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Binance Exchange Review – From Rags to Riches

Binance – Exchange The World

Well not literally rags, but you get the idea: They started small and became a behemoth. Binance WAS an up and coming cryptocurrency exchange eight months ago, until it stunned the crypto world by becoming the number one exchange in December 2017 with $2.8bln (BILLION) in trading volume. How did this exchange, which held an ICO in July 2017, become the hottest and most popular crypto exchange in less than nine months?

Through a mix of savvy marketing, useful interface, native coin (Binance Coin BNB, more on that later) and an abundance of listings Binance rose quickly and continues to innovate to this day (Binance chain anyone?). Binance was oringally based in China but since the #cryptocrackdown in September 2017 they settled temporarily in Japan and now find themselves based in Taiwan as of March 2018.

Technically Binance is a Chinese digital cryptocurrency exchange, but it offers a multitude of languages from Japanese, English, Russian, Spanish and a host more. More language support = more users, it’s simple but many exchanges do not bother to invest in this concept. That being said the bulk of Binance users are overseas so this is very much an international crypto exchange.

Would you believe me if I told you Binance had a great team? It’s such a common refrain in the developer and crypto space it’s become a wonderful meme. It’s worth mentioning the core team that brought us Binance has serious creds coming into the venture. CEO Chanpeng Zhao previously founded a high frequency trading system called Fusion Systems and was one of the original musketeers in Blockchain.info, the massive online bitcoin wallet. Not to be outdone Yi He, a co-founder, worked at OKCoin the head of branding and marketing for the virtual currency exchange. What am I getting at? The Binance team has a stong core, early adopters and believers of Blockchain and cryptocurrency. That says a lot about the exchange itself.

Binance Exchange Overview

Binance Exchange Frontpage

Binance has made their name and grown their volume through a friendly user interface for beginners, various language support, a complete trading platform for advanced users and a copius amount of coins to buy and sell. So we have a lot to cover. If you use other exchanges you may find the above image oddly familiar. Yes Kucoin kinda sort of borrowed the basic Binance template. When you arrive to the Binance home page you are welcomed to the exchange with the active contests that are being held to spur more trading and new users.

I am not a huge fan of the dark colour scheme the site uses. I prefer a softer and lighter tone, but aside from that we begin with the registration process. If it ain’t eay users will be turned off easily. Start off with the basic email and password request. Binance has had incredible success bringing in news users and the referral ID you see during registration lets you reward someone who told you about the exchange. If you use twitter it’s almost impossible to miss these referral links.

Binance Registration

Once you’ve completed this form and proven you are not a robot you simply have to verify your email address and you are in business. It takes less than five minutes, it’s easy. Let’s start splashing cash on digital money! Once you have successfully logged into your Binance account you will be able to adjust settings, track your assets, set up your 2FA (JUST DO IT!!), etc.

Markets and Trading view

Binance Basic market

Binance offers two options for cryptocurrency trading – basic and advanced. We will primarily focus on the basic UI. Unfortunately the “basic” feature is not all that basic, or user friendly. For any new user to trading the image avove (Basic) can be off-putting. A basic interface should have less moving parts and be more direct, making it quick and easy to buy.

From the basic view a user can view the order book on the left showing open sell (red)/buy (green) orders and the number in the  middle showing the last price. In the upper right hand corner you will notice the trading pairs you can select from (BTC, ETH, BNB, USDT) and all the cryptocurrencies that can be traded listed below. You can create a favourite list clicking the star and search here.

To place an order use the central box beneath the graphs and you will note a Buy and sell box. You have the option of manually entering a price that you want to buy at or clicking a price on the Order book that will auro populate the price. You can then enter an amount you wish to purchase or use the 25%, 50%, 75%, or 100% buttons to fill in the amount based on how much currency you have (In our image it’s BTC).

The main difference with the Advanced view are the colour scheme and the ability to do advanced Technical analysis like adding indicators (RSI, Bollinger Bands, etc) and trend lines.

Binance Coin – BNB

The Binance coin was issued during their Initial Coin Offering (ICO) in July 2017 and is based on the Ethereum standard ERC20. BNB can be used as a trading pair and also as a means of lowering fees paid. Even as an investment BNB has shown spectagular growth reaching an all time high of $24. As the years progress, however, the savings are drawn down leading to an eventual savings of 6.75% in 2021.

Binance also plans to use their profits to buy back BNB coins every quarter and destroying them thus reducing the supply and making them more valuable for holders (#HODL). Another reason traders and investors have flocked to Binance.

Binane Fees

The fee for each trade is 0.1% which can be reduced another 50% to 0.05% if you have BNB coins in your balance. That’s an incredible offer for traders, active and unactive alike. This is one of the many reason Binance has been able to draw in so many new users to quickly. There are no deposit fees, which is a norm for most exchanges. Below is a quick comparison with Kucoin, for which you can read our review here.

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Summary

The rate at which Binance has grown in the past year is astounding. With it’s recent move to Malta and the possibility of FIAT pairs in the near future, the sky is the limit for this young cryptocurrency exchange. Binance also has good ties and communication with the crypto ocmmunity in the forms of regular updates and announcements.

Regarding security Binance in general has been a model exchange with it’s use of 2FA, security notices and active communications. Recently Binance suffered a hacking attempt which saw hackers gather logins using phishing websites and then installing API access to the account. Amazingly the automated systems detected the behavior and did not allow the withdrawal of BTC. This was made possible by people giving the account and 2FA details to a fake website. Never do that. Ever.

The whole situation was caught, communicated and peoples affected were reimburesed. Over all it improved Binance standing, but also gives the investor a wakeup call on storing your coins on an exchange.

While not having the most user friendly interface, Binance has still managed to grow beyond anybody’s expectations through savvy marketing, a large offering of tradeable assets, good customer support, a clever Binance Coin that reduces trading fees and great security.

We recommend using Binance even if the basic trading interface is not so basic. Check out our other review of Kucoin exchange, another new kid on the block.

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Kucoin Exchange Review: What you need to know

The People’s Exchange

With the explosion of interest in crypto showing no signs of abating we continue to see new exchanges pop-up like pretender kings of Westeros. Amidst all these new exchanges, centralized and decentralized, we decided to take a closer look at one of the more interesting newcomers, Kucoin. Let’s start with the basics shall we? Kucoin was launched in 2017 with the goal of becoming the “hottest” exchange by 2019. Founded by a ‘dream team’ this group of blockchain afficionados already built their reputations at giants such as GF Securities, Ant Financial, Youling, Jianbang Communication, and iBOX PAY.

Based out of Hong Kong one of the most interesting aspects of Kucoin is their profit sharing scheme through their ERC20 token Kucoin Share (KCS). By owning, and holding KCS on Kucoin, you can recieve a bonus based on 50% of their daily overall trading fee revenue. The more KCS you own, the larger your daily bonus. Not a bad way to incentivize the HODL and trading of KCS, huh? We will go into more details about KCS later in this review.

Kucoin is available to users worldwide and offers a load of trading pairs such as LTC/BTC, BTC/DASH, BTC/NEO, BTC/ETH, BTC/KCS, BTC/RPX, etc. As of this article Kucoin has a 24 hour volume of 75 million USD and is ranked 25th amongst other exchanges. So what is it that makes Kucoin special?

Kucoin Exchange Overview

Kucoin homepage

OK so enough of the background history of Kucoin, let’s get to the meat of the issue. How is the user exeprience and interface? UX and UIs vary wildly between exchanges but it is the most imporant feature if the exchange hopes to have long term success and retain users.

The homepage takes a few cues from Binance regarding its structure, but that’s the limit of their similarities. I personally prefer Kucoins use of a softer, and easier to read color tones. The registration process is the first step any user confronts when joining a new exchange and Kucoin get’s it right. A simple and quick three step process that takes under 4 minutes is a very welcoming experience.

Kucoin registration

Like most exchanges you will need to agree to the terms and conditions, provide your email address, confirm that email address, deposit funds to your new Kucoin account and start trading!

Once you have successfully logged into your Kucoin account you will be able to adjust settings, track your assets and manage your rewards (referral and Kucoin bonuses), and trade. We here at Crypto is Coming highly recommend you activate the two factor authentication (2FA).

Markets and Trading View

Kucoin basic market trading

The Kucoin layout is very clean and consistent througout the website, including the market and trading views. Navigate to the Markets overview screen and you can see the trading pairs available to choose from: BTC, ETH, KCS, NEO, USDT & BCH.

For basic trading click on the Markets tab at the top of the page, select your trading pair, and type in the price and the amount you want to buy (image above). For each trade, KuCoin requires you to enter your Google 2-FA. Unless of course you deactivate this through your settings.

If you want a more detailed view of the market you can click the trading pair (KCS/BTC) which will then take you to the trading screen where you can view the usual candles, order book and buy or sell of the selected currencies.

Kucoin Advanced Market trading

There are two main things I like about the Kucoin advanced trading screen: 1.) the integrated Tradingview chart and 2). the required 2FA verification in the bottom right corner to activate buying and selling. I use Tradingview.com for my regular TA charting so having a familiar graph when using Kucoin makes it easier to get straight to trading. Regarding the 2FA: Don’t worry you do not have to enter your 2FA code each time you want to trade. Once activated you can buy and sell for 120 minutes before you will have to re-validate. This is an extra security feature I can appreciate.

Many of the key features for Kucoin are obvious only after a few hours of playing with the exchange. The ability to contact automated support 24/7 is a nice (though somewhat limited), it’s simple and straighforward help page anyone can appreciate, the attractive UI, many base trading pairs to choose from, and of course recieving dividends.

Kucoin Fees

The fee for each trade is 0.1% of the asset you bought plus any discount you may get from holding KCS. But don’t get your hopes up, for every 1000 KCS you own you get a 1% discount (hard cap of 30%). At the current price of KCS you would need whooping $5,200 in KCS to receive a 1% discount. Compared to the Binance native coin BNB this is a pitance of a discount. But a discount on trading is not the only feature of KCS (More on that in the next section).

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Withdrawal fees vary based on the cryptocurrency being withdrawn. Some cryptocurrency have no withdrawal fees such as NEO and GAS and others have very low fees such as LTC. You can find the comprehensive list of Kucoin cryptocurrency withdrawal fees here. Compared to Binance the fees are very similar. (*Quick note if you hold NEO on Kucoin you will receive GAS)

To deposit and withdraw go to Assets screen and select the cryptocurrency you wish to transact, click confirm to recieve your withdrawal address or if depositing type in the required information.

Kucoin Shares and passive income

Everybody loves passive income. You’d have to be a fool to pass up on dividends if you owned stocks, why would you pass up on Kucoin Share payouts? The concept is simple: Buy and HODL KCS, receive a daily bonus in the form of KCS, rinse and repeat. The more KCS you own, the greater your daily bonus.

There is a catch (isn’t there always?): The bonus is based on 50% fees collected from said traded coin which makes it highly dependent on volume. But if Kucoin is aiming to be the “hottest” exchange by 2019 who cares right? Right??? OK moving on.

Let’s use an example to put some numbers behind the dividend. User Crypto_Tyrion HODL 1,960 KCS in his account on Kucoin. The daily volume as of this post is 5,600 BTC ($75 million), according to the current fee rate (0.2%),  Crypto_Tyrion would recieve the equivalent of $1.46 daily in KCS. The bonus is distributed at 0:00 +8UTC daily over a period of several hours and is calculated by the amount of KCS you hodl.

There is a convenient website that calculates your daily coin bonus based on how many KCS you own (because who wants to do maths themselves?). Click this link, type in the amount of KCS you own and let the good times roll!

Summary

Trying to be the hottest cryptocurrency exchange by 2019 is a very bold and audacious goal. Currently ranked at 25th in terms of 24hr volume, Kucoin has a ways to go. But with a great user interface and experience, good security, low trading fees and incentives for trading and holding KCS who is to say Kucoin can’t top the exchange mountain by 2019.

Let’s not forget that Kucoin also benefited when other exchanges shuttered their doors to new accounts due to a lack of scalability. Kucoin didn’t, which makes it a great choice for new and experienced users alike. Register for Kucoin here. If you are curious about exchanges check out our comprehensive guide here.

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