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What is Binance?

By February 18, 2022May 27th, 2022No Comments

Binance is one of the cryptocurrency exchanges marked by its high trading volume, low fees compared to other exchanges, and other tools that it offers to new and experienced traders. It is also an exchange that has been marked by controversy since its launch.

What is Binance?

Binance is a a cryptocurrency exchange where traders can buy, trade, and exchange various types of cryptocurrency and perform other actions as well.

  • You can use a third party “wallet” called Trust Wallet which is used to hold your virtual coins
  • Access the Binance Academy which is a learning hub meant to cover the topics of trading, blockchain technology, fusion systems, and the pros and cons of other cryptocurrencies
  • Binance Charity is a not-for-profit that allows traders to donate to various charities and causes
  • Binance Info is like an encyclopedia that further enhances knowledge

Like any other exchange, Binance charges trading fees. There may be fee discounts for traders who work at higher volumes.

What’s the Difference Between Binance and Bitcoin?

Both Binance and Bitcoin have their own coins. Both are a trading platform that deals with multiple types of crypto. Both charge fees for trades, both offer different types of crypto wallets. The differences may come down to public opinion and trading volume.

  • Binance branding has fallen into some dark times and the exchange is not only blocked in several countries, but it is also under criminal investigation in several others
  • The Binance platform is severely limited in the few areas that it is being allowed to operate at this time
  • The transaction fee for Binance is slightly lower per trade than with Bitcoin. High-volume traders are given encouragement through the use of financial incentives to continue trading through the exchange.
  • Bitcoin is the name most readily recognized when people who are not familiar with crypto approach the topic. Many mainstream merchants are taking Bitcoin now.

Is Bitcoin on the Binance Blockchain?

Yes, Bitcoin is available on the Binance Blockchain. Numbers vary by the exact version of the blockchain that you are on.

  • Binance has over 200 coins that can be bought, sold, traded, or held.
  • Binance US has around 64 different types of coins including the Binance coin, Bitcoin, and other of the most popular crypto types.

Is Binance a Chinese Company?

Binance was initially based in China but moved to a new location based on the number of new restrictions and regulations being placed on cryptocurrency exchanges, and crypto coins.

  • Binance is now headquartered in the Cayman Islands.
  • Binance US is located in the US and is currently under investigation for crimes including money laundering and tax evasion.
  • Binance has been banned from several countries around the world.

Is Binance Cheaper than Coinbase?

The best answer is yes and no. The answer might also depend on where you place your value.

  • In terms of the transaction fee, Binance does have lower fees than Bitcoin and is also more willing to push for more trades by incentivizing higher trade volumes.
  • Binance is probably best for hit and skip traders who like to buy and sell at faster rates and rarely hold onto coins for any length of time.
  • Coinbase is not only better in terms of trustworthiness, is more widely available.
  • Coinbase is better for the buy and hold type of investors.
  • Coinbase may also be better for people who are new to trading and just learning.
  • You are going to pay fees on any exchange that you use, so it is important to learn how each crypto exchange operates and determine which will meet your immediate and long-term financial goals.

Tip: Sign up for Coinbase through the free Swagbucks rewards site, get a free $30 cash bonus.

What are Some Alternatives to Binance?

There are several alternatives to Binance that can be used to buy many types of crypto including the Binance coin in some cases.

Coinbase does offer Coinbase Pro which is meant for the more serious investor. It may be more competitive with the Binance exchange in terms of fees. the initial coin offering on Coinbase Pro may be more diverse as well.

Robinhood is meant to be the investing tool that keeps fees as low as possible and may also be more beginner-friendly than the Binance exchange. You can buy Bitcoin plus a number of other types of coins with your Robinhood account.

Acorns, the app-based banking, and investing tool announced that it may consider adding crypto to its offerings at some point in the coming year. At that time it will allow its customers to buy and sell crypto, invest, and do other tasks to further diversify their portfolio.

It is important to remember that the price of all crypto is nearly always changing and can fluctuate several times per day. Certain coins do tend to have a steadier rise and fall pattern but there may be little security in this type of currency at this time.

Bottom Line on Binance

If you are looking for a good investment with some sense of security and little risk, you might be better off buying a stack of lottery tickets and praying. Any company that has more than one major criminal complaint that is not yet resolved may be a bigger risk than the average investor should be willing to take.

This is not the only cryptocurrency platform and even with the slightly lower fees, the potentially bad things that could happen outweigh the savings of a small bit of money. Wouldn’t you rather pay slightly higher fees to know that your account is not about to be seized, frozen, and tied up during what could be a lengthy investigation?

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