditing centralized exchanges help to ensure that they are compliant with applicable laws and regulations, as well as industry best practices. This helps to protect users from fraud, manipulation, and other malicious activities.

    Binance BTC Reserves are Fully Backed

    Mazars, an international audit, tax, and advisory firm, has confirmed that Binance has more than enough Bitcoin (BTC) to cover all customer deposits. The report verified a 101% collateralization ratio on 575,742 BTC in net customer deposits as first published on their proof-of-reserves system on November 25. All assets included customers’ spot, options, margin, futures, funding, loan and earn accounts for BTC and wrapped BTC circulating on the Bitcoin, Ethereum, BNB Chain, and BSC blockchains.

    Learn more about Binance- Binance Exchange Review (2023) Best Crypto Exchange?

    To ensure customers’ assets are not being lent out or stolen without permission, Binance implemented a Merkle Tree proof-of-reserves system that allows customers to independently verify the safety of their assets.

    Binance Merkle Tree Proof-of-Reserves (Source: Binance)

    Binance Securely Controls Custodial Wallets

    Mazars has also asked Binance to perform transactions at specific times to prove that the wallets were actually under Binance’s control. This clarifies the situation in late November when Binance moved 127,351 BTC to an unknown wallet. According to the report, Mazars used Etherscan and BSCscan to check that the wallets indeed belong to Binance.

    Moreover, Mazars reviewed the scripts that Binance uses to extract the total net deposits, making sure there was no duplicated or rigged user IDs. This confirms that Binance’s Merkle tree is built with open source script developed by Silver Sixpence.

    What This Means for Investors

    Binance is the world’s largest crypto exchange by trading volume, and is arguably the most used platform for all crypto users. After the collapse of FTX, Binance CEO Changpeng Zhao (CZ) was jokingly hailed as the “savior” of crypto, doing everything he can to repair the industry. However, Binance itself is no exception to scrutiny as a result of FTX’s collapse. People need to know what centralized exchanges are doing with their money.

    Binance’s audit has cleared up a lot of doubt, restoring confidence in the exchange. However, there are still two issues raised by the crypto community:

    A Step in the right direction

    Overall, auditing centralized exchanges are essential for protecting users and ensuring that exchanges are operating in a safe and secure manner. By conducting regular audits, exchanges can help to ensure that their customers are protected and that they are getting the best possible service. Binance has also provided on-chain proof of funds using “Merkle” Proofs in November of 2022. This means that Binance has taken efforts to prove that both Fiat and Crypto deposits in their custody are safe.

    FAQ

    Is Mazars a reliable auditing firm?

    While most of the community praises Binance’s initiative, several Crypto Twitter users expressed concerns that Mazars is not one of the “Big Four” accounting firms: Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC), and KPMG. For the longest time, audits made by any one of the Big Four is the gold standard, and any other firms are deemed not “credible” enough.
    This is reasonable enough seeing as FTX was in fact audited by smaller accounting firms. But that might not be the case for Mazars. Founded in 1945, Mazars is one of Europe’s largest audit and accounting firms with global presence. In fact, Mazars was a longtime accountacy firm for former president Donald Trump. But after finding out Trump’s business filings were not adding up, Mazars cut ties with his business. Given their track record, it is safe to say that Mazars is reliable as they conduct due diligence on any business.

    Binance audit only accounts for BTC reserves

    The audit only focuses on BTC assets for now. As of now, Binance does not have a proof-of-reserves system for other cryptocurrencies. But at the end of the day, this is a big step towards a more transparent ecosystem. Let’s hope there will be more developments in the coming weeks.

    References

    Recently some users are reporting USD withdraw issues, CoinMagazine

  • Binance futures trading: How to guide

    Binance futures trading: How to guide

    Crypto futures trading allows traders to have exposure to cryptocurrencies without the need to own the underlying crypto asset. Binance exchange offers futures trading to users through Binance Futures, which has 279 trading pairs. This article provides a guide on how to trade on Binance Futures.

    Get 20% off fees when signing up for Binance with the following link!

    What is Binance?

    Binance was launched in 2017 and is arguably the world’s most popular centralized cryptocurrency exchange. It has over 2 billion average daily volume and 72 million site visits daily. The Binance ecosystem includes Binance exchange, BNB Chain, Trust Wallet, Binance card, and other services.

    What is crypto futures trading?

    Crypto futures contracts create an obligation for parties to exchange the asset at a predetermined price and date. On most cryptocurrency exchanges, however, the parties can settle for the cash equivalent. But, the trade must take place. 

    Traders use futures trading to profit from market movements by going either “long” or “short” on a futures contract. Going “long” means that a trader purchases a futures contract expecting it would increase in value in the future. And if the value of the cryptocurrency does increase, the long trader would profit. On the other hand, a trader going “short” means they are hoping prices will drop.

    Learn more about crypto futures trading with our guide- Crypto Futures Trading: What is it?

    What is Binance Futures?

    Binance Futures allows users to trade crypto futures contracts on Binance. It has 279 trading pairs and has the second-highest 24-hour trading volume amongst all crypto derivative exchanges. Binance Futures offers USDⓈ-M Futures and COIN-M Futures. These are perpetual or quarterly contracts settled in USDT/BUSD, or cryptocurrency respectively.

    Binance Futures also has interesting features such as a leaderboard, showing traders with the highest ROI or PNL. Other traders can follow these top traders and see what positions they are holding, as well as copy their trades.

    For traders who are more competitive, Binance Futures has a battle mode where you can guess whether prices will rise or fall within the next 1 or 5 minutes. Then, you will be matched with another player who predicted in the opposite direction. Players will still gain points regardless of whether they win or lose. Points can then be used to earn further rewards.

    Binance Futures trading fees

    Binance uses a maker-taker fee structure. Maker trades are orders that go on the order book partially or fully e.g. limit orders. Taker trades are executed immediately before entering the order book. Market orders are a type of taker trade. The fee charged depends on which type of trade. As maker trades add volume to the order books and thus “make” the market, it is in an exchange’s interest to have more of these orders. Therefore, maker fees are usually lower than taker fees.

    Binance also has a 9-tier VIP structure which offers progressively lower fees for users with high trade volume and substantial BNB holdings. Users who use BUSD, Binance’s USD stablecoin, or BNB for settling fees are also rewarded with lower trading fees.

    The lowest tier, i.e. “Regular users” are traders with a past 30-day trading volume of less than 15 million BUSD or hold 0 BNB. For regular users, the maker/taker fee for USDⓈ-M futures trading is 0.02%/0.04%, and for COIN-M futures, the maker/taker fee is 0.01%/0.05%.

    Highest tier users i.e. VIP 9, users must have a past 30-day trading volume of over 25 billion BUSD and hold over 5,500 BNB. VIP 9 users enjoy a maker/taker fee of 0.00%/0.017% for USDⓈ-M futures trading, and for COIN-M futures, the maker/taker fee is -0.009%/0.024%.

    Binance futures trading fees
    Binance futures trading fees (Source: Binance)

    Extra discount! Enjoy 20% off fees when signing up for Binance with the following link!

    Pros and advantages of trading on Binance Futures

    Binance is one of the leading cryptocurrency exchanges. According to CoinGecko, Binance has the second-highest trading volume with over US$35 million being traded in 24 hours. Here are some of the pros and advantages of crypto trading on Binance Futures:

    • Many trading pairs. Binance Futures have 279 trading pairs, giving traders a wide range of options from popular cryptocurrencies such as Bitcoin ($BTC), to meme coins such as Shiba Inu ($SHIB).
    • Low trading fees and generous fee structure. Maker/taker fees start at 0.02%/0.04%. However, Binance Coin ($BNB) and BUSD holders, and high-volume traders are entitled to discounts, bringing trading fees to as low as 0.0100%/0.0207%.
    • Low minimum trade amount. Traders can start with a minimum trade amount of 0.001 BTC on the BTCUSDT Perpetual market.
    • Binance offers up to 100x leverage. This allows more experienced traders to potentially maximise their gains.
    • Binance has trading tools such as Grid Trading, TWAP, Advanced TP/SL, and Multi-Symbols Trading Page for maximum trading efficiency.

    Cons and disadvantages of trading on Binance Futures

    • Futures trading is not available in the US. So US traders will need to use other exchanges for futures trading.
    • Users must pass the verification process in order to begin using Binance Futures.

    Is Binance Futures trading safe?

    Binance has a US$300 million Insurance Fund to protect traders. The Fund acts as a safety net to protect bankrupt traders from adverse losses whilst ensuring that winning traders are paid in full. The purpose of Binance’s insurance fund is to limit counterparty liquidations. Counterparty liquidations are where the positions of opposing traders are automatically liquidated in order to cover a bankrupt trader’s position. The insurance fund takes the remaining positions when a trader in liquidation has less than 0 USDT after all their positions are liquidated. These remaining positions would be offloaded onto the market gradually and liquidation fees will be collected from users that do not result in bankruptcy.

    Binance also has a Cooling-Off Period function to help traders prevent compulsive trading behaviours. It works by preventing traders from trading futures-related products on the exchange for a predetermined period.

    How to start trading on Binance Futures

    Trading on Binance Futures only requires 5 simple steps.

    1. Sign up for a Binance Account

    To sign up AND get an additional 20% off trading fees click here.

    Alternatively, on the Binance main page, click register and enter your details. Don’t forget to fill in GQWT3T1T for the Referral ID in order to be eligible for 20% off trading fees.

    You can sign up with your phone, email, Google, or Apple accounts.

    2. Open a Binance Futures account

    Go to Binance Futures and click Open Now, if prompted, you can enter GQWT3T1T as the Futures referral code in order to enjoy 20% off trades. Then, complete and get all the answers correct on the 14-question quiz on how to use Binance Futures.

    3. Complete the verification process

    Click Profile and then Verification. Follow the steps and fill in your personal information. A government-issued ID (e.g. a passport) and address proof must be provided, and you must also pass the facial recognition test.

    4. Make a deposit into your Binance account

    Binance allows you to deposit fiat or cryptocurrencies into your account. To deposit, click on your profile and go to Dashboard. Under Fund your Account, you can choose to Buy crypto using Mastercard, Visa, Google, or Apple Pay. Users can also choose to Deposit crypto from other exchanges or their hardware wallet.

    5. Start trading

    On Binance Futures, choose between USDⓈ-M and COIN-M Futures Contracts. On the top left-hand corner (marked in yellow), you can choose which futures contract to trade.

    Choose which futures contract to trade
    Choose which futures contract to trade (Source: Binance)

    On the left-hand side, there are various tools to help you identify patterns or trades such as trend lines, arrows, or Fibonacci retracement. You can use these tools to annotate your charts.

    Binance Futures chart tools
    Binance Futures chart tools (Source: Binance)

    On the top right-hand side of the page, you can select the Margin Mode. Users can choose between Cross or Isolated margin modes. Cross-margin mode means that the entire margin balance will be shared across open positions. However, if there is a liquidation event, the risk is that their entire margin balance and any open positions may be lost. Isolated margin mode, on the other hand, allows traders to manage their risk on individual positions by restricting the amount of margin allocation. The benefit of isolated margin mode is that if a position is close to being liquidated, users can allocate additional margin to that position.

    Set your Leverage (if any) by clicking on the top right-hand corner. Traders can set the leverage from 1x to 125x. However, traders should be careful that setting high leverage could result in significant losses in the event of a liquidation.

    On the right-hand side of the page, you can also select the type of order (e.g. Limit, Market, Stop Limit, etc), the order price, and size. For a more automated yet managed trading experience, traders can also select TP/SL i.e. when to take profits, or stop loss. Finally, traders need to select between a Buy/Long, or Sell/Short order.

    Is Binance Futures safe?

    Binance Futures comes with security features expected from every reputable cryptocurrency exchange. Binance Futures requires users to have passed the KYC verification before they can start trading. Before trades are executed, users must also have enabled 2FA authentication and will be sent an Anti-Phishing Code for verification.

    Binance Futures also has a nearly US$300 million insurance fund to protect bankrupt traders from adverse losses. It also ensures that profits of winning traders are fully paid out.

    Finally, if users really need help, Binance offers customer support in 17 different languages via Live Chat or email.

    Conclusion

    Trading futures contracts are a great way for cryptocurrency traders to profit from fluctuations in cryptocurrency prices. Furthermore, Binance Futures is a popular exchange for traders of any level to trade futures since they have a large number of trading pairs. Binance Futures also has the benefit of a huge insurance fund, helpful tutorials, and customer support to ensure that customers have a straightforward and secure trading experience.

    Enjoy 20% off fees when signing up for Binance with the following link!

  • Proof-of-Reserves Explained: Essential for Crypto Exchanges

    Proof-of-Reserves Explained: Essential for Crypto Exchanges

    In light of the FTX collapse, cryptocurrency exchanges are implementing proof-of-reserves (PoR) as a form of on-chain accounting that shows their entire holdings and customers’ assets. As centralized entities, this is a big step towards a more transparent crypto ecosystem, but some argue it might not be enough to regain investor trust. In this article, we will explain how PoR works and why it matters.

    What is Proof-of-Reserves (PoR)?

    Proof-of-reserves (PoR) is a cryptographic method to verify that an exchange has enough assets to cover all customers’ deposits. In doing so, the exchange ensures customers they have sufficient liquidity on hand to process all withdrawals, should a bank run occur.

    This came to light after FTX secretly used $10 billion of customer funds to prop up its sister company Alameda Research, which ultimately led to a liquidity crunch amidst mass withdrawals.

    This has left the crypto community wondering what other crypto exchanges might be doing with customer assets. As a result, Binance CEO Chengpeng Zhao (CZ) urged all crypto exchanges to do PoR, albeit Kraken was one of the first exchanges to prove their reserves in February 2022.

    How Does Proof-of-Reserves Work?

    Proof-of-reserves essentially involves taking a snapshot of all balances held on the exchange which are aggregated into a Merkle tree — a data structure designed to encapsulate and encrypt data. These Merkle trees, also known as hash trees, function as a map of the exchanges’ assets and liabilities (customers’ tokens).

    From there, a Merkle root is obtained, which is a cryptographic fingerprint that uniquely identifies the combination of these balances at the time when the snapshot was taken. Afterwards, digital signatures produced by the exchange are collected, which prove ownership over the on-chain addresses with publicly verifiable balances. To put it simply, the exchange discloses these addresses and provides proof that they have access to the associated private key.

    Because Merkle trees are part of blockchain technology, anyone can compare and verify if these balances exceed or match the customers’ balances represented in the Merkle tree. In the case of crypto exchanges, this process is either self-attested by the exchange or carried out by an independent third-party audit. As of now, most crypto exchanges have been working with Nansen, a blockchain analytics platform, for their PoR audit.

    Downsides of Proof-of-Reserves

    Although proof-of-reserves is certainly a step in the right direction, there are still several improvements that could be made to enhance transparency and trust.

    Proof-of-Reserves are Pointless without Proof of Liabilities

    A proof-of-reserve audit without disclosure of total liabilities, not just customers’ tokens, does not paint a full picture of an exchange’s solvency. This would include anything the exchange owes such as debts and taxes. Kraken CEO Jesse Powell expressed that Binance’s PoR is pointless without liabilities. This is also in reference to other platforms publishing their PoR without mentioning any liabilities. He also added that accounts with negative balances must also be included in the sum of total liabilities.

    However, the problem is that these liabilities are NOT on-chain, which means an independent auditor has to step in. At that point, crypto exchanges will have to provide the same proof as all public and regulated companies provide — audited financial statements. (Clonazepam) Coinbase is one of the few exchanges to do this. Since they are a public company subject to U.S. regulations, they have already been proving their reserves using balance sheets audited by the SEC.

    Therefore, the most reliable way to prove an exchange’s assets are more than its liabilities is via third-party auditors. In fact, CZ responded to Powell’s comments that Binance would involve third-party auditors to audit their PoR results.

    Proof-of-Reserves Audits Can be Falsified

    Although the cryptographic proof do not lie, it can be manipulated and framed to look healthy. There is the issue of crypto exchanges moving their funds right after the snapshot for the audit was taken. Recently, Crypto.com mistakenly transferred 280,000 ETH to a Gate.io address after it released its proof-of-reserves audit. Many speculated that exchanges were borrowing assets to show a healthy balance sheet, only to return them after the snapshot.

    Moreover, a PoR audit is only as good as its verifier. There is also the issue of exchanges colluding with third-party audits to produce false results. Unless the exchange is audited by a reputable source such as the Big Four accounting firms, we will just have to take their word for it.

    Proof-of-Reserves Do Not Prevent Customer Fund Misappropriation

    Even then, audits and attestations may not suffice. At its core, crypto exchanges are not the same as banks — crypto is not insured by government depositary schemes. Even if all the steps are done correctly, customers can still lose their crypto if mishandled.

    Merkle tree-based PoR would not prevent the misappropriation of customer funds completely. It only tracks the money, providing information. It does not provide customers with greater control over their funds. If the exchange is caught in the act, you would not be able to get your crypto back as it is likely to be tied up in litigation.

    Not your keys, not your crypto. We strongly suggest keeping your crypto on hardware wallets such as Ledger Nano X, Ledger Nano S Plus, Ledger Nano S, Trezor One or Trezor Model T.

    Why Proof-of-Reserves is Crucial

    At the end of the day, proof-of-reserves is the first step towards a more transparent crypto ecosystem. In effect, it functions as a verification tool to filter out fraudulent crypto exchanges, albeit not completely.

    By leveraging blockchain technology, PoR brings crypto exchanges closer to the treasuries of DeFi protocols, allowing anyone to trace funds on-chain at any time. However, there is much to improve in this aspect. But with on-demand, real-time tracking of exchange reserves, the industry is working towards a decentralized and trustless system, where customers do not need to trust the institution, only the math.

  • Binance Funding Rates: What is it and how to profit from it?

    Binance Funding Rates: What is it and how to profit from it?

    Binance is the world’s most visited and used centralized cryptocurrency exchange in the world. The exchange has over 2 billion average daily volume and over 1.4 million transactions per second. The Binance ecosystem includes not only Binance exchange, but also BNB Chain, Trust Wallet, Binance card, and more. Many crypto traders like to take advantage of an exchange’s funding rates and fees to earn some profit and passive income. In this article, we look at how Binance funding rates and fees work, and how to profit from it.

    Sign up for Binance and enjoy 20% off fees!

    What is Binance?

    Changpeng Zhao (CZ) and Ye He founded Binance in 2017. Since then, Binance has become the world’s most popular cryptocurrency exchange with the largest organic trading volume. Binance is available in most countries, including the United States under Binance.us (with the exception of a few states). The exchange also supports 600 cryptocurrencies on its international site and over 130 cryptocurrencies on Binance.us.

    What are crypto funding rates?

    Crypto funding rates are periodic payments of the price difference between perpetual contract markets and spot prices. Funding payments are made either to/by long or short traders depending on the funding rate.

    Funding rates exist to align the perpetual contract price to the spot price. If the perpetual contract trading price is higher than the spot price, long position holders would pay short position holders. Conversely, if the perpetual contract trading price is lower than the spot price, short position holders pay long position holders.

    Learn more about crypto funding rates with our article: Crypto funding rates: How it works and how to earn passive income

    What are Binance funding rates?

    As mentioned above, the purpose of funding rates is to prevent continued differences between the price s fo the perpetual contract markets and spot prices. Therefore, crypto funding rates are periodically recalculated. Binance recalculates its funding rates every 8 hours.

    Users can locate the funding rate, and when the funding interval expires at the top of the Binance Futures page. So as seen in the below screenshot, the funding rate is -0.0014% and the funding period will expire in 3 hours 26 minutes.

    Binance funding rate and expiry
    Binance funding rate and expiry (Source: Binance)

    How does Binance calculate the funding rate?

    Binance calculates the funding rate based on two factors: The interest rate, and the premium.

    Binance Futures generally fixes the interest rate at 0.03% per day (i.e. 0.01 per funding interval). However, for BNBUSDT and BNBUSD, the interest rate is 0%. Meanwhile, the premium fluctuates depending on the price difference between the perpetual contract and the mark price. A large difference, or spread, equates to a high premium. On the other hand, a low premium means there is only a narrow difference between the two prices.

    When the funding rate is positive, it means that the price of the perpetual contract is higher than the mark price. Whereas if the funding rate is negative, the perpetual prices are below the mark price.

    Binance uses the following formula to calculate funding rates:

    Funding Amount= Nominal Value of Positions x Funding Rate

    Where Nominal Value of Positions= Mark Price x Contract Size

    How are Binance funding rates paid?

    When the funding rate is positive, long traders pay short traders. On the other hand, when the funding rate is negative, the short traders pay the longs. On Binance, funding rates are paid between users i.e. peer-to-peer. This means Binance does not take any fees from users paying or receiving the funding rates.

    Funding payments are made every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC. However, this can be subject to change in cases of extreme market volatility. Traders must have open positions 15 seconds before or after the specified funding times in order to be liable to pay or receive any funding fees.  

    How to profit from Binance funding rates?

    The purpose of funding rates is to encourage traders to take positions that allow the perpetual contract prices to be in line with the spot market. So, traders can develop strategies that allow them to take advantage of funding rates and profit from it.

    How to be notified of Binance funding rates

    Binance offers a notification feature where they will send you an email/SMS/in-app notification when the funding rate reaches a certain percentage. To activate this feature, log in to your account and go to “Derivatives” and then “USDⓈ-M Futures”. Then, click on the “notification” button, “preference” and then “notification”. Here, you can set the funding fee trigger. The default trigger is 0.25%, meaning that Binance will send you a notification when the funding rate reaches 0.25%.

    Crypto funding rate trends

    Crypto funding rates are correlated with the price trend of the underlying asset, as seen from historical data. So the spot market generally dictates the funding rate.

    The above diagram shows the correlation between Binance’s funding rates and Bitcoin prices for the period from 20 December 2019 to 20 January 2020. As can be seen, the rise in funding rates corresponds to a Bitcoin price pump.

    Traders can see Binance’s historical funding rates here.

    Sign up for Binance and get 20% off fees!

  • SBF vs CZ War: What’s Happening with FTX and Binance?

    SBF vs CZ War: What’s Happening with FTX and Binance?

    Binance CEO Changpeng Zhao (CZ) and FTX CEO Sam Bankman-Fried (SBF), two of the most powerful men in the crypto industry, have been going toe to toe with each other on Twitter. But this fight is much bigger than both of them, as FUDs and controversies surrounding SBF and FTX could potentially impact the crypto industry. In this article, we will break down the core timeline of the feud and explain how its outcome could affect every investor in the crypto space.

    For the latest update. Check out our latest video- IT’S OVER: Binance to Acquire FTX

    IT’S OVER: Binance to Acquire FTX

    Alameda Research Reportedly Insolvent

    The current drama surrounding CZ and SBF began when the balance sheet of Alameda Research, the sister quantitative trading firm of FTX, was leaked. According to a private document CoinDesk reviewed, out of $14.6 billion in total assets of Alameda, $3.66 billion is in FTT, FTX’s native token, and $2.16 billion in FTT collateral. Other significant assets also include $3.37 billion of crypto tokens connected to SBF in one form or another including Solana (SOL), Serum (SRM), and more.

    This is a big red flag as it indicates that the majority of Alameda’s net equity is FTX’s own centrally controlled token printed out of thin air, making it completely illiquid. Let’s look at it this way: the current market cap of FTT is $2.3 billion and Alameda’s numbers show an excess of nearly 200% of the total circulating supply of FTT. This means that Alameda’s assets cannot be sold without severely impacting the market.

    Many crypto experts drew parallels from Celsius Network’s collapse as Alameda is following the same model, leading to widespread rumors of Alameda going insolvent.

    CEO of Alameda Research Caroline Ellison asserted on Twitter that the balance sheet only reflects a few of their biggest long positions, and the company actually has over $10 billion in assets that are not included in the balance sheet. However, this does not address the issue that Alameda is holding $5 billion worth of “magic money” reported on their balance sheet.

    Binance Liquidates Its Entire FTT Holdings

    Shortly after the leak, CZ posted a Twitter thread announcing Binance’s full exit from its FTT holdings. But they will do so in a way that minimizes market impact, selling it on the open market at monthly intervals. CZ fired shots at SBF stating that liquidating their FTT is a post-exit risk management, learning from the Terra Luna collapse. This implicated that FTX could potentially repeat history, heading into a death spiral if a bank run were to happen.

    Shortly after, Ellison responded to CZ that Alameda was willing to buy all of Binance’s FTT holdings at $22. Several members of the crypto community believed that the response seemed desperate and was a buyback red flag. CZ eventually declined the bid, and further added that he will not support “people who lobby against other industry players behind their backs.” This is in reference to SBF allegedly supporting the DCCPA draft bill last month that could pose significant threats to DeFi.

    If SBF’s alleged political stance is the match and Alameda’s balance sheet is gasoline, then CZ liquidating its entire FTT holdings is striking the match.

    This series of events sparked a lot of FUD in the crypto community, resulting in staggering outflows as people were rushing to withdraw funds from FTX, with stablecoin outflows from FTX reaching $451 million according to Nansen data. Reports also show a 4-8 hour delay and increased fees in FTX withdrawals, upsetting many FTX users. At the time of writing, FTT token has dropped 39% from its weekly high.

    Sam Bankman-Fried’s Response to Insolvency Rumors

    SBF recently issued a response (update: Tweet deleted) assuring people that FTX and its assets are fine. He explains that FTX has enough capital to cover all client holdings and is processing all withdrawals. In response to the cause of the overall situation, SBF stated that a competitor is targeting them with false rumors, throwing shade at CZ. Ironically, at the end of SBF’s Twitter thread, he calls for collaboration with CZ for the ecosystem.

    Though as calm as SBF is handling the situation, it does not address the issue that Alameda is holding $5 billion worth of FTT tokens printed out of thin air, the very same model that led to the collapse of Celsius. It is impossible to sell an illiquid asset without severely impacting the market. But at the end of the day, FTX is a highly reputable organization with a lot of resources and manpower.

    Larry Cermak, Vice President of Research at The Block, believes that FTX and Alameda has the size to weather through the storm, and that FTX going insolvent is near 0%. He also mentioned however that it is clear there are liquidity issues with FTX currently. Other crypto experts also agreed but also advised investors to treat the situation with caution.

    SBF vs CZ: Who won the war?

    CZ emerges as the clear winner in the war between SBF vs CZ. SBF indirectly admitted defeat on 9th November 2022 when he announced that he agreed to a “strategic transaction with Binance for FTX.com”. This, agreement, however, fell through as detailed in our article- Binance will NOT acquire FTX: What is next?

    The SBF vs CZ war finally ended with CZ coming out victorious on 11th November 2022, when SBF announced he had filed FTX, FTX US, and Alameda for voluntary Chapter 11 bankruptcy in the US.

    Now with FTX exchange out of the picture, CZ’s Binance exchange comes out top. Binance now has the highest 24-hour trading volume and page visits out of all the centralized cryptocurrency exchanges according to CoinGecko.

    Top cryptocurrency exchanges ranking (Source: CoinGecko)
  • Binance Will NOT Acquire FTX: What is Next?

    Binance Will NOT Acquire FTX: What is Next?

    Binance CEO Changpeng Zhao (CZ) decided that Binance will not go through with the deal to acquire FTX, one day after he announced that he intended to acquire FTX. This shocking turn of events could create a ripple effect throughout the crypto market, affecting all investors and businesses. In case you are out of the loop, our previous article “SBF vs CZ War” covers the core timeline of what has been happening that led to this event. You can also check out our latest video — FTX Collapsing: Biggest Disaster in Crypto? for more insight.

    Why Did Binance Back Out of the Acquisition Deal?

    Binance announced on Twitter that they will not go through with the deal to acquire FTX as a result of “corporate due diligence” and “mishandled customer funds” in FTX’s books pending investigations by U.S. regulatory agencies.

    This is in reference to speculations of FTX violating its own terms of service by using customer funds for trading and loaning it out to Alameda Research for a bailout in Q2 2022 following the Terra Luna collapse. To simply put, instead of keeping customer funds on FTX as liquid cash, FTX used customer funds to buy FTT tokens to bail out Alameda. (https://www.algerie360.com/)

    After this revelation, FTX users were rushing to cash out fearing the exchange might be going insolvent. This led to a liquidity crunch, forcing FTX to halt all crypto withdrawals. We are talking about at least $8 billion of user funds stuck on the exchange which possibly cannot be saved, according to Wall Street Journal.

    This is the most likely scenario, ascertained and corroborated by many crypto experts. jonwu.eth on Twitter gives a perfect summary of how everything went down. Funnily enough, FTX CEO Sam Bankman-Fried (SBF) deleted his Tweet which he assured clients that their assets are fully protected. But as of now, these speculations are not officially confirmed. This is where U.S. regulators (SEC, DOJ) are stepping in to investigate FTX for potential securities-law violations, according to Wall Street Journal.

    How This Will Affect All Investors

    Binance acknowledged that the collapse of FTX will severely impact all retail investors, but will continue to build towards a stronger decentralized ecosystem. This is reiterated by CZ in his internal message sent to all Binance teams globally.

    source: @cz_binance (Twitter)

    It is not just user funds that are stuck on FTX, but other crypto projects’ as well. According to CoinDesk, many crypto businesses and ventures have exposure to FTX in one way or another, whether via storing funds, providing liquidity or borrowing and lending. This affects all ecosystems throughout the crypto industry as wild price swings trigger a domino effect of forced liquidations across the market, similar to Three Arrows Capital or Voyager Digital after the Terra Luna collapse.

    It is the first time Bitcoin (BTC) has fallen below $16,000 since November 2020, a 77% decrease from its all-time high last year. Since BTC has broken past its first support level of $19,000, it would take time for its range to be established after capitulation event. As BTC is the first and largest cryptocurrency by market cap, it practically dictates the price actions of all altcoins including Ethereum (ETH). We can expect the market to be highly volatile in the coming weeks.

    source: @CryptoCapo_ (Twitter)