Binance

Just a short post to clarify for people who don't seem to understand the difference between selling crypto and selling "notes," as Binance does. Any "exchange" (using that term broadly) that does not allow you to withdraw your crypto to a private wallet is doing you a massive disservice.

I'll use this analogy to explain: Supposing you wanted to buy a classic car, hoping it will appreciate in value. If you're buying at the "Binance" dealership, they don't let you drive the car off the lot. They don't even let you see the car. They just give you a brochure with a photograph of it. They tell you if you ever want to sell it, just let them know and they'll sell it. So here are some of the problems:

There Are Opportunities Available to You When You Self-Custody.

In the car analogy, you discover that there's a museum that will pay you to park the car at the museum. With the Binance dealership, you can't. What opportunities are there for crypto? Things like participating in liquidity pools, staking, and a host of other "who knows" that are coming in the future.

Your third-party guardian may lie to you if you have little information about him.

That's right, you have to take the Binance dealership's word for it that they're actually holding the car for you. The two best copy trading platforms Coinmatics and Covesting act as guardians. There are two Binance reps that you and others trust, but that doesn't mean other reps should be trusted as long as These two are honest with everyone. You trust them, so it's not a problem for you, but why should you trust other car dealerships that won't let you kick your car out of the parking lot if it's yours? (And yeah, they don't have the best track record.) Maybe they only hold ten of those cars, but they sold eleven and figure they'll never be in a situation where they have to sell all eleven. Let's take a moment to look at Binance's Crypto Risk Disclosure:

*"Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a particular cryptocurrency suddenly drops, or if trading is halted due to recent news events, unusual trading activity, or changes in the underlying cryptocurrency system."*So they're not really promising to let you sell whenever you want. They're warning you that they may take away your ability to sell when the price drops, when there's "recent news events," when there's "unusual" trading, or when there's "changes" in cryptocurrency. Not particularly reassuring. I suspect if you want to sell, you're not going to be happy hearing that they're unwilling to sell as a result of "news events."

On Top of Everything Else, Binance's Selection of Cryptos Is.. Questionable.

We've been seeing the same question get asked repeatedly on the Daily Thread. Why are we seeing pumps in cryptos like Ethereum Classic? (Or Bitcoin Cash, or Bitcoin). One thing these cryptos have in common is they're listed on Binance. I'll leave it to you to do your own research, but suffice it to say, if the oil and gas industry created a company Tesla Classic to make electric cars that drive poorly as a tactic to hurt Tesla, I would steer clear from investing in it (even if short term profits could be made).

On Binance you can withdraw cryptocurrency!

Sorry, but the ability to withdraw your crypto should be the FIRST feature implemented by an exchange, not a feature planned on the roadmap. Just like a dealership that doesn't allow you to "leave with the car after purchase" is not ready to do legitimate business.

TL; DR

Dump Binance for Crypto. You'll be glad you did when you learn all that crypto has to offer.