What Is Binance.US?
In 2019, US-based users of Binance migrated to its partner, Binance.US. Like other popular DeFi exchanges, it offers opportunities for trading and staking, but its fees are highly competitive. On the downside, regulator scrutiny and lack of transparency deter many investors. We have weighed up the pros and cons of this platform in 2022.
Differences Between Binance and Binance US
The Binance crypto exchange is the biggest in the world by trading volume. Launched in China in 2017 by Changpeng Zhao, it has since extended its presence to over 180 countries. The company’s native Binance Coin (BNB) has the fourth biggest market cap.
Today, Zhao is still the Binance CEO, and this behemoth remains unmatched. Coinbase is the runner-up, but its daily trading volumes are five times lower! The leader even has its token launch platform called Binance launchpad.
Binance.US, launched in 2019, is a partner of the parent company in the United States. It was designed to serve American users as Binance stopped accepting them. However, it does not work in all states, and its functionality and acid portfolio are relatively modest.
States with Binance US Login
As of now, the offshoot platform remains unavailable in seven states: Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. Binance login is impossible from anywhere in the country.
How Binance.US works
The platform has limited features and assets compared to Binance. Users must connect a conventional bank account for deposits and a wallet like Trustwallet.
There are several opportunities to earn from crypto — buying, selling, trading, and staking. Users can manage their accounts from mobile or desktop devices, and
the platform caters to all levels of crypto experience.
How Long Does Binance Verification Take?
The verification process is quite lengthy — users typically wait several days before they are allowed to make transactions. It doesn’t matter if you use the online dashboard or the mobile app.
Is Binance Safe?
In recent years, Binance has faced increasing regulatory scrutiny:
- Outside the US, authorities in the UK, Canada, Japan, Thailand, and Singapore have been looking into its operations.
- In July 2021, Binance was prohibited from operating in Italy.
- According to Bloomberg, the company is being investigated by the Commodity Futures Trading Commission (CFTC) and the Justice Department. The subject is tax fraud and money laundering, but no charges have been formulated yet.
- The company has an opaque corporate structure.
Binance has addressed its transparency deficiencies by increasing the compliance team fivefold. The jury is still out on whether these changes can appease regulators.
Another cause for concern is the Binance hacked cases. In 2019, hackers stole 40 million dollars worth of bitcoins. In 2021, the High Court of London ordered the company to identify hackers and freeze their accounts after a user claimed to have lost $2.6 million. Yet, authorities have not tried to shut Binance down completely.
Is Binance.US Safe?
Unlike the giant parent company, the partner has not faced regulatory issues so far. However, it lacks transparency compared to rival exchanges like Gemini or Coinbase. It is less open about its storage options, customer support, and security. Therefore, long-term investors should consider other platforms.
Crypto Storage Options
Binance.US gives users a choice between keeping their assets on the platform (it has a custodial wallet) or external wallets. In particular, it recommends Trust Wallet, which supports over 1 million assets across 53 blockchains. It is a single, secure environment.
Range of Assets
As of this writing, the platform features over 60 crypto assets, which is a far cry from the head company with its 500+ options. NFTs are only available on Binance NFT.
Still, Binance.US is not the worst choice, as some platforms work solely with Bitcoin. Users of can access such currencies as:
- Bitcoin (BTC)
- Ethereum (ETH)
- PAX Gold (PAXG)
- Harmony (ONE)
- Orchid (OXT)
- Helium (HNT)
- Chainlink (LINK)
- Cardano (ADA)
- Stellar (XLM)
- Tether (USDT)
Many assets, including Bitcoin, Ethereum, Solana, Dogecoin, and Cardano, can be purchased with US dollars directly. You can buy some of the trendiest assets like Shiba Inu coin Binance.
The pairs include purely crypto instruments and combinations of crypto and fiat. Therefore, traders who do not want to cash out for USD every time have plenty of alternatives.
In 2021, the company ceased its support for Binance stock tokens, which allowed users to purchase a fraction of publicly traded shares with zero commission fees. There are also no Safemoon Binance pairs.
Get Started at Binance.us
As mentioned, users connect a traditional bank account and a crypto wallet to make transactions. Until recently, the platform only supported BEP-2, not the BEP-20 token standard used on Binance Smart Chain. This required the use of both Binance Chain wallet and MetaMask, which are both available as browser extensions for Chrome and Brave.
Now, you can establish a direct connection. The company is also offering incentives for new users. With a Binance referral id, you will unlock a $15 bonus after trading at least $100.
The company’s Binance bridge service lets users access inter-blockchain liquidity until late 2021. It worked for applications running on the Binance chain and Binance Smart Chain. This feature has been shut down, which has made the global cryptosystem more fragmented.
H2: How To Add Binance Smart Chain To Metamask
After downloading Metamask for your desktop or mobile browser, you need to create a wallet and store your seed phrase in a secure location. By default, the system does not support BSC. If you send your funds to addresses associated with it, you can lose them for good! Do the following:
- Go to settings.
- Open Networks.
- Click on the Add network button in the right-hand corner.
- Add the following information into the field and save your selection:
- Network Name: Binance Smart Chain;
- New RPC URL: https://bsc-dataseed.Binance.org/;
- ChainID: 56;
- Symbol: BNB;
- Block Explorer URL: https://bscscan.com.
Buying Crypto on Binance.US
This process is largely intuitive, but the exchange supports only three types of orders: limit, stop-limit, and market. To purchase crypto, you need to do the following:
- Log into your account.
- Enter the dollar amount you wish to spend.
- Click the “Buy Crypto” button.
The interface also supports recurring buys. These are useful for dollar-cost averaging investment strategies.
Experienced members can use advanced trading tools. These include charts, live order books, limit orders and stop orders.
Trading on Binance.US
The Trade button opens market performance data so that you can spot profitable opportunities. Seasoned crypto investors can try the company’s advanced portal packed with technical features. It includes TradeView, real-time prices, a candlestick chart, and order history. Users with little experience can find this interface confusing.
Institutional investors have access to an OTC trading portal, where the minimum trade size is $10,000. The benefits include:
- real-time data
- around-the-clock support
- discounted fees
- opportunity to negotiate directly with sellers
How to Deposit Crypto
Depositing funds to your account is relatively intuitive. It requires just a few steps, but you should be careful to paste a correct address and send a currency supported by the platform.
- Log into your account.
- Click on the Wallet button at the top.
- Select the deposit option in the right-hand corner.
- Specify the cryptocurrency and the network.
- Copy the URL or scan a QR code.
- Go to your wallet and enter this destination.
How to Withdraw Crypto
Withdrawals are managed using the same interface. You can see the Withdraw button next to the Deposit option. Then,
- Select the cryptocurrency and enter the amount.
- Specify the destination by choosing it from the white list or entering manually.
- Preview the transaction.
- Check your inbox from an email requesting confirmation and confirm it.
- Go back to your account and check the status via Wallet.
Binance US Fees for Traders
Like the parent company, Binance.US offers highly competitive conditions for traders. The maker/take fee ranges from 0% to 0.1%. In comparison, fees on rival exchanges start from 0.50%. There are several ways to pay even less:
- Holding BNC slashes the trading fee further by 0.25%.
- Instant buyers pay 0.50%, which is also very attractive — on Kraken Pro, the fee is 1.5%.
- High-volume traders holding a lot of BNB also pay less.
Users also save money when they buy crypto directly for US dollars. The absence of intermediate conversion to stablecoin means there is one set of fees. On the downside, the US version of the Binance dex charges relatively high fees for debit card deposits (see below).
Deposits and Withdrawal Fees for Crypto
Depositing coins and tokens into your account is usually free. However, the cost of withdrawal varies dramatically, which was also typical for other exchanges. The amount depends on the asset.
For instance, you will pay 0.0045 ETH to collect Ether into an ERC-20 network. This amount (roughly $17) is colossal in comparison with the 0.01 ALGO fee (roughly $0.20) to withdraw Algorand.
Deposit and Withdrawal Fees for Fiat
Despite lower-than-average trading fees, Binance.US does not offer highly competitive conditions for withdrawals and deposits. The rates are similar to those on other exchanges.
Depositing by debit card is cheaper on platforms like Gemini. Binance.US will charge you 4.5%, while Gemini lets you make a certain number of free deposits per month. CoinLoan does not impose any fees on transfers to and from interest accounts.
To withdraw funds for free, Binance.US users should choose ACH. Withdrawals by wire transfer cost $15 and $35 for domestic and international transactions, respectively.
Earn Passive Income Through Binance US staking
Users who tie up their coins on the platform for a set period of time receive staking rewards. This helps the company support the development of the respective blockchains. As of now, you can stake VET, XTZ, ATOM, EOS, ONE, and ALGO. Keeping them on the platform brings up to 10% APY.
No Credit Card Deposits — Pros And Cons
The absence of credit card deposits is not surprising. Generally, it is the least reasonable way to fund your crypto account. First, your bank is likely to charge high fees for the transactions. Secondly, you will be using borrowed money and paying interest on it. This is a highly risky idea, and Binance.US is right in rejecting it.
The quality and accessibility of support are major factors for security-conscious users. Unfortunately, Binance.US does not accept queries by phone. Users have to use live chat or an online form, even to report suspicious activity. The chat is only suitable for basic questions.
Binance.US can take advantage of the parent company’s library — Binance Academy. It is a free service with 280+ articles in 21 languages. They cover everything from basic economics to cybersecurity. The company also has a strong presence on social media and keeps users updated via Binance twitter.
Is Binance.US the Right DEX for You?
The Binance logo is one of the most recognizable symbols in the crypto world. The biggest exchange established this platform, and it stands out for its low-fee approach to trading. Yet, regulation concerns, unavailability in some states, and limited range of assets show that Binance.US still has a long way to go.
Today, it mostly appeals to users seeking low-fee trading opportunities and those who want to earn passively through staking. Its advanced platform is suitable for seasoned traders in need of advanced tools. However, the cons outweigh the pros:
- Highly competitive trading fees
- 25% trading fee discount if you pay them with BNB
- Opportunity to earn passive income through staking
- Discounts for high-volume trades
- Free deposits via wire transfer and ACH
- Free ACH withdrawals
- Fewer instruments and features compared to the Binance site
- Regulatory issues faced by the parent company
- Unavailable in 7 states
- High fees on debit card deposits.
- Does not provide customer support by phone
- Lack of details on security measures
- $10 minimum trade
- High charges for wire transfer withdrawals
- Interface can be confusing for some users
What Alternatively to Consider
If you prioritize regulatory compliance (which is advisable), you may find crypto exchanges like Gemini more attractive. This company also operates in all US states, and its educational library is just as impressive as Binance Academy.
Coinbase offers many more cryptocurrencies. It aims to maximize opportunities for customers by listing every coin that may be legally included. On the downside, the fees can add up. CoinLoan offers a top-rated regulated environment for trading, interest accounts, and lending outside the US.