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Binance.US Review: Pros, Cons, and More | The Ascent by Motley Fool – The Motley Fool




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Binance.US is a popular cryptocurrency exchange with low fees and a solid range of cryptocurrencies. On the downside, it's not licensed to operate in every U.S. state, and its parent company is working to become more regulation-friendly. Read our full Binance.US review to find out if this is the right crypto exchange for you.
Binance.US
Our Rating:
Bottom Line
Binance.US stands out for its low-fee approach to crypto investing and it has a good list of available cryptocurrencies. However, it is not available in every state, which does drag on our rating some.
Fees:
Up to 0.1%
Account Minimum:
$10
This cryptocurrency exchange is a good fit for: Experienced traders who value low fees above all else.
One of the biggest attractions of Binance and Binance.US is their low fee structure. Traders pay a maximum 0.1% maker/taker fee, which is extremely competitive compared to other platforms. Another advantage is that many of Binance.US's cryptocurrencies can be bought directly with U.S. dollars. So there's no need to pay two sets of fees to convert dollars into a stablecoin, then use the stablecoin to buy the crypto you want.
Binance.US has over 60 cryptocurrencies on its platform. This isn't the best selection — some platforms list over 100 coins and tokens. But it's also far from the worst, as there are platforms that only let you buy Bitcoin (BTC).
Binance.US allows users to stake a limited number of coins on its platform. Staking involves tying up your coins for a set period of time to earn rewards. Some cryptocurrencies rely on staking as a way to validate new transactions and keep the network secure. Staking is different from lend-earn products, in which platforms actually lend out your assets and pay you interest.
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Binance's main site is a behemoth with hundreds of cryptocurrencies and all kinds of advanced trading tools. Binance.US pales in comparison. But in fairness, this has more to do with regulatory guidelines in the U.S. than the Binance.US product.
Binance.US does not have any issues with regulators. However, Binance has had regulatory challenges in several countries, including Japan, the U.K., Canada, Singapore, Thailand, and the U.S. Bloomberg has reported that there's a U.S. investigation into Binance by the Commodity Futures Trading Commission (CFTC) and the Justice Department, though so far no charges have been brought.
Until last year, Binance appeared to prioritize user experience over regulatory concerns. However, it appears to have changed its tune — in part due to the issues it has faced. Binance says it grew its compliance team 500% in 2021. As regulators worldwide focus on cryptocurrency, it remains to be seen whether Binance's new approach will be enough.
Binance.US is not alone in not accepting credit card payments. In fact, it isn't always a good idea to try to buy crypto using a credit card. You may face extra charges from your card issuer, plus you're essentially taking on debt to make a high-risk investment. Nonetheless, this is a slight negative.
Binance.US is not available in Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, or Vermont. Cryptocurrency traders in these states will need to look for another exchange. Check out our list of top cryptocurrency apps and exchanges for more options.
Binance.US does not have a telephone customer support line. It has an automated live chat function that can give basic assistance. But users with more specific queries need to fill out a form and wait for an email response. This is an issue for several cryptocurrency exchanges, as customers want more hands-on assistance, especially if they're trying to report fraud or suspicious activity.
If you want an exchange that takes regulation seriously: Gemini is a popular cryptocurrency exchange that's worked hard to stay on the right side of regulators. It is also available throughout the U.S., and has a wealth of educational resources.
If you want a wider range of cryptocurrencies: Coinbase has made it a priority to list every coin it legally can, giving customers even more options in cryptocurrency trading. Users should pay attention to Coinbase fees, however, which can add up.
New users: Earn $50 BTC when investing $1,000 or more within 30 days
Earn $5 in bitcoin when you place your first trade.
Binance launched Binance.US to ensure it had a cryptocurrency trading exchange that's compliant with U.S. regulations. Users can buy, sell, trade, and stake cryptocurrencies on the platform. It is available on desktop and mobile devices, and aims to meet the needs of all users, no matter their crypto experience.
Binance.US has a custodial wallet, so customers can leave their assets on the platform. However, many investors prefer to move funds to an external wallet they control. Binance.US suggests customers use its partner, Trust Wallet, which supports thousands of assets. But users can also easily withdraw funds to other crypto wallets.
Binance.US charges three types of fees: deposit, withdrawal, and trading. These vary depending on how you deposit money, your monthly trading volume, and what crypto you withdraw.
Binance.US's deposit and withdrawal fees are roughly in line with those of other cryptocurrency exchanges. Some platforms make it cheaper to deposit money by debit card, and Gemini stands out with its limited number of free monthly withdrawals. Here's how Binance's fees break down:
Crypto deposits are usually free, and withdrawal fees vary considerably, depending on the crypto. For example, it costs 0.01 ALGO (around $0.20) to withdraw Algorand, but 0.0045 ETH (around $17) to withdraw Ethereum to an ERC-20 network. Other exchanges have similar structures.
Binance.US has an instant "Buy Crypto" feature that lets beginner investors convert dollars into cryptocurrency. This carries a straight 0.5% fee. Traders who use its advanced platform pay a lower maker/taker fee, as shown below.
Binance gives a 25% discount on trading fees to customers who pay in its utility token, Binance Coin (BNB). Fees are also lower for high-volume traders who hold large amounts of BNB.
Let's say you're a low-volume crypto trader who wants to buy $300 worth of Bitcoin (BTC). You deposit the funds by bank transfer for free and trade on its advanced platform. In this example, you pay $0.30 in trading fees.
Binance.US may not have as many available cryptocurrencies as its international parent, but it still has a strong list of coins. It trades over 60 cryptocurrencies, many of which can be bought directly with U.S. dollars. These include many of the top-20 cryptos, such as Bitcoin, Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA).
LEARN MORE: Cryptocurrency Availability: Where Can You Buy Your Favorite Tokens?.
Binance.US also allows you to stake a handful of cryptos. Staking involves tying your coins up for a set period of time to contribute to the network's security, and earning rewards in the process. Binance.US pays between 0.5% and 6% in rewards on staked coins.
The main Binance platform has several of the security features we look for on cryptocurrency platforms.
However, it is not clear whether these measures also apply to Binance.US. One would assume so, but it would be helpful to find a security-specific page on the Binance.US platform. Binance.US does offer user-level security features such as two-factor authentication (2FA).
Security-conscious investors may also be concerned by Binance's difficult relationship with various regulators around the world. Binance has hired more compliance staff and upped its efforts to stay on the right side of regulators, but it remains a potential issue for customers.
Most notably, U.S. authorities are investigating Binance for money laundering, tax evasion, and possible insider trading — though no charges have been brought, and Binance denies any wrongdoing. Binance.US is not directly implicated, but any actions taken against Binance will have a knock-on effect.
All cryptocurrency investments carry risk, as these are relatively new and unregulated assets. There are no guarantees, but compliance-conscious platforms may have more investor protection, and so may slightly lessen the risks involved.
RELATED: Check out The Ascent's guide to the best places to buy Binance coin.
Emma lives in Bogota, Colombia, where she owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since the summer of 2019.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
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