Did you know that Binance is ranked in the top five most popular cryptocurrency exchanges in the world, based on trading volume?
Binance was launched in 2017 and the US counterpart, Binance.US came later in 2019 after US users were forced to leave the original crypto exchange.
With all of the cryptocurrency options available on the market, it can be difficult choosing the right type of exchange for your cryptocurrency needs. With Binance exploding in popularity over the last couple of months, we’re looking to teach you how this cryptocurrency can benefit you!
In this guide, we’re going to talk about how Binance works and Binance fees. Let’s get started!
What Is Binance?
Binance is one of the world’s largest cryptocurrency exchanges and has an average of $6 billion of assets traded every seven days! Launched in July 2017, the climb to the top of the cryptocurrency exchange world has been swift for Binance and their mobile app.
They have a competitive trading fee structure, a mobile app and even more advanced features like futures trading. Mainly, trades on Binance take place via peer trading or P2P exchange. It's a pretty solid exchange to buy/sell on.
Binance is also the name of BNB, which is a type of crypto coin that’s used for Binance exchange.
But, how did this cryptocurrency exchange take over the crypto market so quickly?
One of the most talked-about features of Binance is their fees. The fees that Binance offers are low and are very easy to understand, especially if you’re new to the world of cryptocurrency. Keep reading to find out about these fees (and how to avoid them!)
Binance.com Vs. Binance.US
Last year, Binance notified their users in the US that they can no longer use the exchange to buy and sell crypto.
Traders in the U.S. were forced to move over the their sister exchange, Binance.US.
Technically Binance.US is a different company and it's only available in 41 states, not all of America.
This happened due to growing fears from Binance.com of stricter regulations from the US government, so they decided to move users over to the alternative platform to keep things seperated in case of legal action.
Luckily when it comes to things like trading fees, there isn't too much of a difference between Binance and Binance.US. Binance offers a pretty straightforward fee schedule compared to many of the other platforms that I've reviewed.
Even on Binance.US they can offer fees as low as .1 to .0% depending on how much to trade.
We will get more into that later...
Can I use Binance.com in the US?
Technically, no. US residents need to use the Binance.US
However, there is nothing that a good VPN and private browser can't do.
In other words, some traders spoof an IP address from out of country in order to still trade on the Binance.com exchange. Mainly, this is because they want access to better high volume trading fees or because they want access to different crypto.
Many users were frustrated about the switch but Binance.US is still just as functional for trading cryptocurrencies.
Is Binance Safe to Use?
If you’re new to the world of cryptocurrency, you’re probably concerned about the security of this new type of currency.
Take a quick look around the Binance website and you’ll notice that Binance doesn’t discuss any security information on their website. Rest assured, Binance uses two-factor authentication to keep a user’s information safe. This means that once you log into your account, there’s a second layer of security added to confirm your authorization to the account. If you want to know more, check out our article about the history of Binance.
Besides the desktop platform, the mobile app is completely free and also offers 2FA so you can stay safe on the go as well. Mobile traders tend to like Binance because of how developed and widely used their app is. The app is available both on iOS and Android.
Like with most of these exchanges, currencies and assets held by the platform are mostly stored in "cold storage" meaning the digital currency is kept in an offline secure location, protecting it from hackers and unauthorized uses.
This is an industry standard in the Cryptocurrency market, as it should be. Binance wants users to be buying and trading crypto, and in turn, users should feel secure that their cryptocurrencies are going to stay safe.
They also have a pretty above average customer support team because of the amount of volume that the exchange handles. Unfortunately, they do not offer a phone support but they do offer an online request form and an extensive knowledge base section on their website.
What Are the Supported Cryptocurrencies?
Another reason why Binance is extremely popular is because of the large variety of coins they support! You can use the Binance platform for several digital currencies, such as:
- Bitcoin Gold
- Bitcoin Cash
- Ethereum (ETH)
- Ethereum Classic
In addition, Binance also supports a variety of different tokens under ICO listings.
Plus, Binance is great about adding new tokens and coins after they are an ICO, which means that you can purchase these coins and tokens at a steep discount (meaning that you have chances at a greater profit later on).
At the time of this writing, Binance is offering trading pairs in USDT, BNB, BUSD, ETH, and BTC!
Binance.US offers much fewer cryptocurrencies to trade, only 52 compared to Binance's 259. That being said, Binance.US offers more than other US exchanges like Coinbase, Gemini and Kraken.
All of the main currencies listed above are available on the US version of the Binance platform.
Payment Methods and Fees
Yes, you can pay with debit and credit! Binance allows users to make credit card payments and debit card payments for the cryptocurrency they're looking to purchase with Simplex. With a Visa or MasterCard, users can purchase Ethereum, Bitcoin, LiteCoin, and XRP tokens.
It is necessary for users to buy fiat currency like USD on the exchange to purchase and deposit cryptocurrencies into your wallet.
Some of the details that come with using credit cards or debit cards on Binance to purchase are
- 3.5% of transaction price or $10 fee, whichever number is higher
- Both Mastercard and Visas are accepted
- On average, you'll only have to wait between 10 and 30 minutes for the cryptocurrency to get to your wallet!
In order to go about purchasing cryptocurrency with a credit or debit card, make sure you take time to check out Binance's official instructions.
Credit cards are not the best way to avoid fees based on the information above. So if you need to buy fiat money, on Binance, I don't recommend a credit card.
You can also pay with your bank account or wire transfer without encountering those fees for credit services. Most traders use their bank to obtain fiat currency in order to buy crypto on Binance. This is pretty standard security measure for most crypto platforms.
What Are the Binance Fees?
Fees tend to vary depending on what you are doing with the digital currency, which is why we've broken down the fees that you should expect from trading with Binance.
Here are the fees you should expect:
Standard trading fee
Credit card purchase
The higher of either 3.5% or US$10
Binance doesn't charge any deposit fee for any crypto asset. Thankfully, Binance has trading pairs with USDT, ETH, and BTC. However, Binance doesn't have a trading pair with fiat.
This means that if you're going to exchange your fiat for crypto, you're going to need to use an exchange. After you use the exchange, you can deposit your cryptocurrency on Binance with no fees! When discussing transfer limits, there isn't a limit on the number of crypto coins you can deposit!
After you've deposited your cryptocurrency into Binance, you can start trading. However, make sure that you keep an eye on the trading fees! It's a peer trading exchange, which means that Binance is going to take a percentage of the trades you make for being the middle man.
The number of that percentage that Binance takes varies by two things:
- If you hold a BNB token and how much you hold
- The amount of your 30-day crypto trading volume
30d Trade Volume (BTC)
Maker / Taker
< 50 BTC
≥ 0 BNB
0.1000% / 0.1000%
0.0750% / 0.0750%
≥ 50 BTC
≥ 50 BNB
0.0900% / 0.1000%
0.0675% / 0.0750%
≥ 500 BTC
≥ 200 BNB
0.0800% / 0.1000%
0.0600% / 0.0750%
≥ 1500 BTC
≥ 500 BNB
0.0700% / 0.1000%
0.0525% / 0.0750%
≥ 4500 BTC
≥ 1000 BNB
0.0700% / 0.0900%
0.0525% / 0.0675%
≥ 10000 BTC
≥ 2000 BNB
0.0600% / 0.0800%
0.0450% / 0.0600%
≥ 20000 BTC
≥ 3500 BNB
0.0500% / 0.0700%
0.0375% / 0.0525%
≥ 40000 BTC
≥ 6000 BNB
0.0400% / 0.0600%
0.0300% / 0.0450%
≥ 80000 BTC
≥ 9000 BNB
0.0300% / 0.0500%
0.0225% / 0.0375%
≥ 150000 BTC
≥ 11000 BNB
0.0200% / 0.0400%
0.0150% / 0.0300%
The base fee that Binance.com and Binance.US puts on trades is 0.1%, which is both for takers and makers! However, you can reduce this if you choose to hold BNB on Binance; this will reduce your fee by 25%, which will leave you with a 0.075% fee.
If you already are holding a BNB, Binance automatically uses the 0.075% as your default fee. Later on down the road, you can decide if you'd like to turn the BNB crypto setting off. However, it's a great idea to make sure that you check the setting every once in a while to make sure it's still on.
Within the next couple of years, Binance is going to be phasing this discount out. At first, the discount will drop to 12.5%, followed by 6.75%, all the way down to zero percent.
Binance.US also has a .5% Instant Buy/Sell fee.
On Binance, your daily limit for purchasing is $20,000 per user in USD. This can change if your account has been verified on the platform.
The limits for Binance.US are much higher than most users even need. For example, the BTC/USD pair is limited to 3200 Bitcoin.
These vary with different currency pairs. Some cryptocurrencies that are available to trade like Ethereum (ETH) have a 63100 Maximum Market Order amount on the BTC markets. It all just depends on the different cryptocurrencies and price value.
Withdrawal limits are removed once your account has gone through the verification process on the Binance.US platform. All users must submit verification to get access to the more advanced features on most exchanges.
More Trades, Bigger Discount
Another way that you can cut back on your crypto fees is to increase how much you're trading.
For .com users, there are eight different levels of fee discounts that Binance offers. These levels vary depending upon your trading volume for a 30-day period, but these levels are marked as VIP 1 to VIP 8.
Each level of discounts requires that you hold a specific amount of BNB. In order for you to qualify for VIP 1 (the first level of discounts), you're required to hold at least 50 BNB and to have traded at least 100 BTC (over a 30-day period). The VIP 1 discount will lower your taker fee to 0.01% and your marker fee to 0.09%.
Your taker fees aren't lowered until you reach level 3, which requires that your account holds at least 1,000 BNB and has traded at least 4,500 Bitcoin.
Taking a look at the largest discount level that Binance and Binance.US offers, VIP 8 requires that your account holds 11,000 BNB and has traded 150,000 Bitcoin in volume over a 30-day period.
If you do go ahead and choose to pay your account's crypto trading fees with BNB, the VIP 8 level has a taker fee of 0.03% and a maker fee of 0.015%.
As a general rule of thumb, you should take your cryptocurrency off of an exchange as soon as you possibly can. When you go to withdraw from Binance, you're going to have to pay a flat fee in the asset that you're withdrawing.
Different assets have different fees, but most asset withdrawal fees require half of the minimum you're allowed to withdraw. In the long run, you'll end up paying a small amount in fees if you decide to decrease the number of withdrawals you make.
If you're interested in being able to withdraw without limitation, you'll need to get your account verified. Having a verified account will allow you to be established as a level two user, which will increase your withdrawal limits!
The process that goes into getting your account verified will require you to share your full name, gender, a photo of your passport (or ID issued by the government), and country of residence!
After your account is verified, your withdrawal limits will be adjusted accordingly.
Binance Coin is referred to as BNB, which is Binance's representative of cryptocurrency. Binance coin is an ERC20 token, which basically means that it's based on the Ethereum blockchain and that it follows the technical guidelines of that platform.
BNB has a trading supply of over 200 million tokens, and once that many tokens are released, no more will be produced. The purpose of a Binance coin is to cover transaction fees. If you have it in your wallet, the platform will use it to pay your crypto trading fee for that transaction at the earlier mentioned discounted rate. This is a great way to save in fees compared to paying in USD.
Binance Coin wants you to pay your transaction fees with their crypto coin, which is why they created the discount programs to use their BNB. However, it's still possible for you to pay your transaction fees with whatever cryptocurrency you're trading with!
Not only does BNB help a utility token, but it's a great asset to have that's set to become valuable within the next few years!
It can definitely be a little bit confusing for new traders when it comes to the differences between Binance.com and the US version.
However, it's very clear why Binance/Binance.US has become two of the leading exchanges in cryptocurrencies in the world. Not only does Binance offer an extremely easy, beginner-friendly platform to use, but their low fees and list of cryptocurrencies attract beginners and veterans alike!
Fees Binance offers are honestly pretty reasonable compared to a variety of other exchanges. So if getting the most out of your money as a customer to a crypto exchange service, do your research. If you want your funds to grow, fees are the last thing you want to encounter as you buy/sell crypto.
Maker and taker fee schedules and transaction fees can be equally as confusing when trading cryptocurrencies, but luckily Binance has a more straightforward trade structure for users.
If you don't have an account, use this link to sign up for Binance.com.
Always remember, cryptocurrency is vulnerable to theft when you leave it on the exchange longer than needed - even on Binance. I recommend the Ledger Nano X to store your coins because it’s so easy to use and very safe.
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Feel free to leave a comment below and I’ll personally answer your questions!