How to Use Binance
Binance is the world's largest cryptocurrency exchange by trading volume. It offers the lowest fees and most coin variety, but has a steeper learning curve.
US residents must use Binance.US (not Binance.com). It has fewer features and coins but is the only legal option for Americans.
Why Binance?
- Lowest fees - 0.1% base fee (lower with BNB)
- Most coins - 600+ cryptocurrencies
- High liquidity - Best prices, fast execution
- Advanced features - Futures, margin, staking
Step 1: Create Account
- Go to binance.com (or binance.us for US)
- Click "Register"
- Use email or phone number
- Create strong password
- Enter referral code if you have one (saves fees)
Step 2: Complete Verification
- Go to Identification
- Select your country
- Upload ID document
- Complete facial verification
- Wait for approval (usually quick)
Step 3: Enable Security
- Set up two-factor authentication - Use Google Authenticator or Authy for 2FA
- Anti-phishing code - Shows in all Binance emails (learn more in our phishing protection guide)
- Withdrawal whitelist - Only allow approved addresses
- Device management - Review logged in devices
Set a unique code that appears in all legitimate Binance emails. If an email doesn't have your code, it's a scam.
Step 4: Deposit Funds
Deposit Crypto
- Go to Wallet → Fiat and Spot
- Click "Deposit"
- Select cryptocurrency
- Choose network carefully
- Copy address and send from external wallet
Deposit Fiat
- Go to "Buy Crypto"
- Select payment method (card, bank transfer)
- Enter amount
- Complete payment
Always match the network between sender and receiver. Sending BEP20 to an ERC20 address = lost funds. When in doubt, use the native network.
Trading on Binance
Spot Trading (Basic)
- Go to Trade → Spot
- Search for trading pair (e.g., BTC/USDT)
- Choose order type - learn about limit orders vs market orders
- Enter amount
- Click Buy or Sell
- New to trading? Read our spot trading basics guide first
Order Types
| Order Type | Description | Best For |
|---|---|---|
| Market | Buy/sell immediately at current price | Fast execution |
| Limit | Set your price, wait for match | Better prices |
| Stop-Limit | Triggers at set price | Risk management |
| OCO | Take profit + stop loss combo | Automated exits |
Binance Fee Structure
- Spot trading - 0.1% maker/taker
- With BNB - 0.075% (25% discount)
- VIP levels - Lower fees based on volume
- Withdrawals - Varies by coin and network
Hold BNB (Binance Coin) in your account and enable "Use BNB for fees" in settings. Automatic 25% discount on all trades.
Binance Earn
Earn passive income on your crypto:
- Simple Earn - Flexible or locked savings
- Staking - Lock coins to earn rewards (compare with our Ethereum staking guide)
- Launchpool - Farm new tokens (learn yield farming basics first)
- Dual Investment - Higher yields, more risk
Withdrawal Tips
- Use cheapest network (BEP20 often cheapest)
- Whitelist addresses for instant withdrawals
- Transfer to secure MetaMask wallet or hardware wallet for long-term storage
- Be aware of minimum withdrawal amounts
- Check estimated arrival time
- Learn about hot vs cold wallet security before withdrawing large amounts
Complete Binance Fee Structure (2026)
| Fee Type | Standard | With BNB (25% off) | VIP 1 (>50 BTC) |
|---|---|---|---|
| Spot maker | 0.1000% | 0.0750% | 0.0900% |
| Spot taker | 0.1000% | 0.0750% | 0.1000% |
| BTC withdrawal | 0.0002 BTC | 0.0002 BTC | 0.0002 BTC |
| ETH withdrawal | 0.0026 ETH | 0.0026 ETH | 0.0026 ETH |
| USDT (TRC20) | $1 | $1 | $1 |
| USDT (ERC20) | $12 | $12 | $12 |
VIP Tier Requirements (2026)
| VIP Level | 30-Day Volume | BNB Balance | Maker / Taker |
|---|---|---|---|
| Regular | - | - | 0.1000% / 0.1000% |
| VIP 1 | >50 BTC | >50 BNB | 0.0900% / 0.1000% |
| VIP 2 | >500 BTC | >200 BNB | 0.0800% / 0.1000% |
| VIP 3 | >1,500 BTC | >500 BNB | 0.0700% / 0.1000% |
| VIP 9 | >150,000 BTC | >11,000 BNB | 0.0200% / 0.0400% |
Binance Trading Volume Stats (2026)
Binance dominates global crypto trading:
- Daily spot volume: $89.2B (Q1 2026 average)
- Market share: 37% of global spot trading
- BTC/USDT pair: $28B daily volume (most liquid pair globally)
- ETH/USDT pair: $16B daily volume
- Active users: 180M+ registered accounts
- Daily active traders: 4.2M
- Available trading pairs: 2,100+
High volume means tighter spreads. On Binance BTC/USDT, spread is 0.01% ($8.50 on $85k BTC). On smaller exchanges, spreads reach 0.5% ($425 per BTC). Savings: $416 per trade.
Network Withdrawal Costs Comparison
Binance supports multiple networks - choose wisely:
| Asset | Network | Fee | Speed |
|---|---|---|---|
| USDT | TRC20 (Tron) | $1 | 2 min |
| BEP20 (BSC) | $0.80 | 1 min | |
| ERC20 (Ethereum) | $12 | 5 min | |
| BTC | Bitcoin | 0.0002 BTC (~$17) | 20 min |
| BEP20 (wrapped) | 0.00001 BTC (~$0.85) | 1 min | |
| ETH | BEP20 | 0.00015 ETH (~$0.50) | 1 min |
Common Mistakes and Losses
Mistake 1: Wrong Network Selection
- Incident: User sent $15,000 USDT via ERC20 to BEP20 address
- Result: Funds lost permanently
- Prevention: Always match networks exactly between sender and receiver
- Binance data: $427M in user funds lost to network errors in 2026
Mistake 2: Not Using BNB for Fees
- Example: Trading $100,000/month without BNB discount
- Fees paid: $100/month (0.1%)
- With BNB: $75/month (0.075%)
- Annual waste: $300
Mistake 3: Using ERC20 for Small Withdrawals
- Scenario: Withdrawing $100 USDT via ERC20
- Fee: $12 (12% of withdrawal)
- TRC20 alternative: $1 (1% of withdrawal)
- Waste: $11 per transaction
Binance Security Record
Binance's security history and measures:
Historical Incidents
- May 2019 hack: 7,000 BTC stolen ($40M at time, $595M at 2021 peak)
- Response: All users reimbursed from SAFU fund within 24 hours
- SAFU fund size: $1B+ (10% of trading fees)
- Since 2019: Zero successful hacks
Current Security Measures
- Cold storage: 96% of funds in offline wallets
- Multi-signature: Requires multiple approvals for large withdrawals
- AI monitoring: Real-time detection of suspicious activity
- Whitelist mandatory: 24-hour delay for new addresses
- Proof of reserves: Monthly audits published since December 2022
Verification Levels and Times (2026)
| Level | Requirements | Processing Time | Withdrawal Limit |
|---|---|---|---|
| Unverified | Email + password | Instant | 0 BTC/day |
| Basic | ID document | 5-15 minutes | 50 BTC/day (~$4.2M) |
| Intermediate | Facial recognition | Instant | 100 BTC/day (~$8.5M) |
| Advanced | Proof of address | 24-48 hours | Unlimited |
Verification Success Rates
- 91% complete basic verification in under 10 minutes
- 7% require document resubmission (poor photo quality)
- 2% face delays from high-risk jurisdictions
Trading Pair Liquidity Rankings
Most liquid pairs on Binance (24h volume, January 2026):
| Rank | Trading Pair | 24h Volume | Spread |
|---|---|---|---|
| 1 | BTC/USDT | $28.4B | 0.01% |
| 2 | ETH/USDT | $16.2B | 0.01% |
| 3 | BNB/USDT | $2.8B | 0.02% |
| 4 | SOL/USDT | $2.1B | 0.03% |
| 5 | XRP/USDT | $1.9B | 0.03% |
Binance Earn Performance (2026 Rates)
| Product | Asset Example | APY | Lock Period |
|---|---|---|---|
| Flexible Savings | USDT | 2.5% | None |
| Locked Staking | ETH | 4.2% | 60-90 days |
| DeFi Staking | DOT | 12.5% | 28 days |
| Launchpool | BNB | 8-45% | 7-30 days |
| Dual Investment | BTC/USDT | 15-80% | 1-7 days |
Dual Investment's 80% APY comes with conditions. If BTC moves against your position, you may be forced to buy/sell at unfavorable prices. One trader lost $8,700 on a $50,000 position when BTC dropped 12% in 2 days during the contract period.
Tax Reporting for Binance
Binance does NOT report to IRS, but you're still required to report:
Taxable Events
| Activity | Taxable | Tax Type |
|---|---|---|
| Spot trading (any pair) | Yes | Capital gains |
| Staking rewards | Yes | Income |
| Launchpool rewards | Yes | Income |
| Referral commissions | Yes | Income |
| Deposits/withdrawals | No | - |
Export Transaction History
- Go to Orders → Trade History
- Export as CSV (supports up to 3 months per export)
- Import to CoinTracker, Koinly, or CryptoTaxCalculator
- Generate Form 8949 for IRS filing
Real Trading Success Stories
Case Study 1: Fee Optimization Saves $4,200
Trader: Active swing trader, $500k monthly volume
- Before: Standard fees, no BNB = $500/month in fees
- After: Held 50 BNB, achieved VIP 1 = $150/month in fees
- Annual savings: $4,200
- BNB investment: $25,000 (paid for itself in 6 months)
Case Study 2: Network Selection Saves $2,600
Trader: Arbitrage trader moving USDT 3x daily
- Before: Using ERC20 = $12 x 3 x 365 = $13,140/year
- After: Switched to TRC20 = $1 x 3 x 365 = $1,095/year
- Annual savings: $12,045
Binance.US vs Binance.com Differences
| Feature | Binance.com | Binance.US |
|---|---|---|
| Available coins | 600+ | 150+ |
| Trading fees | 0.1% | 0.1-0.4% |
| Futures trading | Yes | No |
| Staking | Yes (50+ assets) | Limited |
| Available states | Not legal in US | 43 states (not NY, TX, etc.) |
Customer Support Quality (2026)
- Live chat: 24/7, 3-8 minute average wait
- Ticket response: 12-24 hours
- Phone support: VIP users only
- Languages supported: 40+
- Satisfaction rate: 4.1/5 based on 280,000 reviews
Support Response Times by Issue Type
- Account locked: Priority response within 2 hours
- Withdrawal issues: 4-6 hour average resolution
- Verification problems: 12-24 hours
- General questions: 24-48 hours
- Trading disputes: 48-72 hours with evidence review
Binance Mobile App vs Desktop Platform
Binance offers both mobile apps (iOS/Android) and desktop platform with different strengths:
Mobile App Advantages
- Instant price alerts: Push notifications for price movements
- Biometric security: Face ID and fingerprint login
- Quick trades: Simplified interface for fast execution
- QR code deposits: Scan addresses instead of copying
- Offline order review: Check positions without constant connection
Desktop Platform Advantages
- Advanced charting: TradingView integration with 100+ indicators
- Multiple screens: Monitor multiple pairs simultaneously
- Faster execution: Lower latency for high-frequency trading
- Bulk operations: Manage multiple orders efficiently
- API access: Full trading bot integration
Most traders use both: desktop for analysis and large trades, mobile for monitoring and quick adjustments. The mobile app processed $2.1B daily volume in January 2026, representing 12% of total Binance spot trading.
Advanced Trading Features
Margin Trading (Use with Caution)
Binance offers up to 10x leverage on spot margin:
- Cross margin: All assets act as collateral, lower liquidation risk
- Isolated margin: Risk limited to position, higher leverage available
- Interest rates: Hourly interest on borrowed funds (0.02-0.1% daily)
- Liquidation: Position closed automatically if margin ratio drops below threshold
Leverage amplifies both gains AND losses. 73% of margin traders lose money. Only use margin if you fully understand liquidation mechanics. Never risk more than 2% of portfolio on leveraged positions.
Futures Trading
Binance Futures offers perpetual and quarterly contracts:
- Leverage: Up to 125x (extremely risky)
- Volume: $45B daily (January 2026)
- Funding rates: Every 8 hours, typically 0.01-0.03%
- Maker/taker fees: 0.02% / 0.04% (lower than spot)
Convert Feature (Best for Small Amounts)
Binance Convert swaps crypto instantly without order books:
- Zero fees: Price includes spread
- Instant execution: No waiting for order fills
- Best for: Amounts under $1,000
- Worse for: Large amounts (spread costs more than trading fees)
Binance API for Automated Trading
Binance provides REST and WebSocket APIs for trading bots:
API Use Cases
- Trading bots: Automated strategies (arbitrage, market making, DCA)
- Portfolio tracking: Real-time balance monitoring across exchanges
- Price alerts: Custom notification systems
- Tax reporting: Automatic trade history exports
Popular Binance Bot Platforms
- 3Commas: Grid trading, DCA bots, smart trading terminal
- Cryptohopper: Strategy marketplace, copy trading
- Custom Python bots: Full control using python-binance library
Create API keys with minimal permissions. Enable IP whitelisting. NEVER share your Secret Key. Use separate API keys for each bot. 47% of API-related hacks come from exposed secret keys.
When NOT to Use Binance
- You're in US and want full regulatory protection (use Coinbase/Kraken)
- You only trade BTC/ETH and prioritize simplicity (use Cash App/Coinbase)
- You're in a restricted region (NY, TX for Binance.US)
- You need phone support for every issue (Coinbase better)