Luis Clark
Luis Clark
Luis is a personal finance expert who has been passionate and writing about crypto for more than five years.
Table of Contents
    Add a header to begin generating the table of contents
    1. Home
    2. »
    3. UK & Crypto
    4. »
    5. Crypto Exchanges in...
    6. »
    7. Binance UK Review...

    Binance UK Review 2023: Fees, Pros & Cons

    binance-uk-review

    Binance UK Review : Our Opinion

    Binance has cemented its position as the go-to destination for all crypto-related services. The platform offers several high-yield investment products, low trading fees, and different trading modes. 

    Binance cryptocurrency exchange offers a simplified trading platform, Lite mode, which caters to crypto novices. Conversely, the Pro mode offers spot, margin, and futures trading services for a more extensive lineup. The services make it easy for anyone to use the Binance platform.

    However, Binance may not tick the box for full-on services for investors in the UK because of its regulatory issues with the Financial Conduct Authority (FCA). Binance only offers a limited library of services, and derivative futures contracts are noticeably absent.

    An Overview of Binance UK

    binance uk homepage

    A Chinese entrepreneur, Changpeng Zhao, popularly known as “CZ officially launched the Binance cryptocurrency exchange in 2017.” The crypto trading platform has become the premier destination for all crypto investors because of its comprehensive service, high security, and low trading fees. 

    Users can buy, sell, and exchange over 350+ popular crypto assets on its trading platform, including Bitcoin, Ethereum, Cardano, and XRP. The platform also offers futures and margin trading as well as a direct investment of its exchange token, Binance Coin (BNB). This digital asset principally serves as a discount token during trading activities.

    Binance Exchange is split into two distinct modes – Lite and Pro. Lite mode provides a simplified interface that focuses on simplicity, speed, and usability. It offers crypto novices an easy and direct way to buy and sell crypto. To access the comprehensive features of Binance, traders can opt for the Pro Version. 

    While the Lite version is more suited for crypto novices, the Pro version comes with a bit of a learning curve. Both options are available on the Binance app and not on its website.

    Besides crypto trading services, the Binance platform offers an entire ecosystem that caters to decentralized finance (DeFi) through the Binance Chain and Binance Smart Chain (BSC) networks. Here, developers can create DeFi-facing services and apps on the blockchain network. A delegated authority proof-of-stake (PoS) powers both networks, making them scalable layer-1 protocols.

    The cryptocurrency exchange is regulated in several regions in which it operates. However, it only offers limited services in the UK due to the Financial Conduct Authority (FCA) censure of some of its regional activities. UK crypto investors are not permitted to engage in crypto derivatives trading due to the lack of regulatory cover for Binance Markets Limited (BML).

    Meanwhile, the exchange utilizes the highest level of security to secure the asset fund of investors. It also operates a crypto-focused insurance fund called SAFU or Secure Asset Fund for Users. This fund holds billions of dollars in fiat equivalent.

    Our Binance review compares the exchange’s strengths and weaknesses. Below, we outline the cryptocurrency exchange’s pros and cons.

    Pros

    Cons

    Key Features of Binance UK

    One of the key benefits of using the Binance exchange is the number of features crypto investors can tap into. Instead of splitting its offering across several domains, all these features are embedded on the Binance website. This way, investors enjoy an inclusive crypto trading experience on their mobile and web platform instead of visiting different websites.

    Below, we highlight the exchange’s key features.

    Binance Pro and Lite Versions

    The web platform also caters to the Binance Pro mode; however, on the Binance app, users can choose between Lite and Pro modes.

    The Lite version is minimalistic and enables users to buy, sell, convert, deposit easily, and withdraw from their Binance account. It also offers flexible crypto savings offer through its Simple Earn service. 

    The Pro version offers a more extensive service, allowing Binance customers to transfer, earn from multiple services, provide liquidity, and trade spot, margin, and futures on the platform. Users can easily switch between the Lite and Pro versions on the mobile app to accommodate their unique trading experience.

    Binance Earn

    This value-added service allows crypto investors to earn passive income from idle cryptocurrency holdings. The Binance Earn is split into Flexible and Locked Savings. 

    The Binance Flexible Savings crypto account offers a dynamic yield between 0.5% to 15%. The Flexible Account offers a seven-day no-lock period for investors to earn from 24 major crypto assets. There are no fees attached and minimum investment, meaning cryptocurrency investors can stake as low as 0.01 of any supported with no fees.

    The Locked Savings comes with a more stringent lock-up period. Users must lock up their idle crypto for a month to get rewards. The maximum timeframe is 90 days, and users also earn daily annual percent yield (APY) of 0.5% to 15%, depending on the selected asset.

    Locked Savings operates like a high-yield savings account and allows users to earn anywhere between 5% to 50% on their crypto assets.

    Binance DEX

    The Binance DEX is a decentralised trading tool powered by BNB that allows investors to exchange different crypto assets seamlessly. The platform focuses on eliminating intermediaries’ access in trading and allows users to transact directly with one another.

    Users retain full control of their crypto assets as they are stored in their respective wallets, making it hard for any hacker to steal them since they are not stored on the exchange.

    Binance Token Launchpad

    The Binance Launchpad Platform operates as a springboard for newly listed crypto projects supported by the Binance exchange. Binance users can invest in these projects before they become tradable on the exchange. Users are rewarded with the underlying token of the blockchain network daily.

    Binance Cloud Mining Service

    Another top feature of the exchange is the Binance Cloud Mining service. Launched in November 2022, the platform allows users to rent computational power from the service provider to mine Bitcoin. This is done by paying for hashpower and electricity and earning rewards in Bitcoin in return.

    Binance Cloud Mining makes it easy for anyone to participate in crypto mining as they don’t need to purchase, set up, or run the mining equipment. Instead, they outsource this process to the Binance Cloud Mining service and earn Bitcoin rewards. 

    Cloud mining reduces the need for individualised Bitcoin mining, reducing the environmental impact of running mining hardware. Besides this, mining equipment are always quite expensive, as some can go for as high as $5,000 depending on their hashpower. To stand a chance of earning Bitcoin rewards, miners must own hundreds of machines to solve the cryptographic puzzles required in Bitcoin mining.

    Binance Card

    Binance-Visa-Card-uk

    Binance Crypto Card is a Visa-powered crypto debit card that allows users to pay for their daily needs using digital assets. The digital currencies are converted to the user’s fiat currency at the point of sale. Users can easily pay for groceries and other household needs using 15 crypto assets with the crypto card.

    One of the added benefits of this cryptocurrency card is that users are entitled to earn up to 8% cash back on eligible purchases.  Cashback is paid daily in BNB to the user’s Funding Wallet and the amount a year earned in rebates depends on their respective card levels and BNB holdings.

    The crypto card is available in both digital and physical forms. Both cards have different daily spending limitations and enable real-time cryptocurrency conversion to EUR currency. The daily limit for the virtual card is 870 EUR. In contrast, the maximum for the physical card is 8,700 EUR.

    Binance Academy

    The Binance Academy is a research centre for crypto investors to learn from. Users can learn about crypto projects, blockchain technology, and other crypto-related content here. This is presented in both long and short forms and written in an easy-to-understand format.

    The academy was launched as part of global efforts to boost crypto literacy about digital currencies. Besides learning, users also stand a chance to earn crypto assets as a reward and get NFT-powered digital certificates for their efforts.

    Spots, Margins and Futures Trading

    Binance offers different trading options for various investor types. For instance, risk-averse investors can easily buy and sell cryptocurrencies through the spot trading option. This offers zero leverage, and the investor only profits or loses from the rise or fall of the underlying asset. Binance offers margin trading, derivatives, and even futures trading for more experienced investors. This comes with different analytical tools as well as highly leveraged positions.

    P2P Trading Service

    The final key feature is the peer-to-peer service. The Binance P2P serves as an escrow system for buyers and sellers of digital currencies. Users can easily fund and withdraw from the Binance account using this option. The Binance P2P connects buyers and sellers and holds the value to be exchanged under escrow until both parties instruct it to be released. The impressive thing about it is that it is free of charge.

    Cryptocurrencies Available on Binance

    Cryptocurrencies-available-on-Binance uk

    Cryptocurrency is a hyper-competitive landscape, and several exchanges offer a large library to attract more customers. Crypto investors could only buy and sell about 350+ digital assets. This is quite small compared to its peers like Coinbase, which offers over 9,000 altcoins for users to trade.

    However, Binance’s rich array of services has made up for its limited crypto asset support.Below, we list the top 10 crypto assets on the Binance exchange:

    • Bitcoin
    • Ethereum
    • Litecoin
    • Binance Coin
    • XRP
    • Cardano
    • Polkadot
    • USDC
    • Polygon, and several others

    Can you Buy and Sell NFTs on Binance?

    Non-fungible tokens, or NFTs, are a rising crypto sub-sector. Users have ownership of these unique assets on the blockchain digitally. Our Binance UK review discovered that the crypto exchange offers an NFT marketplace as a value-added service. 

    Here, users can buy, sell, and create their NFT assets. Also, users can unlock mystery boxes while simultaneously playing NFT-powered games.

    Fees

    Unlike most other exchanges, Binance charges fees based on tiers. For regular crypto trades, users must pay a 0.1% fee for buying and selling digital currencies. However, holders of the BNB asset get a 25% discount which pushes this to 0.75% for spot trading. BNB deductions are also available for futures trading up to 10%. The higher the user trades, the lesser fees they pay.

    While crypto deposits are generally free, fiat currency deposits usually cost a fee. For instance, GBP deposits via instant bank payment cost 0.5 GBP, and bank card deposits incur a 1.8% fee. Withdrawals are also charged the same amount for fiat currencies.

    Aside from this, Binance charges a fee for interacting with its NFT marketplace. Minting or creating NFT costs 0.005 BNB, while sellers are required to pay between 1 to 10% in royalty to creators.

    Payment Methods

    Binance supports over 700 payment methods in its P2P service alone. However, there are several other payment solutions the exchange allows users to deposit and withdraw their earnings. The list includes

    • Bank wire transfers
    • PayPal
    • Credit/debit cards 
    • Cryptocurrency
    • P2P
    • Direct bank account deposit
    • SWIFT
    • SEPA
    • Faster Payments
    • Advcash, and several others

    Security

    Securing user’s details and crypto funds are crucial tasks given the prevalence of hacking incidents in the emerging financial sector. Since launching in 2017, Binance has suffered two major hacks of its exchange. However, the exchange has continued to improve its security measures to combat platform hacks.

    The user’s details and funds are secured on the exchange using two-factor authentication (2FA) via a mobile number and an authentication app. Binance also offers its custom-made security app called Binance Authenticator.

    Additionally, IP and wallet addresses are whitelisted, cold storage is available, and multisignature and threshold signature schemes (TSS) are available.

    Insurance is also covered for investors through the Safe Asset Funds for Users (SAFU). The fund contains billions of dollars to protect users’ deposits in case of a platform hack

    Staking Rewards

    Staking is a major aspect of the Binance ecosystem. This high-yield earning service is offered through the Binance Earn platform. Users can lock up their funds in Flexible, Locked, or even riskier offers like DeFi Savings. The tenure for Flexible Savings is pegged at a week, and users can earn anywhere between 0.5% to as high as 15% on select cryptocurrencies.

    However, its Locked Savings has a longer time period. The duration spans a month to 90 days, and users can earn between 0.5% and 15% on their trades. DeFi Savings is a more risky investment and entails providing liquidity to two based crypto assets. Users can earn anywhere between 3% to 20% for funding liquidity pools.

    Opening a Binance Account

    Getting started on the Binance exchange is quite easy. Below, we provide a detailed step-by-step guide on how to open an account and place your first trade.

    Register on Binance

    register binance uk

    The first step is to visit the Binance website. Click on the ‘Register’ button to open the sign-up page. Fill in an email address as well as a mobile number. Tap on the T&C box and click on ‘Create Personal Account’ to proceed to the next stage.

    Besides an email address, new customers can also register using their mobile number. Just toggle from ‘Email’ to ‘Phone Number’ and fill in a verified phone number and a password.

    Verify ID

    verify id binance uk

    Binance is regulated in several regions it operates. Given this, new customers must complete the know-your-customer (KYC) in line with stipulated international regulatory guidelines to combat money laundering. To verify the Binance account, tap on the profile icon and select ‘Identification.’ Then tap on ‘Start Now’ and upload a copy of a driver’s license or a government-issued ID card. Users also need to complete a selfie portrait exercise to enable facial recognition.

    Once this is done, the Binance team will verify the account within hours.

    Deposit

    binance sign up uk

    The next step is to deposit funds. Binance offers multiple deposit options, and users can either fund their account through a direct bank transfer, wire transfer, credit/debit card, or even crypto deposit. For our illustration, we will be using a crypto deposit. To deposit crypto, click on the ‘Wallet’ icon and select ‘Deposit’ in the top right-hand corner.

    Then proceed to choose ‘Crypto’ and select the crypto to deposit. We will be using BTC for our demonstration. Select ‘BTC’ from the list of options and choose the network to which the deposit should be made. Remember, only Bitcoin should be sent to the wallet address generated on the screen. Once the deposit is confirmed, the coin will be deposited into the ‘Spot Wallet.’

    Start Trading

    To complete the process, trade the asset received. To do this, type in the ticker symbol of the asset and select an accompanying pair of choice. In our example, we want to trade BTC. We will search ‘BTC’ in the dashboard box and click on BTC/BUSD. This will redirect us to the trading interface.

    Once there, select ‘Spot’ and include the price you want to buy at. Binance allows to buy at the current price (market) or set their target price (limit). Tap on the ‘Buy BTC’ icon to execute the trade instantly.

    Trading Experience Binance UK

    Although Binance’s trading interface is intuitive, it’s not entirely seamless, especially for beginners. This is because the platform offers several features which can be overwhelming. 

    As a guide to these scenarios, the Binance exchange offers short videos and quizzes to guide beginners. Nonetheless, it can be challenging and requires some learning to get to know the full functionality.

    Customer Service

    The Binance exchange provides customer support services via a chatbot on its website. Besides this, users can directly submit a request using a support ticket and reach out to the team via Twitter and other social media networks. There is also a detailed FAQ section to help users further.

    Customer Satisfaction

    Reviews on Trustpilot indicate that Binance scores 1.9 out of 5 stars. The major areas of contention were non-existent customer support, slow response time, and the inability to address customer queries properly.

    Out of the customers who rated the crypto exchange, 76% gave it a 1-star rating.

    Does the Binance Exchange offer Education?

    Binance operates an educational hub through the Binance Academy and Research Unit, providing users with all industry-related news, topics, content, and tutorials. Its educational materials are broken down into short and long-form contents: Easy, mid, and hard for different reader bases.

    Also on tap is its ‘Courses’ section, which allows users to take different crypto and blockchain-focused classes and get rewarded at the end of the tutorial.

    Is Binance Right for you?

    Binance is the world’s largest crypto exchange and has continued to cement its position despite strong bearish events in the crypto space. But does this make it a viable option for beginners like yourself? Not necessarily. 

    Binance can be daunting due to the variety of features it offers. However, for high-volume and fee-conscious investors, Binance ticks the box. Its extensive lineup of passive income-generating services makes it an ideal location to generate high-yield revenue from idle crypto.

    Final Thoughts

    For buying and selling Bitcoin but especially other rare altcoin trading pairs, Binance continues to lead.

    As the crypto industry’s heavyweight, it offers wide ranges and depths of services, which cover the gamut from traditional digital asset trading to decentralised alternatives. Binance also offers low fees and a large repository of income-generating services for investors to earn from.

    However, new users are still required to go through a learning curve to unlock the platform’s full functionality.

    Our extensive analysis of the UK Crypto Exchanges doesn’t stop here. You can also read about our Crypto.com Review UK as an alternative to Binance UK.

    FAQ

    Most frequent questions and answers

    Given the face-off with the FCA, several UK banks do not support the Binance exchange. However, users have found a workaround by using the Binance P2P platform. Here, they can transfer funds from their regular UK banks to another investor and then transfer a stablecoin to their Binance wallet.

    Binance is a highly secured exchange and poses little risk to investors’ funds. The platform uses industry-leading security measures like cold storage, IP and wallet address whitelisting, 2FA, and TSS. There is also an insurance fund called SAFU for customers’ deposits.

    Investors can withdraw directly to a UK bank account via a credit/debit card, Faster Payments, Etana, etc.

    Binance Markets Limited is still restricted from offering certain services, like derivatives, in the UK. However, users can interface with its other services on the platform.

    We always try to provide the most accurate information available, and make sure our team follow through.
    If you want to know more about our Crypto Exchanges Review Methodology follow the link below

    Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual’s needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

    To view our privacy policy read here.

    You may also be interested in: