8 Reasons Why Binance is The World’s Most Popular Crypto Exchange

Think crypto exchange and the first name that pops into your head is Binance. Some people may not know that many other crypto exchanges are offering the same services to crypto enthusiasts. So why is it the most popular if others offer the same? What trick does Binance have up its sleeve that has made it the undoubted number one?

Here we go.  

1. Impressive range of cryptocurrencies

When you sign up on a cryptocurrency exchange, one thing you are hoping to find in abundance is cryptocurrency and crypto trading pairs, and Binance does not disappoint. With 402 cryptocurrencies, 11 fiat currencies, and 1591 crypto trading pairs to choose from, you are certainly spoilt for choice. This already inexhaustive list is always growing as people are always speculating and analyzing the most likely Binance listings to join this already impressive offering. To put this into perspective, crypto.com’s official website puts their total cryptocurrency haul to 250 plus, while Coinbase has 248 cryptocurrencies, 3 fiat currencies, and 591 cryptocurrency trading pairs. 

Mind the gap.

2. Trading Volume

The trading volume is the total number of contracts opened and closed between buyers and sellers within a specified period. It is an indicator of the exchange’s liquidity, which is the ease with which assets can be exchanged into cash. The consequence is that users on the platform can always take their money out anytime they want. 

Having understood what trading volume is and how much of an important metric it is when considering crypto exchanges, it would interest you to know that Binance manages just under $37 billion in trading volume daily, with the next nine exchanges after Binance managing about the same amount combined with Coinbase handling only $5 billion and Bybit just under $7 billion. 

3. Low Trading Fees

It always comes down to two words, anyhow you choose to look at it: profit and margin. Crypto traders and investors are looking to keep their profits up, and one way Binance helps them do this is by charging relatively low trading fees compared to the competition. Regular users are not charged deposit fees, and how much is paid for withdrawal depends on the blockchain and network congestion. For transactions less than $1000,000 in 30 days, Binance charges a flat rate of 0.1% maker/taker and offers a 25% deduction in the fees if they are settled using BNB. Read more here for fees on the Binance Smart Chain. 

4. User Friendly

Binance is one of the easier crypto exchanges to navigate, although it can be quite the learning curve for people who are not tech-savvy or completely new to crypto trading. The solution is and has for a while now been Binance Lite. 

It is available on mobile and is the default version when the app is first installed. It avoids the clutter the professional version might show the user and only displays modest information at every glance. Users can see the price action of the most popular cryptos, and they can sort by 24-hour changes, market cap, and popularity, among other metrics. These allow users to engage in basic trading activities on the platform without having to worry about an information overload. 

5. Robust Security

By every definition, Binance is a safe platform. It has several security protocols in place to protect user identity and money. This, however, does not make Binance hack-proof, as it was hacked for 7000 bitcoins, amounting to $40 million in 2019. This is an exchange-wide problem as exchanges like Mt. Gox have been hacked for $615 million in 2014 and KuCoin for over $200 million as recently as 2020. It is important to note that user funds were protected in the hack by Binance’s Secure Asset Fund for Users (SAFU), which aims to cover 100% of user loss in the event of a hack. Besides SAFU, these are some of the other protocols in place by Binance to protect users:

A. Cold Wallets

Binance has been able to keep the severity of its hacks to a minimum by keeping most of its crypto on cold wallets. These are wallets not connected to the internet and out of reach of cybercriminals. This protocol exists to prevent hacks as damaging as that of Mt.Gox. 

B. Two-Factor Authentification

The platform allows users to activate two-factor authentication on their accounts. It requires them to provide code from their mobile, email address, or an authenticator app to authorize activities like logging in and withdrawing funds from their wallet. Unlike other exchanges, Binance goes one step further by allowing users to use a hardware token like Yubikey to secure their account. 

C. Data Encryption

Binance makes it difficult for hackers to intercept user data by encrypting personal information provided by the user during their sign-up and verification processes. This encryption ensures that even in the event of a hack, all personal information remains personal. 

D. Access Control

This is an advanced feature that allows users to specify what IP addresses and wallets they want their account to withdraw to. Doing so ensures that funds can not be withdrawn to foreign or unauthorized wallets, even if the account becomes compromised. 

E. Organizational Security

Binance has systems in place that make it very unlikely for errors to be made, the platform features a lot of checks and allows multiple parties to authorize transactions before funds can be moved across wallets through its advanced threshold signature scheme (TSS). 

F. Real-Time Monitoring

The Binance platform monitors active accounts in real time and flags activities that are out of place. It then places a 24 or 48-hour hold on the account to give the user time to confirm the activity on the account. The user has the option to appeal the decision by contacting the help desk. 

6. Customer support

Talking of the help desk, Binance has several ways users can reach out when they need help with any of their services. Users can reach out through social media, find help through any of their vibrant communities, use the live chat option, search through their blogs and articles on the help center, or send out an email. Suppose the problem is not serious or not pressing. In that case, users can use the self-service option to find answers to issues that pertain to unlocking and verifying their accounts, resetting their passwords, and changing their email addresses, among others. 

7. Supports several transaction types

One area where Binance continues to interest and attract users is the sheer number of transaction types that it can process. These include peer-to-peer trading, margin trading, and spot trading. The platform can also handle different order types ranging from the stop-limit order, the limit order, market order, trailing stop order, one cancels the other order and post only order. It is important to note that some of these offerings might not be available to the U.S. audience. 

8. Third-party integration

Get the most out of your Binance account with third-party integrations that give you more functionality and flexibility. One example is Trust Wallet, although owned by Binance, gives users the option to keep some or all of their cryptocurrency on a decentralized platform that gives them total control. 

Conclusion

Binance is, without a doubt, the biggest crypto exchange platform in the world. It is something we have always known but not known why, and now we do. The above puts it out and beyond the competition, and it is not by fine margins.