Hardly any other business on the financial market is as popular and on the upswing as the trade with cryptocurrencies. Although the real hype that prevailed some time ago has now subsided again, there are still a large number of investors who see the virtual money as an interesting investment. In addition, there are numerous people who see cryptocurrencies as a new means of payment or who are simply interested in the corresponding technology.
However, an exchange is required for trading cryptocurrencies. It acts as a depository or bank account and is the starting point for all your transactions with cryptocurrencies as well as for trading. One of these platforms, which are also very well-known and popular in Germany, is Binance. But how does it actually look legally with the topic of Binance and cryptocurrencies? Is the exchange legal? Are there things to pay attention to? This is the topic of today’s blog post.
Cryptocurrencies are virtual, digital money. Unlike its counterpart, the classic or FIAT currency, cryptocurrencies do not have coins or bills. It exists exclusively on the Internet. Cryptocurrencies are thereby traded via the so-called exchange – special brokers for cryptocurrencies. They serve primarily as an investment or financial investment. Some of the better known cryptocurrencies, especially bitcoin, is now also recognized by many merchants as a payment method.
Most cryptocurrencies use the new blockchain as their technology. This is a network of different servers that can operate and function completely autonomously from each other. The entire system is considered extremely secure due to high encryption and other protective measures. For example, once data is stored on the blockchain, it cannot be changed or deleted. They can only be replaced with a new version. This high level of security has also led to the name cryptocurrency. Today, cryptocurrencies are a large and lively scene. There are constantly new projects and many changes. Some experts consider bitcoin and cryptocurrencies as the money of the future.
What is Binance?
The website Binance is a so-called exchange or broker for cryptocurrencies. That is, the provider allows customers to buy, trade, transfer to other users, exchange and also sell the bitcoin and often various other cryptocurrencies. You can think of Binance roughly like an online securities account or online banking at your local bank. In order to trade cryptocurrencies, invest in them or use the virtual money in other ways, you need a user account with an exchange of your choice. Just like you need to open an account at a bank for wire transfers and have your own securities account set up for stock trading.
Binance is one of many exchange service providers on the market. Together with Kraken and eToro, the provider is one of the large and well-known exchanges in the world. Binance has also gained a foothold in Germany and is used by more and more customers as an alternative to the well-known eToro or Coinbase, which is not available in German.
Is Binance legal?
But what is the legal situation with the provider Binance in Germany? Are there any licenses? Is the platform legal in Germany? Finally, especially on the subject of cryptocurrencies in the Federal Republic or ambiguities prevail and there are legal concerns. In this paragraph, our experts therefore deal with the topic in detail. You will learn whether Binance can be used legally in the Federal Republic of Germany or not.
Yes. Binance is a crypto exchange that has been active in Germany for many years and is very popular among many people in Germany. So far, there have been no incidents or incidents with the provider and there is also no cause for concern from the authorities here. With Binance you are on the safe side and do not do much wrong. If you still have questions about the topic, then we recommend you to contact a professional expert, such as a specialist lawyer for cryptocurrencies.
Is there anything to consider when using it?
If you use Binance and trade cryptocurrencies, it is completely legal in Germany. However: even when trading crypto coins, you may be liable to prosecution under certain circumstances. Laws regarding fraud, money laundering and other crimes apply in this case as well, of course. You should therefore use Binance as seriously and reliably as you do with your securities account or bank account. If you have any questions or if something is unclear to you, then you should seek advice from a professional in this regard.
Is a permit or registration required for use?
No. You do not have to get permission to trade cryptocurrencies per se and a registration is also not required as long as you do not trade commercially or open a business based on crypto and trading. But: Binance as a reputable and legal provider requires you to register on the website. This also involves verifying your identity. This is known as Know Your Customer (KYC) or Know Your Customer and is a procedure that is required by law. As mentioned at the beginning, Binance as a crypto exchange is comparable to a bank account or a securities account. There, too, you have to prove your identity when opening an account. This is no different with Binance – and with any other reputable crypto exchange!
How does Binance work?
Binance is very simple in the way it works. First, you need to create an account on the website. This requires the usual data. This means email, name, address and date of birth, as well as a password. All the data must be true, otherwise you will have problems with depositing and withdrawing funds later.
After registration, you will receive a confirmation email with a link that you need to click. After that, you can immediately log in to Binance and start trading Binance or other cryptocurrencies. We also recommend that you familiarize yourself with the help and watch the tutorials. This is especially true if you are new to the crypto scene and have little or no experience. Here you will find some very important information as well as useful tips and tricks.
Advantages and disadvantages
Binance is one of the most well-known crypto traders in the world, along with eToro and Coinbase. But, of course, the provider does not have only advantages. Like everywhere else, you have to accept some disadvantages with Binance. Of course, we do not want to withhold the most important advantages and disadvantages from you. We will take a closer look at them in this section.
- The most important advantages of the Binance Exchange are:
- Well-known and reputable provider
- Quick and easy registration and verification
- Easy operation and fast trading
- Many functions and information
Now that you know about the advantages, we would also like to familiarize you with the main disadvantages of Binance. These are:
- Rapid and drastic price fluctuations possible
- Minimum deposit required
- Selection of cryptocurrencies and altcoins rather small
- Areas of application of Binance
Binance is a broker or exchange for cryptocurrencies. Therefore, the provider is mainly used in the crypto scene. Bitcoin, Ethereum or Dash are just some of the numerous tokens that you can trade with this provider. In addition to many well-known coins, there are also some smaller or less well-known tokens here. Thus, Binance is very versatile and extensive and is not limited to cryptocurrencies. No matter if you want to get into the trading business with cryptocurrencies, if you want to invest or transfer or if you want to mine Bitcoins and other tokens for free: You cannot get around an exchange and here Binance is an excellent choice. The provider is characterized by security and respectability. Many customers from Germany, Europe and even worldwide trust the Binance Exchange every day with transactions in the millions.
Costs and fees
You can find more information about the costs and fees as well as notes about the deposit fees on the Binance pages, updated daily. Here you should thoroughly inform yourself before signing up and before transactions in advance. You can profit from a discount on trading fees if you sign up with a coupon from Bitcoincoupons.org.
As with any trading platform, Binance.com charges fees for usage, transactions, deposits and withdrawals. For transactions, Binance generally charges 0.1% of the value of the transaction as a fee. An exception are BNB tokens, which are discounted by 50%. Thus, the fee here is 0.05%. Deposit transactions are free of charge. However, there are costs and fees for deposit and withdrawal. How high these fees are depends on the token in question.
Is Binance as an exchange reputable?
Yes, definitely. Binance is one of the market leaders among crypto exchanges alongside eToro and a very reputable provider. The exchange enjoys the trust of its customers and stands for security and reliability. This is an important point to consider when choosing an exchange. If security and respectability are important to you, then Binance is a top candidate.
Is trading Bitcoin and cryptocurrencies legal?
Yes. Cryptocurrencies are legal in Germany. However, for some types, such as the Security Token, special requirements must be met and a permit must be obtained. Nevertheless, there is nothing against trading with bitcoin or other tokens in Germany.
Do I have to pay taxes on my profits and transactions with Binance?
Unfortunately, this question cannot be answered in a blanket manner. Normally, you also have to pay taxes on profits in cryptocurrencies like the Bitcoin. However, here again there are some exceptions, especially with regard to the length of time that elapses between the receipt of the payment or the profit and the payout. We strongly advise you to seek professional advice from an appropriate specialist lawyer.
This concludes our report about Binance. You now know what is behind this exchange and that it is a reputable provider, which is one of the market leaders in the scene next to eToro. In addition, you have the certainty that the provider is completely legal in Germany and that trading is permitted. So, you can trade cryptocurrencies at Binance without any worries as long as you do not violate any valid laws and regulations. Moreover, Binance offers a wide range of various well-known and lesser-known tokens. New customers will find numerous tutorials and a lot of interesting information. Overall, it is a very good provider that you cannot go wrong with much.