What Is Binance?

The crypto space is filled with many exchange platforms, which means that one can easily fall into the wrong hands if care is not exercised. Binance belongs among the oldest cryptocurrency trading and exchange platforms. It has a proven record of legit transactions, a standard it still maintains to date. Dive right in to learn all there is to know about Binance, create an account and start trading right away
Binance logo

New exchanges keep springing up daily as the cryptocurrency market continues evolving around the globe. Many of them are birthed to help investors go about their trading and navigate the crypto market with much ease. The bitter truth is that most of these platforms are second- rate and barely deliver on their promises. To solve this issue, we embarked on research, and we stumbled across Binance, a mature cryptocurrency exchange with outstanding features and a user-friendly interface with no dirt associated with its name.

More on Binance!!!

Binance is a topnotch crypto exchange and trading company that was developed in July 2017. It started in Hong Kong, China, but due to the restrictions that cryptocurrency trading faces in the country at that time, it had to move its base to Malta.

Binance, whose CEO is Changpeng Zhao, has since its existence, taking up the top position among platforms in the trading industry.

Binance boasts of being able to regulate millions of trades per second. As of April 2020, the platform records the highest daily and monthly trading volumes worth billions of dollars.

How does Binance work?

How does Binance work?

Binance is an infamous crypto exchange that allows its users to trade using different cryptocurrencies. Apart from trading, there are also several other features that users and investors can enjoy while making use of the platform

Binance allows users to register and make a deposit into their account. With this deposit, users can trade on the platform, and also hold or keep their coins.

Trading

Binance has a dual-view option, which makes the buying and selling of cryptocurrency as easy as possible. The dual-view option allows traders to use multiple interfaces for trading according to their choice.

The first of the interfaces, called the basic interface, divides the trading screen into three parts. The order book is placed to the left, the charts in the middle, and the history on the right.

For the advanced trading view, the chart contains a more significant part of the screen while the history and order book sections are strategically placed on the right side of the screen.

Binance exchange app

In addition to web access, Binance also has a trading app that allows users to trade and exchange crypto on the go. Like the web version, the Binance app is easily accessible through a PC or their mobile devices. The app supports iOS and Android phone users, meaning that one can navigate their way to google play store for android users and apple store for iPhone users to download the Binance app.

Once you download that app, you can create an account immediately or login to an already-existing account using your login details. Binance exchange app will require that you verify your account before use. The app still allows you to enjoy some of its features, like making deposits and trading, even if your account is unverified. However, there will be a limit to the number of trades that can place at a time.

The Binance app comes with a design, layout, and multiple trading interface, making the app easy to use. Binance is unique because it allows users to trade pairs of coins and check the top daily gainers and losers on the platform. Traders and investors can also trade futures and other trading options on the platform.

Read on to know more about why you should make Binance your first-choice cryptocurrency exchange.

Cryptocurrencies supported

Binance is one of the leading crypto trading platforms that supports the highest number of cryptocurrencies. There are over 100 cryptocurrencies, including Bitcoin, Litecoin, Ethereum, Ripple, and others, as seen in this list.

Binance also has a quality assurance feature that helps them to delist coins t with a consistent record for failure.

As of February 2019, Binance delisted some cryptocurrencies among the ones that were initially launched on the platform owing to their cases of repeated failure. Some of these coins are CloakCoin, Modum, SALT, Substratum, and Wings.

Cryptocurrencies supported

Demo Account

Registered users can enjoy the demo-trading feature on Binance. This feature allows users to learn on the platform before putting in real money. This helps traders and investors to be able to master how they will navigate their way on the platform before putting in real money.

The demo account has an interface that is quite similar to the real account. This means that traders can gather meaningful insight into how the platform works at no cost.

Educational Material

Binance also offers educational materials and videos. This helps newbies who are just venturing into the crypto space understand how the platform operates. The articles come highly useful and are available in their numbers. It equips users with solid knowledge on what cryptocurrency is, the different types of coin, and how to trade on the platform.

All registered users can have access to these materials and learn from time to time.

Fees

Binance launched its coin, Binance Coin (BNB), as far back as 2017, with an initial coin offering of about $15 million. BNB performs better than other coins on Binance because it allows users to gain more profit and have access to specialized features while trading.

For instance, users will enjoy a specific discount while trading with BNB on the exchange platform. Also, the base fee for the trading crypto asset on Binance is 0.1%. However, users can enjoy up to 50% discount when they trade BNB.

The 0.1% base fee is competitive and relatively low compared with the general market fee for other exchange platforms, which is usually 0.25%. This helps to give Binance an edge over the other crypto exchanges.

Payment methods

Payment methods

Initially, Binance did not allow users to buy crypto with fiat currencies on the platform, and investors usually have to exchange their fiat for crypto before transferring it to the Binance platform for trading.

However, on 31st of January 2019, Binance announced its partnership with Simplex, making it possible for users to deposit funds directly using their credit card option.

Simplex charges 3.5% on every deposit made via the credit card option. This means investors who intend to make a deposit using their credit card will lose 3.5% plus the flat fee of 0.1% to the two systems before making a trade on the platform.

Apart from the credit card option, there is also the option of using the VISA card on Binance. This option was launched in December 2019, and it is only open to VISA cards issued in the EEA.

 Only cardholders in some authorized countries are permitted to make payment via VISA cards. These countries include the United Kingdom, Germany, France, Netherlands, Poland, Sweden, Slovakia, Slovenia, Spain, Iceland, Liechtenstein, Norway, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Portugal, Romania, and some other countries.

Investors and traders on Binance can easily trade in different cryptocurrency, but there is a preference for those who can buy using BNB.

Most crypto exchange platforms out there charge an average amount of 0.0006BTC on withdrawals. However, Binance charges a reduced amount (0004BTC) when you use the BTC withdrawal option. This, among other things, makes Binance the first-choice and in-demand exchange in the general crypto trading space. The same amount of fee is charged on Ethereum, Litecoin, and other currencies on the platform.

Special Features

Over the Counter Trading Portal: OTC trading portal was launched on the Binance platform in 2020, to help investors execute larger trades in a secured manner. This method of trade execution is fast and does not attract any trading fee.

However, the minimum amount of trade that can be executed using this option is approximately 10,000USDT. Investors can only trade 25 different coins with the OTC option. More coins will be available for trading in the future.

Lending Product: Binance Lending Product allows investors to make gain and interest on their coins by fixing their currencies on the platform for a specified period. 

A 14-day fixed-term lending product was offered in September 2019 for investors on some currencies, including BTC, BNB, and USDT token. Interests are accrued at the end of the 14 days, and investors could get their money back into their accounts.

Trading exceptions for US investors: Binance announced an exemption for investors and US traders in June 2019. The CEO stated that there would be another centralized Binance platform for US investors, and they will be restricted from using the general Binance Platform.

The new US Binance platform is intended to be an all-out fiat-to-crypto trading platform that will allow investors to access multiple trading features on the platform.

Futures Trading Option: The future trading option, launched on Binance in September 2019, allows users to buy and sell at a specified period. This is also known as Option contracts and occurs in two forms: American Options and European Options. The American option allows users to trade at any time, provided this takes place before the end of the contract. The European option only allows the purchase and sale of crypto at a specific date.

Binance vs. Other Exchange Platforms

BINANCEOTHER EXCHANGE PLATFORMS
Faster in completing transactions for multiple usersMost of the other platforms are relatively slower.
The demo trading account makes it easy to useMost of the other platforms lack the demo-trading option.
Lower base and withdrawal feesHigher base and withdrawal fees
Availability of educational materials makes the platform easy to useMost of the other exchange platforms lack educational materials.
The platform offers multiple trading options and currencies.Most of the platforms only offer few trading options and currencies.

Regulation

Binance is regulated under the Maltese Virtual Finance Assets (VFA) Act in Malta. A secure platform uses high-tech, and end-to-end encryption to ensure safe transactions on the platform. There has been no fraud history linked to the platform. The platform’s performance and security can be said to be topnotch since it allows millions of daily trades without glitches.

binance coin (bnb)

Advantages and disadvantages

Pros

Speed: Binance is one of the fastest trading platforms. This is because it boasts of being able to complete millions of transactions within minutes, which has helped the platform grow over time.

Access to Educational Materials: This is another plus that Binance has over the other platforms. The educational materials allow new investors and traders to understand the platform, choosing Binance over the different trading platforms.

Ease of Use: Trading and exchanging on Binance is quite easy. The trading view has both basic and advanced options, making varieties available for investors to choose from. The demo trading option also allows users to understand how the platform works without putting in real money.

Security: The system of operation of Binance is a topnotch, registered, and certified platform in Malta. Malta happens to be one of the few countries in Europe with specific license requirements for crypto exchanges. 

Ease of deposit and withdrawal: Binance makes it possible to deposit on the platform without verifying your account. Also, all the charges attached to various trading options are clear, and there are no hidden charges. There are multiple withdrawal options available for users on the platform.

Innovation: Binance is known for launching new ideas and bringing innovative moves into the market. This separates it from the other platforms. Most of the other exchange platforms are only generic, bringing new ideas into the crypto space.

Cons

Difficult for newbies to Navigate: For newbies who might not want to go through the educational materials or use the demo trading option, finding a footing on Binance can be difficult.  There are several information and options on the platform, and anyone who jumps into it for the first time might just get confused along the way.

FAQs

What are the leverages that newbie traders can use on the platform?

Binance offers educational materials as well as a demo trading account option, which will help demo traders find their way easily on the platform.

How do I open a Binance account?

Opening a Binance account is not a complicated process. Just fill in your information as soon as you click the signup button on the platform. Once this is done and you have successfully submitted your details, you will be told to do the necessary verifications. After this, you can proceed to make your first deposit and begin trading with the account.

How much profit can I make trading on Binance?

Binance offers you several trading options, so it is not difficult to gain if you know where to look. However, you need to understand how to trade, and you also need to pick the right coins to win big from Binance.

In conclusion, Binance is a robust trading platform that is all out to help everyone become top gainers. Several options are available to pick from, and just anyone can get started on the platform. For newbies and experts, Binance is a sure option when considering the best trading platform to start or get established. 

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Education: Cass Business School Master of Science (M.S.), Shipping, Trade & Finance 2009-2011 Cass Business School Bachelor of Science (B.S.), Investment & Financial Risk Management 2005-2008

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