Binance Cryptocurrency Exchange – extensive guide for Africa

Welcome to the world of Binance which is the largest cryptocurrency exchange in the world.

Its success has been tremendous despite being introduced to the world of stock exchange in mid 2017.

Binance has been able to outperform competitors such as Coinbase and Kraken in no time.

That's the reason why we present this detailed guide of Binance on the bitcoin-guide-africa.com.

The success story behind Binance

First of all, it is worth taking a closer look at the beginnings of Binance in the world of cryptocurrency exchange. Binance was founded in July 2017, before the big bull run at the end of the year. Changpeng Zhao is the founder of the latest cryptocurrency mania.

With a background in software development for high frequency trading, Changpeng Zhao joined Blockchain.info in 2013 and has previously worked at OKCoin in the capacity of a Founder.

Originally from China, the company later moved to Japan following an impending ban of cryptocurrencies in China.

In January 2018, Binance had already become the largest crypto trading exchange in the stock trading world. Market capitalization was at $ 1.3 billion and has risen to $ 5 billion with over 10 million users trading on the stock exchange every day.

With enormous success, Binance re-located to Malta where it founded a subsidiary in 2019 called Binance Jersey, an independent company based on the British island of Jersey. The subsidiary company has the task of increasing the stock market influence of Binance in Europe.

What does a Binance Stock Exchange have to offer?

A Binance account offers several advantages over other exchanges.

First, there is the large selection of the best cryptocurrencies. Here you will find pretty much every known altcoin in addition to the well-known sizes such as Bitcoin, Litecoin, Ethereum etc. 

A small selection of the cryptocurrencies available on Binance:

• Bitcoin
• Ethereum
• Tether
• Litecoin
• Theta
• Bancor
• Chainlink
• Tezos
• Bitcoin cash
• Monero
• Block stack
• Ravencoin
• TRON
• IOTA
• Zcash
• Dash
• Waves
• Polymath
• Lisk
• GoChain

This is just a small selection of the cryptocurrency market. If you think this listing lacks a well-known cryptocurrency, it is likely to be traded on Binance as well.

The Exchange is therefore particularly suitable for those who want to invest in the many alternative cryptocurrencies. New coins and tokens are constantly being added, but are also being deleted again.

Me, I use Binance as home base for my cryptocurrency trading bots.

In-house cryptocurrency trading at BNB

The exchange also has its own cryptocurrencies. In 2017 the company financed itself by issuing an ICO. Investors were able to acquire the Binance Coin (BNB).

BNB is a cryptocurrency specially developed for this exchange. Holding and using this coin has several advantages. With BNB, users can pay fees on Binance and thus receive a discount.

Furthermore, the BNB can also be stacked by keeping them on Mithril's VAULT wallet. The company is also trying to establish BNB as a means of payment for online shops and other service providers.

This was followed later by Binance USD (BUSD), the company's own stable coin. A stable coin is a cryptocurrency that is linked to a real value, such as a fiat currency. In this case it is the US dollar. With it you can pay with a normal currency and at the same time enjoy the advantages of cryptocurrencies.

Is the exchange trustworthy and genuine?

Good question. Consider this, on one hand you have several users speaking in the seriousness of the exchange and on the other, you have millions of people trading with Binance Coin every day without constantly losing their funds. The general Binance experience is positive in that regard. But you cannot rely on that alone.

On the flip side, there are hackers who are constantly trying to gain access to exchanges and their users' balances. It rarely happens that they succeed.

However, back in July 2019, hackers were able to steal $ 80 million in cryptocurrencies. The company immediately suspended trading and withdrawals. Normal operations resumed after a few days. The hacked investors were compensated by a fund that the company had previously launched.

Are there hacks in the cryptocurrency stock exchange?

Hacks can happen to any stock exchange market. The behavior of the company after is does is what is important to the investors. After the hack, the management acted exemplary and compensated those affected. Ultimately, no stock exchange is 100% secure, but such hacks are not the order of the day at Binance Coin.

What different at Binance?

Users can secure their Binance account with a two-factor authentication. This corresponds to the standard of every reputable exchange. What is not standard is the fact that when verifying the Binance account, the Know Your Customer (KYC) measures are optional.

KYC is about users having to identify themselves on exchanges. Stock Market Exchanges all around the globe want to protect themselves against criminals. As sound as that may seem, Binance Management does not rely on hearsay to gauge a customer’s reputation on other trading currencies and their history therein.

The support of customers in the trading platform speaks for the seriousness of Stock Exchange. Binance support contact can be reached on numerous social media and platforms. These include Twitter, Facebook, Telegram, Reddit, Weibo, Instagram and Medium.

How does it work?

Binance users can open a support ticket on the website. If it takes longer than expected, it’s advisable to use the aforementioned social channels with a faster response time. German customers can translate their queries into English.

How to trade on Binance

The Exchange offers a platform for trading with each other. This means you don't trade directly with Binance, but with other stockholders. The company only provides the platform and a waiver from fees.

Originally, you could only exchange cryptocurrencies for other cryptocurrencies with Bitcoin being the common one. Luckily, this is also possible with BNB.

The company later entered into a co-operation with "Simplex". This third-party provider makes it possible to buy cryptocurrencies with a credit card. When purchasing with a credit card, extensive verification of your own identity is necessary.

Other than that, there are no direct currency pairs between crypto and fiat currencies. This means you cannot deposit euros or dollars and has to buy a cryptocurrency. The focus is on crypto-crypto currency pairs. However, there are many currency pairs with stable coins such as Tether.

No other deposit options are possible. So if you like to make payments with PayPal, bank transfer, Sofort, Neteller etc., take a look at Binance.

The only way to buy cryptocurrencies with euros is with Binance Jersey. This exchange allows the purchase of cryptocurrencies through the bank account.

Experienced traders will find some functions on the stock exchange that they also know from other brokers. Binance features include limit, market and stop limit orders. Traders can also easily submit or respond to buy and sell offers.

What to expect for a smooth user experience?

User friendliness.

According to general Binance experiences, the operation is quite simple, although there are many functions which are aimed at experienced traders. There is now a lot of text and content on the website in German.

The user interface is kept clean and understandable. When trading, users can choose between "Basic" and "Advanced". “Basic” is aimed at beginners, while “Advanced” is aimed at advanced traders.

The trading engine is extremely robust and works without problems even with high market activity. Even with trading volume high, there aren’t problems finding the right trade.

How to get started: Open an account

Opening an account is quick and easy than with most other exchanges, as the cumbersome KYC measures are only optional. First, click on "Register" on the website.

Then enter your email address and a password. More information is not necessary. You will then receive a confirmation email. Click on the link in the email and start trading with Binance.

For security reasons, you should activate a two-factor authentication in your Binance account. As soon as you want to log in to Binance, you will then receive a code on your smartphone. This protects your account against hackers.

How much can you deposit?

To make a deposit, first go to your account and then to "funds". Here you will find the address of the Binance wallet. You will send the Bitcoin, Ethereum, Tether etc. from your other wallet to this address.

Herein, there’s the option to buy with a credit card. Next, you have to verify yourself at Simplex so that this option is activated. After that, the credit card purchase works much like anywhere else. You enter the credit card information of how much Bitcoin you want to buy.

You can usually only buy 2 BTC cryptocurrencies per day on Binance. The purchase limit can be increased by improving your identity. There are no fees for the withdrawal, apart from the blockchain transaction fee.

There are no Binance fees for depositing cryptocurrencies. The deposit of Bitcoin and Co. is free, apart from the network fee of the respective blockchain.

How much are the fees

Binance fees vary depending on the payment method used. There is a general 0.1% trading fee. With a general trading fee of 0.1%, Binance is one of the cheapest providers.

At higher verification levels of purchase, the fees for trade decreases, but for the makers to a greater extent than the takers. At a VIP 6 level, the Binance fees for makers are 0.05% and for takers 0.07%.

If you use the Binance Coin, the fees will be deducted directly from the BNB. First of all, you will receive a discount on purchases with BNB of 25% on the trading fee. This discount will decrease over time.

When buying with credit cards, there is an additional 3.5% charge on each transaction. Or it's $ 10, whichever is higher. This fee is charged by Simplex.

Disbursement

The fees on the Binance payout depend on the cryptocurrency. There is a minimum withdrawal amount depending on the cryptocurrency as well as an individual withdrawal fee for each cryptocurrency.

With Bitcoin, the minimum withdrawal amount is 0.002 BTC and the fee is 0.0005 BTC. There is no additional fee for the Binance payment.

Binance app

The Exchange offers its own Binance app for both Apple and Android smartphones. The experience with the app is generally positive. It works as well as the website, the user interface is perfectly aligned with the screen dimensions of the smartphones.

There is also a Binance app for desktop computers. The client software has better performance than the browser version. Highly recommended for professionals among traders.

Margin trading on Binance

In addition to regular trading in cryptocurrencies, margin trading is also possible. For margin trading, you must first fill out a disclaimer form. After all, margin trading poses great risks.

Margin trading uses a lever that multiplies any profits. The losses could also multiply in the same way. In the event of a loss, Binance raises the alarm with a margin call to avoid liquidation.

Have you heard of futures at Binance?

There are also futures on Binance. Futures are also called futures contracts. These are agreements to buy or sell a product, currency or other asset at a specific time.

To be able to trade on Binance Futures, you have to log in as normal and then click on "Futures". If you are not familiar with the futures, you can read all you need to know in the Binance Trading Guide.

In general, the positive Binance experiences include the many guides and training opportunities. Newcomers are thus offered a good start. The FAQ is extensive and explains the most important aspects.

Conclusion on Binance Trading in the Cryptocurrency Stock Exchange Market

It is not for nothing that Binance is the most popular stock exchange in the world.

A large selection of altcoins, your own Binance coin, low fees, many trading options and good service speak for themselves.

The only drawback is the fact that paying with fiat currencies is only possible under certain circumstances.