Binance Dex Exchange Review | Fees, Security, Pros and Cons
In today’s article, we will be reviewing the Binance Dex exchange, taking a look at what features this crypto trading platform has to offer.
Binance Dex Overview
The popular Binance exchange launched on February 20, 2019, the testnet for Binance DEX, a decentralized order-matching platform based on Binance Chain technology. Binance Chain is a new blockchain and peer-to-peer distributed system created by the team to serve as an environment where order matching is made within the blockchain nodes. All transactions are recorded on the chain to ensure a completely auditable ledger and enable the conversion between the digital assets issued and listed on the DEX.
Through Binance Chain, companies and other projects can issue their own digital asset. Projects can suggest the listing of new trading pairs between two different tokens on Dex and also include orders for these new pairs.
Supported Currencies and Available Countries
The platform features 135 pairs, which are divided into 4 markets: BNB markets, BTC markets, Altcoin markets, and Fiat Markets. In the BNB markets, the following assets are traded against Binance Coin: VRAB, AVA, AERGO, RUNE, TRXB, ARN, CRPT, CAS, UND, and EOSBEAR.
BTC is traded against BNB, ANKR, BOLT, and COS. The only pair in the ALTS market is BNB/ETH. The fiat markets have crypto coins traded against stablecoins such as the Rupiah Token (IDRT), Binance USD (BUSD), and StableUSD (USDS). BTC, ETH, LTC, BCH, and BNB are all traded against BUSD.
Users from the following countries are not able to use Binance DEX: United States of America, Albania, Bosnia and Herzegovina, Belarus, Congo (DRC), Côte d’Ivoire, Crimea, Cuba, Iraq, Iran, North Korea, Liberia, Macedonia, Myanmar, Serbia, Sudan, Syria, Zimbabwe.
The trading platform can be accessed and used from any browser opened on any desktop system. There is no mobile app for Binance DEX; however, the DEX trading functionality was integrated into the Trust wallet mobile application.
User Interface and Experience
The user interface of the DEX platform is similar to that of Binance.com, featuring TradingView charts and numerous technical indicators.
How to Get a Binance Dex Account
- Go to https://binance.org/ and click on “Create Wallet” located on the upper right side of the screen.
- You will have three alternative methods through which you can access your wallet:
- Keystore file + password;
- Mnemonic Phrase;
- Private Key.
- The Keystore file + password is requested of all Binance users. You will have to choose between the mnemonic phrase or a private key as a secondary method.
- To create and download your Keystore file, enter a password of at least eight characters that have an uppercase letter, a symbol, and a number.
- Write down the mnemonic phrase featured and keep it somewhere safe.
- You will be given the option to view your private key. Also, write it down and store it somewhere safe.
- Confirm that you have inputted the Keystore and private key details.
- Unlock your wallet by clicking on any of the relevant tabs.
- Upload your Keystore file and enter your password, enter your 24-word mnemonic phrase or your private key.
How to Use a Binance Dex Account
Making a deposit
- Access the faucet and log in to your Binance account.
- Enter your address and click on the “+ Add Address.”
- Click “Submit.”
- The funds will be sent to the “Transactions” section on the DEX.
- After the receipt has been confirmed, you can start trading.
- Find your preferred trading pairs from the box at the top left of the screen.
- Click on the pair you want to trade with.
- Place a Limit order.
- Click on the “Buy” or “Sell” tab.
- Information on your Open Orders, Order, and Trade History and Balances are featured in the bottom-left part of the interface.
Binance Dex Fees
The decentralized exchange applies fees based on a maker-taker system, but it is a bit more complex than that.
Trading fees for non-BNB trades are 0.10%, and trades that are paid in BNB have a fee of 0.04%, which is half the fee of Binance.com.
The platform charges a fee of 0.000375 BNB per transaction when performing a withdrawal. There are no fees applied when you make deposits.
Like other decentralized exchanges, Binance DEX does not accept any form of fiat currency. You can only make deposits in the supported cryptos.
Transaction times will vary based on the respective networks of the coins you are using in your trade.
There are no limits imposed on how much you can deposit, withdraw, or trade.
As the platform does not hold any user funds, only the traders are in full control of their private keys. Binance Chain implements a Byzantine Fault Tolerance (BFT) and Proof of Stake (PoS) based consensus mechanism, which validates transactions through a network of qualified validators. The blockchain uses several anti front running mechanisms to keep the integrity of its trades.
The team also features a section explaining their Disaster Recovery and Emergency protocols, which apply for various emergency cases.
As a decentralized exchange, Binance DEX doesn’t have a customer support ticket system like Binance.com and Binance.US. Instead, the user can contact the team through the exchange’s official Telegram or Twitter regarding DEX issues. There is also a Github page and an FAQ section that can be consulted for a number of key topics.
However, as Binance is a big exchange with support in a wide range of countries, the team is able to provide a higher level of support when compared to other decentralized exchanges.
Binance Dex Reputation
Due to the general reputation surrounding the Binance project, Binance DEX is also regarded as a trustworthy platform.
Binance Dex Review: Verdict
Binance DEX is a great option for crypto traders looking for a decentralized way of exchanging different tokens, as it has low fees and the backing of a reputable crypto company. However, the platform may not be for everyone, as there are few pairs, and beginners cannot use fiat to make their first crypto purchase.
Featured image: blockonomi.com