Binance Overview / Services҉
Binance is a cryptocurrency exchange that was founded in 2017 by Chinese-Canadian developer, Changpeng Zhao (aka CZ). Zhao’s company Beijie Technology created the exchange after a successful ICO that raised $15 million. Having originally been based in China, Binance moved headquarters to the Cayman Islands following the Chinese government’s increasing regulation of the cryptocurrency industry.
Investors who invested in Binance’s ICO got Binance Coin (BNB) in return, which could be used to trade cryptocurrencies and pay for fees on Binance. BNB is now also used to power BNB Chain, formerly known as Binance Smart Chain. BNB’s initial value was around $0.1, and has continued to appreciate with the rise of Binance and BNB chain.
Beijie Technology and its founder maintain an impressive track record within the industry. Zhao’s CV includes high-profile positions, such as technical director at Blockchain.com, and his company now provides trading systems for over 30 other platforms.
Following struggles with the Chinese government’s views on cryptocurrencies, Binance now runs its servers from more lenient states, providing it with the freedom to run a competitive exchange service:
“In response to China’s decisions, we are moving our IP’s from Hong Kong to an offshore location. So we are registered in multiple locations and we have people in multiple locations. That way we will never be affected by one regulatory body,” explained Zhao.
The exchange has experienced astounding success since its launch and comfortably sits at the number 1 spot in terms of 24-hour trading volume on Coinmarketcap. It typically has more than 5 times the 24-hour trading volume of its closest competitor, Coinbase.
2. Binance Services
Binance‘s Exchange allows users to exchange fiat for Bitcoin or other coins. There are several ways you can buy crypto on Binance:
A very neat feature, Binance provides a peer-to-peer (P2P) trading service, which connects buyers and sellers of cryptocurrency directly. This facilitates fiat payments, with a wide variety of payment options that depend on the users’ preferences.
Binance has partnered with Simplex to provide a brokerage service supporting credit and debit cards. This service allows you to buy a variety of different cryptocurrencies with a credit or debit card, as well as using these cards to deposit fiat currency into your account. However, this service comes at a premium that can get as high as 4.5% in fees for USD deposits using a debit card.
Thanks to integrations with additional 3rd party providers, Binance now allows its users to buy crypto directly with fiat using SEPA & bank transfers. This option is especially attractive, as SEPA & wire deposits entail no transaction fee at all. On the downside though, this payment method is only available for a few fiat options such as SEPA for EUR & GBP (excluding the Netherlands & Switzerland), and wire transfers for USD (domestic wire & ACH), TRY & BRL.
Last, Brave, the privacy-focused browser integrated a Binance Widget for in-browser trading. The widget allows users to buy and trade crypto through Binance, as well as view and manage their crypto portfolio.
Binance Trading Platform
Trading on Binance is fairly easy and user-friendly. There’s an impressive cryptocurrency selection available for trading, in conjunction with Bitcoin, Ether, BNB, XRP, TRX, DOGE, DOT, BUSD and Tether trading pairs. There is also a large selection of crypto-to-fiat pairs available on Binance’s fiat markets.
Users can choose between a beginner-friendly or advanced trading interface for spot trading, catering to all types of users. The platform also offers margin, derivatives, peer-to-peer and OTC trading options.
For spot trading, users can select between two primary interfaces. The “Convert” interface is the beginner-friendly option, which removes all of the advanced features such as charts and different order types. This makes it easy for newbies to swap between cryptocurrencies at market rates, without any confusion.
There is also a regular trading interface for advanced users, which has all of the typical exchange features – charts, order books, different order types and more are all accessible in the default spot trading interface.
Margin trading is available for selected trading pairs, allowing users to trade with leverage of up to 10x on some coins. Users can choose between cross margin, which risks your entire margin account balance, and isolated margin, which restricts your potential losses to a single trading pair. Binance margin trading is not available to users of Binance US.
Binance also offers leveraged futures trading, which I’ll cover in the next section.