Binance Logo (Source: Binance Twitter)
What Is Binance?
Founded in 2017, Binance is now the world’s largest cryptocurrency exchange when one considers trading volume. Indeed, Binance’s trading volume is more than three times larger than its nearest crypto exchange competitor, Coinbase Exchange.
In 2019, Binance stated that it was “unable to provide services to any U.S. person” and that it would partner with a U.S. company called Binance US.
US-based investors trying to access the Binance.com website are now provided the following warning: “Binance is unable to provide services to U.S. users. Binance.US (BAM Trading Services) is a US-regulated cryptocurrency trading platform.”
Binance US Logo (source: Binance US)
Binance US is an online service that offers US-based investors the opportunity to buy, sell, and store cryptocurrencies. In just three years, Binance US has already become the tenth largest cryptocurrency exchange when one considers trading volume.
What Is Binance Bridge?
Binance Bridge is a service that allows investors to transfer cryptocurrencies from one blockchain to another blockchain that has a different protocol or rules. Binance Bridge provides a compatible way to interoperate securely from one chain to another different chain.
On November 25, 2021, Binance announced that it was ceasing its Binance Bridge related services.
How to add Binance Smart Chain to MetaMask
Adding Binance Smart Chain to MetaMask (source: medium.com)
Binance Smart Chain (BSC) is a blockchain created by Binance. BSC supports Ethereum-based applications like MetaMask. Here is how you can add BSC to your MetaMask account.
Create MetaMask Wallet
First, you will need to create a cryptocurrency wallet to store your Ethereum based BSC coins and tokens. To create this wallet, go to MetaMask and download a recent version of its software.
Download MetaMask (source: metamask.com)
Next, create your wallet. We strongly suggest that you store your 12-word seed phrase in a safe place. This seed phrase represents the only way that you can recover your funds should your device crash or your browser reset. We strongly suggest that you write it down on a piece of paper and store it safely in a place where only you have access.
Now, your MetaMask wallet is ready to send, store, and receive ETH tokens.
Newly created MetaMask Ethereum wallet (source: medium.com)
Convert ETH Wallet to BSC Wallet
But your newly created MetaMask wallet is an Ethereum wallet. You must configure this wallet to work with BSC. Here is how you do that.
First, access the Settings of your newly created wallet so that your wallet will correctly point towards BSC blockchain nodes.
Settings Changes Newly created MetaMask wallet (source: medium.com)
Add BSC Network
Once you are on the Settings page, click the Networks link noted on the left-hand side of this page, as identified in the image below.
Networks Settings for MetaMask wallet (source: medium.com)
On the upper right-hand portion of this window, you will see the Add Network button. Clicking this button allows you to manually insert the following entries for the BSC Mainnet:
Network Name: Binance Smart Chain
New RPC URL: https://bsc-dataseed.binance.org/
ChainID: 56
Symbol: BNB
Block Explorer URL: https://bscscan.com
Click the Save button to save your entries. Now, once you return to the main view, you will notice that the network for your wallet is now set to BSC. You will also notice that the units are no longer denominated in ETH, but in Binance Coin (BNB).
How to Delete Binance Account
There are five basic steps that you need to follow to delete your Binance account. However, before you go through these steps, you should confirm that your account is depleted of all funds. If your account contains any funds, Binance may not allow you to delete your account.
Step 1. Log in to Binance Exchange
First, go to the Binance website where you will need to log into your user account. Once you have accessed your account, view the top navigation bar and select the Account or the Profile Icon.
Binance Homepage (source: Binance.com)
Step 2. Go to Security
Under the Account or Profile Icon navigate down and click Security.
Binance Profile (source: Binance.com)
Step 3. Disable Account
You should now be viewing the Security page.
Binance Security Page (source: Binance.com)
While on the Security page, you will see a checklist to increase your account security. Scroll to the bottom right-hand portion of this page under the heading Account Activity. Under the Account Activity section, you will see a link Suspicious Account Activity? To the right of this link, you will see an active link entitled Disable account. Click this link.
Step 4. Close Your Binance Account
You will now be provided with two options: Disable this Account or Delete this Account. Go ahead and click Delete this account.
Binance Delete Account (source: Binance.com)
Step 5. Delete Binance Account Application
You will then be provided the following screen where you will need to enter your email address or your mobile phone number that is associated with the account that you want to delete.
Click the Confirm to delete link to finalize this process.
Your deletion request will be reviewed, and in certain cases, Binance may request additional information.
Where in the US is Binance Available?
As noted previously, the crypto services of Binance are not available to any US-based investor. On the other hand, Binance US is available to US-based investors but only to those investors residing in certain US States. For example, Binance US is currently not available in the following seven states: New York, Connecticut, Texas, Hawaii, Idaho, Vermont, and Louisiana.
The reason for this restricted availability has mainly to do with hostile and stifling state regulatory laws. For example, one reason crypto exchanges like Binance US would not make their services available in a given state is that the state may have issued certain rules and regulations regarding cryptocurrencies.
New York is a primary example. New York’s crypto regulatory agency issued licensing requirements for cryptocurrency businesses called the “BitLicense.” The BitLicense requires operations related to transactions involving any form of digital currency to obtain a license from the state.
However, before being granted a license, applicants must have strict compliance and supervisory policies and procedures in place, including anti-money laundering, know-your-customer, and cybersecurity programs. It is estimated that it costs roughly $100,000 to apply for such a license including time allocation, legal fees, and other related expenses.
Moreover, the license requires a 30-page application, a $5,000 application fee, thousands of man-hours, and the presentation of accounting and records from the last seven years.
Rather than jump through these types of regulatory hoops, cryptocurrency exchanges like Binance US will seek out more crypto-friendly states like Wyoming, Nevada, and Florida.
How long does Binance Verification Take?
Binance is a centralized exchange and must therefore comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. As a Binance user, you must therefore undergo identification verification procedures.
The Binance verification process is a timed process where you are required to submit all your information within a 15-minute window after you initiate this process.
These steps are summarized below:
- Sign in to your account
- Select Intermediate/Identity verification
- Select Nationality/Country of Origin
- Fill in basic personal identification
- Select ID document
- Submit photo(s) of your documentation
- Upload self-portrait
- Complete facial verification
- Personal verification
- Address verification
This verification process usually only takes one to two days. The best way to reduce how long does Binance verification take is to make sure that all the images and pictures of your documents are clear and legible.
How to Transfer from Binance to Binance US
As noted previously, Binance is now blocking US-based investors from using Binance.com. However, Binance has launched a partner US-based platform. If you are a US-based user, you will want to transfer your assets from Binance.com to Binance.us. Provided below are instructions on how to complete this transfer.
Step 1: Visit Binance US
First, visit Binance US and click Sign Up Now button.
Binance US Homepage (source: Binance.US)
Enter your email address and password. Then, click the Create Account button.
Step 2: Deposit Funds
After you create your account, Binance US will send you a verification email. Click the confirmation link in the email and then go ahead and log in again.
Click the Deposit link. This will start the process of moving your assets from your Binance account to your new account at Binance US.
Binance.US Deposit (source: Binance.US)
Step 3: Verification Step
Your identification verification is mandatory before an exchange like Binance US will allow you to deposit and withdraw funds. Click Basic Verification to proceed.
Fill out the basic verification datasheet and then click the Submit button.
Once you go through the above steps, you will finally be able to access your Binance US dashboard.
How to Withdraw from Binance
Follow the steps below to withdraw assets from your Binance account and fund your new Binance US account or MetaMask wallet. Our example illustrates how you can make a deposit into a new MetaMask wallet.
Step 1: Sign in to Binance
To initiate your withdrawal process, sign in to your Binance Account. Then, go to the Binance Fiat and Spot account to see your wallet overview. Once there, locate the Withdraw button.
Binance Account (source: Binance.com)
Step 2: Identify Crypto
After clicking the Withdraw button, click the Withdraw crypto button.
Binance Withdraw (source: Binance.com)
Step 3: Select Network
You must now select the proper network. Since MetaMask is an Ethereum wallet, you can only send ERC20 tokens or Ethereum over to your MetaMask. When withdrawing from Binance, you need to make sure that the network that you select is the ERC20 network.
Binance Select Network (source: Binance.com)
Step 4: Select Coin
In this example, we will be sending Ethereum from our Binance account to our MetaMask wallet. Select Ethereum as the cryptocurrency that you intend to transfer, and follow the instructions to add the recipient account:
You can add a transfer description to the address label.
Binance Add Address (source: Binance.com)
Step 5: Add MetaMask Address
To find your MetaMask address, go to your MetaMask account and click on the balance. You will be able to find your MetaMask address which usually starts with 0x.
Input this address into the box marked Enter address here.
Once you enter the amount you want to transfer, you will be presented with a Withdraw button.
Binance Withdraw (source: Binance.com)
Step 6: Initiate Withdrawal
Click Withdraw and your Ethereum will be withdrawn from your account to your MetaMask wallet after the blockchain confirmation.
Binance Withdrawal Submittal (source: Binance.com)
Step 7: Use MetaMask
The transaction on the blockchain usually takes up to a few minutes and you can find your Ethereum balance on your MetaMask wallet.
You can now use your MetaMask wallet to interface with decentralized applications.
MetaMask Wallet (source: MetaMask.com)
Does Binance Report to the Internal Revenue Service (IRS)?
As previously noted, Binance.com has stopped supporting US-based investors and directs these investors to Binance US.
As called for by the IRS, Binance US provides customer information based on the KYC identification data that each user provides when they establish a Binance US account.
Previously, it was Binance’s practice to send out a 1099-K form to US-based investors and the IRS. However, Binance has now changed its practice and will now no longer send these forms out.
Here is Binance’s explanation of this change:
“Previously, Binance.US took the position that it was a Third Party Settlement Organization (“TPSO”) under Section 6050W of the Internal Revenue Code and accordingly, filed Forms 1099-K for certain transactions settled on the exchange. After further evaluation and general indications from the IRS on the intended direction for future reporting, Binance.US has decided not to issue Forms 1099-K for customers on the exchange for the tax year 2021 and beyond.”
Please note that the IRS can demand that US crypto exchanges turn over your investment and trading information. For example, the IRS has successfully legally compelled US exchanges such as Coinbase to turn over user data through the use of John Doe summonses.
How to Stake on Binance US
Staking is a way of earning rewards while you allow Binance US to utilize certain of your digital assets. Binance US allows staking for certain cryptocurrencies including VET, XTZ, ATOM, EOS, ONE, and ALGO.
To stake your coins on Binance.US, follow the following steps.
Step 1: Go to Staking Page
Sign in to your account and then select the New tab. From the drop-down menu, select the Binance Earn option.
Binance Earn (source: Binance.com)
Step 2: Go to Locked Staking
Next, select the Locked Staking option by clicking on the Go to Staking link.
Locked Staking Option (source: Binance.com)
Step 3: Identify Coin to be Staked
In the Locked Staking window reproduced below, click the Display available only. This will display a list of currently available cryptocurrency staking options.
Currently Available Staking Options (source: Binance.com)
Now, identify the coin that you want to stake and then click the Stake Now button. In this example, we selected the coin LUNA to stake.
You will now be presented with the following Locked Staking screen.
Locked Staking Screen (source: Binance.com)
Under the Locked Staking heading, you can see that the selected staking coin is “LUNA.”
Under the heading Duration, select the stake duration that you are seeking: 15, 30, 60, or 90 days.
In addition, you can select a Lock Amount to lock.
A Locked Amount Limitation minimum and maximum may also be provided.
On the right-hand side of this screen, you will find a summary of staking information including Stake Date, Value Date, Interest Period, Redemption Date, Estimated APY, and Estimated Interests.
If you agree to this summary information, tick the box that you agree to the Binance Staking Service Agreement and then finally click the Confirm button.
You have now successfully staked the LUNA coin.
Conclusion
Several investment activities offered through either Binance or Binance US have been summarized. Keep in mind, if you are an investor that resides outside of the US, you need to utilize the features offered by Binance. Otherwise, use Binance US.
As the crypto investment market is constantly changing and evolving, visit the website for these respective currency exchanges to make sure that you have the most updated information regarding your investment trading strategies.