Binance.US can grab the attention of investors with lower fees than many other cryptocurrency exchanges, but we recommend paying a little more for extra transparency.
Binance.US is a US partner of Binance, the world’s largest cryptocurrency exchange by volume, which was founded in China in 2017. The original platform stopped accepting US users in 2019, and announced that it would instead partner with a US-based version From its platform called Binance.US.
Since the introduction of Binance.US in 2019, which Binance has referred to as a US partner in the past, Binance International has faced regulatory scrutiny – although this audit has not extended to Binance. For example, Italian regulators announced on July 15 that Binance was no longer authorized to operate in the country.
As recently as May 2021, Binance was under investigation by the US government for tax fraud and money laundering, according to a report by Bloomberg.
We have reached out to Binance and Binance.US in an effort to confirm details of the reported regulatory investigations, as well as to better understand the relationship between international platforms and those based in the United States. We have not received any response from the officials at Binance or Binance.US, although the spokesperson contacted us on behalf of Binance.US after publishing our review to provide additional context on the relationship between Binance and Binance. The spokesperson said in an email that they operate as separate companies with the Binance.US licensing program, branding, and wallet technology from Binance.
US investors are still unable to use the original Binance platform today, but Binance.US offers more than 50 cryptocurrencies for investors to choose from. The biggest draw on Binance.US is its low fees compared to some other exchanges. It also has an easy-to-use buy/sell option for beginners, while more advanced traders can take advantage of the in-depth ‘basic’ and ‘advanced’ trading platforms.
Despite these benefits, Binance.US is far less transparent than many competing exchanges when it comes to security, storage options, and customer assistance. For most long-term investors and retirees, we recommend sticking with exchanges like Coinbase or Gemini, which are more transparent about these key operations.
Binance.US . Pros and Cons
Not available in all countries
$10 minimum to trade
The site can be difficult to use
Lack of security related information
The US partner of Binance, which has a history of regulatory scrutiny
Binance.US at a Glance
- More than 50 currencies are available
- Not available in Connecticut, Hawaii, Idaho, Louisiana, New York, Texas or Vermont
- 0.1% flat fee on spot trades; 0.5% buy/sell fee
- $10 minimum to trade
- Option for recurring investments, to calculate the average cost in dollars
Cryptocurrencies available on Binance.US
You can buy and sell over 50 cryptocurrencies on Binance.US, including:
Binance.US also offers a large number of trading pairs. This includes options for trading two cryptocurrencies without having to exchange one against the US dollar, as well as options for trading between cryptocurrencies and fiat currency such as the US dollar. Different exchanges offer different trading pairs based on the cryptocurrencies they offer.
Binance.US has the option to automatically buy and sell cryptocurrency using the US dollar, using a simple interface similar to what you’ll find on Coinbase and other competitors. Each such buy/sell transaction charges a fee of 0.5%.
But to take advantage of its competitive standard fee of 0.1%, you will need to discover a trade through the Binance.US trading platform. This can be confusing if you are not familiar with the language of the exchange; On other exchanges, this type of trading and fee structure is usually used in more advanced platform options, such as Coinbase’s Coinbase Pro or Gemini’s Active Trader.
Spot trading means that you are not technically “buying” the cryptocurrency, but instead trading US dollars for it through either a market or a set order. A market order means that you agree to trade the currency at the current market price. Limit order allows you to set the exact price you want the trade to take place, and when the currency reaches that price, the trade happens automatically. After that, these orders are charged a “maker” (for limit orders) or “taken” (for market orders) fees – though at Binance.US there is a standard fee of just 0.1%.
Take Bitcoin for example, if you want to get Bitcoin on Binance.US, here’s how to do it to make sure you only pay the 0.1% fee, not the 0.5% fee:
- Transfer US dollars to your Binance.US account without fees
- Set a market or trade a limit order for USD to Bitcoin for a fee of 0.1%
This can mean serious savings for investors, especially compared to some other exchanges. For example, if you want to buy $100 worth of Bitcoin on Coinbase, you will end up with about $96.51 in Bitcoin, after fees. On Binance.US, you still have $99.99 to buy Bitcoin after factoring in the 0.1% fee.
If you buy Bitcoin with US dollars, you will pay a fee of 0.5% on Binance.US. If you want to spend $100 to buy Bitcoin with this option, you will end up trading around $99.50 after fees.
There is also a 25% discount on your fees if you use Binance Coin (BNB) to pay your transaction fees. To do this, you just have to hold your Binance Coin in your Binance.US account, and your trading fee will be automatically deducted from your Binance Coin balance.
If you use the dollar-cost averaging method to invest regularly, these savings can be significant in the long run. But while it’s important to pay attention to the exchange’s fee structure, experts say it may be worth paying more for more advanced security, usability, or other features.
Deposit and withdrawal fees
Before you can trade funds for cryptocurrencies, you will need to deposit – and when selling and withdraw – US dollars in and out of your Binance.US account. The fees for this are minimal, especially if you transfer from your bank account using ACH.
|method||Minimum withdrawal||Deposit fee||Withdrawal fee|
|ACH (Automated Clearing House)||1 dollar||0 dollars||0|
|wire transfer||$100 dollars||0 dollars||$15 domestic and $35 international|
There is also an individual withdrawal fee for transferring your crypto holdings from your Binance.US account to your crypto wallet. These fees vary based on the type of cryptocurrency.
We were unable to find any information from Binance.US about its security and security measures, and the company did not respond to a request for comment. The most described information on the Binance.US website is the following statement, from its homepage: “We use the latest storage technology to protect your assets against cryptocurrencies and the US dollar.”
There is no publicly available information about what percentage of assets the exchange holds in secure, offline cold storage versus hot online wallets, or if there is an insurance policy protecting investors. You must have a Binance.US account to submit inquiries to the help desk, so we were unable to obtain more information this way.
Binance.US does not provide information on the display of the internal wallet, but you can keep your coins inside your account on the exchange. It also partners with Trust Wallet, a third-party hot wallet option. You can withdraw your coins from your account to your hot or cold storage option at any time (for a fee).
There were earlier reports that Binance.US held users’ US dollars in FDIC-secured accounts, but posts on the Binance.US website containing that information have since been deleted. While it does not guarantee the same in the event of a Binance.US hack, the international version of the exchange, Binance, has covered all consumer losses after a $40 million hack in 2019.
We reached out to Binance.US for more information about their security measures and received no response. We will update the review if Binance.US returns to us.
You can earn rewards through the exchange by keeping some coins in your Binance.US account – a strategy called “staking”. According to Binance.US, staking helps support the blockchain operations of these coins.
Currently supported coins are: VET, XTZ, ATOM, EOS, ONE and ALGO. You can earn up to 10% annually by staking with Binance.US, and you can still make trades while participating.
Who is the best for Binance.US?
Binance.US is not available in Connecticut, Hawaii, Idaho, Louisiana, New York, Texas or Vermont. For people outside of those countries who are looking to invest in cryptocurrencies, the Binance.US platform offers an easy buying/selling interface and more advanced trading opinions. It has low fees, additional discounts on fees for using its native currency, Binance Coin, and offers some educational content through its blog on the site.
Despite its low fees, we do not recommend using Binance.US, especially for beginners. Unlike other cryptocurrency exchanges, Binance.US does not provide any information about how your investment is secured, stored or protected by the company. In addition, there are many other active exchanges that offer simple buy/sell interfaces to long-term investors. We believe transparency about the safety of your investment is worth paying more for.
Binance.US Compared to Others
|Coins||More than 50 cryptocurrencies||More than 40 cryptocurrencies||More than 50 cryptocurrencies|
|Outlay||0.1% Trading FeeYou can get 25% off your fee if you own Binance Coin||0.50% convenience fee from $0.99 to $2.99 transaction fee; 1.49% transaction fee for deals over $200||0.50% trading fee spread between 1.49% and 3.99% (or $0.99 to $2.99 flat fee)|
|wallet storage||Keep coins in your Binance.US account or transfer to your own wallet||Keep coins in your Gemini account or Gemini Wallet option or transfer to your own wallet||Keep coins in your Coinbase account or Coinbase Wallet option or transfer them to your own wallet|
|Minimum Trade||10 bucks||Equal to the smallest amount of each currency that can be traded (0.00001 BTC)||2 dollars|
Frequently Asked Questions
Are Binance and Binance the same?
Binance.US was founded in 2019 after Binance stopped accepting US investors. The interface and many features are similar, but there are differences such as the amount of cryptocurrencies available for trading in the US versus elsewhere, as well as the countries in which Binance is allowed to operate. US users cannot purchase cryptocurrency using the international Binance platform.