Is Binance a Scam? Everything You Need To Know About The Largest Exchange In The World

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I. What is Binance?

Launched in 2017 by Changpeng Zhao, Binance is a cryptocurrency exchange that allows you to buy, sell, and trade digital currencies from the comfort of your home. The platform is home to hundreds of supported crypto assets – covering both large-cap and small-cap coins and tokens.

It has relatively low trading costs and an extensive range of cryptocurrencies available for trading across the globe. By, it ranks among the top ten cryptocurrency exchanges in the world.

On its exchange platform, Binance offers more than 365 different cryptocurrencies for purchase and sale. It also accepts many fiat money, including the US dollar, the euro, the pound, the hong kong dollar, and the Indian rupee. Binance may offer anything between 50 and 591 cryptocurrency pairs, depending on your region.

Binance currently supports the following cryptocurrencies: VeThor Token (VTHO), Binance Coin (BNB), Harmony (ONE), Matic Network (MATIC), VeChain (VET), and Dogecoin (DOGE).
Furthermore, Binance supports many significant coins, including Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Dash (DASH), Compound (COMP), Cardano (ADA), Cosmos (ATOM).

II. Customer Support Services

When it comes to customer assistance, Binance has three basic options:​
  • Creating a support ticket: Interested parties can submit an application on the Binance webpage to lodge a ticket (complain) and receive email help.​
  • Asking basic inquiries via chat: The Binance website also has a chat box in the bottom right-hand corner of the screen, which may be reached by clicking on the chatbox.​
  • Contracting out via social media: Binance’s Twitter handle is “@BinanceHelpDesk,” dedicated to customer service, and the business encourages customers to tweet their concerns to it.​

III. Binance Trading Tools and Features

This Binance review 2022 has covered the exchange itself, as well as some of the core tools that you will have access to when day trading. This includes the ability to perform technical analysis without needing to leave the exchange, and choosing between a basic and advanced platform.

With this in mind, we are now going to discuss some of the most notable features offered by Binance outside of its native exchange service.

1. Binance Coin (BNB)

The Binance Coin is the digital currency backed by the exchange. The main purpose of the token was to allow traders to benefit from reduced commissions. As we noted earlier, you’ll get a 25% discount on trading fees when holding an allocation of BNB coins.

This is less than the previous discount of 50% and will once again be lowered in the near future. Although the Binance Coin might seem like it has an overly basic function, it is important to note that BNB is now one of the largest cryptocurrencies in terms of market capitalization.

For example, at the time of writing, Binance Coin is valued at over $54 billion – making it fourth largest behind Bitcoin, Ethereum, and Tether.

One of the main reasons for this is that the Binance team regularly ‘burns’ BNB tokens – which means that the number of coins in circulation is reduced. This has the desired impact of increasing the value of Binance Coin in a similar nature to a stock buyback scheme.

If you want to buy the Binance Coin – you can do so at eToro on a spread-only basis. The minimum trade size is just $25 and you can deposit funds with Paypal, Neteller, a debit/credit card, or bank wire.

2. Binance Savings Account

Many newbie cryptocurrency investors are unaware of the fact that you can earn interest on your digital assets. This is a service offered by Binance via its savings account feature. The main concept is that your crypto assets will be used to fund loans.

The individual borrowing the funds will need to put cryptocurrency up as collateral – which acts as a safeguard in the event of a default. In terms of how much interest you can earn, this depends on the cryptocurrency being used and whether you elect to have the funds locked up.

For example, you can earn an annual interest rate of 7% when locking up Tether for 90 days, and 6% on USDC for the same period. If you want instant access to your fund, the flexible savings account pays 6% on BUSD and 5.79% on Tether. Bitcoin attracts an annual interest rate of just 1.20% – but you can withdraw your funds at any given time.

3. Binance Debit Card

Binance has launched its very own Visa debit card that can be used online, in-store, and even at ATMs. The Binance Visa card does not attract any fees, and transactions are paid for with your cryptocurrency balance.

For example, let’s suppose that you have $500 worth of Litecoin (LTC) in your Binance card wallet.
If you were to buy a cup of coffee for $3 – Binance would instantly sell $3 worth of Litecoin into US dollars. Then, the transaction would reduce your Litecoin balance to $497.

IV. Binance User Experience

Binance is arguably more appealing to those with experience in cryptocurrency trading. This is especially the case when trading complex financial instruments like Bitcoin futures and options. Our Binance review found that the platform actually offers two options when it comes to trading.

The first is the ‘Classic’ platform – which is allegedly tailored to inexperienced traders. However, we found that this is still a little bit cumbersome to navigate. For example, you will see heaps of pricing charts and order books – which for the untrained eye can appear intimidating.

You then have the ‘Advanced’ platform – which as the name suggests, is tailored to those with experience in the trading arena. This will get you access to an abundance of trading data – such as market depth, indicators, drawing tools, trend lines, and more.

In other areas of the website, Binance offers a smooth, clean, and easy-to-navigate interface. For example, if you elect to buy cryptocurrency with a debit/credit card – the steps involved are relatively straightforward. All you need to do is follow the on-screen instructions by uploading your ID, entering your card details, and confirming the purchase.

V. What are the Key Advantages of Binance?

  • Offers a Huge Selection of Cryptos​
  • Platform Tailored to Different Needs​
  • Offers Competitive Fees​
  • More Active Users​
  • Lack of Regulation​
  • The Platform Details Can Be Confusing​

VI. Is Binance a Scam?

Overall, Binance is an excellent choice for those looking for a platform with low transaction fees, a wide selection of coins, and a user-friendly interface.

In accordance with our research, Binance is a broker licensed and regulated by the EEA and CTF. While it is a good thing that the broker is regulated, the EEA and CTF regulatory agency is in comparison to 1st tier regulatory bodies like the CySEC one of the weaker regulatory authorities when it comes to investor protection.

In order to be sure that Binance is not a scam, we hope this article provides you with some kind of clarity about what Binance is. If you have any questions, ideas or problems, please leave a comment below.

Disclaimer: Always do your own research before you buy any coin or token. Only you know your financial situation, investment strategy, and tolerance for risk.​

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