Is Binance Safe for Canadians Trading Crypto?
Binance is one of the most popular cryptocurrency trading platforms currently online. Different from cryptocurrency exchanges like Poloniex (read our full Poloniex review here), Binance is primarily a crypto-to-crypto trading platform. In our Binance review, we’ll look at what this means and why Binance is so popular.
Binance Review - What is Binance?
Binance launched in 2017, after a $15 million initial coin offering. Then based in Hong Kong, Binance has since relocated to Malta in Europe and has recently opened a new exchange platform designed for use by U.S. cryptocurrency investors and traders.
What Makes Binance Different?
Why Binance is so popular among cryptocurrency traders is simple.
At present, other trading platforms like Coinbase Pro and Poloniex, charge fees which average between 0.50% and 0.25% per trade. By comparison, Binance charges fees of just 0.1%. These can also be reduced further by 25% when Binance (BNB) coins are used to buy and sell cryptocurrency.
Is Binance Safe?
Binance is arguably the easiest cryptocurrency trading platform to use to buy and sell over 100+ digital assets. Binance is also one of the world’s most widely accessible trading platforms. For this reason, Binance is safe as far as Binance being a reputable trading platform is concerned.
• Binance is arguably safer than many other trading platforms. This is thanks to the fact that Binance offers a basic, as well as a pro-trader user interface. This makes Binance more user-friendly for beginners.
• All Binance users are required to verify their ID and secure accounts with 2-Factor Authentication.
• Binance allows all users to withdraw the equivalent of 2 BTC per day. However, this can increase to up to 100 BTC per day, when users qualify as level 2 Binance users.
Sadly, Binance is occasionally the focus of security concerns. Binance users regularly report problems with the Binance 2-Factor Authentication system. These problems are always resolved. However, this can mean that funds become locked on Binance for anywhere from a few hours to a few days.
Because of how popular Binance is, it is also the case that several Binance clones exist. These are sites that look identical to Binance, and attempt to trick people into entering their Binance login details.
Is Binance Trustworthy?
As well as security concerns, some Binance users express a certain level of distrust concerning how Binance operates.
• In June 2019, Binance launched a decentralized exchange (DEX). Binance did so to cater to the needs of traders in 29 countries which Binance is barred from operating in. However, Binance DEX users say that the platform isn’t decentralized, as it still prohibits some traders from buying and selling coins.
• Binance has been accused of using its ICO launching platform Binance Launchpad, to artificially pump the value of questionable altcoins.
It should be noted, though, that in May 2019, Binance was forthcoming in revealing that a hack had seen $40 million in Bitcoin stolen from the platform. Binance has also recently aided UK law enforcement in tracking the perpetrators of a $51 million Bitcoin phishing scam.
Binance Review - Should You Use Binance to Buy and Trade Crypto?
Despite a handful of controversies, Binance is the number one place online to buy and trade several top market cap digital assets. (At least, as far as professional traders are concerned.) Binance is also the place to buy and trade over 100+ different altcoins. All that users need to remember, is that they will need to first by Bitcoin from another exchange or broker like MyBTC.ca to deposit on Binance and trade for another digital asset
Posted by: Duane Seamans, MyBTC.ca CEO
DISCLAIMER: This article is for educational use and should not be considered investment advice,