What is Binance?

The Binance Exchange is the world’s leading cryptocurrency exchange with the greatest transaction volume by far. Founded in 2017 in Hong Kong, it has since moved to Malta and it’s serving most of the countries in the world. Binance currently offers crypto-to-crypto trading in more than 900 cryptocurrencies, including the most popular ones such as Bitcoin (BTC), Ether (ETH), Polkadot (DOT), and its own native token, called the Binance Coin (BNB).

Understanding Binance

On Binance you can trade both crypto for crypto and crypto for fiat currencies. The exchange offers some of the lowest transaction fees for crypto exchanges – going as low as 0.075%! Not only does it have high liquidity, but if also offers discounts to users who pay in its native BNB crypto token.

The name “Binance” actually comes from combining the words “Bitcoin” and “finance”. The exchange has proven to have high standards of safety and security. Even if any funds do get stolen due to a hack, the platform has a special fund for such emergencies. Not only that, but Binance also presents its users with high processing throughput with its capacity to process 1.4 million orders per second.

Trading on Binance

Similar to other crypto exchanges, Binance offers services that revolve around trading, listing, fundraising, and withdrawing cryptocurrencies. Cryptocurrency pioneers can actually launch their own tokens via Binance to raise funds through the so-called initial coin offerings (ICOs). Binance is used by millions of regular traders and people who simply want to invest in a variety of cryptocurrencies.

To be able to start trading, users need to complete the necessary KYC (Know-Your-Customer) requirements.Once users have successfully signed up, they can deposit cryptocurrencies or fiat currencies to their account which they can use for trading on the platform.

The exchange supports three main types of trade orders: market, limit and stop-limit orders. Limit orders are executed only at the exact price that has been set by the trader. Market orders, on the other hand, are executed right away at the best available market price. Stop limit orders take place only if the price reaches a specific level set by the trader (e.g. if ETH falls to 2000 USD, sell the holdings at 1985 USD).

In addition to that, Binance offers five types of orders for crypto derivatives, specifically futures contracts. These trade orders include:

Limit order
Market order
Stop limit order
Stop market order
Post only order
Trailing stop order
Limit TP/SL order

Cryptocurrency or fund deposits are not charged, however, if you want to withdraw, then there is a transaction fee to pay. It varies depending both on the cryptocurrency to be withdrawn and the actual amount.

Binance allows its users to directly buy a number of cryptocurrencies with a debit or credit card. You can deposit in 12 other fiat currencies, including Euro.

Other Services

Besides the exchange-specific services, Binance also offers a plethora of tools, services and platforms. Those include:

Binance Earn is a platform where users can stake their cryptocurrencies (such as ADA or LUNA) or earn interest by depositing stablecoins on the exchange. The interest rate users can earn depend both on the coin and the tenure.

Binance Visa Card is a credit card that actually enables users to convert their cryptocurrency into fiat on the spot and spend it on whatever they like. While the conversion itself does not lead to any administrative fees whatsoever, there are third-party fees, in the form of payment network fees.

The BInance smart pool allows miners to switch between various cryptocurrencies for mining so they can optimize and multiply their income.

Binance also has a blockchain tech incubator named Binance Labs with a focus on helping promising projects which are in their pre-ICO phase take off seamlessly. It assists the best teams by providing them the funding they need to launch their projects. Binance also provides advisory resources, and a launchpad where the founding teams can both list and fund their projects.

Binance also introduced a website called LaunchPad that hosts brand new and emerging blockchain projects, as well as API interfaces.

Furthermore, it released its own cryptocurrency to the general public through an ICO in July 2017.

Binance Coin (BNB)

Binance Coin (BNB) serves as the platform’s internal token. It helps facilitate and reduce the costs of crypto trading on the exchange. 20 million BNB tokens were reserved for angel investors, 80 million tokens for the founders, and the rest of the 100 million tokens were distributed among various participants throughout the ICO process.

Almost 50% of the funds raised from the ICO were utilized for branding and marketing, while around 30% were used to build the Binance platform and upgrade the whole ecosystem. BNB has a total cap of 200 million tokens and it currently is the fourth most valuable blockchain-based token by market cap. Its price tends to spike each time the team behind Binance burns some of their own BNB coin reserves, thus creating greater scarcity.

Overview

It is no coincidence that Binance has the top cryptocurrency exchange in the world. Under the guidance of its brilliant founder Changpeng Zhao, it has set new standards for the rest of exchanges – both in terms of marketing and user experience. Having listed some of the most commonly traded cryptocurrencies and providing users with the most common (and uncommon!) trading methods, it is sure to please even the pickiest traders out there.

Nothing on this website should be perceived as financial, investment or trading advice. We urge you to do your own research prior to investing and we highly recommend that you consult a certified financial advisor.

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