Buy Binance: Find Out The Truth Before Investing
Published: 16 January 2021 by Valentina
Binance is a popular name in the cryptocurrency world. Indeed, it is one of the most popular exchange sites in the world, but is it really that affordable? And is it safe?
OnlineTradingCourse.net will analyze this company and make a comparison with the most famous CFD Brokers where to buy Binance.
Using online brokers is very simple, just follow these 3 steps to invest:
- You register in a regulated CFD Broker, which is preferable to Exchanges (you will find out why later).
- Practice on the Demo account to become familiar with the platform.
- Make the minimum deposit required and start investing seriously.
By following these steps, you can invest in Binance without paying commissions and in a safe and regulated manner.
In fact, thanks to CFD brokers such as eToro, it is possible to buy Binance or other cryptocurrencies in total safety and avoiding the risks of Exchanges. Here are the best platforms available:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
72.30% of retail CFD accounts lose money
Min. Deposit: 250€
Binance: What is it?
Binance is a cryptocurrency Exchange, a website that allows you to exchange cryptocurrencies with each other and buy them with Fiat currency (legal currency such as Euros or Dollars).
The platform was launched in 2017 and allows you to trade numerous cryptocurrencies such as Bitcoin, Ethereum, Ripple, but also emerging cryptocurrencies such as Tron, Neo, Eos, etc.
The company is headquartered in Malta, Europe, but the exchange was founded by a Chinese citizen named Changpeng Zhao.
Binance’s growth has been quite rapid and in two years it has become one of the largest cryptocurrency Exchanges in the world with around $ 2 billion in daily activity.
Initially, Binance was only a crypto-crypto exchange, while now it also allows some operations via bank transfers and credit cards.
Binance’s fame derives mainly from the large availability of cryptocurrencies but recently, with the introduction of the Binance Coin, this Exchange has risen further by offering its own cryptocurrency, created mainly to reduce commissions on the platform.
Buy Binance: how it works
How Binance works is very simple:
- You open an account at the Exchange and if you only deposit with cryptocurrencies, you only need an email address.
- In order to protect the account, two-factor authentication is set up and you have access to the address of your crypto wallet.
- At this point, cryptocurrencies can be deposited, or identity confirmation (KYC) can be performed, in order to deposit via conventional currencies using credit cards or wire transfers (only available in some countries).
After crediting the cryptocurrencies to the wallet, you can start trading cryptocurrencies with each other.
If you are used to trading online with a CFD Broker’s platform you will be quite disappointed, since the performances are very different, the transactions are quite slow (10/20 minutes), and you cannot sell short.
Is Binance worth it?
When it comes to buying cryptocurrencies or selling them, there are mainly two options available: Exchanges,like Binance, and CFD brokers.
To understand if Binance is convenient or not, we want to make a simple comparison:
- Binance is a simple website, with no regulation and no external control. There are no (external) guarantees and deposits are not guaranteed; in fact, they suffer frequent cyber attacks with consequent theft of cryptocurrencies.
- CFD Brokers, on the other hand, are authorized intermediaries, which offer excellent guarantees on the deposits made and are required to comply with a series of rules to protect investors. Furthermore, you do not really get hold of cryptocurrencies and therefore there is no risk of theft.
Below, we have summarized the strengths and weaknesses of these two methods:
Pros > You “really” buy cryptocurriences
Cons > Commissions to be paid
> No license
> You can only invest upwards
> Serious security concerns
> Slow transactions
Pros > They are safe and licensed
> You can invest both up and down
> There are no commissions
> There is no risk of cryptocurrency theft
> Immediate transactions
Cons > You don’t “really” buy cryptocurriences
If we analyze the table above, the differences between Binance and CFD Brokers become evident and we can summarize them as follows:
- Binance is risky (it has suffered numerous cyber attacks), expensive (there are commissions to pay), and allows you to earn only in the event of a price rise (you cannot sell short).
- CFD Brokers are cheap (they don’t charge commissions), they are safe and regulated (they are licensed), and offer the possibility of earning even when prices fall (short selling).
Buy Binance: What alternatives are there?
After the comparison made with CFD Brokers, it is evident that the advantages of the latter over Binance are truly remarkable, starting with the FCA or CySEC license that Brokers can have.
Furthermore, the lack of trading fees makes investments much cheaper and to trade (with CFD Brokers) it is sufficient:
- To buy the CFDs of your chosen cryptocurrency to profit from the price growth
- To sell the CFDs of your chosen cryptocurrency to profit from the drop in price
Once the desired price is reached, the operation is closed and net profits can be withdrawn or reinvested, without commissions.
Thanks to the analysis carried out by OnlineTradingCourse.net on CFD Brokers, it emerged that the best alternative platforms to buy Binance are those offered by eToro, ForexTB and IQ Option.
eToro is the most used online broker in the world. Its over 7 million active users together with its various licenses, such as the FCA one for the Uk, demonstrate its reliability.
Mostly famous for its intuitive and very fast platform, eToro makes cryptocurrency trading really easy. Below, you can see a real example of the Binance CFD:
To buy Binance (or sell it) you need to click on “Invest”, decide whether to Buy or Sell the cryptocurrency and how much to invest in the operation.
Not everyone likes to study the charts and trade “manually” on the markets; especially for these investors, eToro has created Copy Trading.
It is a tool to invest automatically and to copy the market operations of the best traders in the world, chosen by you on eToro, automatically and without additional costs.
To use Copy Trading you need to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here, you can see some of the eToro Traders that can be copied.
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB has managed to stand out in the broad market of intermediaries for trading, thanks to its training offer and support for investors.
This Broker has numerous licenses but the most important is the CySEC authorization, which is valid at European level.
ForexTB offers the possibility to choose between two trading platforms, very different but both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Buying Binance on ForexTB is simple, just select the corresponding CFD, click on Buy or Sell and decide how much to invest in the transaction.
The training begins with a free trading course that this Broker has created for its users. This is an ebook that explains the basics of online trading in a clear and detailed way but without exaggerating with the technical terms.
In addition to theory, you will also receive practical support with the free Trading Signals, processed by Trading Central, which have a yield of more than 70%. To get them just use the official link below:
IQ Option has reached a truly remarkable level of popularity in few years, especially thanks to its attention to traders who want to trade with small capital.
Thanks to the FCA license, IQ Option is considered a safe intermediary and full of very cheap services.
With this intermediary, in fact, the minimum deposit to open a real account is only 10 Euros, an amount that allows anyone to buy Tezos and negotiate on the market, even without large amounts to invest.
With the platform offered by IQ Option, you can buy Binance (or sell it) by making small investments but with real possibilities of profit.
Even if the minimum deposit is only 10 Euros, you can still practice with a Demo account, so as to avoid any risk and become familiar with the platform.
The IQ Option trading platform is among the fastest and most advanced that we can find on the market but at the same time is not difficult to use. Indeed, traders with little experience find it really simple.
On this Broker it is also possible to study the basics of trading thanks to an educational area rich in content that is free of charge to all investors.
Buy Binance: Fees
This is the sore point for Binance and of all cryptocurrency Exchanges in general: Trading fees.
Binance charges a 0.1% fee for each transaction made. These fees can be reduced by purchasing Binance Coin.
It must be said that in comparison to other Exchanges such as Coinbase, Kraken, Bittrex, BitMEX or Coinmama, Binance’s commissions are quite low. However, if we compare them to the previously seen CFD Brokers, they still remain very high and have a lot of influence if you make transactions with some frequency.
Buy Binance: Reviews
Online reviews left by Binance users are not too flattering. In a famous review site, those who judge this Exchange as “poor” are 43% and the majority is dissatisfied with Binance – as you can see below:
Here is one of these reviews to better understand the security issues affecting this cryptocurrency Exchange:
“Bad Exchange, non-existent assistance, in order to pay 100 euros, you have to follow an insane process, giving a huge amount of data and documents to external companies (Advanced Cash), which you do not know who they are and what they do with your data…
Forget it, zero security …
There are dozens of better and safer Exchanges, first of all Coinbase, but also many others.”
Is Binance safe?
The security problem has always plagued cryptocurrency Exchanges and Binance is not immune to cyber attacks.
In fact, last year the Exchange announced that it had suffered a hacker attack for over 7,000 Bitcoins, which amounted to about 40 million dollars at that time.
It is not known how it happened, Binance did not provide much information on the matter, but it is clear that these attacks are possible and happen quite frequently on this kind of platforms.
Binance suspended deposits and withdrawals after the attack and thanks to a guarantee fund it seems to have managed to cover the shortfall, but what would happen in the case of a higher amount?
Unfortunately, the risk is to lose all the funds deposited on Binance is real, so be very careful!
Binance is a cryptocurrency Exchange with good features if we compare it to other Exchange sites, but unfortunately, as we reported in the review, it has suffered severe cyber attacks and there is no way to limit these thefts in the future.
Ultimately, if we compare Binance with a regulated CFD Broker there is no comparison in terms of security and economic convenience: CFD Brokers win.
If you want to trade cryptocurrencies, we therefore recommend that you try one of these online brokers, preferably starting from the Demo account, so you will not run any risk at the beginning. Later you can make the minimum deposit required and start real trading.
Here are the official links of the free Demo accounts offered by the top CFD Brokers:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the IQ Option Demo account for free with this link
Binance is a cryptocurrency exchange, a website that allows you to trade these digital currencies.
Compared to other exchanges it has low commissions but they are still present.
No, unfortunately it has suffered serious cryptocurrency theft and there is no way to prevent this from happening again.
CFD brokers are the best alternatives to Binance, they allow you to buy and sell cryptocurrencies safely and without paying commissions.