What is Binance? Learn About the Binance Exchange (in detail) - Honest crypto news

How do you use Binance to buy, sell, deposit, and withdraw coins and tokens safely and quickly? In this article, coinrin Insights will guide you through how to use Binance in a detailed and effective way

What is Binance?

Binance is the world’s largest cryptocurrency exchange by trading volume, with over 1000+ trading pairs. It was founded in 2017 by Changpeng Zhao in China.

In early July 2017, Binance conducted a fundraising round through an Initial Coin Offering (ICO). Thanks to the impressive profile of its CEO, the Binance exchange project quickly attracted attention from the community. The ICO, which ran from July 1st to July 21st, 2017, raised $15 million and had over 20,000 registrations in the first few days

*The head of Binance is Changpeng Zhao (also known as CZ). He is the former head of development at Blockchain.com and the co-founder and CTO of the once-popular exchange OKCoin.

Which country is Binance from?

When it was first established, Binance was headquartered in China.

However, when the country tightened regulations on cryptocurrencies, the exchange moved its offices to Hong Kong and Japan.

Unfortunately, Binance still ran into legal trouble in Japan. As a result, in March 2018, Binance left Japan and relocated to the island nation of Malta.

Basic Information about Binance

Name: Binance
Type: Crypto exchange
Founded: 2017
Founder: Changpeng Zhao (CZ)
Headquarters: Malta
Website: https://www.binance.com

Binance’s Extensive Ecosystem

While Binance was once simply a cryptocurrency exchange, its ecosystem has now expanded to include:

Binance CEX: A centralized exchange for cryptocurrencies and blockchain assets, with various trading options such as Binance Margin, Futures, and P2P.
Binance Institutional: Provides VIP traders with access to professional exchange services and OTC trading. Binance’s experienced team works closely with various market participants.
Binance DEX: A decentralized exchange.
Binance Research: Specializes in market analysis and reports.
Binance Academy: Provides comprehensive knowledge about the crypto and blockchain market.
Binance Charity: A charitable foundation.
Binance Labs: A venture capital fund.
Binance Broker: A brokerage program that includes Widget Broker, API Broker, and Exchange Broker.
Binance Cloud: Helps businesses build their own exchanges.
Binance Launchpad: A platform for launching tokens.
Trust Wallet: Binance’s official cryptocurrency wallet.
Binance NFT Marketplace: An NFT marketplace that allows for the buying, selling, and trading of NFTs on Binance.

To learn more about Binance’s products and its journey, you can refer to the Binance ecosystem overview.

Guide to Creating an Account on Binance

First, users should register a Binance account using the link below to receive a promotional offer of 100 USDT in trading fee discounts:

You can then customize the language in the top right corner of the screen.

Next, enter the following information: Email and password. Then click on “I agree…” and click “Create Account”.

Note: Type directly into the information fields. The password must be at least 8 characters long and contain at least one uppercase letter.

Hover your mouse over the puzzle piece and drag it from left to right to fit into the image.

After that, Binance will send you a confirmation email with a verification code.

Enter the 6 digits from the email into the 6 boxes in the “Email Verification Code” section on Binance.

That’s it! You have successfully registered a Binance account!

Guide to Securing Your Binance Account

Setting up 2FA Security

On the welcome screen after successfully registering on Binance, select “Go to Dashboard”.

Next, Binance will display a popup window requesting Security Verification, including:

Phone Verification.
Google Verification.

Here, I will select Google Verification.

Binance will ask you to download Google Authenticator to your mobile phone. You can search for the app by name on the App Store for iOS or Google Play for Android.

After you have installed Google Authenticator, select “Next”.

The screen will display a QR code and a string of characters for you to add Binance to Google Authenticator. Now, open the Google Authenticator app you just installed on your phone and select “Begin”. Scan the QR code or enter the key string → “Add”.

Go back to the Binance screen on your computer and select “Next”.

In Step 3, as Binance mentioned, write down the code below (Key) on a piece of paper and keep it in a safe place. In case you lose your phone, this will help you recover your Google Authenticator.

After saving the code, select “Next”.

In the final step, there are 2 codes you need to enter to complete the verification process:

Select “Click to get code“. A 6-digit code will be sent by Binance to the email address you used to register. Enter that code in the “Email Verification Code” field.

Open Google Authenticator on your phone ⇒ get the 6-digit code and enter it in the “Google Verification Code” field.

Then select “Submit”.

Once this step is completed, Binance will notify you that the setup is successful and take you back to the main screen. You have now successfully completed KYC.

With this account, you can withdraw up to 2 BTC per day.

However, I recommend that you complete KYC verification in the next step to better secure your account, as well as increase your withdrawal limit to 100 BTC per day.

Guide to Basic Identity Verification – KYC

KYC helps increase security and also increases the withdrawal limit for your account. To better understand the importance of KYC, you can refer to: Why is KYC verification necessary?

Go back to the account overview page, select “Settings” ⇒ Select “Identification“.

Select your country and current region of residence. Here, I will select Vietnam ⇒ “Next”

There are 3 KYC levels including: Basic KYC, Intermediate KYC, and Advanced Professional KYC. You can choose the KYC level that suits your needs.

I will perform Basic KYC and select “Verify Now”.

Fill in the required information as below:

Nationality.
ID card number.
Full name.
Date of birth.
Home address.
Postal code: The postal code of your place of residence. You can enter 700000 if you live in Ho Chi Minh City; 100000 if you live in Hanoi. Those of you in other provinces can look up the zip code.
City: The name of the city/province where you live.

After that, fill in all the information and click “Confirm”. You have now completed the basic KYC verification!

Binance’s support team will verify your profile within 10 days (in reality, they work quite fast). If rejected, you will be asked to repeat the verification steps above.

Guide to Depositing and Withdrawing Funds on Binance

Go to the Binance homepage, select “Wallet” ⇒ Click on “Fiat and Spot”.

How to Deposit Funds on Binance

In the Wallet area, select “Deposit” ⇒ Choose “Crypto Deposit”.

Alternatively, you can enter the ticker symbol of the coin you want to deposit in the “Search Coin” field and select “Deposit”

Here, I’ll use BTC as an example. You can follow the same process for other coins!

The next thing you need to do is deposit Bitcoin to the displayed wallet address.

Important: Only deposit the corresponding coin to its specific wallet address. Do not send other coins to this address!

How to Withdraw Funds from Binance

In the Wallet area, select “Withdraw” ⇒ “Crypto Withdrawal“

Then, select the coin and fill in the required information. Once you’ve entered everything, submit the withdrawal request and you’re done!

Guide to Trading on Binance Spot

To buy and sell Bitcoin and Altcoins on Binance, select “Trade” and then “Classic” as shown in the image below.

The “Advanced” trading interface has more details and may not be as user-friendly for beginners. Therefore, you can choose “Classic” and it will be perfectly fine!

The trading interface will appear. You can watch the spot trading tutorial video provided by Binance for a more detailed understanding.

Next, select the trading pair you want to buy/sell in the upper right corner of the screen.

The Binance Spot trading interface will appear with the following information:

The chart in the middle is a candlestick chart that helps track the price movements of a coin over time.
The red column on the left side shows the sell orders for the coin.
The green column below the red column shows the buy orders for the coin.
The two “Buy/Sell” panels below are for placing orders

Binance provides you with familiar order types such as Limit, Market, and Stop-Limit.

To buy/sell coins, enter the price and quantity ⇒ click “Buy/Sell” and you’re done.

Guide to Using Binance Futures

Opening a Binance Futures Account

Before opening a Binance Futures account, you need a regular Binance account as I instructed earlier.

To create a Binance Futures account, go to “Derivatives” ⇒ select “USDⓈ-M Futures”.

Click on the “Open now” button to activate your Binance Futures account. That’s it!

Transferring Funds to Binance Futures

You can transfer funds back and forth between your Exchange Wallet (the wallet you use on Binance) and your Futures Wallet (the wallet you use on Binance Futures).

To transfer funds to your Futures Wallet, click on the “Transfer” icon on the right side of the Binance Futures page

Select the coin and enter the amount you want to transfer ⇒ Click “Confirm”.

Once completed, you will see the balance added to your Futures Wallet.

In case you want to transfer funds back from your Futures Wallet to your Spot Wallet, you can change the transfer direction using the double arrow icon as shown in the image below:

Binance Futures Interface

The main Binance Futures interface consists of 5 areas:

Area 1 – Basic Information.

Area 2 – Price Chart.

Area 3 – Order Book and Trade Orders.

Area 4 – Order Placement Area.

Area 5 – Open Positions and Balance History.

Area 1 – Basic Information:

Select a trading pair
View current price and other metrics

Area 2 – Price Chart: Displays the price chart, allows you to select timeframes, and add technical indicators for analysis.

Area 3 – Order Book and Trade Orders:

Order Book: Displays the current buy (long) and sell (short) orders waiting to be filled.
Trade Orders: Shows a record of successfully executed trades.

Area 4 – Order Placement Area

Area 5 – Open Positions and Balance History:

Open Positions
Orders: Shows a list of your pending orders that are waiting to be filled.
Order History: Provides a comprehensive history of all the orders you have placed.
Trade History: Shows a record of all your executed trades, including profit and loss statistics for each trade.
Balance History: Allows you to view the changes in your Futures account balance over time.

Guide to Buying NFTs on Binance NFT

To trade NFTs on the Binance NFT Marketplace, visit: www.binance.com/en/nft/home

Step 1: After logging into your account, on the homepage, select “Marketplace“.

Step 2: Choose your preferred NFT. Here, I will use Egg Watch Creatures as an example.

Step 3: There are 2 options:

Make Offer: Place your desired bid. This purchase method is similar to an auction.
Buy Now: Purchase immediately at the listed price.

Since this is an inexpensive NFT, I will buy this NFT immediately by clicking “Buy Now“.

Step 4: Choose the wallet and currency to use for payment.

Payment Method: You can use your Funding Wallet or Spot Wallet to make the purchase.
Payment Currency: The default is BUSD. If you do not have BUSD, check the box to use another currency, and Binance will automatically convert it to BUSD.

After making your selections, click “Confirm“.

Step 5: You have now completed the purchase of the NFT on Binance NFT. Click “OK” to finalize the transaction.

Guide to P2P Trading on Binance

Peer-to-Peer trading involves direct transactions between users, with Binance acting as an intermediary. The supported assets mainly include top coins in the market such as BTC, ETH, USDT, BUSD, etc.

Step 1: Go to the Binance homepage, select “Trade” → “P2P Trading”

Step 2: Select “Buy” or “Sell” according to your needs, then choose the asset you want to buy and the desired fiat currency.

For example, if you want to buy USDT with VND, select Buy → USDT → VND.

Step 3: Choose a seller. Each seller will have a different trade success rate and transaction volume. Some sellers have minimum and maximum transaction limits. After selecting a seller with a suitable exchange rate, click “Buy USDT”.

Step 4: Enter the amount you want to buy (in USDT). The system will automatically convert it to the amount of VND you will pay. After entering the amount, click “Buy USDT”.

Step 5: Go to your bank’s money transfer app and transfer the money according to the seller’s account information. In the transfer note section, simply copy the ORDER NUMBER to avoid any interruption in the transaction.

Step 6: After the money transfer is complete, you just need to confirm the transfer and wait for the seller to release the order. The USDT will be automatically added to your account.

For selling, simply switch to the “Sell” tab and follow the same steps. If you encounter any problems during the transaction, you can contact Binance Support for timely assistance.

Guide to Using Other Features on Binance

Placing Stop-Limit Orders

The Stop-Limit function is used to take profit, cut losses, or buy more coins without having to constantly monitor the computer screen. Another extremely useful aspect of this feature is that it helps traders hide their buy/sell prices. In particular, whales in the crypto market often use Stop-Limit orders to dump their holdings and suppress prices.

Read more: The influence of whales in the Crypto market

Let me explain a little more about the Stop-Limit feature for those who are not yet familiar with it!

Stop-Limit operates on the IF-THEN principle.

This means that if the market price reaches the Stop price, the system will automatically create a buy/sell order at the Limit price with a specified quantity of coins.

Example: I want to take profit on 100 BNB at a price of 0.00072600 BTC, but the current price has only reached 0.00072399 BTC. I will create a Stop-Limit order as shown in the image below.

When the BNB price reaches 0.00072500 BTC, the system will automatically create an order to sell 100 BNB at a price of 0.00072600 BTC.

You can follow the same steps for Buy orders!

Using Binance API Keys

For those who need to use tools to trade or manage their portfolio, API Keys are essential.

To create a trading API, in the Dashboard interface, select “API Management”.

[Next, enter the API Key name in the field and select “Create API”.

You can enter any name you like. This is mainly to help you remember one API from another if you use multiple apps that connect to Binance. After that, Binance will ask for confirmation to create the API.

Once the confirmation is successful, you have successfully created a new API key!

This API will have the information as shown in the image below. Remember to save the “Secret Key” for backup purposes!

How to Get Your Binance Referral Link

Binance was the pioneer in rewarding users with commissions for inviting new users to the platform. To this day, the referral program is still in effect on Binance. However, the commission rate has been adjusted over time.

To get your referral link, go to the Dashboard and select “Referral”. Binance will provide you with a referral code and a referral link.

The code is for entering into the referral code field when creating a new account. If your friend uses your referral link directly, they won’t need to enter the referral code.

Typically, users will receive a 20% commission for each trade made by a referred account. If you hold at least 500 BNB in your account, you will receive a 40% commission for each trade. With this policy, the more people you invite and the more they trade, the greater your passive income will be.

How to Handle Losing 2FA

If you lose your 2FA on Binance, first check if you saved the 16-digit key when activating Google Authenticator. If you have saved the key, simply enter those 16 digits back into the app and Google Authenticator will automatically regenerate a new code for you.

Binance will notify you via email, asking you to confirm that you are creating a new 2FA. Then, the exchange will ask you to open the Binance app on your phone to scan your face, similar to the identity verification step above. Just follow the steps.

In case you no longer have the key, quickly submit a request to Binance support [here – insert link to Binance support].

How to Contact Binance Support

Binance’s support team works quite quickly and efficiently. You can submit a support request [here – insert link to Binance support].

Or contact them on the Binance Telegram channel:

Vietnamese Telegram channel: https://t.me/BinanceVietnamese
English Telegram channel: https://t.me/BinanceExchange

What are the Advantages & Disadvantages of Binance?

Advantages of Binance

Some of the advantages of Binance include:

Currently has over 1000 trading pairs: This is an incredibly large number. Almost all altcoins that users want to trade are available on Binance.
Multilingual support: Notably, Vietnamese is one of the earliest languages supported by the exchange. In addition, Binance has a dedicated team and a Telegram channel specifically for Vietnamese support. This makes it easy to use Binance without worrying about language barriers.
Referral program with commissions up to 40%: In fact, Binance was the pioneer in rewarding users with referrals. Thanks to this, you can earn a significant amount of passive income if you invite many other people to join the exchange.
No KYC required to withdraw up to 2 BTC per day: Unlike other exchanges that require KYC to withdraw funds (such as Poloniex, etc.), users can use Binance for small transactions without providing too much personal information.
Extensive cryptocurrency ecosystem.
Secure Asset Fund for Users (SAFU): 10% of trading fees on the exchange are transferred to this fund to insure users’ assets.
Variety of trading options for you to “skin in the game”: Trade spot, margin, OTC, or P2P on Binance.

Disadvantages of Binance

As a popular cryptocurrency exchange worldwide, Binance is also a high-profile target for attacks (hacks).

In 2018, Binance experienced some unfortunate incidents. Specifically, in July, an unknown coin was traded for up to 96 BTC. This case was suspected to be a hacker attack or possibly Binance taking advantage of the opportunity to manipulate prices.

Fees on Binance

Trading Fees

Binance currently applies a Maker-Taker fee model based on 30-day trading volume:

For regular accounts with less than 100 BTC in trading volume (within 30 days), the buying and selling fees on Binance are 0.1%.
If you trade over 100 BTC (within 30 days), or hold 50 BNB or more, Maker orders only pay 0.09% fees, and Taker orders pay 0.1%.

The more you trade or (and simultaneously) hold BNB in your account, the more you will save on trading fees. You can see the detailed fee structure [here – insert link to fee schedule].

In particular, Binance encourages users to use BNB to reduce trading fees. You will receive an additional 25% discount on fees if you pay with BNB.

Deposit and Withdrawal Fees

Similar to many other cryptocurrency exchanges, depositing coins on Binance is free. Withdrawal fees will vary depending on the coin.

Frequently Asked Questions About Binance

Is Binance a scam? Should I trade on Binance?

To date, Binance has not been involved in any scams. The fact that Binance was able to quickly rank among the most popular exchanges is partly due to its reputation.

Furthermore, Binance allocates 10% of trading fees to the SAFU Fund. This is an insurance fund to protect users’ assets in case of loss on the exchange. Therefore, you can rest assured about security on Binance!

However, I usually advise users not to store all their coins on an exchange. Therefore, to be safe, you should only keep enough coins to trade on Binance. The rest should be withdrawn to your personal wallet for safekeeping!

Regarding the question of whether you should trade on Binance, I think you should.

For newcomers to the market, Binance is easier to use and more secure than other exchanges. Moreover, Binance has good Vietnamese language support and a large Vietnamese user community. A large community will help answer your questions quickly and easily. In addition, Binance is always in the top 5 exchanges by trading volume.

In terms of adjusted volume on Coinmarketcap, Binance currently ranks first with over $1.2 billion traded daily on the exchange. Long-time market participants can still choose Binance for coin liquidity.

Based on my observations of order books, you can comfortably buy and sell between 2-50 BTC on Binance

Has Binance ever been hacked?

Technically, Binance has not been directly hacked, but the exchange did experience an incident related to its API gateway. Specifically, in early July 2018, users discovered that one SYS coin was traded for 96 BTC on Binance.

After investigation, the exchange team found that the error came from the API gateways. Hackers had exploited APIs linked to insecure third-party applications to attack Binance. Binance then announced system-wide maintenance to reset the API gateways. Since then, Binance has not experienced a similar incident.

From this incident, I believe that if it’s not essential, you shouldn’t use APIs. Or if you need to, only use services with high reliability.

On May 8, 2019, Binance announced that 7,000 BTC (equivalent to $40,000,000 USD) were stolen from Binance by hackers. The reason given by Binance was that hackers attacked through user APIs. Specifically, they exploited user APIs and Google Authenticator 2FA. Binance used the #SAFU fund to reimburse users who were affected by this hack. Binance temporarily closed API access to investigate and fix the security vulnerability.

This was the second time Binance was hacked through its API gateway, and no one can guarantee that it won’t happen a third time. If you use the API, you should only grant the API permission to trade and check account information, and not grant permission to withdraw or deposit through the API.

Does Binance often experience maintenance issues?

Maintenance is essential for any exchange, and Binance is no exception! They often perform maintenance to upgrade the system and ensure smooth operation. During this time, you will not be able to deposit, withdraw, or trade coins on the exchange.

Usually, before conducting maintenance, Binance will notify users through its official channels. You can follow Binance’s social media channels to stay informed about important events!

Which country is Binance from? Does it support Vietnam?

As I introduced at the beginning of this article, Binance was first established in China. CEO CZ and the early team members were mostly of Chinese origin. Later, due to Beijing’s tightening of regulations on cryptocurrencies, Binance moved to Hong Kong and Japan.

However, Binance still faced legal challenges in Japan, as the Japanese government wanted to protect domestic exchanges. Therefore, Binance moved its office and legal registration to the European island nation of Malta.

In addition, Binance has offices in many countries, including Singapore, the UK, and Hong Kong. Since expanding into the international market, Binance’s staff has become much more diverse. At the very least, Binance has customer support teams in each specific country where it operates.

For example, despite not having an office in Vietnam, Binance still has a team of Vietnamese employees for support, communications, and event organization in the country.

Most recently, Binance also posted job openings for Russian-speaking staff.

Binance currently supports 15 languages, and Vietnamese was one of the earliest languages supported. Perhaps the exchange also recognized the large number of traders in Vietnam and prioritized Vietnamese language support. In addition, Binance currently has a support team on the Vietnamese Telegram channel, so any questions can be easily answered.

The Binance Vietnam team also organizes many meetups and seminars in both Ho Chi Minh City and Hanoi for you to interact directly and improve your understanding of Binance and the cryptocurrency field.

What is the Binance Platform Coin?

On July 1, 2017, Binance launched Binance Coin (BNB) to raise capital through an ICO.

BNB is an ERC-20 token, built on the Ethereum blockchain:

ICO Price: 1 BNB = 0.1 USD.
Highest Price After Listing: 1 BNB = 25.42 USD.
Highest ROI: 25,320%.
Total Supply of BNB: 189,175,490 BNB.
Current Circulating Supply of BNB: 141,175,490 BNB.

Notably, Binance has a quarterly coin burn policy to reduce the total supply, thereby driving up the price of BNB. With the launch of the Binance Chain Mainnet, BNB transitioned from being an ERC-20 token on the Ethereum platform to Binance Chain with the BEP2 standard.

You can still deposit BNB ERC-20 tokens into your ETH wallet, and the exchange will automatically convert them to the new token. Binance Coin (BNB) has many uses within the Binance ecosystem. You can use BNB to reduce trading fees and to participate in IEOs on Binance Launchpad.

BNB isn’t just used within the Binance ecosystem. You can use Binance Coin with other services as well:

Pay for restaurants and hotels while traveling through TravelbyBit.
Make purchases in the XPOS machine game store, through PundiX.
If you have a business, you can accept payments in BNB through Coinify.
… and many more use cases for BNB. See more information here: https://binance.com/en/use-bnb

Where can I buy and sell BNB?

Besides Binance, BNB is also listed on Bitmax, Gate.io, HitBTC, and other exchanges. With its presence on so many exchanges, it’s no surprise that BNB has high liquidity.

Is KYC required to withdraw funds?

With Binance, you don’t need to complete KYC to withdraw up to 2 BTC per day. This is ideal for those who are trying out the platform or trading with small amounts.

However, I always recommend completing KYC and enabling 2FA to better protect your account. It’s worth noting that KYC Level 2 is required to participate in IEOs on Binance Launchpad.

What are the deposit and withdrawal limits?

For non-KYC accounts (Level 1), the maximum withdrawal limit is 2 BTC per day.
For KYC-verified accounts (Level 2), the maximum daily withdrawal limit is 100 BTC.

For organizations (such as businesses and corporations), the limit can be even higher if the organization provides more information as requested by the exchange.

Summary

Binance is a familiar name to users in the cryptocurrency market. It’s incredibly popular, and that’s enough to show how attractive this exchange is!

Binance was able to quickly gain popularity in the community because it was a pioneer in many activities: issuing the first exchange coin, launching the first referral program, and leading the IEO movement.

In addition, the Binance interface is quite user-friendly and offers full support for multiple languages. Therefore, for those who are new to the market, I recommend trying out Binance first. In particular, you should hold some BNB in your account to receive benefits, such as a 25% discount on trading fees.