/Binance_Recirc-e25123a3a4764d8a80796a3a552c9c7e.jpg "Binance.US Review 2021")
Pros Explained
- Low trading fees: Maker/taker fees on Binance.US range from 0% to .1%, and instant buy fees are .50%. This platform’s fees are very low compared to the competition.
- Educational resources available: Those interested in learning about crypto and blockchain can access Binance Academy, which offers educational videos and articles for traders of all experience levels.
- Trading fee discounts available: Users who hold Binance Coin (BNB) can get a 25% trading fee discount.
Cons Explained
- Lengthy identity verification process: You can’t buy, sell, or trade on Binance.US until your identity is verified, and the verification process can take several days.
- Partner company has poor regulatory history: Binance, the partner company of Binance.US, has a history of regulatory and compliance issues, and it’s banned in multiple countries.
- Limited selection of assets: There are only 64 cryptocurrencies available for trading on Binance.US. Several competitors offer a larger selection.
Introduction
Created by Binance and its U.S. partner BAM Trading Services, Binance.US is a cryptocurrency exchange for residents of the United States. Users on the platform can buy, sell, and trade 64 popular cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA). The platform offers some of the lowest trading fees available and discounts for high-volume traders, but its partner company’s regulatory history is concerning.
Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Company Overview
The global Binance platform was launched in 2017 by financial software developer Changpeng Zhao. In 2019, the company shut down access to U.S. users, citing regulatory concerns. Around the same time, Binance announced that it was partnering with BAM Trading Services, a U.S. Treasury Financial Crimes Enforcement Network (FinCEN)-registered company, to launch Binance.US. Binance.US is headquartered in San Francisco, California.
While the Binance global platform offers hundreds of available cryptocurrencies and is one of the top crypto exchanges in the world, its U.S. partner platform is more limited. Binance.US offers just 64 available cryptocurrencies and is not available to users in Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. Despite its limitations, the U.S. platform’s trading tools, low fees, and valuable educational resources could make it a decent option for certain crypto traders. However, its dashboard isn’t particularly user-friendly, which may overwhelm beginners.
Cryptocurrencies Available on Binance.US
Binance.US offers a selection of 64 cryptocurrencies. Users can buy, sell, and trade popular assets like Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), Solana (SOL), Cardano (ADA), as well as lesser-known ones like VeChain (VET) and Orchid (OXT).
Trading Experience
Users can access the Binance.US platform via an online dashboard or the exchange’s mobile apps available for iOS and Android.
To purchase or sell cryptocurrency on Binance.US, log into your account and click the “Buy Crypto” button. Unlike some competitors, this exchange supports just three order types: market, limit, and stop-limit.
If you prefer to trade, you can click “Trade” to view market performance or make trades on the platform’s advanced and OTC portals. The advanced portal integrates with TradeView and features a candlestick chart, real-time pricing, and access to your order history. In the OTC portal, buyers can negotiate trades directly with sellers. Note that OTC trading is only available for trades over $10,000.
Overall, the trading experience on Binance.US is better suited for more experienced traders. Beginners may be overwhelmed by this exchange’s features and tools.
Fees
One of the most appealing features of Binance.US is its low trading fees. While competitors have trading fees starting at 0.50%, maker/taker fees on Binance.US range from 0% to 0.01%. Instant buy fees are 0.50%. Users who hold BNC also get a 0.25% trading fee discount.
Crypto exchanges may offer fee discounts for users who hold certain assets and use them to pay their trading fees. Binance.US is among these exchanges.
Despite its low trading fees, Binance.US charges a relatively high 4.5% fee for debit card deposits. Users would be better off depositing money via ACH or wire transfer, both of which are free. ACH withdrawals are also free, though wire transfer withdrawals cost $15 for domestic and $35.00 for international transfers.
Here’s a look at the tiered fee structure on Binance.US:
Security
Binance.US offers industry-standard security features for its users. It also requires that users verify their identities to buy, sell, or trade crypto. The verification process can be lengthy, but it’s in place to help prevent fraud and other illegal activities.
In addition to identity verification, users must also set up multi-factor authentication, and facial recognition is an option for mobile. You can also whitelist crypto wallet addresses and easily view devices you’ve used to log in via your online dashboard.
In 2019, hackers stole $40 million worth of bitcoin from Binance user accounts. While Binance replaced users’ bitcoin and the U.S.-partner platform hasn’t been hacked, it’s important to be aware that security breaches are a risk with any crypto exchange.
Opening a Binance.US Account
The process of opening a Binance.US account is relatively straightforward. Simply click “Get Started” in the upper-right hand corner. To start, you’ll enter your email and phone number. If you want to buy, sell, or trade on the platform, you’ll also need to provide some basic personal information and upload a photo of a government-issued ID.
As mentioned, the identity verification process can be lengthy. Users have reported waiting over weeks or even months to get verified on Binance.US, which can be very inconvenient, especially if you want to start trading right away.
Customer Service
Like many other crypto exchanges, Binance.US offers limited customer service options. Users can submit a form or engage with a chatbot on the Binance.US Support page. But there is no way to call or email someone directly if you need immediate assistance with your account.
While users don’t have the option to speak to someone directly, the Binance.US Support page has an extensive list of FAQs. This resource could be helpful for those who need answers to more general questions.
Customer Satisfaction
Binance.US receives mostly negative feedback from users on third-party sites and has an average of 1.2 out of five stars across 247 Trustpilot reviews. Several reviewers report issues with trades, deposits, withdrawals, and the identity verification process. However, the platform receives a handful of positive reviews as well, with users praising its low fees.
Cryptocurrency exchanges often receive negative customer reviews, so the amount of poor feedback Binance.US has received is unsurprising. If you want to trade or invest in crypto, it’s a good idea to compare user feedback across exchanges before opening an account.
Binance.US is the United States partner company of Binance, a major global crypto exchange. It’s worth noting that Binance is currently being investigated by U.S. authorities for money laundering and insider trading.
Account Management
Binance.US offers an online dashboard and mobile apps for users to manage their accounts. Both the desktop and mobile experiences are similar. Once you log into your account, you can view your balance, purchase history, and the devices you’ve used to log in previously. You’ll also have the option to deposit and withdraw funds, as well as buy, sell, and trade crypto.
How Binance.US Compares to Other Cryptocurrency Companies
While Binance.US’s low trading fees are a plus, other exchanges offer a wider selection of cryptocurrencies and more advanced order types. Here’s a look at how Binance.US compares to another popular cryptocurrency exchange:
Binance.US vs. Kraken
Binance.US and Kraken are both U.S.-based exchanges that offer relatively low trading fees compared with competitors like Coinbase. Both platforms have implemented KYC protocols to help prevent fraud and protect users, and each offers industry-standard security features like multi-factor authentication and wallet whitelisting. However, there are some key differences between the two platforms:
- Kraken offers over 100 cryptocurrencies to buy, sell, and trade, while Binance.US offers just 64.
- Kraken’s trading fees are slightly higher than Binance.US’s trading fees. Kraken users pay between 0%-0.26% per trade, and Binance.US users pay between 0%-0.01% per trade.
- Binance.US does not offer margin or futures trading, and Kraken does offer these options for certain users.
- Kraken is available in 48 U.S. states, and Binance.US is available in 43 states.
- Kraken has more customer support options than Binance.US. Kraken users can speak to someone over the phone for help with their accounts, and 24/7 live chat support is also available.
Final Verdict
If you’re an experienced, high-volume trader, Binance.US could be worth considering due to its low fees. Traders with less experience may also appreciate the platform’s educational resources. However, Binance.US offers a limited selection of cryptocurrencies compared to other exchanges and doesn’t support margin or futures trading. It’s also not available in all U.S. states, so residents of Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont will need to look elsewhere.
Methodology
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