Binance disadvantages: 7 weaknesses of Binance
Despite the fact that Binance is the largest crypto exchange in the world, there is still plenty of room for improvement. In this article, we will discuss the biggest disadvantages of this crypto exchange.
Not very user-friendly
The biggest disadvantage of Binance is that the platform is not very user-friendly. If you are a beginner and have little experience with cryptos, the dozens of options can seem rather overwhelming. On Binance, you can trade in hundreds of different cryptos using multiple trading platforms.
Having more options is of course an advantage, but if you are only seeking a place to buy a certain crypto, Binance might be an overkill. When you are looking for a platform to buy crypto quickly and easily, Bitvavo might be a good choice. In this article, you can read more about Bitvavo.
Slow customer service
Another disadvantage of Binance is its customer service. Because of the huge hype around crypto, many crypto exchanges have become overloaded. Binance is no exception: due to the large influx of customers, they do not always cope with the many information requests. Therefore, it can take a long time before you get an answer to your question.
I myself had to send several e-mails at one point before I finally received an answer. They always solve problems in the end, but your patience is certainly put to the test.
Not the best reputation
Another con of Binance is the reputation damage the platform has suffered. In England, for example, they banned the platform in 2021 because they did not follow the rules of the FCA. In Thailand, there was even a criminal charge against Binance for offering its services without a licence.
Yet, there are also plenty of reasons why you should choose Binance. One positive point is that they compensated users in the past when the platform was hacked. Moreover, it seems that Binance takes sufficient security measures, which lowers the probability of your account being hacked. You can read more about the trustworthiness of Binance in this article.
Withdrawing money can be difficult
In some countries, it can be challenging to withdraw money to your bank account. Due to mistakes made by Binance in complying with local regulations, some regions prohibit the transfer of funds to your bank account. Fortunately, there are always other methods for withdrawing your funds from your Binance account. For example, you can have your funds paid out via a wallet, in this article we will show you how wallets work.
Lack of transparency
Personally, I like the feeling of knowing exactly which party is behind a company, especially when I am dealing with financial matters. This can be a challenge with Binance, as the company has changed its registered office frequently. The exchange was originally founded in China, but quickly moved to Japan and finally settled in Malta. They are mainly based in Malta because the regulations there are less strict.
With some other crypto exchanges, you know exactly where the headquarters are located, and you can literally drop by for a cup of coffee.
Withdrawing funds can be expensive
Withdrawing funds from your account can be expensive on Binance: you easily pay between one and thirty dollars. When you withdraw your funds to your credit card, you pay 1% in fees.
At Binance, it is also possible to send your cryptos to another exchange and sell them elsewhere. It can sometimes be cheaper to send your cryptos to a local exchange and sell them there. In any case, it is a big disadvantage on Binance that withdrawing money is not free.
No demo account
You cannot try the possibilities on Binance for free with a demo account. Only by making a small deposit can you really experience what it is like to trade in cryptos. Adding a demo mode would be beneficial for novice trades, who quickly get lost by the complexity of the platform.