Is Binance a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether Binance is a good crypto exchange to start trading with. In this article you will learn whether Binance is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker Binance
The Binance exchange is one of the largest cryptocurrency exchanges in the world with its headquarters in Hong Kong. According to the CoinMarketCap cryptocurrency portal, Binance holds the top spot in terms of aggregate indicators of the platform's daily turnover, the number of novices and active users, liquidity, and web traffic (ranking, queries, statistics in search engines, etc.). The exchange is also a cryptocurrency startup that has its own “native asset” used in the Binance ecosystem as the “basis gas” (payment internal unit). More about Binance Card
| 💰 Account currency: | EUR, USD, other currencies, and cryptocurrencies |
| 🚀 Minimum deposit: | From $1 |
| ⚖️ Leverage: | Up to 1:125 |
| 💱 Spread: | 0.1% |
| 🔧 Instruments: | Cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
Binance Pros and Cons
👍 Advantages of trading with Binance:
•low commissions due to liquidity and trading volumes.
•high platform performance;
•proprietary BNB Coin which allows Binance to reduce the commission size;
•a proprietary cold wallet guarantees the security of your crypto assets by storing them.
👎 Disadvantages of Binance:
•complex verification procedure;
•the exchange is not licensed by a regulator;
•The platform can go offline without warning;
•there are complaints about the technical functionality of the platform;
•there is an intricate mechanism for calculating commissions and rewards (grid system Maker/Taker).
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
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Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
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Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
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Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
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Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
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Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
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Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for Binance Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. Binance offers traders the following conditions.
| 💻 Trading platform: | Proprietary platform powered by TradingView |
| 📊 Accounts: | Demo, standard, P2P platform |
| 💰 Account currency: | EUR, USD, other currencies, and cryptocurrencies |
| 💵 Replenishment / Withdrawal: | Bankcard, credit cards, P2P cryptocurrency exchange, third-party services |
| 🚀 Minimum deposit: | From $1 |
| ⚖️ Leverage: | Up to 1:125 |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | From 0 |
| 💱 Spread: | 0.1% |
| 🔧 Instruments: | Cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | Yes |
| ➕ Affiliate program: | Yes |
| 📋 Orders execution: | Limit order, Market order |
| ⭐ Trading features: | Investment program available, copy trading |
| 🎁 Contests and bonuses: | Periodically |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of Binance commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
The Traders Union experts analyzed the Binance exchange’s trading terms for the difference in commissions. Exchange commissions depend on the following parameters: the trader's activity (trading turnover per month), the volume of the traders’ investments in the BNB exchange token, on the asset type. There is a withdrawal fee the size of which depends on the name of the cryptocurrency.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | from $6 | Yes |
Investment programs of Binance
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. Binance offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
Binance investment programs are integrated into the active trading functionality. If you buy/sell cryptocurrencies you will automatically get extra bonuses that can be used to reduce commissions. There are also classic investment programs based on their proprietary BNB token, which are analogous to deposits.
Maker/Taker and Lending/Staking — the heart and mechanism of investment
Maker/Taker is Binance's investment program that accumulates commission discounts based on trader activity. A “Maker” is a person who sets pending orders; a “Taker” sets market orders. A trader is assigned a level from Regular User to VIP 9 depending on the aggregate monthly turnover and the BNB holdings. The higher the level, the lower the commission for buying/selling cryptocurrency. Users have the option to receive a 25% discount on trading fees when paying by BNB.
Examples of Spot and Margin trading commissions:
Regular User. Turnover less than 1,000,000 USD per month (equivalent), Maker/Taker commission is 0.1/0.1, and 0.075/0.075 if paid with BNB, respectively;
VIP 4. For turnover of more than 100,000,000 USD and BNB balance over 500 BNB, commissions shall be: 0.042/0.054 and 0.0315/0.0405;
VIP 7. For turnover of more than 800,000,000 USD and BNB balance over 3000 BNB, commissions shall be: 0.024/0.036 and 0.018/0.027.
Lending is an investment program that provides for investments in individual deposit projects or structured products. Staking means getting extra profit for storing cryptocurrency on a Binance account with blockchain. Staking also implies the ability to connect to the Binance Pool for Bitcoin mining.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
Binance affiliate program
This is a classic referral program with cashback. It provides for getting up to 40% of the commission paid by the referral.
Cashback with a partner's balance of up to 500 BNB is up to 10%; with more than 500 BNB it is up to 20%.
Conclusion. Is Binance good for beginners?
The Binance cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, Binance could be considered as a good cryptocurrency exchange for a start.
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FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.