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Binance.US Review 2022: Low Fees, But Investors Should Take a Pass

Before You Start

No matter where you buy it, cryptocurrency is a highly volatile, speculative investment. Only invest in crypto what youre prepared to lose, and make sure you have other financial priorities in place first: save money in an emergency fund, contribute to retirement savings, and pay off any high-interest debt balances.

Binance.US can grab investors attention with lower fees than many other cryptocurrency exchanges, but wed recommend paying a bit more for added transparency.

Binance.US is an American partner of Binance, the worlds largest cryptocurrency exchange by trading volume, and which was founded in China in 2017. The original platform stopped accepting U.S. users in 2019, and announced it would instead partner with a U.S.-based version of its platform called Binance.US.Binance.US was started under a partnership with the Financial Crimes Enforcement Network (FinCEN)-registered BAM Trading Services as part of its move into the U.S. market.Since the 2019 introduction of Binance.US, the international Binance has faced regulatory scrutiny. For example, regulators in the U.K. and Italy have banned Binance from operating in their countries, while officials in Hong Kong and Japan have warned investors about the exchange. Binance was also under investigation by the U.S. government for tax fraud, money laundering, and insider trading as recently as September 2021, according to reporting by Bloomberg.

That level of scrutiny was recently extended to Binance.US, which Binance has referred to in the past as a U.S. partner. The Securities and Exchange Commission is currently investigating the relationships between Binance.US and two firms owned by Binance founder Changpeng Zhao, the Wall Street Journal reported.

We reached out to Binance and Binance.US last year and again in February 2022 in an attempt to confirm details about reported regulatory investigations, as well as to better understand the relationship between the international and U.S-based platforms. We didnt hear back from officials at Binance or Binance.US after we first reached out, though a spokesperson contacted us on behalf of Binance.US after our review originally published in 2021 to provide additional context on the relationship between Binance and Binance.US. They operate as separate companies, the spokesperson said in an email, with Binance.US licensing software, trademarks, and wallet technology from Binance.

United States investors still cannot use the original Binance today, but Binance.US offers over 80 cryptocurrencies for investors to choose from. The biggest draw of Binance.US is its low fees compared to some other exchanges. It also has an easy-to-use buy/sell option for beginners, while more advanced traders can get the benefit of its in-depth basic and advanced trading platforms.

Despite those benefits, Binance.US offers limited crypto options and is much less transparent than many competitor exchanges when it comes to security, storage options, and customer assistance. For most long-term, retirement-minded investors, wed recommend sticking with exchanges such as Coinbase or Gemini, which are much more transparent about these key operations.

Pros and Cons of Binance.US

Pros

  • Low fees compared to other exchanges
  • 25% trading fee discount if you pay fees using Binance Coin (BNB)
  • Educational resources available
  • Identity verification process
  • Tax statement portal to help prepare crypto taxes

Cons

  • Not available in all states
  • $10 minimum trade
  • Site can be difficult to use
  • Lack of information on security
  • History of regulatory scrutiny
  • Limited customer service options

Binance.US At A Glance

  • 80+ currencies available
  • Not available in Hawaii, Idaho, Louisiana, New York, Texas, or Vermont
  • Flat 0.1% fee for spot trades; 0.5% fee for instant buy/sell
  • $10 minimum trade
  • Option for recurring investments, for dollar-cost averaging

Cryptocurrencies Available on Binance.US

You can buy and sell over 80 cryptocurrencies on Binance.US, including:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • PAX Gold (PAXG)
  • Harmony (ONE)
  • Orchid (OXT)
  • Helium (HNT)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Stellar (XLM)
  • Tether (USDT)

Binance.US also offers a large number of trading pairs. This includes options to trade two cryptocurrencies without the need to cash out one for USD, as well as options to trade between crypto and a fiat currency like USD. Trading pairs vary between exchanges depending on the various cryptocurrencies offered.

Binance.US Fees

Binance.US has an option to automatically buy and sell crypto using U.S. dollars, using a simple interface thats similar to what youll find on Coinbase and other competitors. Each of these buy/sell transactions charge a 0.5% fee.

But to take advantage of its competitive 0.1% standard fee, youll need to spot trade through the Binance.US trading platform. This can be confusing if youre unfamiliar with exchange lingo; on other exchanges, this type of trading and fee structure is typically used in more advanced platform options, such as Coinbases Coinbase Pro or Geminis Active Trader.

Spot trading means youre not technically buying the cryptocurrency, but instead trading your USD for it through either a market or a limit order. A market order means you agree to trade for the currency at the current market price. A limit order lets you put in a designated price at which you want the trade to occur, and when the currency reaches that price, the trade happens automatically. These orders then incur maker (for limit orders) or taker (for market orders) fees  though on Binance.US, theres just a standard 0.1% fee.

Take Bitcoin for example, if you want to get Bitcoin on Binance.US, heres how you would do it to make sure you only pay that 0.1% fee, and not the 0.5% fee:

  1. Transfer USD to your Binance.US account for no fee
  2. Set a market or limit order trade for USD to Bitcoin for a 0.1% fee

That can mean serious savings for investors, especially compared to some other exchanges. For example, if you want to buy $100 worth of Bitcoin on Coinbase, youd actually end up with about $96.51 in Bitcoin, after fees. On Binance.US, youd still have $99.99 to purchase Bitcoin after accounting for the 0.1% fee.

If you outright buy Bitcoin with USD, you will pay a 0.5% fee on Binance.US. If you want to spend $100 to buy Bitcoin using this option, youd end up trading about $99.50 after fees.

There is also a 25% discount to your fee if you use Binance Coin (BNB) to pay your transaction fee. To do this, you just have to hold Binance Coin in your Binance.US account, and your trading fee will be automatically deducted from your Binance Coin balance.

If you use a dollar cost averaging method to regularly invest, these savings can be significant in the long run. But while its important to pay attention to an exchanges fee structure, experts say that it may be worth it to pay more in fees for more advanced security, usability, or other features.

Deposit and Withdrawal Fees

Before you trade money for crypto, youll need to deposit  and when you sell, withdraw  U.S. dollars into and out of your Binance.US account. The fees for this are minimal, especially if you transfer from your bank account using ACH.MethodMinimum WithdrawalDeposit FeeWithdrawal FeeACH (automated clearing house)$1$00Wire transfer$100$0$15 domestic, $35 internationalDebit cardN/A4.5%N/A

There are also individual withdrawal fees for moving your crypto holdings from your Binance.US account into your own crypto wallet. These fees vary based on the type of cryptocurrency.

Binance.US Security

We found limited information from Binance.US about its security measures and protections, and the company did not respond to a request for comment. Binance.US says the following statement on its homepage: We use state-of-the-art storage technology to protect your cryptocurrency and USD assets.

In a blog post, Binance said the vast majority of its user funds and assets are stored in offline, cold storage facilities. Though its unclear exactly what percentage of assets held by the exchange are kept in secure, offline cold storage vs. online hot wallets. You must have a Binance.US account to send queries to the help desk, so we were unable to get more information that way.

Binance.US does not provide information on an internal wallet offering, but you can keep your coins within your account on the exchange. It also partners with Trust Wallet, a third-party hot wallet option. You can withdraw your coins from your account onto your own hot or cold storage option at any time (for a fee).

There have been previous reports that Binance.US keeps users USD in FDIC-insured accounts, but posts on the Binance.US site containing that information have since been deleted. While it doesnt guarantee the same in case of a Binance.US hack, the international version of the exchange, Binance, covered all consumer losses after a $40 million hack in 2019.

We reached out to Binance.US for more information about its security measures and received no response. Well update the review if Binance.US gets back to us.

Additional Details

Earn Rewards

You can earn rewards through the exchange by holding certain coins in your Binance.US account  a strategy called staking. According to Binance.US, staking helps support the operations of these coins blockchains.

Coins supported currently are: VET, XTZ, ATOM, and ALGO. You can earn up to 6.5% annually through staking with Binance.US, and you may still make trades while taking part.

Binance Academy

Binance Academy is Binances education platform featuring hundreds of hours of content on blockchain, cryptocurrency, cryptoeconomics, security, and more. It essentially serves as a one-stop-shop for all things crypto and can be a helpful resource for beginner investors.

Tax Portal

Binance.US launched a new free tax portal to help customers prepare their crypto taxes. According to its site, the portal allows users to access their transaction history and sync their crypto activity to most third-party, though it doesnt specify which platforms it is compatible with except for TaxBit. The portal offers two tools to help customers generate, export, and download their Binance.US transaction history: a tax API key tool and an export statement tool. The Tax API Key tool directly shares crypto transaction data, while the export statement tool allows users to generate and download their own transaction history.

Who Is Binance.US Best For?

Binance.US is not available in Hawaii, Idaho, Louisiana, New York, Texas, or Vermont. For people outside of those states looking to invest in crypto, Binance.US offers both an easy buy/sell interface and more advanced trading views. It has low fees, and further fee discounts for using its native currency, Binance Coin, and does offer some educational content through its on-site blog.

Despite its low fees, we do not recommend Binance.US, especially for beginners. Binance.US doesnt offer any information about how your investment will be secured, stored, or protected by the firm, unlike other cryptocurrency exchanges. Plus, there are many other active exchanges that offer simple buy/sell interfaces for long-term investors. We believe that transparency about the safety of your investment is worth paying a bit more in fees.

Binance.US Compared to OthersBinance.USGeminiCoinbaseCoins80+ cryptocurrencies70+ cryptocurrencies150+ cryptocurrenciesFees0.1% trading fee; Can get a 25% discount on your fee if you hold Binance coin0.50% convenience fee; $0.99 to $2.99 transaction fee; 1.49% transaction fee for trades over $2000.50% spread; Trading fee between 1.49% and 3.99% (or $0.99 to $2.99 flat fee)Wallet storageKeep coins in Binance.US account or transfer to your own walletKeep coins on Gemini account, Gemini Wallet option, or transfer to your own walletKeep coins on Coinbase account, Coinbase Wallet option, or transfer to your own walletMinimum Trade$10Equal to the smallest amount of each coin that can be traded (0.00001 BTC)$2

Frequently Asked Questions

Are Binance and Binance.US the same?

Binance.US formed in 2019 after Binance stopped accepting U.S. investors. The interface and many features are the same, but there are differences such as the amount of cryptocurrencies available to trade in the U.S. vs. elsewhere, as well as which states Binance.US is allowed to operate in. United States users cannot buy crypto using the international Binance platform.

In 2019, Binance was banned in the United States on regulatory grounds and is no longer accessible for U.S. citizens. In response, Binance partnered with a U.S. branch called Binance.US, which the company says is a separate exchange. Binance.US is legal, but it is not available in all U.S. states.

Is Binance.US safe?

There have been no reported breaches at Binance.US, but hackers stole $40 million worth of Bitcoin in 2019 from the global Binance exchange. The company said it paid the losses in full to affected users. Though Binance.US promotes itself as a secure exchange, it lacks full transparency on its security and user protection measures compared to its competitors.Ryan Haar - Staff Writer

Ryan Haar is a former personal finance reporter for NextAdvisor. She previously wrote for Bloomberg News, The Triangle Business Journal, and the Wilmington Business Journal.Next Current Mortgage Rates, July 20, 2021 | Rates Receded »Previous « Mortgage Rates Hit a New 5-Month Low at 2.88%. Why the Lowest Rates You See Aren't What You'll GetPublished byRyan Haar11 months ago

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