Binance Review 2018: Comprehensive Crypto Coin Exchange
Binance is a Chinese cryptocurrency exchange. Binance was created after attracting funds via an ICO (Initial Coin Offering – creating a new digital asset, backed by the project. Changpeng Zhao, former CTO at OKCoin is currently at the helm of Binance. They are known for fast processing speeds coupled with an ability to process enormous numbers of transactions (1.4 million) each second. It’s been quickly gaining ground in market share cementing a place as a top 20 exchange in terms of volume.
Binance transaction has reached a new level and currently score tenth place in the world. Binance offers a generous daily withdrawal limit. They don’t need identity confirmation when the per day remittance is within limit of 2 BTC.
Binance Features
Binance’s trading platform is web-based. Furthermore it offers two distinct trading layouts, a more simple one and a “Pro” version.
Their ICO has created tokens named BNB that are traded on the exchange. They can also be used as a method of paying your trading fees, which will reduce them by 50%. Binance offers their own startup incubator platform as well. The trading functionality of the platform was of more interest so we focused on that for the purposes of this Binance review.
Below is the “standard platform” look:
Below is the advanced display:
BINANCE Advantages
Large Cryptocurrency Pairings Supported
The competitive advantage of Binance’s platform is the ability to trade every major cryptocurrency pairing in existence. Coinbase and Gemini only offer trading of a handful of the larger market capitalization cryptos, whereas Binance allows users access to trade over 100 crypto coins.
Low Fees AND LIMITS
The fee structure is simple as well as being priced. There is a flat 0.10% fee on all trading. The 0.10% fee on trades is one basis point. If you were to buy a cryptocoin at 100 you’d have to sell it higher for 101 to profit.
Ease of Setup
Setting up an account is straight forward, similar to signing up for an account with other service providers. Another advantage is there is no lengthy waiting time, users are able to get setup and running within minutes. This is due to the fact that fiat is not accepted on the exchange.
Binance Provides Significant Trading Volume
Binance is currently the third largest exchange by cryptocurrency trading volume, according to coinmarketcap. At the time of writing, Binance’s volume was an astounding $5,441,711,452 in the last 24 hours! This volume demonstrates their users clear trust in the exchange, as well as the accessibility of the exchange and ease of transacting. This type of volume requires substantial servers and computational power.
Wide Support of Cryptocurrencies
No Verification Requirements
Binance doesn’t require identity confirmation in instances when the per day remittance is within the limit of 2 BTC. The attractiveness of setting up an account with Binance may be greater for a user in a jurisdiction where certain exchanges choose not to allow new users because of restrictions imposed by that location’s governing regulatory bodies.
Ease of Use
You’re able to buy and sell crypto pairings with market or limit orders while specifying the amount or percentage you wish to trade for each transaction.
BINANCE Disadvantages
No Leveraged Margin Trading
Margin trading is not available at Binance. Margin trading is a system which allows you to trade with more money than you actually have in your account. Your balance is then used as a guarantee to maintain your position open.
No Fiat Functionality
This has both advantages and disadvantages. Government fiat deposits are not currently enabled in Binance, instead this exchange focuses only on the digital side of things. Clients can deposit and withdraw the coins supported at the exchange. This means that you’re not able to deposit or withdraw in fiat currency, only cryptocurrency is supported.
Relatively New
Binance was started in only July 2017, according to this Reddit post. This is a major concern, as they don’t have a history. Despite all the good things people are saying on Reddit. it’s worth mentioning as many exchanges have come and gone. Binance appears to have a visible co-founder, unlike BTC-E.
Conclusion
Accessible option for obtaining Different Cryptocoins
Binance is the most rapidly-growing and communally praised cryptocurrency exchange available. It’s China based location may spell issues in the future due to rumors of a “crackdown“. that currently accounts for a large amount of volume. Although Binance targets high frequency traders, it is quite useful for those getting beginning with altcoin trading. Their lack of fiat money deposits may be difficult to swallow for beginners, only supported cryptocurrencies may be deposited. Binance boasts a large number of various cryptocoins for trading.
The main benefit is the ability convert between cryptocurrencies. For instance exchanges such as Coinbase and Gemini are more limited in the number of cryptocurrencies offered. The interface is also conducive to support shorter duration hold time day trading of cryptocurrencies if one were so inclined to deploy that strategy. Binance is an exchange worth looking into and integrating into crypto trading just for their large amount of supported crypto coins.
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Is Life Insurance a Smart Investment? By Amy Fontinelle | Updated January 9, 2018 — 10:55 AM EST
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When it comes to considering life insurance as an investment, you’ve probably heard the adage, “Buy term and invest the difference.” This advice is based on the idea that term life insurance is the best choice for most individuals because it is the least expensive type of life insurance and leaves money free for other investments. Permanent life insurance, the other major category of life insurance, allows policyholders to accumulate cash value, while term does not, but there are expensive management fees and agent commissions associated with permanent policies, and many financial advisors consider these charges a waste of money.
When you hear financial advisors and, more often, life insurance agents advocating for life insurance as an investment, they are referring to the cash-value component of permanent life insurance and the ways you can invest and borrow this money. (See: 6 Ways To Capture The Cash Value In Life Insurance.)
When does it make sense to invest in life insurance this way, and when are you better off buying term and investing the difference? Let’s take a look at some of the most popular arguments in favor of investing in permanent life insurance and how other investment possibilities compare.
Arguments in Favor of Using Permanent Life Insurance as an Investment
There are many arguments in favor of using permanent life insurance as an investment. The issue is, these benefits aren’t unique to permanent life insurance. You often can get them in other ways without paying the high management expenses and agent commissions that come with permanent life insurance. Let’s examine a few of the most widely advocated benefits of permanent life insurance.
1. You get tax-deferred growth.
This benefit of the cash-value component of a permanent life insurance policy means you don’t pay taxes on any interest, dividends or capital gains in your life insurance policy until you withdraw the proceeds. You can get this same benefit, however, by putting your money in any number of retirement accounts, including traditional IRAs, 401(k)s, 403(b)s, SIMPLE IRAs, SEP IRAs and self-employed 401(k) plans.
If you’re maxing out your contributions to these accounts year after year, permanent life insurance might have a place in your portfolio and could provide some tax advantages. (For more, see: Cut Your Tax Bill With Permanent Life Insurance.)
2. You can keep your policy until age 100, as long as you pay the premiums.
A key advertised benefit of permanent life insurance over term life insurance is you don’t lose your coverage after a set number of years. A term policy ends when you reach the end of your term, which for many policyholders is at age 65 or 70. But by the time you’re 100, who will need your death benefit? Most likely, the people you originally took out a life insurance policy to protect—your spouse and children—are either self-sufficient or have also passed away.
3. You can borrow against the cash value to buy a house or send your kids to college, without paying taxes or penalties.
You can also use money you put in a savings account—one on which you don’t pay fees and commissions—to buy a house or send your kids to college. But what insurance agents really mean when they make this point is if you put money in a tax-advantaged retirement plan like a 401(k) and want to take it out for a purpose other than retirement, you might have to pay a 10% early distribution penalty plus the income tax that’s due. Further, some retirement plans, like 457(b)s, make it difficult or even impossible to take out money for one of these purposes.
That being said, it’s generally a bad idea to jeopardize your retirement by raiding your retirement savings for some other purpose, penalties or not. It’s also a bad idea to confuse life insurance with a savings account. What’s more, when you borrow money from your permanent insurance policy, it will accrue interest until you repay it, and if you die before repaying the loan, your heirs will receive a smaller death benefit.
4. Permanent life insurance can provide accelerated benefits if you become critically or terminally ill.
You may be able to receive anywhere from 25% to 100% of your permanent life insurance policy’s death benefit before you die if you develop a specified condition such as heart attack, stroke, invasive cancer or end-stage renal failure. The upside of accelerated benefits, as they’re called, is you can use them to pay your medical bills and possibly enjoy a better quality of life in your final months. The drawback is your beneficiaries won’t receive the full benefit you intended when you took out the policy. Also, your health insurance might already provide sufficient coverage for your medical bills.
In addition, some term policies offer this feature; it isn’t unique to permanent life insurance. Some policies charge extra for accelerated benefits, too—as if permanent life insurance premiums weren't already high enough.
Arguments in Favor of Buying Term Insurance and Investing the Difference
When you buy a term policy, all of your premiums go toward securing a death benefit for your beneficiaries. Term life insurance, unlike permanent life insurance, does not have any cash value and therefore does not have any investment component. However, you can think of term life insurance as an investment in the sense you are paying relatively little in premiums in exchange for a relatively large death benefit.
For example, a nonsmoking 30-year-old woman in excellent health might be able to get a 20-year term policy with a death benefit of $1 million for $480 per year. If this woman dies at age 49 after paying premiums for 19 years, her beneficiaries will receive $1 million tax-free when she paid in just $9,120. Term life insurance provides an incomparable return on investment should your beneficiaries ever have to use it. That being said, it provides a negative return on investment if you are among the majority of policyholders whose beneficiaries never file a claim. In that case, you will have paid a relatively low price for peace of mind, and you can celebrate the fact you’re still alive.
Do you really hate the idea of potentially “throwing away” almost $10,000 over the next 20 years? What would happen if you invested $480 per year in the stock market instead? If you earned an average annual return of 8%, you’d have $25,960 after 20 years, before taxes and inflation. Considering the opportunity cost of putting that $480 per year into term life insurance premiums instead of investing it, you’re really “throwing away” $25,960. But if you die without life insurance during those 20 years, you’ll leave your heirs with almost nothing instead of $1 million.
What if you bought permanent life insurance instead? The same woman described above who purchased a whole life insurance policy from the same insurance company could expect to pay $9,370 annually. The whole life policy’s cost for a single year is just slightly less than the term life policy’s cost for 20 years. So how much cash value are you building up for that extra cost?
– After five years, the policy’s guaranteed cash value is $19,880, and you will have paid $46,850 in premiums.
– After 10 years, the policy’s guaranteed cash value is $65,630, and you will have paid $93,700 in premiums.
– After 20 years, the policy’s guaranteed cash value is $181,630, and you will have paid $187,400 in premiums.
But after 20 years, if you had bought term for $480 a year and invested the $8,890 difference, you’d have $480,806 before taxes and inflation at an average annual return of 8%.
"Sure," you say, "but the permanent life insurance policy guarantees that return. I’m not guaranteed an 8% return in the market." That’s true. If you have no tolerance for risk, you can put the extra $8,890 a year in a savings account. You’ll earn 1% annually, assuming interest rates never go up from today’s historic lows. After 20 years, you’ll have $208,671. That's still more than the permanent policy’s guaranteed cash value of $181,630.
The Bottom Line
Using permanent life insurance as an investment might make sense for some people in some situations—usually high net-worth individuals looking for a way to minimize estate taxes. For the average person, the odds are poor that permanent life insurance will be a good investment compared with buying term and investing the difference. (For more on this topic, see: Strategies To Use Life Insurance For Retirement.)
Read more: Is Life Insurance a Smart Investment? | Investopedia https://www.investopedia.com/articles/active-trading/120814/life-insurance-smart-investment.asp#ixzz5GimKLphh
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