The interest in cryptocurrencies is increasing year by year especially with the global health crisis we are experiencing. Acquiring cryptocurrencies is accessible to everyone. Today, users who want to trade in cryptocurrency are heading to exchange platforms or “exchanges”. Binance is one of the market’s stalwarts as it offers a wide range of crypto assets and fairly low fees on an international scale! However, it faces many criticisms. This is why Financial Fraud Lawyers network gives you its opinion on Binance trading.
What is Binance trading?
Binance is a trading platform specialising in cryptocurrencies. Established in 2017 by founder Changpeng Zhao, the trading platform has expanded rapidly with several million dollars raised in less than two weeks.
Between 2019 and 2020, Binance acquired several companies, including the reference site CoinMarketCap for USD 400 million.
Today, Binance allows you to trade over 150 cryptocurrencies, such as Bitcoin (BTC), Ether (ETH), Polkadot (DOT), Litecoin (LTC) and even Binance Coin (BNB), which is the native currency of Bitcoin Virtual. The Binance trading platform has over 400 trading pairs in total (e.g. BTC / ETH). Binance has also developed a mobile app that allows users to trade anytime, anywhere. It is available on iOS and Android.
The Binance trading platform operates in many countries, including France, and provides an international translation platform in over 40 languages including French, Chinese and Russian. The uniqueness of the Binance broker is that it is not limited to simple cryptocurrency trading platforms. In fact, Binance features a huge ecosystem: Visa cards, possibility of staking, launchpad, etc… about which we will tell you at the end of this article.
Binance has been banned from trading in some countries, including Thailand, Japan, the United States and Malta. In response to these allegations, the company launched Binance UK, an FCA-regulated exchange, and Binance US.
Binance has over 15 million users, 1.4 million trades per second and an average trading volume of USD 2 billion. It is apparently a reliable platform, although it is not regulated by the French AMF or the European CySEC.
In terms of platform security, the brokers have implemented several devices. Binance provides two-factor authentication (2FA) via the Binance Authenticator app or Google Authenticator to protect user accounts and their transactions. You can also activate the anti-phishing code to ensure that the email you receive is from Binance.
In order to fight money laundering, Binance also needs some personal information to meet KYC (Know Your Customer) requirements. Finally, on its website, the broker also offers suggestions for improving account security: use a password manager, check the URL consulted, encrypt your connection, etc.
In addition, most of the users’ assets are stored in “cold” (offline) wallets, and only a small part is stored in online wallets.
The Binance trading platform is very comprehensive as it has several sub-platforms with different trading options such as:
- Spot portfolio for spot trading
- Margin portfolio for margin trading
- The Futures portfolio for trading short or long term contracts
Your opinion on the Binance trading platform
As mentioned earlier, the Binance trading platform faces many criticisms. On the website Trustpilot, we find many bad reviews. In fact, out of a total of 2918 reviews, 67% of them are bad or 1955 reviews. When you have so many bad reviews on a trading platform, even if it is well known, we assume that you should pay attention to its reliability.
Among all the bad reviews we have read, here are the most recent ones on the Binance trading platform:
As you can see, there is a problem with each user. What they have in common is the account on the Binance trading platform. Indeed, some users can’t withdraw their funds or the opposite, some don’t see the money they credit on the Binance account. Finally, the last review is about the Binance credit card and the problem related to their bank.
The ecosystem used by the Binance trading platform
In addition to being a cryptocurrency trading platform, Binance has various tools.
1.The Binance Coin (BNB)
The Binance Coin is the cryptocurrency of the Binance Blockchain (Binance Chain and Binance Smart Chain). The BNB was launched in 2017, even before the Binance website went live, following a fundraiser as previously mentioned.
Also, the Binance Coin is apparently attractive if you want to invest on it as you could get benefits like discounts.
2.The Binance Visa card for spending your cryptocurrencies
The Binance trading platform offers a Visa card with which you can pay for your daily purchases as explained by the user in the last review. The conversion is done automatically at the time of the payment. This card apparently has some advantages, such as no fees and cashback of up to 8%.
The Binance card is available in France. Obtaining the card is subject to conditions as you must reside in an eligible country and also have the Verified level by having completed the KYC verification form.
3.Binance Academy to learn about cryptocurrency
The broker Binance also has a blog to educate you about cryptocurrency. You also have access to a glossary to understand all the intricacies of cryptocurrency.
“Binance Charity is a non-profit foundation dedicated to promoting blockchain-based philanthropy and sustainable development around the world.”
“Binance Info is an encyclopedia on cryptocurrency. The platform where anyone can contribute.”
“Binance Labs is an infrastructure impact fund and an initiative to incubate, invest in, and empower blockchain projects.”
“Binance Launchpad is the token launchpad for entrepreneurs to bring the most innovative crypto projects to life.”
“Binance Research provides institutional – grade research reports, insights and data-driven analysis for investors in the crypto space.”
9.Binance Trust Wallet
The official wallet of Binance, Trust Wallet is a secure, decentralised wallet with which users can send, receive and store their digital assets.
Binance Chain is a community-driven blockchain software system with developers and contributors from around the world. Binance DEX is the decentralised exchange function developed on Binance Chain.
To conclude on the Binance trading platform, we believe that you should be vigilant about this broker. Despite the fact that the company is one of the must-have for cryptocurrency trading, you must understand that it is not regulated in France or in Europe. You are therefore taking a risk by using this trading platform. If you think you have been a victim of Binance trading, you can contact us by filling out our contact form. Our lawyers will do everything they can to help you.