How does Trading on Binance work ?

Binance is a secure, world-renowned platform that specializes in cryptocurrency trading. find out more in our article.

With an offer of more than 300 cryptocurrencies, Binance is a global platform dedicated to trading digital tokens. Due to the hype and the huge potential gains of cryptocurrencies, the company attracts traders from all over the world. If you're interested in trading crypto, take a closer look at how the platform works, as well as its pros and cons.

Is Binance reliable ?

Binance is one of the must-have platforms of the moment for those who want to get into virtual currency trading. It was founded in 2017 in China by Changpeng Zhao via an ICO fundraiser that secured 15 million USD. Since its inception, this online broker has held the top spot in terms of trading volume. However, the company had to move its headquarters to Malta and its servers to Japan due to the Chinese ban on cryptos.

Binance security protocols

More than 1 billion USD are traded daily on this platform by millions of users. It is regulated in Malta and regulated by CySEC. Moreover, it complies with anti-money laundering obligations and has implemented a KYC-based system to identify and secure its users. In addition, it is also required to go through an additional verification step for withdrawals above 2 BTC. Currently, Binance is undergoing approval in the US.

The platform stores all cryptocurrencies in inaccessible offline wallets with backup copies to avoid possible losses in case of a system crash. Moreover, the security of transactions is enhanced by advanced protocols that immediately alert in case of any hacking attempt. Traders can also activate the 2FA two-factor Google Authenticator for optimal protection.

In addition, Binance established the Secure Asset Fund for Users (SAFU) in June 2018 to provide emergency coverage for its customers. This fund is regularly replenished with 10% of the fees generated by the platform. All these measures were taken by the broker following a 2018 hacking. However, this did not prevent the embezzlement of 7,000 BTC, or nearly 40 million USD, from the platform in May 2019. Nevertheless, the broker covered all the losses, or nearly 2% of all Bitcoins it holds.

Responsive customer service at Binance

Even if it turns out that Binance is still not 100% reliable, its activity is still fully compliant with European laws. Moreover, despite its shortcomings, it is currently one of the safest trading platforms. Its SAFU safety net also reflects its seriousness and efforts to provide a reliable trading environment. Moreover, for European investors, it has created Binance Jersey where EUR and GBP trading pairs are offered. In 2020, Binance UK, its FCA-regulated subsidiary, was also launched. 

In addition, it offers highly responsive customer service to answer the questions of its millions of users. This is an essential selection criterion before using an online trading platform. Binance's technical teams are accessible by email and chat. However, some may regret that there is no telephone support. However, a FAQ section is available even without registration. The latter allows you to find complete details on how the platform works, cryptocurrency trading and the blockchain world in general.

 The Binance offer and different types of accounts 

Binance is popular because of its range of trading pairs, as well as its low fees and commissions. In addition, its order engine is very fast and capable of processing more than 1,400,000 transactions per second. 

Binance platforms

This crypto exchange is available on many types of media, including via its web trading interface and via Android and iOS compatible mobile apps. It is an online broker that currently offers 4 platforms with customer support available in 7 languages : : The web platform of Binance which allows you to take advantage of a wide range of cryptos at low prices. The interface also allows you to take advantage of a leverage effect to easily multiply the gains from certain operations. You can also participate in initial exchange offers (IOE) and use wallets to store your tokens. Moreover, by making your cryptocurrencies available to this broker, you can earn interest from them.

Binance Jersey : This subsidiary of Binance is specifically dedicated to the direct buying and selling of cryptocurrencies via euros and pounds. It allows traders to easily acquire both major cryptocurrencies, such as BTC, ETH, Ripple, and altcoins, without going through other competing platforms like Bitcoin or Bitstamp.

Trust Wallet : the cryptocurrency wallet that Binance has made available to its users since 2017. It allows users to receive, send and manage digital assets, altcoins and tokens based on ERC-20 tokens and the BNB binance coin. This hot wallet is a decentralized application that also allows trading with Kyber Network and the web browser3. It can also be used to track digital asset prices and choose between different fiat currencies for buying cryptos.

Binance DEX : This is Binance's decentralized exchange where users can directly connect with their wallets without having to register. It is based on a decentralized blockchain, whose token is the Binance Coin (BNB). The latter is the only exchange currency that can be used. Traders must therefore credit their accounts in BNB before they can buy other cryptocurrencies on it. It is also necessary to convert these into BNB in order to withdraw them.