Why is Binance cryptocurrency exchange closing its doors to US customers?

Binance is one of the biggest Bitcoin and crypto exchanges in the world. Poloniex used to be the top place to trade, and then Bittmex came along. But by 2017 Binance launched and became a major platform for traders globally. It remains one of the top places for traders because it has the most volume generally, and without volume it's very difficult to find buyers or sellers to meet your price.

The Binance logo that looks strangely like the Freemason Illuminati logo of compass and square

There are other exchanges globally but their volume is far less. Fewer people use them to trade, so what happens is your trade sits there unfilled for a lot longer. This sluggish action makes trading difficult and boring. Also there are sometimes premium prices or higher prices compared to other more liquid exchanges where the spread between buyer and seller is far less. Binance has really used good marketing as well as clever economic strategies like the famous IEO or Initial Exchange Offering.

This is the new ICO and a place where the exchange itself launches the new tokens to retailers. Binance is having one every month nowadays and people seem to take to it because they like and trust exchanges far more than some random company or startup launching a white paper and a new token. ICOs got a bad rap in 2018 with the numerous scams around but exchanges like Binance and others seem safer. Not that they don’t also get up to shady business like wash trading and inflated fake volume too.

So it makes sense that Binance is now so popular. They are even launching their decentralized exchange presently, a particularly promising and much sought after place to trade in the new cryptocurrency industry. The Dex, as it’s called, is a safer place with more privacy for the discerning trader. All of these aspects have made Binance very popular and also very rich. Their profit was huge even in the bear market of 2018, in the billions of dollars. That’s where all your trading fees go for each trade you make. Also the Binance token BNB has also gone from strength to strength. In fact BNB has outperformed Bitcoin lately and Bitcoin has outperformed everyone in the mainstream conventional finance sector, like fiat and gold.

But something concerning has just occurred in the recent revelation that Binance is closing its doors to US customers. Now all American traders have 90 days to sell up and leave the exchange for good. Their are other exchanges of course, but as I said, their volume is low and trading is sluggish. The interesting thing is that the old US traders will be looking for a place to trade and may just take their business to the other platforms, like Bitmex, Coinbase and others.

By September 12 Americans will be off the exchange. What will this do to Binance for the rest of us? Many US traders are there to make up the Bitcoin and crypto trade volume and their departure may lead to a slump in volume of sorts. It may cause the end of the BNB pump...or will it? And added to that it looks like Americans will be banned form other platforms like Bittrex too this year. What is going on? Presumably it revolves around the SEC and the laws and regulation from the US government that label many of the tokens traded as securities, and so they are clamping down.

Let us know in the comments if you have any information regarding the upcoming closure of Binance and other exchanges to American traders. There go all the dollars. I presume Binance are not too worried that this will affect their bottom line. They have so many other strategies going on that CZ the CEO is probably one of the biggest wealth earners in the world a the moment, among the top achievers in finance, like a Bill Gates or Warren Buffet of cryptocurrency.

I’m not a US citizen so will carry on using Binance. The trading fees are very low, at 0.075% per buy or sell, equaling 0.15% in total added to the price of your profit made on the complete transaction. And if I can achieve even a 2-4% profit on most of my trades, doing day trading and scalping, I don’t mind paying 0.15% in BNB token each time. My actual Bitcoin holdings are down since the start of the year but my overall dollar holdings or worth is up from my Binance exchange trading over the past six months.

This is because I have moved away form accumulating Satoshis or Bitcoin directly and have focused on accumulating dollars. I trade in and out of stable coins like TUSD or PAXOS and occasionally USDT if I have to, though I am wary of it, with all their continued printing by the million every few weeks. The bear market last year really ate away at my original investments on Binance. It was also my first year learning how to trade, so I made a few careless mistakes and took a few losses along the way. Nevertheless, I’m refining my strategy all the time and now working on reacquiring my lost value, a few percent at a time.

One concern with the block to US citizens is that it may prevent them from accessing numerous of the tokens available on Binance which may not be found much on other exchanges. What will happen to the volume of those coins for the rest of us and for the companies involved? This could be a game changer for smaller tokens. Hopefully they will be available on other exchanges like Kucoin, which has numerous smaller tokens, some of which were on Binance, and more.

Overall, for me trading can be fun and can lead to a skill that will make you money for life if you master it. it’s like riding a horse in that sometimes you get thrown and fall badly in the beginning but if you get the courage to climb back up on the horse with new insights and experience, you can eventually master the art and tame the beast that will take you far. There is so much free advice and education on trading that I simply teach myself online from the writing and lessons of others, along with my own personal experience, and I believe that I can learn the mistakes I need to with small amounts of cash now, so that I can have the know how when it comes to trading bigger sums in future.

There is nothing like making money while putting your feet up at home or on the beach. I choose such a fun life, with minimal endeavor, and you can too, if your mind will allow you to. Don’t give up your day job of course, but supplement it with crypto trading or investing and you will win in this year’s bull market. It can be done, don’t give up if you fail at first. Get on that horse and ride it to the moon. I will see you there.