Overview
Binance is a cryptocurrency exchange founded by software developer Changpeng Zhao, CZ, in Hong Kong, China, in 2017. The exchange platform runs on the Binance Chain and Binance Smart Chain blockchains. The native coin of the Binance is the BNB coin. The other popular Crypto Exchanges in South Africa are: Valr, Revix and Luno.
Binance is the largest crypto exchange, with about 56 Billion in trading volume, according to Coinmarketcap. Binance has listed over 600 cryptocurrencies. However, there is a limit to the cryptocurrencies that Binance can offer in some countries. There are community software programs and the Trust Wallet in the blockchain ecosystem. Additional programs include the Binance Academy and Binance Charity. See how to buy bitcoin in South Africa and our Binance South Africa Referral Code.
Platforms and accessibility
Mobile apps and desktop versions of Binance are available for free to users. The Binance app, similar to the website version, is available for both IOS and Android users in their respective official stores. For beginners, there’s Binance Lite which is less complicated. Binance Pro is available with advanced features and trading tools for veteran traders.
Opening a Binance Account in South Africa
Creating an account is easy and takes just a couple of minutes. Here is the process on how to get started in Binance. See our guide to sign up with Binance South Africa.
1. Download the Binance app or open the Binance website
2. Head over to the “Get Started” button located at the top right-hand corner.
3. Fill in the required information. You will receive a text or email to verify your account.
4. For additional security, enable 2FA and biometric login for your mobile app.
5. Link your preferred mode of payment method and deposit funds.
KYC (Know-Your-Customer) verification is required to start trading. A valid ID card, Street address, and a selfie are needed to complete the process. Verification can take up to 3 business days, after which you can now trade with Binance.
Trading Experience and markets
A wide range of trading tools is available for users in Binance for both beginners and advanced traders. Real-time crypto charts from Trading View are at the traders’ disposal. Advanced features like Moving Averages and chart analysis are offered on the platform.
Binance provides a variety of market orders. Many of these features are not present in the Binance U.S., including margin trading and various order types.
• Spot trading
Spot trading in Binance has two interfaces:
“Convert” Interface – This is a beginner-friendly option. It contains limited advanced features like order types. Here users can exchange crypto assets at market rates easily.
“Regular” Interface – This is a fully-equipped trading tools arsenal for veteran traders. By default, it contains all the order types and is the spot trading option.
• Margin Trading
Certain trading pairs are selected for margin trading with different leverage options. In Cross margins, traders risk their entire margin accounts. In Isolated margins, the losses are controlled using a single trading pair.
• P2P trading
This feature allows users to buy or sell their crypto assets with other users directly. These include fiat payments, crypto, and vice versa. P2P trading is an excellent option for deposits and withdrawals, offering local payment options.
• Crypto-to-crypto trading
This is a feature in Binance that allows users to trade different crypto pairs directly. Users do not have to cash out to stable coins or native coins to trade. It helps traders avoid unnecessary fees and time. This feature is available for most but not all cryptocurrencies.
• Binance NFT
With the rise in popularity of NFTs (Non-Fungible Tokens), Binance has created a market where users can mint, sell or buy NFTs.
• Binance Futures and Derivatives
Futures allow traders to speculate on crypto prices instead of buying or selling. Binance Future balances are separate from regular trading wallets. Profits and losses realized from the Future accounts can only be in USDT.
Derivatives in Binance are referred to as Leveraged Tokens. These are UP and DOWN contracts that provide for speculating specific cryptocurrencies.
Fees, services, and withdrawals
Fees in Binance are the lowest in the crypto world. Generally, large trades have lower fees. Future trading fees start at 0.02% to 0.04%. Users who hold BNB, the native coin in Binance, enjoy discounts of up to 25% on transactional fees. Withdrawal fees in Binance change regularly but are consistently maintained at low rates.
• Binance Loan
All registered users at Binance can access Binance Loan. Loans range from weeks to months, depending on the terms. The interest for the loans is calculated at a rate of 0.001667 per hour, about 0.04% per day.
• Staking rewards
Like other crypto exchanges, Binance offers users staking rewards for staking different coins on the platform. Staking can be compared to earning interest from an account in the bank. Staking rewards are shared between all the users who stake their coins during the specified period
• Binance Earn
Binance offers different opportunities to grow crypto assets for users who intend to hold (HODL) for a long time. They include:
- Savings
- BNB Vault
- Launchpool
- ETH 2.0 Staking
- Locked staking
• Credit/Debit card
The partnership of Simplex and Binance offers a brokerage service with Credit and Debit card support. It encourages further usage of crypto assets apart from trading. This service comes at a high premium of up to 4.5% for USD deposits.
• SEPA/Wire transfers
Binance integration with third parties has allowed easier deposits. Using SEPA and Bank transfers, users buy cryptocurrencies directly. This feature attracts no fee at all for all the transactions. It is, however, limited to a few fiat options.
Customer Service
In Binance, there are three options to submit a complaint and inquiries. They include:
- Filing a form on the website for an email response and processing a ticket.
- The official Binance Customer Service account on Twitter (@BinanceHelpDesk).
- An in-app chat box option is available in all the Binance platforms at the footer but lacks a Live-chat feature.
Security
Binance is generally perceived as a safe exchange with frequent mobile updates and security fixes. It also has a robust Login system and 2FA procedure with biometric verification options. Binance uses Trust wallet to store users’ crypto assets.
On May 7, 2019, the exchange suffered a massive cyberattack where the hackers got away with close to 7000 Bitcoins, but users were refunded fully. Binance further claims to have an emergency insurance fund (SAFU) for their users in case of losses.