The Binance exchange is one of the biggest platforms for cryptocurrency trading in the market. The platform allows enthusiasts to invest in various assets without having to dish out enormous sums and pay a lot in terms of commissions. The advantages offered by the platform extend well beyond the convenient connection of on-ramp services and other gateways, since users who hold the native BNB token can always pay with crypto they already have and thus save on commissions even more. The many services like launchpads and NFT storage galleries make Binance a premier place for all cryptocurrency trading. Users can connect to the exchange with a wallet or via login after registering an account and passing the mandatory Know Your Customer procedures.
And though the Binance exchange is by far one of the most advanced trading venues on the market, it is not devoid of its own flaws and shortcomings. First and foremost, the platform is extremely centralized and is subject to the regulation and laws of the countries in which it has registered legal entities. These extend well beyond its native country of origin into the European Union, the United States and other countries. The price is always the disclosure of user privacy and transaction data when it comes to becoming a centralized entity. Binance is actively cooperating with the authorities in the US and the EU, disclosing financial information on transaction flows and the holdings of its users.
A side effect of such behavior has been the loss of licenses by the Binance exchange in recent months across several countries in the European Union. But users should not think that the exchange is losing said licenses as a result of malpractice or as a result of an awakening of its conscience. Instead, the exchange is simply downshifting its operations and narrowing its circle of operations to make sure it does not lose more resources than it actually has to. This means that users from other jurisdictions where Binance is not registered will have some issues with using the exchange and their financial data from the platform will be redirected through a global oversight authority based somewhere in the United States.
Regardless of the legal tribulations the exchange is facing, it is still the go-to place for all kinds of cryptocurrency operations, since users from all around the world flock to it in search of the best prices for Bitcoin and other digital assets. Add to that the progressive outlook of Binance on some of the more diverse kinds of crypto assets like NFTs, and we get a healthy mix of profitability and variety that is sure to be appealing for crypto enthusiasts of all walks.
How to Buy Bitcoin on Binance
In order to start using Binance for investment or trading purposes, users should first consider the reasons why they want to engage in either. The cryptocurrency space is extremely volatile and filled with dangers, not the least of which are hacking attacks. And though Binance has a good track record of being secure in regards to hacks, there is always a chance that it can fall victim, since every hacker dreams of getting their hands on the wallets of its users.
Once the user has decided that they want to engage in trading and the risk of loss of investments does not frighten them, they can start the registration procedure to create an account. Binance will require its users to provide personal identification information for passage of the Know Your Customer procedure. This means providing passport details, a selfie with the passport, and other supporting documents, depending on the level of KYC the user wants to achieve. The level of KYC will determine withdrawal limits and access to some specialized trading features, like higher leverage and credit shoulders.
Once the KYC procedure has been passed, users can start filling up their account deposit. To do this, they will need to top up their balance by connecting a gateway like a bank card or a PayPal wallet. From there on, they will transfer the assets they deem necessary to the exchange and convert them into the cryptocurrency of choice – like Bitcoin.
Key Takeaways
Binance is the biggest exchange in terms of service range and capitalization with billions of dollars in turnover and trading volume. This means that it is not just popular with users, but also offers the best rates and opportunities for traders to make a profit.
