Binance is a cryptocurrency exchange platform that uses its own digital token: Binance Coin or BNB. Today, the platform gathers investors from all over the world to trade hundreds of cryptocurrencies despite the regulatory measures it suffered in 2021.
Binance was founded in Hong Kong in 2017. The platform is booming as well as platforms of western origin. In recent times, she has gone through various trips that brought her regulatory measures, especially in the USA. Despite everything, Binance remains in the race with its own digital currency, the Binance Coin or BNB. In this file, we will discover together what Binance really is, the services that the platform makes available to its users. We will also devote a few lines to explaining the BNB.
Binance or Binance Exchange, but what exactly is it?
It is a cryptocurrency exchange platform that was founded in Hong Kong in 2017. However, in 2018, the company moved to choose a new headquarters in Malta. Traders must have heard what it is as a platform for selling and buying cryptocurrencies. Binance is best known for altcoin trading.
Today there are more than 500 cryptocurrencies and virtual tokens with which crypto-crypto trading is performed such as bitcoin, dogecoin. Note that with its own token, Binance offers a wide range of services. Binance Coin is based on technology blockchain.
This ensures guaranteed security for working within the platform. For example, merchants using it can store electronic funds in their wallet. In addition, Binance tracks its customers to allow them to earn interest or realize transactions through cryptocurrencies.
Binance Exchange: Origins and Benefits
The term “Binance” comes from the combination of two words: bitcoin and finance. As bitcoin is the first currency created based on blockchain technology, it is completely secure. This is why the term “binance” refers to security and security of cryptocurrencies and services offered by the platform.
Security requires a multi-tier, multi-cluster architecture while offering high processing throughput, around 1.4 million processed orders per second. This strong processing capacity is, in a way, one of the reasons why Binance is now reaching the stage where you can trade more than 500 cryptocurrencies on it, in addition to BNB tokens.
There are many types of trading like commodity trading, crypto trading etc. Trading crypto-crypto is one that we often encounter on Binance. This is trading between two cryptocurrency pairs within the platform. The latter enables transactions with often reduced fees.
The reduction applies in particular to transactions whose payment is made using a platform-specific token, the BNB. This is one of the main advantages of Binance as a cryptocurrency trading platform.
How is trading on the platform?
As a crypto exchange platform, Binance enables trading and listing. Many investors and traders use it for trading and various investments. At the same time, it offers fundraising and cryptocurrency withdrawal services. In addition, Binance offers its clients Initial Coin Offerings that raise funds to launch their own tokens.
However, even before starting to trade on the platform, each user must meet the requirements KYC required. After creating a trading account, Binance provides a public wallet to each trader that the trader must fund in order to start trading.
Binance’s main asset is also based on free deposits and funds in cryptocurrency. On the other hand, it invoices all transactions. Fees are calculated according to the amount as well as according to the cryptocurrency.
In addition, as of 2021, Binance deposits are no longer allowed outside of US dollars if the user intends to make them via FAST. This type of deposit offers a significant advantage as it allows the direct purchase of a certain number of cryptocurrencies via credit or debit card. On the other hand, 12 other fiduciary currencies can be used for making deposits, including the euro.
Different accounts that we encounter on the platform
As for the exchange, there are three types of trading orders on Binance Exchange:
- on limited price,
- on the market,
- stop limit.
With Binance, the trader sets a limit price for limit orders. Market orders are executed immediately at the best price offered by the available market. As for stop limit orders, they must reach a certain level to be valid.
Other orders are available for crypto derivatives, especially futures contracts. We distinguish:
- stop market orders,
- trailing stop orders,
- mail order only,
- TP.SL limited orders.
Other services offered
Although cryptocurrency exchange is the main service offered by the platform, Binance also offers other services such as savings, VISA card, etc.
Binance Earn is a plan ofsaving which allows users to earn interest by depositing stablecoins. The interest rate varies depending on the cryptocurrency and the duration of the savings. As a result, the service offers many options that offer specific interest rates for each cryptocurrency.
Even with Binance minors they can already start optimizing their income. Here we are talking about Binance Smart Pool where they can opt for several cryptocurrencies to mine. This is to increase their income even before they reach adulthood.
Binance Visa Card
Cryptocurrencies are not always accepted in everyday transactions (purchase of goods and services), although more and more trading platforms allow them. To solve this blockage, Binance offers its users an option Convert their common crypto currency before transacting using a visa card.
With his incubator blockchain technology, Binance Labs, the platform helps teams focused on cryptocurrency projects. This includes funding these teams to develop their projects in the pre-ICO phase, consulting and support once the project is launched.
In addition to funding blockchain-related projects, Binance also has a website called LaunchPad. The latter has a functionhost these types of projects. Added to this, LaunchPad can also host new and emerging APIs.
It is a branch of the platform intended only for donations a variety. Members can thus contribute funds, either in cryptocurrency or e Binance Coin, to help those in need.
Focus on Binance Coin or BNB
As Bina has its own digital token, we will shed some light on it in this last part of the file.
What is Binance Coin or BNB?
Indeed, Binance Coin was launched in July 2017 through an ICO. He initially worked on blockchain Ethereum. Meanwhile, BNB is presented in token form ERC20. Its course is evolutionary, therefore it depends on market volatility.
BNB can be used for many things. One can, for example, buy or sell LaunchPad-based digital assets with this native platform token. Transactions through BNB help reduce fees. From here we can highlight the great utility of Binance Coin on the platform.
Why did Binance create it?
As mentioned earlier, BNB helps reduce transaction fees for all trades on the platform. Which means it aims facilitate business of merchants. They don’t have to pay a high fee for every transaction.
Additionally, Binance Coin provides a stock of money with which users can pay their transaction fees, albeit partially. On the other hand, investors can easily make money over time. This is because cryptocurrencies can increase in value over time.
Are there other uses of this token on the platform?
Binance Coin is mainly used to reduce transaction fees within the platform. However, time has allowed its creators to find other uses for this digital token. There are more than a hundred ways to use Binance Coin today.
There are already trading sites and stores and other commercial establishments that accept BNB just like they accept Bitcoin or Ethereum. Which gives Binance users the ability tobuy goods and services, and even meals in a restaurant. Alternatively, BNB funds can be easily deposited directly into Binance Charity to fund charitable programs.charitable organizations.