Overview
Binance is the world's largest cryptocurrency exchange by daily trading volume, serving tens of millions of users across more than 180 countries. Founded in 2017 by Changpeng Zhao (widely known as "CZ"), the platform grew from a startup into the dominant force in cryptocurrency trading within just a few months of its launch. That rapid ascent was driven by a combination of low trading fees, an enormous selection of trading pairs, and an aggressive pace of product development.
CZ, a Canadian-Chinese software engineer, previously worked at Bloomberg and later served as CTO of OKCoin before launching Binance. The exchange initially operated out of China but relocated ahead of China's 2017 ban on cryptocurrency trading. Since then, Binance has maintained a deliberately decentralized corporate structure, with operations spread across multiple jurisdictions and no single official headquarters. This global-first approach allowed the exchange to scale quickly but also attracted scrutiny from regulators around the world.
In 2023, Binance and CZ reached a settlement with the U.S. Department of Justice over compliance violations. CZ stepped down as CEO and Richard Teng, previously the company's head of regional markets, took over. The settlement marked a turning point for the company, which has since invested heavily in regulatory compliance, licensing, and transparency. Binance now holds operating licenses or registrations in numerous jurisdictions, including France, Italy, Spain, Dubai, Japan, and several others.
The platform supports hundreds of cryptocurrencies and thousands of trading pairs across spot, margin, and futures markets. Beyond basic buying and selling, Binance offers staking, lending, a launchpad for new token offerings, an NFT marketplace, and Binance Pay for cryptocurrency payments. Binance also operates BNB Chain (formerly Binance Smart Chain), a separate blockchain ecosystem with its own DeFi and dApp ecosystem.
American users cannot access the global Binance.com platform. Instead, Binance.US operates as a separate entity with its own regulatory structure, a smaller selection of supported assets, and an independent order book. Residents of certain U.S. states may face additional restrictions on Binance.US as well.
Getting Started
Buying Bitcoin or other cryptocurrencies on Binance is straightforward, though you will need to complete identity verification before making your first trade.
- Step 1: Create an account at Binance.com (or Binance.US if you are in the United States). You will need an email address or phone number to register.
- Step 2: Complete identity verification (KYC). This typically requires a government-issued photo ID and a selfie. Verification is usually processed within minutes, though it can take longer during periods of high demand.
- Step 3: Deposit funds. Binance supports bank transfers, credit and debit cards, Apple Pay, Google Pay, and peer-to-peer trading. Bank transfers generally have the lowest fees. You can also deposit cryptocurrency from an external wallet.
- Step 4: Buy Bitcoin. Navigate to the "Buy Crypto" section for a simple purchase, or use the spot trading interface for more control over your order type and price. Binance offers market orders, limit orders, and several advanced order types.
- Step 5: Secure your account. Enable two-factor authentication (2FA), set up an anti-phishing code, and consider using a hardware security key. If you plan to hold your Bitcoin long term, withdraw it to a personal wallet where you control the private keys.
Fees & Limits
Binance is known for having some of the most competitive fee structures in the industry. The exchange uses a tiered maker-taker fee model, where your fee rate decreases as your trading volume increases over a rolling 30-day period. Holding BNB (Binance's native token) and using it to pay trading fees provides an additional discount.
Spot trading fees start low relative to most competitors and decrease further at higher volume tiers. Futures trading fees follow a similar tiered structure, with separate rates for makers (who add liquidity to the order book) and takers (who remove liquidity). Makers generally pay lower fees than takers.
Deposits in cryptocurrency are free. Fiat deposit fees vary depending on the payment method and currency. Bank transfers are typically cheaper than card payments. Withdrawal fees depend on the cryptocurrency and the blockchain network used. For example, withdrawing Bitcoin over the Bitcoin network costs more than withdrawing over a Layer 2 solution, where available.
There is no minimum deposit amount for most cryptocurrencies, though fiat deposits may have minimums depending on the payment provider. Withdrawal limits are tied to your verification level, with higher tiers unlocking larger daily and monthly limits.
Security
Binance takes a layered approach to security, combining technical safeguards with an insurance-style reserve fund. The platform stores the majority of user funds in cold storage (offline wallets), keeping only a small portion in hot wallets to facilitate withdrawals. Binance publishes proof-of-reserves data to demonstrate that user assets are fully backed.
In May 2019, Binance suffered a security breach in which hackers used phishing and malware to steal approximately 7,000 BTC from the exchange's hot wallet. Binance covered the losses entirely from its own funds and no users lost money. The incident led the company to significantly strengthen its security infrastructure and accelerate the development of its Secure Asset Fund for Users (SAFU).
The SAFU is an emergency insurance fund that Binance established in 2018 by allocating a percentage of trading fees. It is designed to protect users in extreme cases where security is compromised. The fund is held in dedicated wallets with publicly verifiable addresses.
On the user side, Binance supports multiple layers of account protection. Two-factor authentication is available through authenticator apps, SMS, and email. The platform also supports hardware security keys (YubiKey), address whitelisting for withdrawals, anti-phishing codes for email verification, and device management to monitor and control which devices have access to your account.
Binance employs a large internal security team and partners with blockchain analytics firms to monitor for suspicious activity, enforce compliance with anti-money laundering regulations, and assist law enforcement when required.
Pros & Cons
Pros
- Extensive asset selection: Binance lists hundreds of cryptocurrencies and thousands of trading pairs, making it one of the most comprehensive exchanges available.
- Low fees: Trading fees are among the lowest in the industry, with additional discounts available for high-volume traders and BNB holders.
- Advanced trading tools: The platform offers spot, margin, and futures trading alongside charting tools, multiple order types, and API access for algorithmic traders.
- Global availability: Binance operates in over 180 countries, with localized versions and support in dozens of languages.
- Staking and earn products: Users can earn yield on their holdings through flexible and locked staking, savings accounts, and liquidity farming.
- Strong mobile experience: The Binance app for iOS and Android provides full access to trading, staking, deposits, and withdrawals.
Cons
- Regulatory uncertainty: Binance has faced regulatory actions and restrictions in multiple countries. While compliance has improved, the regulatory landscape continues to evolve.
- Limited US access: American users must use Binance.US, which has a smaller selection of assets and features compared to the global platform.
- Interface complexity: The full trading interface can be overwhelming for beginners. While Binance offers a simplified "Convert" mode, the platform is generally geared toward more experienced traders.
- Customer support: Some users report slow response times from customer support, particularly during periods of high market volatility when ticket volumes spike.
- Past security breach: Although the 2019 hack was handled well and users were made whole, it remains a point in the exchange's history that security-conscious users should be aware of.