Cryptocurrency trading is like walking on thin ice. One wrong decision can cost you thousands of dollars. That is why it is important to choose the right digital currency exchange.
Binance is one of the most popular and largest US-based cryptocurrency platforms. It offers a wide range of cryptocurrencies, along with features like staking, payment services, and peer-to-peer crypto payments. Additionally, it also offers institutional assistance, instructional materials, and more.
In 2020, Binance made a profit between $800 million to $1000 billion. As of October 2021, it has nearly 28.6 million users worldwide.
That’s quite a reputation, is it not?
In this article, we will discuss whether Binance is suitable for cryptocurrency trading. By the end of this article, you will be able to make the decision.
Understand the positives
Binance supports nearly 500 cryptocurrencies worldwide which is the highest among other exchange platforms.
It also has its own cryptocurrency called Binance coins. This coin is restricted to a max of 0.2 billion BNB tokens and operates on the Ethereum network using regular ERC 20.
It doesn’t matter whether you are a new or an experienced crypto trader. Security is always the primary thing on your mind. Mt.Gox, which contributed to more than 70% of crypto tradings in 2010, went bankrupt in 2014. Turns out, it was not secure enough.
Binance is 2FA verified and insured by FDIC which makes it a highly secure platform for your transactions. It allows you to use a third-party e-wallet called TrustPilot to handle your payments.
Know the negatives
If you are a US resident, you must know that you cannot use Binance. Instead, you will have to use Binance.US which has a higher fee as compared to other crypto exchange platforms. Moreover, it is limited to just 52 cryptocurrencies which starkly narrows down your options.
Another drawback of Binance exchange is that it is a bit complex to use. This makes understanding the exchange platform quite challenging for people who are relatively new to this trading.
Wrapping it up
Now that we have come to the end of this article, hopefully, you have decided whether or not to use Binance for cryptocurrency trading. Remember, it is important to choose the right digital exchange. One wrong decision may cost you several thousand dollars.
Binance is an excellent choice for you if you are a non-US trader looking for minimal costs and a variety of payment options. It also offers several order formats and advanced trading features.
However, for a US trader, Binanace.Us is a better option.
Whether you choose Binance or some other exchange, go for the one that has all the tools you will need for cryptocurrency trading. A good exchange will allow you to grow as a trader now and in the foreseeable future.
