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.
Owner financing is a very common real estate purchase structure which has really come into the forefront of buying and selling in a buyers market. So I decided I would put together a quick overview of what owner financing is, since most buyers, sellers and even real estate professionals are usually unfamiliar with the term and the types of contracts involved. Remember structuring owners financing deals works for all types of real estate transactions big and small; home or commercial buildings. Owner Financing Overview: Owner financing is when all or part of the agreed upon purchase amount is held by the seller. I always tell people to look at it in the terms of a bank, the seller is holding the financing in the same way a bank would. The seller receives the monthly payments based on an agreed upon rate and term with a future balloon date for full pay off. This type of real estate transactions is very common in a buyer's market like we are seeing now, and even more common now that lenders have tighten their underwriting guidelines and or have completely stopped lending. These sets of circumstances have created a smaller buyers pool, however the amount of property owners that still want and need to sell is still there. Seller financing can be a great way to bridge the gap between buyers and sellers. Owner Financing Term Length: The length of an owner financed property can differ between the time lines of both the buyer and seller. Almost all owners financed monthly payments, no matter if they are commercial purchasers or home purchases are amortized over 30 years. A typical contract balloon term is a minimum of two - three years, since 24 months is a key number for most lenders to see that you have been making on time payments on this property before lending on the buyers purchase/refinance of the owner financed contract. In addition it allows the buyer to clean up any credit or financial issues that are dragging them down from buying, if that is the buyer's personal situations. But what is even more important in this market is that allowing the financial lending markets to stabilize and open back up. This has been the major factor for owner financing. We have been structuring the length of our owner financing contracts out a minimum of three years with three, one year extension options. This brings the full possible balloon payment out to 6 years, if needed. This is simply because we need to make sure we give enough time for those financial lending markets enough time to rebound and starting lending again. In addition we have had owners request longer terms because of the huge tax benefits that a longer term brings, we will get talk about that subject on another article. Down Payment or No Down Payment: The subject on providing a down payment on the owner financing contract is always a sticky one. From the sellers stand point they usually want as much down payment as possible, why? Because, if the buyer has some "skin in the game" they are less likely to walk away from the property and contract. From the buyers stand point they always want to come in with as little a down payment as possible, thus limiting their risk. Personally from my experience and many others I feel that most sellers should accept a smaller down payment if one at all. I know... I know what you are thinking... WTF, why would I take the risk? My point of view comes from the simple fact that if a buyer has circumstances come up that they can no longer make payments on the property, they are still going to walk away if needed, regardless of having a down payment or not. Yes...yes... I know having a down payment would at least be some kind of compensation to the seller. However from my stand point I would rather receive a few thousand dollars from the buyer and allow him/her to keep any additional monies for reserves and repairs on the property, because they do and will come up. You see from my experience if someone runs into a tough financial spot, I would rather them have reserves that can float the payment until they get back on their feet vs. being tapped out of funds day one after buying a property. This goes for both residential and commercial real estate. Maybe even more so for commercial real estate since there is a high volume of repairs, maintenance and normal unit turns which having a reserve account is a must have to be successful. And the best thing is that you can always have compensating factors for low to no down payments such as higher interest rate and or higher balloon payoff. Interest Rate: This is one of the reasons I love owner financing. It allows sellers to charge a higher interest rates thus possibly receiving monthly cash flow from the property. If there is a mortgage on the property it is very normal depending on the type of real estate to charge an interest rate to the buyer that is higher then what is currently being charged by the bank. We have seen rates all over the board including interest only payments, staggered payments and payments that are equal to the current underlying mortgage payment from the bank. The key is to at least cover the current mortgage payment on the property if there is one. Expenses: Make sure that it is written into the contract specifically stating who covers what expenses and repairs. Normally since the buyer is purchasing the building that they cover all expenses related to the property just like an owner would. I have however, seen contracts where the seller has to cover major repairs and OK any remodeling of the property. This is because the seller still has ownership interest of the property and cannot let it go into disrepair or remodeled to a point that does not do the property any good. I always prefer to have the buyer pay everything and just notify me when upgrades or remodeling is going to be done. Variations of Owner Financing Contracts: Contracts will and do vary depending on the state you live in, end goal and if there is a mortgage on the property. Most lenders have what is commonly called a "due on sales" clause that is in the mortgage documents the owner signed when originally purchasing the property. What this means is that the lender has the option to, if they choose call the mortgage note due if the property is sold. Now a lot of sellers get hung up on the fear that if the original lender finds out they sold the property using owner financing that they will request full payment of the mortgage. After doing some research and have found several cases which the lender has found out and tried to call the note due, but with little success. Why? Because the mortgage and property is still attached to the sellers name and with payments being made. If you look at it from a common sense stand point, why would a lender call due a mortgage that is being paid on time as agreed upon? They do not; they are in the business of making money not going after folks that are technically within the original guidelines of the mortgage. In addition very few lenders ever find out, because there is no need to inform them. However if you as a seller are uncomfortable with it there are ways to structure a contract that does not trigger the option to call the mortgage due, which I will go into. Types of owner financing contracts: o Land Contracts/Contract For Deed: Depending on the state you live in it is one or the other. Land contracts/contract for deed gives the buyer equitable title. This is usually used if there is no existing mortgage on the property. It allows the buyer to have some ownership in the property which when the balloon term nears, that the buyer can usually get a refinance loan rather than a purchase loan. Why is that? Because the lender sees that you have equitable title on the property and have successfully made the payments during that term. The refinance process is usually always easier since the buyer has a successful history with the property. o Promissory Notes: Promissory note are when a seller can carry the mortgage 1st or 2nd for the full purchase price balance which is called an "all-inclusive mortgage" or "all-inclusive trust deed" If there is a mortgage the seller receives an override of interest on the underlying mortgage. o Subject Too: This is where the buyer takes over the current mortgage subject to the existing monthly payments and paying no override of interest to the seller. This is a great way to sell if you are in financial straits and need to get out fast. o Lease Options/Lease to Purchase/Master Lease Options. The name really says it all. The buyer and seller sign a purchase agreement, option to purchase agreement and often a rental agreement. The buyer is leasing the property with an option to purchase it in the future. Using lease options are normally used to get around the above stated "due on sales" clause, since the buyer is simply leasing the property it does not trigger the clause. End of Contract: When nearing the end of the stated contract the buyer should either use one of the one year extension options if needed or go forward with the refinance/purchase of the property. This is where the seller is fully released from the property and usually sees a chunk of profit. At the end of the day the property seller should have received monthly income along with an end balloon pay off. Remember the whole goal is to bridge the gap between sellers and buyers during a very difficult economy. Using owner financed contracts to buy and sell allows the market to continue moving forward and is truly a creative solution to market problems. In further articles I will go into the benefits of owner financing from both sides of the transactions. Thanks for reading, Daniel David Dawson Daniel Dawson is a local St Louis real estate investor specializing in purchasing and selling multi-family investment property using owner financing contracts. Mr. Dawson started real estate investing in 2003, and has held a real estate investment portfolio of more the 7 million dollars and has helped property sellers secure more than 30 million in purchase contracts. In addition Daniel has raised more the $400,000 from private lenders to help facilitate the purchase of his real estate portfolio and has provided those private lenders with annual returns of 10%-12% secured against the real estate. Mr. Dawson is also known for his blogs and articles labeled "School Of Hard knocks....Lessons of a serial real estate investor & business owner" where he share is experiences in the up and down world of real estate and business. Article Source: https://EzineArticles.com
















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