Established in 2017, the Binance Exchange is a prominent cryptocurrency exchange. It has a significant emphasis on trading altcoins. More than 350 cryptocurrencies and virtual tokens, such as bitcoin (BTC), ether (ETH), litecoin (LTC), dogecoin (DOGE), and its own coin, BNB, are available for crypto-to-crypto trade.
Important Takeaways
Users can trade cryptocurrencies on Binance, an online exchange. Hundreds of the most widely traded cryptocurrencies are supported.
It offers traders a cryptocurrency wallet where they may keep their electronic money. Users can use the exchange’s supporting services to transact with cryptocurrencies or earn interest. It also assists traders in choosing investments and provides programs for miners.
BNB is a blockchain-based token that is exclusive to Binance. Although it is presented all over the world, it is restricted in several countries such as U.S. and U.K. due to regulations.
The Binance Exchange’s past
Changpeng Zhao, a well-known software engineer, investor, and entrepreneur, founded Binance in 2017. In just six months after he launched the exchange in July, it has grown to rank among the biggest cryptocurrency exchanges globally.
The Binance exchange boasts some of the lowest cryptocurrency transaction costs and is mostly known for crypto-to-crypto trading, or trading between two cryptocurrency pairings. It has a lot of liquidity and gives users who pay using BNB, the native cryptocurrency token of the exchange, discounts.
High processing performance is provided by Binance’s multi-tier and multi-clustered design, which also adheres to strict safety and security regulations.
Using Binance for trading
Binance provides services for cryptocurrency trading, listing, fundraising, de-listing, and withdrawals, same like other cryptocurrency exchanges. Binance is a platform that cryptocurrency enthusiasts can use to raise money through initial coin offers (ICOs) before launching their tokens. Millions of traders use Binance to trade and invest in different cryptocurrencies.
Users must fulfill the required know-your-customer (KYC) criteria before they may begin trading. After successfully establishing a trading account, individuals can begin trading by adding money to their public wallet address.
The four primary trade order types supported by the Binance exchange are market, stop-limit, limit, and one-cancels-the-other (OCO) orders. Only the limit price that the trader specifies is used to execute limit orders. The best market pricing is used to execute market orders instantly. Only when the price hits a predetermined threshold do stop-limit orders become legitimate orders. A pair of orders in which the executed order cancels the other is known as an OCO order.
The Financial Conduct Authority (FCA), the nation’s regulatory body, prohibited Binance Markets Limited, a U.K. subsidiary from providing regulated services to British consumers in June 2021. The subsidiary is prohibited by the agency’s notice from providing trading services in derivatives and cryptocurrency assets to clients in the United Kingdom. But the business’s social media staff did clarify, though, that the prohibition had no bearing on the services .
For cryptocurrency derivatives, particularly futures contracts, it has seven different order types. Among these trading orders are:
- Limit Order
- Market Order
- Stop-Limit Order
- Stop Market order
- Trailing Stop Order
- Post Only Order
- Limit TP/SL Order (Strategy Order
Additional Services Offered by Exchange
It provides additional tools, platforms, and services in addition to exchange-specific offerings. Here are a few of them:
Getting Binance Earn is a platform where users may deposit stablecoins with the exchange to stake or earn interest. The exchange provides investors with a variety of alternatives and interest rates for these coins. Furthermore, it depends on the denomination and tenure.
The Lending Binance Card is a Visa credit card that let users to spend their bitcoin on goods and services after converting it into fiat money. Third-party fees, such payment network fees, are applicable even though there are no administrative costs associated with the conversion.
Users can borrow money for margin, futures, and spot trading using Crypto Loans. Interest is computed according to the number of hours you have borrowed, and terms of seven, fourteen, thirty, ninety, and 180 days are offered.
Binance Smart Pool While Binance Pay allows users to use cryptocurrency to pay for goods anywhere in the world with no costs, Smart Pool allows miners to swap between different cryptocurrencies for mining in order to maximize and quadruple their profits. It is available for usage on Binance’s Marketplace.
Progress
Binance Labs is an incubator for blockchain technology owned by Binance that specializes on developing promising pre-ICO stage startups. It supports worthy cryptocurrency project teams by offering resources for advice. Also, it supports the money needed for development, and a starting point for any required fundraising and listing efforts.
The Binance Coin (BNB)
The Binance exchange uses Binance Coin (BNB) to make cryptocurrency trading easier. In July 2017, the coin was introduced via an initial coin offering. Through the ICO process, it distributed 100 million BNB tokens to the different participants, 80 million to the founding team, and 20 million to angel investors.
About one-third of the money raised during the initial coin offering (ICO) process went into building the platform and making the required improvements to the ecosystem, while the remaining nearly half went toward Binance branding and marketing.
At first, Binance Coin operated using the ERC 20 standard on the Ethereum network. But in 2019, the Coin emerged as the BNB Chain’s native currency.
Is Binance Reliable?
Millions of people who trust the exchange use Binance to transact in cryptocurrencies. However, it is susceptible to hacking, just like any other third party involved in blockchain and cryptocurrency. Moreover, it was demonstrated by the $570 million BNB that hackers stole in 2022.
Are Americans Able to Use It?
U.S. laws protect U.S. citizens who use Binance.US. It is against Binance’s Terms of Use to use alternative connection methods. Such as a virtual private network, to access Binance (global) from the United States or other banned countries.
Is Coinbase Not as Good as Binance?
One isn’t always superior to the other. However, it is a little more difficult to use than Coinbase, which is a little more beginner-friendly—in the end, it comes