Binance is one of the most popular crypto exchanges in the world. But is it a good option for buying and selling cryptocurrency in Australia? Here is my guide to binance and how I've used it in the past.
What I like about Binance
- Good Fees – Binance fees are among the cheapest in Australia for buying and selling bitcoin and other cryptos. The 0.10% fee matches the fees on Coinspot. You can further save on fees if you pay them using BNB, Binance's native crypto.
- Good range of Cryptos and New listings – You can trade all the major coins like Bitcoin, Ethereum etc as well as plenty of alt coins. Binance does a reasonable job of adding new coins.
- Staking – On Binance you can stake various proof of stake coins to earn staking rewards. This is a great way to earn extra income on your crypto that would otherwise be just sitting around.
- AUD Support – Binance is an international company, but they do support deposits in AUD.
Tip – If you are looking to sign up to Binance. Make sure you use this link to save 10% on all trading fees.
Things I don't like about Binance
- Sketchy ownership – Binance isn't located in Australia and it's domiciled in the Cayman Islands. Who actually owns Binance isn't clear either. Binance used to be located in China but were pushed out due to regulatory concerns.
- Binance is under investigation – It was recently announced that Binance is under investigation by U.S authorities for money laundering and tax issues.
- Binance has been hacked – Binance has been hacked. To their credit, Binance has a “SAFU” fund. This fund is meant to cover any losses from hacking. Their apps aren't the highest quality, which doesn't feel me with confidence when it comes to security.
- Terrible Trading Interface – The worst thing about Binance is it's trading platform. It's so bad that they had to introduce a “lite” interface that you can switch to on the mobile app. While that interface makes things easier, if you want to do any margin trading or use the order book, the interface is unbearable.
The Best Binance Alternatives
In Australia we have a number of great binance alternatives, but in my option the best alternative is Coinspot.
Coinspot is the best Binance alternative in Australia. It's a local Australian exchange that has an excellent reputation. Just like Binance, they list a huge range of alt coins. They also have similar fees, if you buy crypto though the markets feature on Coinspot as opposed to instant buy.
I usually recommend Coinspot to people because I find that it has one of the most straight forward and easy to use interfaces. So even if you're new to investing in crypto, you won't have any problem using the website or mobile app.
What I like most about Coinspot is that it's a local company. Coinspot fully supports Australian deposit options like PayID and BPay and the support is also local (which also is extremely good).
Unfortunately Coinspot doesn't offer any staking features. In a sense, this encourages users to to transfer their holdings to a more secure wallet (such as a hardware wallet) which is a good thing and what most people should be doing.
Tip – Get $10 Free on Coinspot
If you signup to Coinspot using a referral code, you'll get a bonus $10 worth of Bitcoin when you make a deposit. Just use this link or enter the code: HWHPXV on the signup page.
Should you trade on Binance?
While there are plenty of “scam” exchanges out there, Binance isn't one of them. They are a legit exchange. So if you can put up with their trading interface then it's a legit option. Just be aware that things can change rapidly in the world of crypto. Issues around Binance's ownership might cause future problems. Don't store large amounts of crypto on Binance (which is good advice for any exchange).
The big advantage of using Binance over other exchanges are the fees. They are low compared to other exchanges and if you pay in BNB and trade large amounts, the fee gets even lower.