Best Cryptocurrency Exchange

Binance Review 2022 | Bankrate

Binance Review 2022 | Bankrate
Written by publisher team

The Binance.US platform offers one of the best ways to invest in cryptocurrency at a low cost. The Binance platform – which we’ll use here to refer to the US operation – offers some of the lowest fees in the crypto industry, so traders looking to cut the sometimes outrageous costs on other brokers or exchanges might want to take a closer look here. While the fees are low, customers may pay for them with as little customer assistance as possible. However, the exchange should prove valuable to a wide range of cryptocurrency traders, especially those who want to delve deeper into the space beyond just the first few names. Just don’t confuse this US-based exchange with parent company Binance, which operates out of the country.

Traders looking for a larger selection of cryptocurrencies should take a look at Coinbase or even the global parent company of Binance if they have access to it. And those who prefer trading only a handful of the most popular cryptocurrencies as well as other securities should check out Robinhood.

best for

  • Crypto Traders Only
  • Active Traders
  • Trade cryptocurrency to cryptocurrency

Quick overview of Binance

Minimum balance: Nothing, but the minimum trade is 10 dollars
tradable securities: 67 cryptocurrency
Trade cost:
  • Fees start at 0.1 percent
  • 0.5% fee for instant purchases
  • Debit Card Fee 4.5 percent
Customer service: No phone service, only support tickets and self-help
Mobile Application: The Binance mobile app is available on the Apple App Store and Google Play Store

Pros: Where Binance Stands Out

Commissions and Fees

Binance really stands out when it comes to their commission structure. Fees generally start low, and only then go down. Binance uses a volume-based pricing model, and gives you additional discounts if you use their proprietary cryptocurrency to buy and sell. However, if you are familiar with the simple world of most brokerage rates, you will need to say goodbye to those dreams here.

Generally, you will pay a fee of 0.1% for trading. But the volume-based pricing model on the exchange can reduce your costs, and it depends on your trading volume for 30 days. Binance has 11 pricing levels, which count from 0 to 10, depending on the 30-day trading volume. Additionally, Binance uses a maker model that rewards those who add liquidity to the market (makers) and charges slightly more fees (with higher trading volumes) to those who reduce liquidity (traders).

Here are some practical examples to see how it works:

  • VIP 0 pricing: If you want to buy $10,000 of Bitcoin, you will pay 0.1 percent of the value of your trade, i.e. $10. This is the price whether you are a maker or a taker. If you own enough Binance Coin, a stablecoin pegged at $1, to pay the trading fee, Binance will cut the fee by 25 percent. So you’ll only pay $7.50 to make the deal. Any fees will be automatically deducted from your Binance Coin balance first.
  • VIP 1 pricing: Once you have made trades worth more than $50,000 in the previous 30 days and have a Binance coin balance of at least 50, you will be set to VIP 1 pricing. At this level, you will pay 0.09 percent, whether you are a maker or a taker. So with a $60,000 trade, for example, you would incur a fee of $54. But Binance will cut that fee by 25% if you pay with its own stablecoin. The net fee is $40.50.
  • VIP 2 pricing: Here the price begins to diverge. Once you have traded at least $100,000 in the previous 30 days and have a Binance coin balance of at least 100, you are set to VIP pricing 2. At this level, the maker pays 0.08 percent on any trades, while the trader pays 0.09 percent. This $60,000 trade would now cost $48 as a maker, or $54 as a trader. But if Binance takes your fees out of your Binance Coin balance, you’ll still get a 25 percent discount, reducing those fees to $36 and $40.50, respectively.

Fees go down from there. They hit zero for makers with over $10 million in volume in the last 30 days (at VIP 6). While receiver fees continue to drop, they never reach zero, reaching 0.02 percent on VIP 10, although you can still get a Binance coin discount.

Confusing pricing structure? defy!

But there are some other fees that traders should be aware of. Binance also offers a way to buy cryptocurrency instantly, but the fee is at least 5 times that of over 0.5 percent. So if you are looking to buy cryptocurrency directly from a debit card and want to do it now, instead of waiting for funds to be transferred to your Binance account, you can make it happen. Binance charges a 4.5 percent fee on those dollars, while bank transfers are free.

It’s worth noting that Binance’s pricing, although a bit complicated, is posted transparently on their website, as opposed to one (fairly expensive) part of Coinbase’s more complex pricing schedule. This probably has a lot to do with Binance’s cheaper commission structure.

Choosing a cryptocurrency

Binance may not offer the largest selection of cryptocurrencies, but it does offer a lot more than general financial apps like Robinhood and Webull that have been encroaching on the crypto space. With a total of 67 cryptocurrencies available on its platform, you will find the most popular names, including Bitcoin, Ethereum, Binance Coin, Solana, and more. And you’ll find dozens of other cryptocurrencies as well, and plenty of others that you’re probably not familiar with.

Other competing apps advertise cryptocurrency trading but only offer a few of the most popular ones. Robinhood offers trading in seven cryptocurrencies, while Interactive Brokers – the broker with generally the largest selection of traditional securities available – has launched trading in four cryptocurrencies. Many regular online brokers do not offer any direct access to cryptocurrency trading.

Specialized crypto exchange Coinbase offers over 100 coins on its platform, but this buffet-style offering is only better if you need something that isn’t offered on Binance. It is worth noting that the cryptocurrency is the volume of securities offered on Binance. If you want stocks, bonds, money or anything else, you will have to turn your attention to a traditional broker or financial app.

Trade cryptocurrency to cryptocurrency

The Binance platform allows customers to trade directly from one cryptocurrency to another. So you don’t have to exchange one currency (or another stable currency) and then switch to the new one. Alternatively, you can switch directly from the currency you are selling to the currency you actually want. Not only is it more efficient in terms of making transactions, but it also helps you avoid unnecessary trading fees.

Cross-trading is not available on all cryptocurrency pairs, but Bitcoin (the most popular cryptocurrency) can be directly exchanged for 10 other currencies.


Like Coinbase, Binance offers customers the ability to earn staking rewards for holding coins with the company. Betting is something like earning interest in a bank account but with different and greater risks. Staking generates income on some cryptocurrencies when it is used to verify transactions in the currency. Binance shares all staking rewards with you and does not charge a program fee.

Customers can earn staking rewards on a handful of cryptocurrencies, seven of which are from the last issue. Bonuses are accrued daily, but distributions are only made monthly.

The negatives: Where Binance can improve

Instant Purchase Fee

At 0.1 percent, the Binance spot trading fee is low, but you want to make sure you take advantage of it and not use the instant buy/sell feature at the much higher price point of 0.5 percent. However, even these fees are high only for Binance and still reasonable compared to some trading fees in the crypto world, and eToro is a notable example of high fees.

And while we’re talking about the topic of high transaction fees, it’s important to reiterate the high fees for using a debit card, at 4.5 percent. This is up from the 3.99% charged on Coinbase. The easy solution: Transfer the cash and wait for it to clear into the account.

Not available in some countries

Binance (technically Binance.US) is not available in some states, including Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. While the company said it intends to eventually operate in all 50 states, it only added a few from September 2020 to December 2021, meaning full coverage may be out of reach.

Customer Support

Maybe Binance’s Low Fee Is Too Low? That’s because customers can only contact customer support through a support ticket (email). there is no phone. No conversation. You will have to explain the problem clearly in writing, when sometimes the problem is not so clear.

Your only recourse is the self-help section of the site, which may or may not be helpful.

Regulatory issues

Notably, the Binance platform has been scrutinized by US federal investigators, according to Bloomberg. This is the parent company of Binance, which owns Binance.US. Regulators are said to investigate a wide range of compliance issues in the company.

That may (or may not) mean little to the US arm of the company, but the one-time CEO of Binance quit the US in mid-2021 after just a few months in the job.


Binance does a few things right for traders who really want to focus on cryptocurrencies:

  • The wide range of popular cryptocurrencies should attract all but the most popular crypto enthusiasts.
  • Low trading fees and volume discounts should attract more active traders, especially when fees elsewhere are much higher.
  • New investors who need customer support may find a better option elsewhere, especially if they intend to trade other securities or trade cryptocurrency as a sideline.

The most active investors should take a look at Coinbase Pro and Kraken, two popular crypto-focused players that can offer attractive prices. But if you want basic crypto options along with stocks, options and more, consider Robinhood and Webul while comparing notes on tastyworks and TradeStation as well.

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