Binance US Review: What to Know About the Pros, Cons, and Features

Binance.US pros and cons

Binance pros

Binance is a great crypto exchange with a lot of different cryptocurrencies offered. It even has a process to add new crypto to the exchange. Here are some advantages to exploring Binance for yourself:

Very fast trading

If you’re new to crypto trading, you might be shocked at how fast trades are on Binance. Once you pass verification, you can trade the very same day and conduct trades in a matter of minutes.

Straightforward crypto lending

If you’re looking for crypto lending, Binance has you covered. The centralized exchange offers multiple crypto to borrow or lend out. The APY is always listed, and you can lend as much or as little as you want.

Easy reporting

To satisfy regulators, Binance makes it easy to view crypto transactions and see exactly how much you earned on the platform. That can make it a lot easier to handle your crypto during tax time, which is a big hurdle for many crypto users.

Wide variety of crypto

Binance offers trading for more than 600 cryptocurrencies and tokens. Options include Bitcoin, Dogecoin, Ether, Litecoin, and hundreds of other options — meaning that there’s plenty to choose from for every type of investor.

A focus on security

Binance places a strong emphasis on the security of both funds and user data. They have met security standards set out by the International Organization for Standardization (ISO) and were awarded an information security accreditation after audits of 114 criteria in 14 categories. Many exchanges were overwhelmed in the 2017 bull run and lost trust from their users, while Binance was prepared to handle it well and got rewarded in the form of enhanced usage by doing so.

Numerous earning opportunities

Binance offers both lending and staking functionality for users to benefit from. With lending, users can take advantage of flexible deposits for a select group of tokens, receiving an annualized return in exchange. Binance also offers a fixed deposit option,  requiring users to lock up stablecoins like Tether and BUSD for a specific amount of time (between 7-90 days) in return for higher interest rates.

Binance users can also earn rewards through staking. Many tokens use a staking mechanism to help secure their network, and Binance makes it easy for users to see what the estimated reward is and begin staking. There is also an easy way to track the staking rewards received over time, across all staked tokens.

Binance cons

No exchange is perfect, so it’s important to look at the disadvantages and not just the good stuff. That said, here are some cons to keep in mind if you want to check out Binance for yourself:

Sluggish verification process

Binance complies with multiple regulations, which means that there is a Know Your Customer (KYC) process — and it can be frustratingly slow and laborious. You’ll need to submit proof of identity and residence. This isn’t really a big deal for centralized exchanges; they generally all want to know who you are for regulatory purposes. Unfortunately, Binance can either process this very quickly or it can take a few days.

Interface is hard to navigate

A good user experience is one of those things that you just know when you run across it. Unfortunately, the Binance interface is harder to navigate than other exchanges. This makes it less beginner-friendly than it should be.

The U.S. version of Binance is more limited

Due to Binance’s rapid growth over the last several years, the platform faced increasing regulatory pressure. This led to a decision in 2019 to restrict access to their main Binance.com exchange for U.S. traders. Binance now has a separate version of the platform for U.S. crypto users, and it has some limits in comparison to the main site.

The primary differences for Binance US are fewer trading pairs and no margin trading. Despite these shortcomings, Binance US offers a swift onramp to traders as funds deposited to the exchange are available for use instantaneously, as opposed to deposits on an exchange like Coinbase which have been known to take 5-7 business days to land in the account. Still, it’s worth noting that the Binance and Binance US sites are different platforms and the U.S. version is limited in comparison.

What Binance is best for

Despite a less than stellar user interface, Binance offers a lot of power for a centralized crypto exchange. It’s best for the following purposes:

• Very fast trading: If you’re looking to hit the ground running and want to trade a large variety of crypto across a centralized exchange, Binance is perfect for this.
• Accessing newer crypto: Binance is committed to bringing new crypto projects to their exchange; you can often get first-mover advantage quickly with new coins on this platform.
• Easy crypto lending: Binance takes the guesswork out of crypto lending, making it easy to put your coins to work.

Key features of Binance

Binance is trying to build an ecosystem that feels more like a one-stop-shop to keep users from having to hop from place to place. There are some key features to take note of, should you decide to check out Binance for yourself:

• Crypto lending: You can lend virtually any crypto available for trade at Binance.
• Easy to buy crypto: You can buy crypto on Binance via P2P, bank transfer, wire, or even a credit/debit card.
• Futures trading: While riskier, Binance does offer futures trading as well as margin trading.

Cryptos listed on Binance

The main Binance site has a wide range of cryptocurrencies available. The U.S. version is a bit more limited. Here are a few cryptocurrencies of note, listed below with their APYs if applicable.

• Bitcoin (BTC): 8.19% APY
• Ethereum (ETH): 10.12 % APY
• Cardano (ADA): 15.79% APY
• Avalanche (AVAX): 29.75% APY

Fees for using Binance

Trading, deposit, and withdrawal fees are all possibilities when it comes to crypto exchanges. Thankfully, Binance is focused on providing the most functionality with as few fees as possible.

Alternatives to consider

Binance is far from the only crypto exchange in town. If you’re still on the fence about checking out Binance, there are some strong alternatives to consider. Even if you check out a competitor to Binance, you can always come back later to see if anything’s changed.

Coinbase: Good for beginner crypto users

Coinbase is the market leader in terms of providing an easy-to-understand platform for newbies. If you’re just starting your crypto journey, try Coinbase first before you get to Binance. You can move between the two platforms fairly easily.

Nexo: Good for crypto lending hounds

Nexo is all about crypto lending, something that Binance still struggles a little with in terms of smooth trading. If you’re looking for crypto lending with a more user-friendly feel, check out Nexo.

Is Binance right for you?

Binance is a great crypto exchange for “middle of the road” crypto users as well as more advanced traders. Indeed, the fact that margin trading is available makes it worth looking into, and crypto lending is always in season.

Beginners would do well to look into some of the competitor platforms instead, especially if they’re very new to crypto. If that’s you, remember that you can always open an account later — after you’ve gotten accustomed to working with centralized crypto exchanges.

Final thoughts on Binance

Binance is trying to build not just a basic crypto exchange, but a true ecosystem where governance, community, and crypto trends collide. The current user interface leaves a bit to be desired, but the presence of a mobile app, as well as many complementary sites within the Binance umbrella, make it clear that this is a platform worth exploring.

Methodology

DeFiRate.com reviews cryptocurrency and Web3 products, services, and operators based on five quantifiable metrics to help crypto users understand how they compare based on similar metrics. For the best centralized exchanges, our editorial team compared customer support, 30-day trading volume, fees, cryptocurrencies available to trade, and average mobile app ratings from each operator to rate the top competitors in the space.

Frequently asked questions about Binance

• Is Binance really safe?

  Yes. In order to operate in the United States, cryptocurrency exchanges have to follow certain regulations. They have to have an AML policy (anti money laundering), register with FinCEN, and comply with authorities when ordered to do so.

  Security is a priority because a failure to implement secure policies around banking and trading leads to the risk of losing the ability to conduct business in the US. Legislation around cryptocurrency exchanges is always evolving, with potential frameworks introduced in Congress regularly.

  Binance also supports Two-Factor Authentication (2FA) through both SMS and authenticator apps provided by both Google and Microsoft. Setting up 2FA is an important step to take to keep any crypto account safer. While new security threats appear all the time, cybercriminals always try the path of least resistance first. Strong passwords and 2FA work together to provide a strong defense against hack attempts.

• Does it matter which Binance platform I use?

  Yes. If you are in the U.S., you must use Binance.US. Binance will automatically redirect you to the U.S. version of the site to register for a trading account. The original Binance site was banned from trading in the U.S., so U.S. residents must use Binance.US.

• How do I access Binance.US?

  You can access Binance.US through its website, as well as through apps for both iOS and Android. It is free to both access the website as well as to download the app to your phone. The apps are designed to integrate with the phone OS so that you have an additional layer of security via PIN codes and fingerprint locks.

• What are the trading fees on Binance?

  Binance currently bases its trading fees on two factors: your BNB balance and your 30-day trading volume. This means that you experience fewer fees the more you trade. There are zero fees for using the Convert service or the Over-The-Counter Portal. There is a fee of 0.5% for buy and sell orders placed on the general Buy Crypto Page.

• What does Binance do?

  Binance not only offers crypto trading and investing, but it has also expanded with the following products:

  • Academy – Blockchain & crypto education
  • Binance Charity – Blockchain charity foundation
  • Binance Cloud – Enterprise exchange solutions
  • Binance DEX – Decentralized exchange
  • Info – Cryptocurrency information platform
  • Labs – Incubator for top blockchain projects
  • Launchpad – Token launch platform
  • Research – Analysis and reports
  • Trust Wallet - Secure crypto wallet for cryptocurrencies and NFTs