Binance US Review: Introduction
However, is it really the exchange that it’s being talked up to be. Can it live up to the high standards we’ve come to expect from Binance?
Today, I’m going to attempt to answer all of these questions and more. I’ll also give you some top trading tips that you don’t want to miss.
Binance US is the U.S. based exchange of Binance.com. In case you’ve been hiding under a rock for the last three years, Binance is one of the most successful cryptocurrency exchanges in the world.
Now, I know what you’re thinking? I used to have a Binance.com account and I was based in the US. Why do I need this?
Well, one-word regulation, Binance wanted to offer U.S. based customers a trading solution that was within the bounds of the US regulatory framework.
An exchange that U.S. residents could use that had the trading technology that they loved, combined with the ease and convenience of a simple Fiat onramp.
So, this was the inspiration behind Binance US. Binance.us was registered as BBM trading services in the state of Delaware. But it has its head offices out west in San Francisco.
It’s been run by Catherine Coley who is an ex Ripple fan. Full trading launched on the 25th of September but with quite basic functionality something that I’ll touch on in a bit
Anyways, enough of the backstory for now. Let’s dive into our Binance US review.
Binance US Review: All You Need To Know
Now although this is Binance US. There are a number of states and jurisdictions in the United States where accounts will not be allowed.
So if you live in any of these states you won’t be allowed to open an account initially.
This may of course change as they get more licensing from those particular states. Now perhaps the most notable among these is New York.
No love for the Empire State. Of course, this is related to the complex bit licensing laws that exist in New York State which is another whole topic by itself.
Anyways this currently not that much guidance as to when other states on the prohibited list will be included but expect more information to come from their Twitter feed now.
One thing that Binance US Review is known for is the range of cryptocurrencies that you can buy, a veritable collection of coins and tokens.
What Will Binance US Review Be Supporting?
Well, nowhere near as much as the main exchange. They’ll be offering to trade on only six different crypto pairs. These include the likes of Bitcoin Litecoin Ethereum, Cardona Stella Lumens, and BNB.
So if we will compare this to other U.S. based exchanges it could be a tough sell, both Coinbase and kraken and offer way more coins to trade.
Admittedly Binance does offer more than Gemini not a high bar though.
The main point to take from this is that Binance US Review won’t be offering anywhere near the same amount of coins that are listed on Binance at least, not for some time.
Be that as it may, I want to get onto one of the most important considerations for any trader and that has to be the security of the exchange.
Using Binance Parlance Is Safer?
Well, the first thing to point out about Binance is that I am trading services and do not have FDIC insurance.
This means that you’re not insured for any fee it balances in your account. This is unlike exchanges such as Coinbase and Gemini that have this federally guaranteed deposit insurance.
I didn’t think that should be a deal-breaker though as there are other US Fiat gateways such as crack and that do not have this insurance.
Now irrespective of the safety of your USD funds on Binance US, you are probably most concerned about coin safety.
Well, Binance US review will no doubt be using all of the advanced coin management procedures and safety measures that have been used at Binance.
You can be sure that they’ll be using best practices in cold storage, multi-signature wallets, tiered access, and advanced intrusion detection systems.
Now, we all know that Binance.com was the victim of a hack. Not so long ago. While this may be a cause of concern for some it is unlikely that Binance US could face a similar fate.
Let’s not forget that the Binance hack was as a result of an advanced and prolonged phishing scheme.
The hackers use the information that was provided to them by the traders. So not really a system intrusion or a wallet hack.
Now after this hack, Binance is implemented a number of anti-phishing technologies that they have ported over to Binance US.
So if you take a look at your dashboard you will see anti-phishing protection along with a whole host of other security tools.
Of course, you have your standard two-factor authentication something that is mandatory, as well as address while laboring. I encourage you to use all of these when setting up your account.
And speaking of accounts, that is a great segway into our next section and that is account types.
What are the KYC Requirements on the Exchange?
Well, for those traders who prefer to remain anonymous Binance US may not be the option for you. Even the most basic tier of verification requires you to hand over your name, address, and Social Security number.
Despite how much some privacy hawks may object exchanges are finding it increasingly difficult to offer anonymous accounts.
This is the case for not only those based in the US but those offshore as well. So, your complaints should be directed at the US treasury and not the exchanges.
Anyways, the basic account here will allow you to trade crypto for crypto and you have a max daily withdrawal limit of 5000 dollars.
Binance US claims that this verification should not take more than a minute.
Now, we actually tried this out because you’re using your Social Security number it is actually that quick.
Binance US Withdrawals
However, if you would like higher withdrawal limits then you’ll have to go through advanced verification.
This requires you submitting personal identification documents like a passport or I.D.
With this account level you can withdraw up to 1 million dollars in crypto. Still, no fit deposits or withdrawals though, if you want that functionality then you’ll have to go for the Fiat account verification.
This will allow you to integrate your bank with the payment solution Binance is using more on this in a bit. And finally, for those of you that have a business and would like a corporate account, you can apply for this too.
This requires a manual review so it could take longer than the others.
Binance US Fee Structure
Binance U.S. actually has a pretty simple fee structure. It’s a flat rate of just to zero point one percent. This is less than other exchanges such as Gemini, Coinbase or even Coinbase Pro.
However, if you’re trading high volume on the likes of crack and the make if you could be slightly less than this.
It would be great to eventually see a tiered fee structure with make taker rates at Binance US but nonetheless 0.1 percent is pretty damn good.
On the deposit side you have no fees at all irrespective of the method. When it comes to withdrawals. You will have standard mining network fees on the crypto withdrawals.
This is fixed on the exchange but they are all really small and forfeit withdrawals. If you’re requesting a wire withdrawal then you will have to pay a 15 dollar fee.
Of course, if you use an ACH withdrawal then it can be done free. While we’re on the topics of deposits and withdrawals this is pretty damn simple at Binance US.
Crypto payments are made just like on the main exchange. Payments in fiat it can be done easily through the use of either ACH payments or a wire. ACH is probably the fastest method of funding your account in U.S. dollars.
Of course, you’re limited to only 1000 dollars a day withdraw with ACH compared to 1 million with a wire. So, now one of the main things that I was dying to find out about Binance US is whether we’ll be trading with similar technology.
Trading Platforms of Binance US
Well, you’ll be happy to know that Binance US uses exactly the same trading platform that is in use on the main exchange.
In fact, Binance US has a license to use the technology and this will include not just the trading interface but also the matching engine API and other functionality.
So, for those traders who have not used the Binance platform before, you have the basic exchange which has a relatively simple layout and is pretty intuitive to navigate standard charting and reasonable order placement functionality.
Then for those traders who have a bit more knowledge, you can switch over to their advanced interface.
This expands the interface and gives you a whole host of other options for adjusting the layout.
You also have an extensive range of charting technology. So, a great choice for those crypto technical analysts out there.
All in all, I’m really happy to see an interface that I know and love.
Now, although Binance US is using a trading platform technology. At this stage it does not seem that they will be offering anything in the way of mobile apps and computer programs.
This is unfortunate, as we know that the main Binance exchange 2019 has apps for numerous different devices.
However, given how easy it should be to port over the apps it may still be in the pipeline.
So, for the time being, you’ll either have to stay behind your P.C. when trading or you can log into the exchange from your mobile browser.
Do any of you code trading bots? Well, you’ll be pretty happy to know that Binance US has also brought over an API from the main exchange.
This will allow you to develop your own trading algorithms that interact with Binance US. You have most of the same endpoints and functions that you have on the API on the main exchange.
What People Really Think of Binance US?
So, in conclusion, Binance US is a decent exchange. I mean as U.S. based exchanges go it’s a strong competitor to the status quo.
It offers us, traders, a quick and easy fit onramp to the crypto trading technology that they have come to love at Binance. Now, while they may offer less coin coverage then Coinbase pro and Kraken, it’s way more than is offered by Gemini.
Moreover, the CEO has made it clear a number of times that they’ll be adding other coins to their offering as they continue rolling the exchange out.
No, having said all of this if your benchmark of exchanges is Binance then Binance US review still has a long way to go.
Not only does it have only a fraction of the coins that are listed on the main exchange, but it also only has limited functionality. There’s no margin trading, futures, lending staking mobile apps, etc..
So, when trading on this exchange you definitely won’t have the same experience that you’ve had on the main exchange, but, you will have the best that Binance can offer in the confines of the US regulatory environment.
And there you have it, our Binance US review. Now tell me, have you guys started using the exchange?. What are your thoughts? We’d love to know in the comments below. The support is much appreciated.