Binance – which is home to over 100 million users globally – has facilitated trillions of pounds worth of trading activity in the first six months of 2021 alone. The platform gives thousands of cryptocurrencies that you can buy, sell, and trade online to via the Binance app.
But, when you consider that various financial regulators – along with the UK’s FCA, have since opened an investigation into the legality of Binance – you need to check whether or not the exchange is right for you. As such, this Binance Review UK is a must-read.
What is Binance?
Binance is a cryptocurrency exchange that permits you to trade hundreds of digital currencies from the comfort of your home. Launched in 2017 – the platform additionally provides brokerage services – that means that you can purchase cryptocurrency directly with a debit/credit card or bank account transfer.
In just 4 years of operation – Binance is now the greatest digital currency exchange globally. In fact, the platform is home to more than one hundred million active users and in the month of May 2021 alone – facilitated $2.4 trillion in trading volume. On top of its principal alternate and brokerage services, Binance provides a number of different key features.
This consists of a cryptocurrency savings account – which permits you to earn interest on your digital currency investments. Binance is also home to a digital asset debit card that is backed via Visa, as well as a cryptocurrency mortgage facility. Binance is additionally behind the Trust Wallet, which permits you to store your cryptocurrencies safely via an iOS and Android app.
Binance UK Pros and Cons
Don’t have time to examine our Binance review UK in full? If so, check out the pros and cons compiled by using our Binance review team.
Pros
- Largest exchange in the crypto arena with more than a hundred million users
- Accepts debit/credit cards and bank accounts
- Hundreds of trading pairs supported
- Low commission rate of 0.1%
- Top-rated mobile app
Cons
- Charges 1.8% to purchase crypto with a debit or credit card
- Is currently being investigated by quite a few financial bodies – along with the FCA
- Many of its trading instruments are not accessible to UK residents
- Is not regulated in the UK
- Does not support e-wallets like Paypal
- No stocks or other traditional assets – crypto only
Binance Supported Assets and Markets
We briefly stated earlier that Binance is home to hundreds of cryptocurrency markets. This covers a vast range of digital assets which is inclusive of both large-cap and small-cap tokens. Binance additionally offers crypto derivatives – such as Bitcoin options and futures. However, as of January 2021, the FCA has since banned UK retail customers from having access to these complex financial instruments.
Nevertheless, in the section beneath – our Binance review UK will talk about what choices you have when it comes to buying, selling, and trading cryptocurrencies at the platform.
Instantly Buy Cryptocurrency
First and foremost, Binance permits you to instantly purchase cryptocurrencies from the comfort of your home. This can be achieved via the use of your UK debit or credit card – with both Visa and MasterCard supported. Before having access to the Instant Buy feature, you will want to add a copy of your passport or driver’s license and complete a facial verification through your webcam or mobile device.
This hardly ever takes more than 5 minutes from start to finish. In terms of what cryptocurrencies you can instantly purchase with your debit/credit card – this covers dozens of tokens. You have large-cap digital currencies like Bitcoin, Binance Coin, and Ethereum, as well as smaller projects like Andor and Basic Attention Token.
You can additionally use your debit/credit card to immediately purchase a selection of Defi coins – such as Maker and Yearn. If the cryptocurrency you are involved in isn’t listed, you won’t be able to purchase it instantly. Instead, you will want to deposit cash into your Binance account and then manually buy the respective digital token.
Although we cover fees in more detail further down in this Binance review UK – immediate debit/credit card purchases will cost you 1.8%. Take note, at eToro, the same transaction will cost you just 0.5%.
Fiat-to-Crypto Markets
If your preferred digital currency isn’t supported by the Instant Buy feature or you want to enter a manual trade to save on charges Binance has you covered. First and foremost, the platform is home to plenty of fiat-to-crypto markets.
This simply means that you will be buying a digital asset that is priced in real currency – such as euros or pounds. In fact, there are a couple of markets on the Binance exchange that are priced in GBP – so you don’t want to worry about FX rate fluctuations.
This consists of everything from Ethereum, Bitcoin, and Dogecoin to Polkadot, Litecoin, and Chainlink. Binance additionally allows you to change cryptocurrencies in opposition to the likes of Australian dollars and the Turkish lira.
Crypto-to-Crypto Markets
If you have a bit of experience in the cryptocurrency markets and desire to alternate pairs that include two competing digital assets – you’ll have thousands of alternatives to select from at Binance. The most traded crypto-to-crypto pairs on the exchange consist of ETH/BTC, BNB/BTC, and BTC/USDT.
These crypto-to-crypto markets on Binance additionally enable you to swap one digital asset into another. For example, if you have been holding Bitcoin but wanted to exchange your tokens into Ethereum – you’d simply need to head over to the ETH/BTC marketplace.
Binance Fees
Our Binance review UK found that the platform is home to an abundance of assets and markets – each of which will attract a specific fee. Furthermore, Binance rewards those that trade regularly through decreasing its commission rate. You additionally have the potential to reduce your trading charges via holding BNB tokens – which is the native cryptocurrency backed by using Binance.
Taking all of this into account, below we give an explanation for the predominant Binance fees to look out for when using the platform to trade.
Commission
Like most cryptocurrency exchanges in this space, Binance will cost you a fee on every buy and sell order that you place. The most you will pay is just 0.10% per slide – which is very competitive indeed.
This means that:
If you want to purchase £200 worth of Dogecoin – your fee would amount to just 20p
If you then sold your Dogecoin at a nominal price of £400 – your fee would amount to simply 40p
As we briefly mentioned above, it’s feasible to pay even much less than 0.10% – should you own BNB tokens or trade significant volumes.
Deposit and Withdrawal Fees
When depositing digital currencies into your Binance account, the platform won’t cost you any fees. This is also the case when you transfer cash from your UK bank account.
On the other hand, you will need to pay a fee of 1.8% when using your debit or credit card. Although this is less expensive than a lot of different exchanges in this space – with the likes of Coinbase charging 3.99% on debit cards, lowers expenses are surely available elsewhere. For example, eToro – which is regulated via the FCA, charges just 0.5% on debit/credit card and e-wallet deposits.
When it comes to withdrawals, Binance costs 1% must you desire to cash out to a debit or credit card. If withdrawing back to your UK bank account, the charge amounts to just £1.50.
Binance Payments
Next up in our Binance review UK is the exchange’s payments department.
We discovered that you can use the following fee types to deposit and withdraw funds:
- Debit Cards
- Credit Cards
- UK Bank Transfer (Faster Payments)
- Cryptocurrencies
Binance additionally presents a peer-to-peer (P2P) platform that supports payment methods in addition to the above – such as Paypal. However, you will be transacting directly with some other person – which means that Binance is not technically involved in the payment. As such, it’s best to keep away from the use of the Binance P2P exchange to credit funds, as you stand the threat of being scammed.
We have to additionally note that your chosen payment approach will decide whether or not you want to go through a KYC (Know Your Customer) process.
In a nutshell, if you desire to credit money with fiat cash – which consists of debit/credit cards and bank transfers, you will want to add some ID. If, however, you are planning to deposit funds by using a crypto transfer, you can do this without needing to provide any personal data at all.
Important: At the time of writing, Binance has suspended UK Faster Payment deposits – as per regulatory scrutiny. The exchange notes that this is temporary, albeit, it remains to be seen when or even if this payment facility will be restored.
Binance Minimum Deposit UK
The minimal savings at Binance when using a debit or credit card is £15. If you are depositing money with crypto – there is no minimum.
Binance Tools and Features
In this part of our Binance review UK – we are going to talk about what facets and equipment the trade offers.
Charts and Technical Analysis
If you are an experienced cryptocurrency dealer that seeks access to high-level pricing charts and indicators – Binance will likely meet your needs. In fact, through heading over to the ‘Advanced’ trading platform, you will be inundated with chart evaluation tools. For example, you can customise your trading screen to ensure that it alligns with your personal preferences.
This consists of the choice to view charting information via a TradingView integration. You can swap between pricing timeframes – which is from 1 minute to 1 month. You will additionally discover high-level orders books – because of this permitting you to get a full birds-eye view of how the markets are moving.
Binance additionally offers access to advanced chart drawing tools and technical indicators like the MACD or RSI. When it comes to orders, Binance provides lots of alternatives in this department. On top of basic buy/sell and market/limit orders, you can additionally set up stop-loss, take-profit, and one-cancels-the-other orders.
On the other hand, if you are a novice in the world of cryptocurrencies – then Binance would possibly appear somewhat overwhelming. In fact, the platform is most truly more suitable for skilled merchants – so the novices analyzing this may desire to consider looking elsewhere. If this sounds like you – eToro is a remarkable choice should you seek a simple cryptocurrency platform.
Crypto Savings Accounts
There was once a time when cryptocurrency investments can only yield one type of financial profit – capital gains. That is to say, you would only be in a position to make a income by means of selling your digital tokens for a greater price than you initially paid. However, Binance has taken matters to the very subsequent degree by using offering interest-bearing savings accounts.
Put simply, by depositing funds into your Binance savings account – you can earn interest on your cryptocurrency investments. The particular rate on offer will depend on the cryptocurrency and whether you choose for a locked or flexible account. If opting for a flexible account, you can withdraw your money whenever you see fit.
To supply you an notion of what Binance offers, flexible deposits on 1INCH and Tether attract an interest rate of 3.29% and 2% respectively. Bitcoin will pay simply 0.80% – which is very low. If you are completely satisfied to lock your cash away for ninety days, then greater eye-catching charges are available. For example, you can get 7% yearly on Bitcoin, 4% on Chainlink, and 4.8% on Tether.
Binance Visa Card
Binance additionally offers a Visa debit card that permits you to spend your digital tokens in the actual world. For example, you can use the card at an ATM to withdraw cash, purchase goods and services online, and make purchases in-store.
There are no fees to use the Binance Visa card – which is a major benefit. Best of all, your cryptocurrency holdings will only be sold at the point of the transaction – so you won’t miss out on achievable capital gains. The Binance debit card additionally comes with various cashback rewards.
Other Binance Servies
On top of the primary features and tools mentioned above, our Binance overview UK also came across the following services that you might find of interest:
Crypto Loans: If you are presently conserving an allocation of digital currency – Binance permits you to access real-world money through a loan. Some cryptocurrencies permit a maximum LTV (Loan To Value) of up to 65%.
Staking: An additional way of earning income on your cryptocurrencies is through the Binance staking tool. This entails locking your digital tokens up for a certain period of time to assist confirm cryptocurrency transactions.
Derivatives: If you are classed as a expert trader in the UK – then you will have access to complex cryptocurrency derivatives. Binance affords each selections and futures on Bitcoin and a small range of different digital coins.
Perhaps the main component that is missing from the Binance platform is a replica trading tool. This is something presented via eToro – and it allows you to replicate the buy and sell positions of a profitable cryptocurrency investor. This is splendid for each beginners and time-starved traders.
Binance Mobile App
Binance is behind two mobile applications. First, you have the native Binance app – which is compatible with both iOS and Android devices. This is in fact a carbon copy of the main Binance website – however in a fully optimized format for smartphones.
In other words, the app gives all of the same services – such as being able to buy, sell, and trade crypto, check, your portfolio, deposit and withdraw funds, and perform technical research. Security is very suitable on the Binance app, with the likes of two-factor authentication, fingerprint login, and device whitelisting all supported.
Additionally, Binance is additionally behind Trust Wallet. This is a mobile cryptocurrency wallet that permits you to store a wider range of digital assets. You can additionally deposit money with a debit/credit card from within the app and even link your wallet to decentralized exchanges like Pancakeswap. However, the Trust Wallet is no longer compatible with iOS devices – so it’s only Android customers that are supported.
Is Binance Safe?
The golden question that is yet to be covered in this assessment is whether or not Binance is safe. This is a somewhat difficult question to answer. On the one hand, Binance is domestic to a significant number of security controls that ensure you are capable to buy, sell, and trade cryptocurrencies in a secure manner.
This includes:
Cold Storage: Binance notes that the overwhelming majority of client cryptocurrency funds are stored in cold wallets. For those unaware, this means that the tokens are saved in wallets that are stored offline at all instances – which makes a hacking attempt near-impossible.
2FA: Two-factor authentication is required every time you strive to log into your Binance account or you make a withdrawal. This means that Binance will send a code to your mobile phone – which will need to be entered to acquire get right of entry to to your account.
Email Confirmation: In addition to 2FA via your phone, you will additionally need to enter a code that is despatched to your registered e-mail address.
SAFU: The SAFU (Safe Asset Fund for Users) at Binance refers to an insurance pot that is funded via transaction fees. Put simply, the SAFU will be used in the event that Binance experiences a hack.
Device/IP Whitelisting: Any time that you try to login to your Binance account from a new machine or IP address – you will want to go through an extra security step. This is normally in the form of an e-mail confirmation.
As you can see from the above, Binance has various security nets in location to assist maintain your investment funds secure. However – and perhaps most pertinently, Binance is not regulated in the UK. This should be a major red flag for you – as there is no reason why you should put your capital at risk via the use of an unlicensed exchange.
Furthermore, Binance has been at the forefront of a number of regulatory investigations in current months – along with that of the FCA. In fact, the FCA has since stated that “Binance Markets Limited is not authorized to undertake any regulated endeavor in the UK“.
Taking all of this into account – you may want to reconsider using Binance as your go-to UK cryptocurrency broker. Instead, you have to focus on brokers and exchanges that are regulated by the FCA. One such example of a trusted FCA-regulated digital currency broker is eToro.
eToro vs Binance – Comparison
Make no mistake about it – Binance absolutely stands out when it comes to the sheer variety of cryptocurrency markets on offer and its super-low commission rate of 0.10% per slide. However, when evaluating the platform to eToro – we discovered that Binance falls short in plenty of areas.