What is Binance? The Complete Beginner’s Guide (2025)

Whether you’ve just heard the word “crypto” for the first time or you’ve been watching Bitcoin prices for months, one name keeps coming up: Binance. It is the world’s largest cryptocurrency exchange by trading volume, and for millions of people around the globe, it’s the first place they buy, sell, and manage digital assets. But what exactly is Binance, how does it work, and is it the right platform for you?

This complete beginner’s guide covers everything you need to know about Binance in 2025 — from its origins and core features to fees, security, and how it compares to its competitors.

1. What is Binance and Its History

Binance is a centralized cryptocurrency exchange that allows users to buy, sell, and trade hundreds of digital assets including Bitcoin (BTC), Ethereum (ETH), BNB, and thousands of altcoins. Founded in 2017 by Changpeng Zhao — widely known as “CZ” — Binance grew from a small startup into a global financial powerhouse in just a few years.

The exchange originally launched in China before relocating its operations due to the country’s tightening crypto regulations. It has since established regional platforms in multiple countries, including Binance.US for American users and localized versions for Europe, Latin America, and Southeast Asia.

Despite facing regulatory scrutiny in several jurisdictions over the years, Binance has remained the dominant force in the crypto exchange space. In 2023, CZ stepped down as CEO following a settlement with US regulators, and Richard Teng took over as the new CEO, steering the company through a period of significant restructuring and compliance improvements.

Today, Binance serves over 180 million registered users in more than 100 countries, processing billions of dollars in trades every single day.

2. Key Features of Binance

Binance is far more than just a place to buy Bitcoin. It offers a comprehensive suite of financial tools for crypto users of all experience levels.

Spot Trading: Buy and sell cryptocurrencies at current market prices. Binance supports over 350 trading pairs, giving you access to a massive range of assets.

Futures and Margin Trading: Advanced users can trade with leverage, opening long or short positions on crypto prices. These tools carry significant risk and are best suited for experienced traders.

Binance Earn: Put your idle crypto to work through staking, flexible savings, locked savings, and the Launchpool. Earn passive income on assets you’re already holding.

Binance Pay: Send and receive crypto payments globally, fee-free, directly from the Binance app.

Binance Card: A Visa debit card that lets you spend crypto anywhere Visa is accepted, with cashback rewards paid in BNB.

NFT Marketplace: Buy, sell, and mint non-fungible tokens directly on the Binance platform.

P2P Trading: Trade directly with other users using local currencies and payment methods, without going through the order book.

Binance Academy: A free educational hub covering everything from blockchain basics to advanced trading strategies.

3. How to Create a Binance Account Step by Step

Getting started on Binance is straightforward and takes less than 10 minutes. Here’s how to do it.

Step 1: Go to binance.com and click Register. Enter your email address or phone number and create a strong password.

Step 2: Verify your email or phone number by entering the code Binance sends you.

Step 3: Complete identity verification (KYC). Binance requires all users to verify their identity to comply with anti-money laundering regulations. You’ll need a government-issued ID and a selfie. This usually takes a few minutes to a few hours.

Step 4: Set up two-factor authentication (2FA) using an authenticator app. This is strongly recommended to protect your account.

Step 5: Deposit funds. You can use a bank transfer, credit or debit card, or transfer crypto from another wallet. Once funded, you’re ready to start trading.

Pro tip: Download the Binance app for iOS or Android to manage your account on the go. It includes all the same features as the desktop version.

4. Binance Fees Explained

Understanding Binance’s fee structure will help you trade more efficiently and keep more of your profits.

Spot trading fees: The standard trading fee is 0.10% per trade for both makers and takers. You can reduce this by 25% if you pay fees using BNB (Binance’s native token).

VIP discounts: Users with high trading volumes qualify for progressively lower fees through Binance’s VIP tier system. High-volume traders can access fees as low as 0.02%.

Deposit fees: Depositing crypto is generally free. Bank transfers may carry small fees depending on your country and payment method.

Withdrawal fees: These vary by asset and network. Before withdrawing, always check the fee shown in the withdrawal interface to avoid surprises.

Card purchase fees: Buying crypto with a debit or credit card typically incurs a higher fee of around 1.8%, reflecting the cost Binance pays to card networks.

5. Is Binance Safe?

Security is a top concern for any crypto exchange user, and Binance takes it seriously — though no platform is immune to risk.

Binance stores the majority of user funds in cold storage (offline wallets), which are far less vulnerable to hacking. The platform uses advanced encryption, two-factor authentication, and real-time monitoring systems to detect suspicious activity.

In 2019, Binance suffered a significant hack in which 7,000 BTC was stolen. The company covered all losses from its Secure Asset Fund for Users (SAFU) — a reserve fund it maintains specifically for this purpose — and no user lost money as a result.

To keep your own account safe, always enable 2FA, use a unique strong password, set up withdrawal address whitelisting, and be vigilant about phishing emails and fake Binance websites.

6. Binance vs Other Exchanges

How does Binance stack up against its main competitors?

Binance vs Coinbase: Coinbase is more beginner-friendly with a simpler interface and stronger regulatory standing in the US. Binance offers lower fees, more trading pairs, and far more advanced features. For cost-conscious and experienced users, Binance wins on most fronts.

Binance vs Kraken: Kraken is known for strong security and regulatory compliance. Binance beats it on trading volume, product range, and fee structure, but Kraken may appeal to users who prioritize a clean regulatory track record.

Binance vs KuCoin: Both offer a wide range of altcoins and similar features. Binance has significantly more liquidity and a larger user base, making it the more reliable choice for most traders.

Overall, Binance’s combination of low fees, deep liquidity, and broad product offering makes it the best all-round exchange for the majority of crypto users in 2025.

Frequently Asked Questions

Is Binance available in my country?

Binance operates in over 100 countries. However, it is restricted or limited in some jurisdictions, including the United States (where Binance.US is available as a separate platform). Check Binance’s website for the latest list of supported regions.

Do I need to verify my identity to use Binance?

Yes. Binance requires identity verification (KYC) for all users who wish to deposit, trade, or withdraw. This is required by law in most countries and helps prevent fraud and money laundering.

Can I use Binance without prior trading experience?

Absolutely. Binance’s simple buy/sell interface is designed for beginners, and Binance Academy provides hundreds of free educational resources. Start with small amounts while you learn the platform.

What is BNB and do I need it?

BNB is Binance’s native cryptocurrency. While you don’t need it to use the platform, holding BNB gives you a 25% discount on trading fees, making it worthwhile for regular traders.

Legal Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency trading involves significant risk. Always do your own research before investing.

Last updated: 2025.