Binance: Buy, Sell, Earn and Grow Crypto on the World's Largest Crypto Exchange Platform

Binance is a cryptocurrency exchange platform, and currently the largest cryptocurrency exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and registered in the Cayman Islands.

The name "Binance" is a combination of the words "bitcoin" and "finance." It claims high standards of safety and security, with multi-tier and multi-clustered architecture, and delivers high processing throughput—it claims it has the capacity to process around 1.4 million orders per second. Binance supports trading in more than 750 coins, including bitcoin, ethereum, litecoin, and its own native BNB tokens.



What Is Binance Exchange?

The Binance Exchange is a leading cryptocurrency exchange founded in 2017 in Hong Kong. Binance offers crypto-to-crypto trading in more than 750 cryptocurrencies and virtual tokens, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own native token Binance Coin (BNB). In 2018, it moved its company headquarters to Malta, EU, in response to China's strict regulations on crypto exchange businesses.

Binance

Primarily known for crypto-to-crypto trading—trading between two cryptocurrency pairs —the Binance exchange has among the lowest transaction fees for cryptocurrency exchanges. It has high liquidity and offers discounts to users who pay in the native BNB cryptocurrency tokens.

What Is Binance Coin?

Binance Coin (BNB) is the platform's internal token (i.e. native token). It is used to facilitate crypto trading on the Binance exchange. The coin was launched during an initial coin offering (ICO) in July 2017. Binance offered 20 million BNB tokens to angel investors, 80 million tokens to the founding team, and the remaining 100 million tokens to the various participants through the ICO process.

Almost half the funds raised during the ICO process were intended to be used for Binance branding and marketing, while around one-third were used to build the Binance platform and perform necessary upgrades to the Binance ecosystem.

Binance Coin runs on the Ethereum blockchain with the ERC 20 standard, and has a cap of 200 million BNB tokens. As of Q1 (early January) 2022, one BNB is worth around $530. It is the third most valuable blockchain-based token by market cap, at roughly $88.7 billion

Registration and Verification on Binance

If you are an investor or if you are interested in cryptocurrencies, you will need to register a Binance account. Binance is one of the largest cryptocurrency exchanges with the lowest trading fee today. To register a Binance account is a very easy and streamlined process. After registration, you will need to secure your Binance account and verify KYC for convenience and safety when trading.

To register a Binance account now, . For more detailed information regarding how to register and verify an account on Binance, click here.

Trading on Binance

Like other crypto exchanges, Binance offers services around the trading, listing, fundraising, and de-listing or withdrawal of cryptocurrencies. Cryptocurrency enthusiasts willing to launch their own tokens can use Binance for raising funds through initial coin offerings (ICOs). Binance is used by a large number of traders and participants for exchanging and investing in various cryptocurrencies.

To start trading, users have to complete the necessary KYC requirements. Upon successful trading account creation, users can add cryptocurrency funds to their public wallet address, provided by Binance, to start trading, buying and selling, in the markets on Binance - Spot market and Futures market. You can also engage in Margin trading on Binance.

The Binance exchange supports four types of trade orders: limit, market, stop-limit and OCO orders. Limit orders are executed only at the limit price set by the trader. Market orders are executed immediately at the best available market price. Stop limit orders become valid orders only when the price reaches a specified level. OCO (one-cancels-the-other) orders contain a limit order and a stop-limit order. When either of the orders is triggered, the other order is cancelled.

Binance offers an additional five types of orders for crypto derivatives, specifically futures contracts. These trade orders include:
  1. Limit order 
  2. Market order 
  3. Stop limit order 
  4. Stop market order 
  5. Trailing stop order 
  6. Post only order 
  7. Limit TP/SL order
There is no fee charged for cryptocurrency or fund deposits. However, withdrawals do come with a transaction fee that varies depending upon the cryptocurrency and amount.

Other Crypto Services on 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 crypto coins with the exchange. Depending on the coin and the tenure, the exchange offers investors multiple options and interest rates for these coins.

Binance Visa Card is a credit card that allows users to convert their cryptocurrency into fiat current and spend it on products and services. While the conversion does not incur adminstrative fees, third-party fees, in the form of payment network fees, apply.

Binance smart pool enables miners to switch between different cryptocurrencies for mining to optimize and multiply their income.

Binance has a blockchain technology incubator called Binance Labs, which focuses on nurturing promising pre-ICO stage projects. It helps deserving cryptocurrency project teams by providing necessary funding for development, advisory resources, and a launchpad for any necessary listing and fundraising exercises.

Binance also offers a site called LaunchPad for hosting new and emerging blockchain projects and API interfaces. As of January 2022, 60 projects have been launched.

It launched its own Binance Coin (BNB) cryptocurrency through an ICO in July 2017. BNB has a market cap of around $88.7 billion, as of January 2022. It is set to become the native currency of the decentralized Binance exchange.

A brief history

Binance was founded in China but moved its servers and headquarters out of China into Japan in advance of the Chinese government ban on cryptocurrency trading in September 2017.

In January 2018 it was the largest cryptocurrency exchange with a market capitalization of $1.3 billion, a title it has retained till date as of January 2022, despite competition from Coinbase, among others.

In January 2019, Binance announced that it had partnered with Israel-based payment processor Simplex to enable cryptocurrency purchases with debit and credit cards, including Visa and Mastercard. The purchases are subject to Simplex’s local bank policies and are limited to Bitcoin, Ethereum, Litecoin and Ripple’s XRP.

Throughout its history, the company has launched two cryptocurrencies which it developed itself: Binance Coin (BNB), launched June 2017, and Binance Smart Chain, launched September 2020. Binance Smart Chain operates using "Proof of Staked Authority", a combination of proof of stake and proof of authority. It currently has 21 approved validators. As of early 2022, Binance Coin is the cryptocurrency with the third highest market capitalization. Binance allows its users to pay fees on its exchange with Binance Coin.

Key Takeaways

Key takeaways are:
  • Binance is an online exchange where users can trade cryptocurrencies. It supports most commonly traded cryptocurrencies. 
  • Binance provides a crypto wallet for traders to store their electronic funds. 
  • The exchange also has supporting services for users to earn interest or transact using cryptocurrencies. It also offers programs for miners and to help traders make investment decisions. 
  • Binance has its own blockchain-based token, Binance Coin (BNB).
  • Anyone can register an account on Binance to trade (buy or sell), earn, or grow cryptocurrencies.

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