What is Binance Exchange?
Binance is a leading cryptocurrency exchange established in Hong Kong in 2017. They are highly specialized in altcoin (cryptocurrency other than Bitcoin) trading. Binance offers cryptocurrency-to-crypto trading with over 500 cryptocurrencies and virtual tokens, including Bitcoin (BTC), Ethereum (ETH), Litecoin altcoin, Dogecoin (DOGE), and their own Token – Binance Coin (BNB). Binance moved its corporate headquarters to Malta in the European Union in 2018. The move comes in response to China’s strict regulations on cryptocurrency trading businesses.
Binance Binance is an online exchange where users can trade cryptocurrencies. They support the most frequently traded cryptocurrencies.
Binance offers traders a crypto wallet to store their electronic funds.
The exchange also offers user support services to earn interest or trade in cryptocurrencies. They also offer programs to gold diggers and assist traders in making investment decisions.
Binance has its own blockchain-based token, Binance Coin (BNB).
Learn about Binance Exchange
Mainly known for cryptocurrency trading, trading between two cryptocurrency pairs — Binance has some of the lowest trading fees among cryptocurrency exchanges. It is highly liquid and offers discounts for users paying with the native BNB cryptocurrency token.
Binance’s English name “Binance” is a combination of “bitcoin” and “finance”. It claims to have high standards of safety and security, has a multi-tier and multi-cluster architecture, and offers high-speed throughput, and claims to be able to process around 1.4 million orders per second. It supports trading of over 500 tokens, including Bitcoin, Ethereum, Litecoin and its own native BNB token.
Trading on Binance
Like other crypto exchanges, Binance offers services around trading, listing, fundraising, delisting or withdrawing cryptocurrencies. Crypto enthusiasts willing to launch their own tokens can use Binance to raise funds through an initial coin offering (ICO). There are a large number of traders and participants using Binance to exchange and invest in various cryptocurrencies.
Users must complete the necessary KYC requirements to start trading. After successfully opening an account, users can deposit cryptocurrency funds to their public wallet address provided by Binance and start trading.
Binance Exchange supports three types of trading orders: limit orders, market orders, and stop-limit orders. Limit orders are executed only at the limit price set by the trader. Market orders are executed immediately at the best market price available. A stop-limit order becomes a valid order only when the price reaches the specified level.
Binance offers five additional types of orders for crypto derivatives, specifically futures contracts. These trade orders include:
- Limit Order
- Market order
- Stop Limit Order
- Stop Loss Order
- Trailing stop orders
- Passive delegation
- Take Profit and Stop Loss pending order
There are no fees for cryptocurrency or fund deposits. However, withdrawals will involve transaction fees, which vary depending on the cryptocurrency and amount.
Other services offered by Binance
In addition to exchange-specific services, Binance also offers other tools, platforms, and services. Some of them are as follows:
Binance Earn is a platform for staking or earning interest by depositing stablecoins on exchanges. Depending on the token and term, the exchange offers investors a variety of options and interest rates for these tokens.
The Binance Visa Card is a card that allows users to exchange cryptocurrency for fiat and use it for products and services. While the exchange does not incur administrative fees, it does come with third-party fees in the form of payment network fees.
Binance Pool enables miners to switch and mine between different cryptocurrencies to optimize and increase their income.
Binance has a blockchain technology incubator called Binance Labs that focuses on nurturing promising pre-ICO (pre-ICO) stage projects. It helps great cryptocurrency project teams by providing the necessary funding for development, consulting resources, and a launch pad for any necessary listings and fundraising activities.
Binance also offers a website called LaunchPad for hosting emerging blockchain projects and APIs. As of March 2021, 42 projects have been launched.
It launched its own Binance Coin (BNB) cryptocurrency through an initial coin offering in July 2017. As of March 2021, BNB has a market capitalization of approximately $36.4 billion. It will be the native currency of the decentralized Binance exchange.
Binance Coin (BNB)
Binance Coin (BNB) is the platform’s internal token. It is used to facilitate crypto trading on Binance Exchange. The token was launched during an initial coin offering (ICO) in July 2017. Binance provided 20 million BNB tokens to angel investors, 80 million tokens to the founding team, and the remaining 100 million tokens were provided to various participants through the ICO process.
Almost half of the funds raised during the ICO are used for Binance branding and marketing, while about a third is used to build the Binance platform and make necessary updates to the Binance ecosystem.
Binance Coin runs on the Ethereum blockchain, using the ERC 20 standard and capped at 200 million BNB tokens. As of Q1 2021, one BNB is worth about $650. It is the third most valuable blockchain-based token by market cap at around $3.6 billion.
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