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Binance Exchange ReviewThe Binance Exchange is a crypto system exchange operated from Hong Kong with servers in Japan/Korea.

After just five months since its launch, it has grown to be one of the top 10 exchanges due to its low fees and extremely low-latency trades – allowing especially direct traders the ability to achieve very specific trading entries/exits in the crypto space.

Unfortunately (or fortunately, depending on how you look at it), this exchange – along with a number of others including Bittrex – were forced to temporarily cease accepting new members due to being overwhelmed in early 2018.

This lead many to speculate on how the system would grow to accommodate the next level of the system’s infrastructure. Ultimately, the system – along with a large number of others – is one of the few dependable crypto exchanges in the world, allowing novice and expert users alike to manage their crypto portfolios.

If you are considering using the Binance exchange, and are looking at whether you should be looking at using it over comparable other exchanges, this article aims to highlight the features, pros and cons of the system.

As ever, this is not an endorsement of the service. If you are considering entering the crypto market with an investment, please be reminded that it is entirely unregulated and extremely risky. It’s generally recommended you seek the support of a regulated financial adviser as to ascertain the general market and options for your money…

How it works?

In order to validate the quality of Binance, you need to be able to determine the way in which exchanges work – not just for crypto, but in other areas of life…

binance exchange - buy and sellCrypto exchanges work exactly the same as commodity exchanges – there are two parties (buyers / sellers) with a central collection of commodities.

These commodities are determined by the type of exchange (which in the real world is determined by heavy regulation from government) – the way they work is to allow buyers & sellers to trade (exchange) the commodities after receiving orders to buy or sell from a number of retail parties.

For example, if a business producing cars needed to buy steel, they’d work with a broker (typically represented by a bank) to gain the best deal at an exchange (where a comparable seller will be offering the steel). The reason this is done rather than a one-to-one transaction is because it’s firstly simpler, and secondly that it’s generally used for MUCH larger orders… most often in the “raw” materials of a product, rather than the product itself. In the case of steel, it would likely be the case that people would be buying the iron ore from the commodity exchange, not the steel itself.

Anyway, as mentioned, commodity exchanges are a fixture of a modern capitalistic nation by virtue of both the financial and technical systems in place. Because of this, people are able to buy and sell the various commodities (iron ore, copper, oil, etc) for the best price possible.

The part where digital traders come into this picture is when people trade the various commodities. Trading commodities has been a driver of profit for a very long time, but it’s only been in the last 20 years that – due to wide-scale availability of Internet connections – that allow people to purchase commodities from brokers, and then resell them again at a higher price…Binance Exchange Traders

The New York Stock Exchange is still heavily focused on manual input – but as you can see – more & more of its processes are digitized. This digitization is where the myriad of online trading systems comes in… rather than requiring a broker / trader on hand, retail traders are simply able to use one of the myriad of online exchange systems to place buy & sell orders:

Typical Forex Trading Software
Typical Forex Trading Software

Features

In terms of the “Binance” exchange, what you’re looking at is a “platform” through which you’re able to buy & sell the various “crypto” tokens that have become popular…

Binance Exchange PlatformLike the other digital asset exchange services that have sprung up as a reaction to Bitcoin’s increased popularity, it offers users the ability to buy & sell any number of coins.

The way it works is to provide a central dashboard through which users are able to either list their coins for sale, or buy new coins for their portfolio. One of the main features of the system is live price tracking (for each coin):Binance Exchange TradingAnyone can register for free and it actually provides a simple 2-factor verification process.

The system provides a wallet through which users are able to store, exchange and withdraw their coins – the listing process being extremely simple:

Binance Exchange Deposit WithdrawalsThe system works by allowing you to deposit Bitcoin (or the equivalent crypto system) in its central repository. This is done by exchanging your currency for BNB (Binance Coin), which not only provides some level of security, but allows you to track the progress of any transactions you’ve been making.

This BNB coin is used to pay the various transaction fees the exchange charges.

Is it Worth it?

Ultimately, a crypto exchange has several requirements for it to be considered “good”:

  • Altcoins Supported

The most important thing is that it should be able to support all altcoins. Altcoins are those listed after Bitcoin – typically including the likes of Ethereum, Ripple and others. If you are using an exchange which doesn’t support many of these coins, it’s time to look for a new exchange.

  • Low Latency

Executing orders should be done as quickly as possible. In the crypto world (where the majority of companies are still developing their infrastructures), this can be difficult. The importance of this lies in how quickly/slowly the purchase/sale of a token can be executed – which could affect the various profits of the transactions.

  • Reliable Service

The service of the system is also important – maintaining a team of developers to provide continued support for the service is vital. You’d be surprised at the number of crypto systems unable to provide even a base level of service to their users.

  • Low Fee

Finally, low fees for the system needs to be maintained. Most exchanges charge around 1% commission per transaction. This seems to be the norm for the majority of crypto systems.

With Binance, we actually see good reports from all of the above.

It not only supports all the various altcoins, but actually has a strong backend and the ability to manage the various assets it has. Based in Hong Kong, it stands in a unique position, being able to serve the Asian market, whilst retaining strong Western influence.

Ultimately, whether you choose to use the likes of Binance, Coinbase or GDAX, all exchanges do pretty much the same thing, and thus it’s simply a question of trust & price as to whether you want to use them…

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Qoinbook strives to present relevant information on Bitcoin, cryptocurrencies and Blockchain Technology that would help & guide newcomers from this crypto-revolution.
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