In 2019, US customers of Binance migrated to its American partner, Binance.US. Along with other popular decentralized exchanges, it provides opportunities for staking and trading. However, its fees are very low. On the negative side, too close attention from regulators and insufficient transparency hold back lots of investors. In this article, we will talk about the benefits and drawbacks of Binance in 2022.
Binance vs Binance US
Binance is considered one of the largest cryptocurrency exchangers in the world. The platform was founded in China in 2017. To date, it is present in almost 200 countries. Binance’s native currency (BNB) is considered the fourth largest crypto asset in the world.
Changpeng Zhao is the Binance CEO, and he’s doing really well. Coinbase is one of the two largest cryptocurrency exchanges available today, but its daily volume of trade is several times lower! Binance even has an exclusive token launch platform named Binance Launchpad.
Binance.US is an American partner of its mother company in the United States. It was created to cater to US clients since Binance started to block them. Please note that it doesn’t operate in all states, and its features and acid portfolio are quite restricted.
Which states can use Binance US?
Binance US is still unavailable in the following states: Hawaii, Connecticut, Louisiana, Idaho, Texas, Vermont, and New York. Users can’t log in to Binance login from any of these states.
Principle of operation of Binance.US
This platform offers fewer functions and assets than Binance. Clients should connect a traditional bank account for deposits and a wallet (for example, Trustwallet).
Binance.US offers a wide range of opportunities to earn passive income from crypto (including trading, staking, purchasing, etc.) Clients can control their accounts from smartphones or desktop computers, and the platform caters to different levels of trading experience.
How long does it take to get verified on Binance?
The verification procedure may take a long time. Most clients have wait 3-4 days before they are permitted to carry out transactions. You pass the verification procedure using online dashboard or mobile application.
Is Binance trustworthy?
Over the past few years, Binance has been increasingly scrutinized by global financial regulators:
- Outside the country, authorities in the United Kingdom, Japan, Canada, etc. have been looking into its transactions.
- Last summer, Binance was banned in Italy.
- Bloomberg reported that the company is currently under investigation by the Commodity Futures Trading Commission over concerns that it allowed US residents to make wagers, which is against the laws of the U.S.
- The platform doesn’t have a transparent corporate structure.
The company tried to eliminate its transparency issues by extending its compliance team. However, it is still unknown whether this action will satisfy the regulatory bodies.
Another problem is the Binance hacking attacks. Three years ago, hackers stole $40 million worth of BTC from the platform users. Last year, a British judge has ordered the cryptocurrency exchange Binance to take action against hackers who reportedly stole almost $3 million from a user. However, the government hasn’t tried to suspend Binance.
Is Binance.US secure?
In contrast to its mother company, Binance.US hasn’t experienced any regulatory problems so far. Nevertheless, the company’s transparency is insufficient in comparison with exchanges like Gemini. Binance.US is not so transparent about its storage solutions, customer service, and safety. That’s why we recommend long-term investors to opt for other exchanges.
How to store crypto on Binance?
The clients of Binance.US have to choose between storing their crypto directly on the platform or in external wallets. It is advisable to use Trust Wallet, as it supports 1M+ assets across 50+ blockchains. It is one of the safest crypto wallets available.
At the time of writing, Binance.US offers access to over 60 cryptocurrencies, which is nowhere near the parent company with its 500+ BTC. You can buy NFTs on the same platform.
However, Binance.US is far from the worst option, given that some platforms accept only Bitcoins. Binance.US clients have access to the following currencies:
- Ethereum (ETH)
- Bitcoin (BTC)
- Harmony (ONE)
- PAX Gold (PAXG)
- Helium (HNT)
- Orchid (OXT)
- Cardano (ADA)
- Chainlink (LINK)
- Tether (USDT)
- Stellar (XLM)
Lots of cryptocurrencies (such as ETH, BTC, Solana and DOGE), can be bought for US dollars. Moreover, you purchase buy some of the most popular crypto assets, such as SHIB on Binance.
The pairs include purely crypto instruments and combinations of crypto and fiat. For this reason, users who don’t want to cash out for US dollars each time have lots of alternatives.
Last year, the company stopped supporting Binance stock tokens, which allowed customers to buy a part of publicly available shares fee-free. However, you can’t purchase Safemoon tokens on Binance.US.
How to start using Binance.US?
As indicated, customers must link a conventional bank account and a cryptocurrency wallet to conduct transactions. Until a few months ago, the Binance.US only supported BEP-2, not the BEP-20 (the token standard of the BSC). This caused the need to use both MetaMask and Binance Chain wallet, which you can get as browser extensions for Chrome and Brave.
After this, users can establish a direct connection. Binance.US offers referral rewards for new customers. Using your referral ID, you will get a reward of $15 after trading the first $100.
Until the end of 2021, Binance bridge provided access to inter-blockchain liquidity for Binance Chain and Binance Smart Chain decentralized applications. However, this feature has been disabled, after which the cryptosystem worldwide became increasingly fragmented.
How to connect MetaMask to Binance Smart Chain?
Once you have downloaded Metamask for your PC or mobile browser, you should set up a wallet and keep your recovery phrase in a safe place. However, the system doesn’t support BSC wallet. Therefore, you should avoid transferring your funds to addresses linked to it! Take the following steps:
- Enter settings.
- Click on “Networks”.
- Press the button “Add network” in the top right.
- Enter the following information in a form and save your selection:
- Network Name: Binance Smart Chain;
- New RPC URL: https://bsc-dataseed.Binance.org/;
- ChainID: 56;
- Symbol: BNB;
- Block Explorer URL: https://bscscan.com.
How to buy cryptocurrency on Binance.US?
This procedure is almost intuitive. However, the Binance exchange supports only a few types of trade orders: limit, market and stop-limit orders. To buy cryptocurrency, use the following steps:
- Access your account.
- Input the amount (in dollars) that you want to spend.
- Press the button “Buy Crypto”.
In addition, Binance.US supports such a feature as recurring buys. These are beneficial for DCA investment strategies.
Seasoned traders can use up-to-date trading instruments (such as graphs, limit and stop orders, as well as live crypto order books).
How to trade on Binance.US?
After clicking on “Trade”, you will see the information on market performance, which will allow you to identify the most lucrative opportunities. Experienced Bitcoin investors can benefit from the company’s new portal with advanced technical solutions, including TradingView, price statistics, bitcoin candlestick chart, and transaction history. However, beginners may find such an interface overwhelming.
Institutional investors have the right to access OTC stocks, where the minimum deposit is $10,000. The advantages are as follows:
- real-time data
- 24/7 support
- low fees
- possibility to conduct direct negotiations with vendors
How can you deposit crypto to Binance?
Depositing money to Binance is very easy. You can do it in a few simple steps. Please note that it’s important to specify the right address and select one of the currencies supported by Binance.
- Access your account.
- Press the button “Wallet” in the top right corner of the screen.
- Choose “Deposit”.
- Indicate the coin and the network.
- Scan the QR code.
- Open your wallet and enter the deposit address.
How can you withdraw crypto from Binance?
Withdrawals can be carried out via the same interface. Press the button “Withdraw” (which is located near the button “Deposit”). After that,
- Choose the crypto and input the amount.
- Indicate the destination by selecting it from the list or inputting manually.
- Preview your transaction.
- Find an email requesting confirmation and confirm it.
- Log in to your account and check the transaction status in the Wallet.
Binance US trading fees
As well as the mother company, Binance.US provides profitable conditions for users. The maker-take fee varies from 0.05 % to 0.1% (while the fees on the rest of exchanges exceed 0.5%). However, there are a few more ways to save on Binance.US:
- Using BNC cuts the trading fees by another 0.25%.
- iBuyers pay only 0.5%, which is great compared to Kraken Pro, where the transaction fee is higher than 1%.
- Trading fees are much lower for high-volume traders and users who store many BNBs.
Purchasing crypto for US dollars can also help you save a lot. The lack of intermediate conversion to stablecoin suggests there is a single set of fees. On the negative side, the US version of the platform takes fairly high fees for debit card deposits.
How much does it cost to withdraw fiat from Binance?
In spite of its below-average trading fees, the platform doesn’t provide profitable conditions for deposits and withdrawals. The transaction fees are almost the same as those on other exchanges.
The fees for debit card deposits are lower on such platforms as Gemini. Binance.US charges almost 5% for such operations, while Gemini allows you carry out a specific number of free deposits each month. CoinLoan doesn’t charges fees for wire transfers to/from interest accounts.
However, Binance.US clients can withdraw money for free via ACH. Wire transfer fees of $15 or $35 apply to domestic and intercountry transactions, respectively.
Crypto deposits and withdrawal fees
Depositing your crypto into Binance is free of fees. However, the withdrawal fee varies considerably depending on the chosen crypto asset, which is also the case for many other exchanges.
For example, users must pay 0.0045 ETH to deploy an ERC-20 token on the Ethereum. This sum (over $15) is huge compared to the 0.01 ALGO fee (approximately $0.25) for withdrawing Algorand.
How to make money by staking on Binance?
Clients who store their crypto on Binance.US for a certain period of time obtain staking rewards. This allows the platform to sustain the development of the respective blockchains. Today, Binance.US supports staking for VET, QTUM, ATOM, EOS, XTZ, ALGO and ONE. Storing these assets on Binance.US can bring you 8-9% APY.
No credit card deposits: benefits and drawbacks
The lack of credit card deposits comes as no surprise. Actually, it is the worst way to top up your crypto account. This is explained by the fact that: 1) your bank will probably take huge fees for such transaction; 2) in this case, using borrowed funds means that you will pay interest on it. That’s a terrible idea, and Binance.US is right about forbidden it.
The quality and availability of customer services are essential factors for the clients concerned about their security. Unluckily, the platform doesn’t provide customer support by phone. However, you can write in live chat or fill in an online form (the latter option is suitable for reporting suspicious actions). In the live chat, you can only find answers to the basic questions.
Binace.US can benefit from the mother company’s educational library called Binance Academy. It represents a free of charge service with almost 300 articles in 20+ languages that cover many interesting topics: from economic issues to cybersafety. In addition, Binance is strongly present in social networks and keeps clients informed through its Twitter.
What’s the difference between Binance and Binance Dex?
The Binance logo is an integral symbol in the cryptocurrency world. This platform was created by the largest exchange, and it is distinguished by its low trade taxes. However, regulation issues, inaccessibility in certain states, and restricted variety of assets demonstrate that there is still a lot of work ahead for Binance.US.
Now, it attracts primarily the users looking for low trading fees and those who wish to obtain passive income from staking. Its enhanced platform is appropriate for experienced traders seeking sophisticated tools. Nevertheless, the negatives outweigh the positives:
|Low trading fees25% trading fee discount when using BNBAbility to make passive income by stakingDiscounts for high volume of tradeFree deposits when using ACH transfersFree-of-charge ACH withdrawals||Fewer tools and functions in comparison with the Binance websiteNormative problems faced by the mother company7 states still unavailableHigh charges for debit card transfers.Doesn’t have a phone numberNo information on safety measures$10 minimum opening depositHigh wire transfer feesDifficult interface|
If you find regulatory compliance important, you should give preference to such cryptocurrency exchanges as Gemini. This corporation currently works in all states of the US, and its educational library is not less spectacular than Binance Academy.
Coinbase provides a lot more cryptocurrencies. It is focused on increasing the opportunities for clients by listing each single coin that may be lawfully included. On the negative side, the charges can increase. CoinLoan provides a high-end regulated trading platform, fixed interest accounts, and the possibility of lending in other countries than the US.