Binance — a review of the crypto exchange, its fees, reliability and risks
How the Binance exchange works and who holds your crypto
Binance works as an intermediary. You put money or crypto into your account, the exchange pairs your order with someone else's opposite order, and it keeps track of who owns what. The crypto itself sits in the exchange's wallets, while your screen shows a balance record, much like the balance of a bank account. This kind of storage is called custodial custodial storage, because a third party controls the crypto, in this case the exchange6. Access to crypto is guarded by a private key, the secret code used to approve transfers. On the exchange, Binance has that key.
For you, this means you can withdraw your crypto when the exchange allows it: after its checks, outside technical pauses, and if the service works in your country. That is convenient for buying and trading. Keep on the exchange only what you trade or plan to sell soon. Savings are safer in your own wallet, that is, an app or device where only you hold the key. how to store crypto explains how to choose one and set it up.
Nobody uses Binance anonymously. Without the identity check known as KYC (from the English "know your customer"), an account is usually limited, and you cannot fully deposit, trade or withdraw. The check is similar to opening a bank account, except that it happens in the app and includes a face scan through your camera. If you skip the face check, the amount you can withdraw stays limited1.
Why does Binance ask you to verify again or to prove where your money comes from?
Binance asks about the source of your money because it has to follow anti-money-laundering (AML) rules. The request can arrive even before your first deposit, and then you describe what you plan to fund the account with. Suitable documents include payslips or a bank statement showing your salary, a statement from another exchange, or a contract for the sale of property. They have to be in your name, recent and unedited7. Until the information is complete, withdrawals may be paused1. Send documents only inside the Binance app or on its website. A request to "complete verification" through a link in a messenger is a common scammer trick, covered in the article phishing and scams.
Crypto bought on Binance can usually be withdrawn over one of several networks. A network is the shared system where transfers of this crypto are recorded, such as the Ethereum network or the Tron network. Each network has its own addresses and its own fee, so the minimum withdrawal and the charge depend on the network you pick8. how to send crypto explains how to choose the network so that a transfer does not get lost.
Ordinary money (dollars, euros and other currencies) goes in by bank card or bank transfer, and the methods open to you depend on your country and currency3. The third route is P2P: buying directly from another person through a platform that holds the crypto until payment arrives.
How is Binance P2P different from buying on spot?
Spot is ordinary buying and selling at the current price. On spot, your order joins the exchange's shared list of orders, called the order book order book, and it is filled by an opposite order from another participant9. The money and the crypto are already in Binance accounts at that point.
On P2P you choose the seller, the price and a local payment method yourself, for example a transfer to the seller's bank account. Binance holds the seller's crypto from the moment the deal is created and passes it to the buyer once both sides have done their part. P2P requires an identity check, SMS confirmation and one more way to confirm your login, such as a code from an app (two-factor protection, 2FA)4. Pay only from your own account, and never accept money from a stranger's account. Keep the deal off messengers, because outside the platform Binance cannot protect you10. When you are the seller, release the crypto only after the money has reached your account.
What should you do if your bank rejects a payment to or from Binance?
First ask the bank why it refused. Banks and countries have different rules for payments linked to crypto ⚖️. Then try another method that Binance offers in your country, for example a bank transfer instead of a card, or a P2P deal under the rules in the section above. Do not pay with someone else's card or accept money from strangers: in P2P deals the paying account has to belong to the person in the deal10.
What makes up the fee on Binance
There is no single "Binance fee". Each step, from deposit to withdrawal, is charged in its own way.
Binance charges nothing for depositing crypto11. The charge for putting in ordinary money depends on the method and the currency, so look it up before you pay.
On a spot swap the exchange takes a small percentage of the trade amount. By default it comes out of the crypto you receive: swap bitcoin (BTC) for ether (ETH), and the fee is taken in ETH12. The rate depends on how your order was filled. A taker taker accepts an offer already in the order book, which is why a market order is always filled as a taker order. A maker maker places an order at a price of their own, and it waits in the order book until someone responds9. Think of classified ads: the maker posts an ad and waits for replies, while the taker answers an ad that is already up. People who trade a lot pay a lower rate13.
You can pay the trading fee in BNB at a discount. Turn this option on and keep BNB in your account, and the fee is charged in BNB. When there is not enough BNB, the fee is taken from the crypto you receive, as usual12.
Futures on Binance are trading on margin, that is, with borrowed money, where the position is bigger than your own funds. If the price moves against you, the exchange closes the position by force, and the money you put up for it is lost. This tool does not suit beginners. Its fee is calculated on the whole position, borrowed money included9, and a forced close carries a separate charge on top14.
When you withdraw crypto to an external address, meaning the number of an "account" on the network outside the exchange, Binance deducts the transfer charge from the amount you withdraw, and you do not need the network coin for it. The charge follows the network's current fee, so it rises and falls with how busy the network is8. Why different networks charge differently is explained in what is gas. Binance shows the exact amount and the minimum withdrawal on the withdrawal page before you confirm.
On P2P the exchange may charge one side of the deal, and the amount varies by market. Your bank or payment service may add a charge of its own4.
Before your first purchase, check two amounts: the charge for the deposit method you chose and the fee of the network you will withdraw to.
Binance reliability, from incidents and withdrawal pauses to proof of reserves
On 7 May 2019, attackers moved 7,000 BTC out of a Binance hot wallet in a single transaction. A hot wallet is one kept online for fast payouts, and this one held about 2% of the exchange's bitcoin. Binance announced that it would cover the loss in full from its SAFU fund SAFU, a reserve kept for such cases, and that user funds would not be affected. Deposits and withdrawals stopped for about a week while a security review ran15.
In October 2025, during a sharp drop across the whole market, the prices of several tokens on Binance collapsed within minutes. One of them was the stablecoin USDe, a digital dollar whose price usually stays close to one dollar. On other exchanges it fell far less16. The traders who normally keep buy orders in the order book pulled them, and small sales started to move the price a lot17. Ordinary markets behave the same way: when almost no buyers are left, goods that must be sold right away go for next to nothing. Binance compensated customers who held these tokens as collateral for trading with borrowed money16. What it means for a stablecoin to lose its peg is covered in what is a depeg.
That case leads to a simple rule. During a sudden crash, do not place a market order. It fills at whatever prices are left in the order book, while a limit order fills only at your price. If the price has collapsed on one exchange and stays calm on the others, compare prices before you sell.
Withdrawals sometimes stop as well. On 7 May 2023 Binance paused bitcoin withdrawals when the Bitcoin network was clogged with pending transfers and its fees jumped, and it resumed them about two hours later18. No one guarantees an instant withdrawal from an exchange. If you need the money by a certain day, withdraw in advance.
Binance publishes proof of reserves proof of reserves. In this report the exchange shows that, on the date of the check, its addresses hold at least as much crypto as it keeps for customers. You can find your own balance in the report on the Binance website, under Wallet → Verification19. Such a report is not an audit and usually leaves out the exchange's debts; the hub how to choose an exchange goes into this.
In 2023 the company that runs Binance.com admitted in the United States to breaking anti-money-laundering and sanctions laws. The exchange's founder, Changpeng Zhao (CZ), stepped down as head of the company at that time ⚖️20. What happened next is covered on the page Binance.
Binance availability in Russia, Kazakhstan and other countries
Where Binance is available depends on the country and changes over time, so the status below is as of 30.10.2026 ⚖️.
- Binance has left Russia. On 27 September 2023 the company announced a full exit from the Russian market and the sale of that business to the CommEX exchange ⚖️5.
- In Kazakhstan, the company Binance Kazakhstan has held a full license from the regulator of the Astana International Financial Centre (AFSA) since 6 September 2024 ⚖️21. The country's rules are on the page cryptocurrency in Kazakhstan.
- For Argentina and Brazil, see the pages cryptocurrency in Argentina and cryptocurrency in Brazil.
The status in your country is best checked in the register of the local regulator, the government body that licenses financial companies. Ads and reviews are no good for this.
Who Binance suits and who it does not
Binance is convenient if it operates legally in your country and you want one service where you can pay in by card, by transfer or through P2P and buy many different cryptocurrencies. In return you accept the identity check and the fact that the exchange holds whatever sits in your account.
It suits you less in three cases: you want to control the keys yourself (then you need your own wallet, and hot vs cold crypto wallet describes the kinds), Binance has left your country or its terms there are changing, as in Brazil in October 2026, or you are looking for a way to buy without an identity check.
how to choose a crypto exchange shows how to compare Binance with other exchanges on the same points.
More detail on Binance's incidents, licenses and leadership
The crash of 10 October 2025 hit the stablecoin USDe and the tokens wBETH and BNSOL. On Binance spot, USDe fell to roughly 0.65 dollars, and the price recovered after about 40 minutes17. Compensation of roughly 283 million dollars went to people whose collateral in futures, margin trading and loans consisted of these tokens16.
On 21 November 2023 Binance Holdings Limited pleaded guilty to violating the Bank Secrecy Act, to operating without registering as a money transmitting business and to breaking sanctions law. The settlement was agreed with the Department of Justice (DOJ), with the US Treasury's financial crimes unit (FinCEN) and sanctions office (OFAC), and with the commodities regulator (CFTC); CZ pleaded guilty separately ⚖️20.
According to the exchange, the regulated business of the Binance.com platform is carried out by three Nest companies licensed by the financial regulator of Abu Dhabi Global Market (FSRA, ADGM) ⚖️22.
In Argentina, in October 2024, Binance was entered in the register of virtual asset service providers (PSAV) kept by the securities regulator (CNV) ⚖️23.
In Brazil, since January 2025 Binance has owned a brokerage firm whose purchase was approved by the Central Bank of Brazil24. On 23 October 2026 Binance applied, through the company BBrasil, for an authorization under the central bank's new rules, and on 30.10.2026 it was still under review. Since 27 October, residents of Brazil have been restricted from opening new margin positions and taking loans ⚖️2526.
On 30.10.2026 the company is led by two co-CEOs, co-founder Yi He and Richard Teng, who have shared the role since December 202527.
Frequently asked questions about Binance
Is Binance Wallet in the app the same as your exchange account?
No, they are different things. Crypto in your exchange account is held by Binance. Binance Wallet can be switched to self-custody, and then you control the key. To do that, you set a recovery password and save a backup in the cloud or as a QR code. Binance cannot recover that password for you6. If you lose both the password and the backup, nobody can give you access back.
Why won't Binance let me withdraw my crypto?
Most often because of checks. Withdrawals are paused while your identity details are incomplete, and they resume once you send what is missing through Binance support. Until you pass the face check, the withdrawal amount is limited. The help page, checked on 30.10.2026, also says that a withdrawal requires at least three enabled confirmation methods, for example signing in with a fingerprint or face (a passkey), the Binance Authenticator app or SMS1. There are also pauses when a network is overloaded, as in May 2023. You can see the status of a withdrawal in the transaction history in the app.
Can I use Binance through a VPN if the exchange has left my country?
Getting around a country's restrictions with a VPN or someone else's documents is a bad idea ⚖️. Logging in from different places, that is, from different internet addresses (IP addresses), can by itself lead to a temporary halt on withdrawals1, and a review of your details can lead to limits on the account. If Binance has announced that it is leaving your country, withdraw your crypto by the deadline it gives and pick a service that operates legally where you live.
Are Binance and Binance.US the same exchange?
No. In 2019 Binance stopped serving US residents on Binance.com, and a separate platform, Binance.US, was launched for them28. This page is about Binance.com.
