Finance

Binance.US: review

In 2019, Binance stopped accepting American customers, after which they started to work with its US partner, Binance.US. As well as other prominent decentralized exchanges, it gives users an opportunity to earn from crypto, while offering very low fees. However, the platform still has a long way to go, with its regulation issues and insufficient transparency. Let’s look at all pros and cons of Binance.US. 

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Binance vs Binance US: general info

Binance is one of the largest and most popular cryptocurrency exchanges, which was developed in China in 2017 by Changpeng Zhao. Today, Binance is available in more than 180 countries worldwide. As of now, Binance’s native coin (BNB) is the fourth-largest cryptocurrency by market capitalization. 

In addition, Binance has its own exclusive token launch platform called Binance Launchpad. This platform allows blockchain projects to collect funds and increase their reach across the blockchain ecosystem! 

Binance.US was developed in 2019 as a regulatory-compliant company for US residents, since Binance was no longer available in the United States. However, it is still unavailable in seven states and offers a very restricted functionality.

What states does Binance.US not support?

Binance.US is currently unavailable to users residing in the following states: Idaho, Hawaii, Connecticut, Louisiana, New York, Vermont, and Texas.

Services available on Binance.US

The DEX offers fewer features and cryptocurrencies than Binance. To start working on Binance.US, you should link a traditional bank account for deposits and a reliable crypto wallet (we recommend TrustWallet).

Binance.US is an interactive way to purchase, sell, trade and stake crypto in the US. Customers can manage their accounts from the convenient mobile app, which provides an ultimate trading experience.

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How long does it take to get verified on Binance?

The verification procedure may take up to a few days. After completing it, you will be able to conduct any transactions. 

Is Binance safe to use?

Binance has been increasingly scrutinized by global financial regulators over the past few years:

  • Authorities of many different countries have been looking into its operations. 
  • In 2021, the platform has suspended futures and derivatives products offerings in Italy.
  • Bloomberg has stated that there’s a U.S. investigation into Binance by the Commodity Futures Trading Commission (CFTC) and the Justice Department; however, no charges have been filed so far.
  • Binance’s corporate structure is non-transparent.

The platform has tried to solve its transparency problems by growing its compliance department 500% in 2021. It remains to be seen whether this decision will satisfy the regulators. 

Another issue of concern is hacker attacks. In 2019, hackers withdrew over $40 million worth of bitcoin from Binance.US. And two years later, Binance user lost almost $3 million in another crypto hack. However, power organs haven’t tried to close Binance. 

Is Binance.US reliable?

Unlike its parent company, Binance.US doesn’t have any issues with regulators. Nevertheless, the platform is much less transparent than many rival exchanges when it comes to security, customer service and store options. That’s why we recommend long-term investors to consider other options.

Best ways to store bitcoins on Binance.US

Binance.US has a custodial wallet, which allows users to store funds directly on the platform. However, most of them prefer keeping their assets on external wallets. We’d recommend sticking with Trust Wallet, as this platform supports more than one million cryptos across 50+ blockchains. Trust Wallet is considered one of the safest crypto wallets.

Range of cryptocurrencies

As of now, Binance.US offers only 65 digital assets. However, it’s still a good option considering that the platform supports the most popular currencies, including:

  1. Ethereum (ETH)
  2. Bitcoin (BTC)
  3. PAX Gold (PAXG)
  4. Harmony (ONE)
  5. Chainlink (LINK)
  6. Orchid (OXT)
  7. Helium (HNT)
  8. Stellar (XLM)
  9. Cardano (ADA)
  10. Tether (USDT), etc.

Most cryptocurrencies, including Ethereum, Bitcoin, Dogecoin, Solana, and Cardano, can be automatically bought and sold using U.S. dollars.

On Binance.US, you can trade a pair of cryptocurrencies without having to waste money on USD, as well trade between crypto and a fiat currency.

Last year, Binance.US stopped supporting Binance stock tokens, which enabled clients to buy a fraction of publicly traded companies’ shares with no fees. However, Binance.US doesn’t offer Safemoon pairs. 

How can I start trading on Binance.US?

As indicated, customers need to link a conventional bank account and a cryptocurrency wallet to carry out transactions. Not long ago, Binance.US only supported Binance Chain, but not the BEP-20. This necessitated the use of both MetaMask and Binance Chain wallet, both of which can be downloaded on Brave and Chrome.

But today, it is possible to establish a direct connection. Binance.US encourages the new customers to join the platform by offering them pleasant bonuses for trading the first $100. 

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The company’s Binance bridge service lets users access inter-blockchain liquidity until late 2021. It worked for applications running on the Binance chain and Binance Smart Chain. This feature has been shut down, which has made the global cryptosystem more fragmented. 

H2: How To Add Binance Smart Chain To Metamask 

After downloading Metamask for your desktop or mobile browser, you need to create a wallet and store your seed phrase in a secure location. By default, the system does not support BSC. If you send your funds to addresses associated with it, you can lose them for good! Do the following:

  • Go to settings.
  • Open Networks.
  • Click on the Add network button in the right-hand corner.
  • Add the following information into the field and save your selection:  
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How to buy crypto on Binance.US?

Binance.US offers both an easy buy/sell interface. However, the platform offers only three types of orders: limit, stop-limit and market. You can purchase cryptocurrency in a few simple steps: 

  • Go to your account.
  • Enter the amount (in US dollars) you want to spend.
  • Press the button “Buy Crypto”. 

Binance.US has such feature as recurring buys, which allows the users to automate the purchase of crypto.

Binance.US is a great option for experienced traders, as it features lots of advanced trading instruments, including charts, live order books, and stop and limit orders. 

Trading experience

If you want to start trading, you can click “Trade” to view market performance or make trade transactions on Binance’s advanced and over-the-counter trading portals. Binance.US is not a good option for beginners. It is more suitable for experienced Bitcoin investors, as the platform features a lot of sophisticated technical features, including TradeView, real-time pricing, a candlestick chart, and access to your order history.

Binance.US has a special team focused on helping institutional investors. This category of clients has access to an OTC trading portal, real-time pricing, lower fees and round-the-clock customer service.

How to deposit crypto?

It is very easy to deposit crypto into your account. It can be done in a few simple steps. Please make sure to enter the right address and select a crypto supported by Binance.US.

  • Enter to your account.
  • Head over to the Wallet page.
  • Click “Deposit”.
  • Select the cryptocurrency you want to deposit from the drop-down menu.
  • Copy the address or scan the deposit QR code.
  • Open your wallet and enter this address.

How to withdraw funds from Binance.US?

The withdrawal process is almost intuitive. To withdraw crypto from your account, you should click on the button “Withdraw”, and then:

  • Choose cryptocurrency you want to withdraw from the drop-down menu. Then type in the withdrawal amount.
  • Enter the withdrawal address by either choosing it from your whitelist or inputting it manually.
  • Click “Preview Withdrawal”.
  • You’ll receive an email asking for your confirmation. Confirm it.
  • To check the status of your withdrawal, go back to your account and press the button “Wallet”. 

Trading fees

The platform is famous for its low trading fees. For example, the maker/taker fees fluctuate between 0% and 0.1%. These fees are very low compared to the rival exchanges. However, there a few more ways to save even more:

  • Users who own Binance Coin (BNB) obtain a 25% trading fee discount. 
  • Instant buyer fees are only 0.5% (while users of Kraken Pro have to pay 1.5%). 
  • The platform has discount programs for high-volume traders.

Another benefit is that most of assests available on Binance.US can be purchased directly with US dollars. So, users don’t have to pay a double fee (first to convert dollars into a stablecoin, and then the stablecoin into the chosen crypto).

Fiat fees

Despite its low fees, Binance.US takes rather high fees for debit card deposits (almost 4.5%). Some platforms (such as CoinLoan) make it much cheaper to deposit funds by credit card, while Gemini even offers a few complementary deposits each month. 

The clients of Binance.US can also withdraw money for free, but only via ACH (automated clearing house). At the same time, wire transfer withdrawals cost $15 for domestic and $35 for international transactions.

Fees for deposit and withdrawal

Crypto deposits are generally free, while withdrawal fees vary significantly based on the crypto. 

For example, withdrawing Ethereum costs almost 100 times more than Algorand costs.

Ways to earn passive income

Customers tying up their assets on Binance.US for a specific period earn rewards. This allows Binance.US to maintain the development of certain blockchains. Binance.US currently allows users to stake XTZ, VET, EOS, ONE, ATOM, and ALGO. Storing these assets on the platform, you can earn up to 10% APY.

Binance.US doesn’t accept credit card deposits: benefits and drawbacks

As well as many other exchanges, Binance.US doesn’t accept credit card payments. Actually, it is almost always a bad idea to try to purchase crypto with a credit card. In this case, you may deal with high transaction fees, not to mention that you will take out a huge loan to make a risky investment.

Client support

The quality and availability of support are the most important factors for the clients who appreciate their safety. Unluckily, Binance.US customer support doesn’t have a telephone number. However, the company has an automated live chat function, where you can get answers to all your questions. 

Educational resources

Binance.US users have access to the educational library called Binance Academy, where you can find over 250 blockchain articles in many different languages. In addition, the platform has a particularly strong social media presence (including Facebook, Twitter, Instagram, Reddit, etc.)

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Binance.US: benefits and drawbacks

Binance has one of the most popular logos in the cryptocurrency industry. It is one of the largest exchanges offering low trading fees. However, the platform also has many shortcomings, such as regulation problems, lack of access in certain states, and a very small range of assets. 

Binance is especially attractive for the users looking for low trading fees and persons who strive to make passive income from staking crypto. Its sophisticated platform is perfect for experienced traders searching for progressive tools. Still, the weaknesses outweigh the strengths:

ProsCons
Extremely competitive trading fees25% discount when you use BNB to pay for trading feesPossibility to earn passively from stakingVolume discountsNo fee for depositing via ACH and wire transferNo fee for withdrawals via ACHSmall variety of tools and functions (in comparison with the parent’s company)Regulatory problems faced by BinanceLack of assets in some statesHigh charges for debit card deposits.Lack of phone supportInsufficient information about safety measures$10 minimum depositHigh withdrawals feesInterface may be confusing for beginners

Other platforms to consider

Users who give high priority to regulatory compliance (which is highly desirable), you should choose other crypto exchanges (for example, Gemini). Unlike most of its rivals, Gemini is available in all 50 U.S. states, and can boast a huge educational library.

Coinbase supports a lot more cryptocurrencies than Binance US. The company tries to enhance opportunities for clients by listing every cryptocurrency that may be lawfully included. However, it also has drawbacks, such as high fees. CoinLoan provides excellent conditions for trading, interest accounts, and the possibility of working outside the United States. 

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