History
Changpeng Zhao founded Binance in China in 2017. Zhao, prior to establishing Binance, held the position of Chief Technology Officer (CTO) at OKCoin, a significant cryptocurrency exchange. Additionally, he served as the Head of Development at Blockchain.info, overseeing the development of their wallet services.
Binance raised $15 million in an ICO (Initial Coin Offering) in July 2017 to fund the development of their platform. The platform debuted in July 2017 and has since grown to become one of the world’s largest and most popular exchanges.
Definition
Binance is a cryptocurrency exchange platform where users can trade a variety of cryptocurrencies such as Bitcoin, Ethereum, and many others. With features such as advanced charting tools, real-time market data, and an intuitive interface, the platform provides users with a secure, reliable, and user-friendly trading environment.
Decentral vs Central exchanges
| Criteria | Decentralized Exchange (DEX) | Centralized Exchange (CEX) |
|---|---|---|
| Control | No central authority controls trades | A central authority controls trades |
| Security | More secure as users own their private keys | Less secure as users trust the exchange with their funds |
| Liquidity | Limited liquidity, smaller trade volumes | High liquidity, larger trade volumes |
| Trading Fees | Low trading fees | High trading fees |
| User Anonymity | High anonymity as users don’t need to provide personal information | Low anonymity as users need to provide personal information |
| Trading Speed | Slower transaction times due to blockchain confirmation times | Faster transaction times due to centralized processing |
| User Experience | Often requires more technical knowledge to use | User-friendly interface and easy to use |
| Asset Listings | Limited asset listings | Wide range of asset listings |
| Regulatory Compliance | Fewer regulations, more freedom | More regulations, less freedom |
| Risk of Hacks | Lower risk of hacks as users control their funds | Higher risk of hacks as funds are held by the exchange |
| Accessibility | Accessible to anyone with an internet connection and compatible wallet | Accessible to anyone with an internet connection |
| Transparency | Highly transparent as all transactions are recorded on the blockchain | Less transparent as trading data is controlled by the exchange |
| Decentralization | Highly decentralized, without a single point of failure | Centralized with a single point of failure |
Safety precautions
1. Email notification: Binance sends email notifications to users for a variety of account activities, such as logins and withdrawals.
2. Two-Factor Authentication (2FA) is mandatory on Binance, enhancing the security of user accounts with an additional layer of protection. For 2FA, users can use Google Authenticator or SMS verification.
3. Multi-Signature technology: Binance employs multi-signature technology, which requires multiple users to sign off on transactions, adding an additional layer of security to the platform.
4. Secure Asset Fund: Binance has a Secure Asset Fund for Users (SAFU) fund, which is a cryptocurrency reserve used to reimburse users in the event of a security breach or hack.
5. Anti-phishing codes: Binance has implemented anti-phishing codes, which are unique codes that users must enter before logging in or withdrawing funds. This aids in the prevention of phishing attacks.
6. KYC verification: Binance requires users to complete KYC (know your customer) verification, which aids in the prevention of fraud and money laundering.
7. IP Whitelisting: Binance allows users to whitelist IP addresses, which restricts unauthorized access to their accounts.
Payment methods
Some of the payment methods available on Binance:
1. Binance welcomes bank transfers in multiple currencies, encompassing USD, EUR, GBP, and AUD. Bank transfers can take up to several business days to complete.
2. Third-Party Payment Providers: Binance has collaborated with a number of third-party payment providers to enable users to purchase cryptocurrencies using local payment methods. These payment providers can vary based on the user’s country and may encompass SEPA, Faster Payments, iDEAL, and Banxa, among others.
3. Credit/Debit Card: Binance users can also purchase cryptocurrencies using credit or debit cards. This option is available in over 100 countries and supports a variety of currencies such as USD, EUR, and GBP. In contrast, credit card purchases may incur higher fees compared to alternative payment methods.
Fees
Binance imposes trading fees on all transactions executed on its platform. Fees are assessed based on whether a user is a maker or a taker. Makers are individuals who contribute liquidity to the order book by placing limit orders, while takers are users who extract liquidity from the order book by placing market orders.
The following fees are levied:
0.1% maker fee
0.1% taker fee
Binance also offers a fee reduction to users who hold and utilize Binance Coin (BNB), the native token of the platform. The first year’s discount is 25%, the second year’s discount is 12.5%, the third year’s discount is 6.75%, and subsequent years’ discounts are 0%.
In addition to trading fees, Binance imposes withdrawal fees on cryptocurrencies. These fees differ depending on the cryptocurrency and are available for reference on Binance’s website.
Coins
Binance enables users to trade an extensive range of cryptocurrencies, encompassing well-known coins such as Bitcoin, Ethereum, and Litecoin, as well as lesser-known coins and tokens. As of the current moment, their support extends to over 500 cryptocurrencies.
Binance also has its own native cryptocurrency, Binance Coin (BNB), which can be used to pay reduced trading fees on the platform. Additionally, Binance has introduced its proprietary blockchain known as Binance Chain, enabling the creation of new tokens and facilitating the seamless transfer of assets across different blockchains.
Is Binance user friendly?
Yes, Binance is regarded as a user-friendly exchange. Its user interface is uncomplicated and easy to navigate, catering to the needs of both beginners and seasoned traders. Binance’s platform is available in multiple languages, making it more accessible to a broader range of users.
It also offers a variety of trading tools and features, such as advanced charting tools and order types, that can be beneficial to more experienced traders.
Binance also has a mobile app for iOS and Android that allows users to trade while on the go. In summary, Binance’s user-friendly platform has played a significant role in establishing the company as one of the largest and most widely recognized cryptocurrency exchanges globally.
Features
• Margin Trading: Binance also provides margin trading, which allows users to borrow funds to increase their trading power. Margin trading carries inherent risks, but it also has the potential for increased returns.
• Futures Trading: Binance offers users the opportunity to engage in speculative trading on the future prices of cryptocurrencies through its futures trading feature. Futures trading can be an effective tool for hedging or taking a speculative position.
• Staking: Binance users can stake their cryptocurrencies in order to earn rewards. Staking is the act of holding a cryptocurrency in order to support the network and earn rewards in exchange.
• Launchpad: Binance Launchpad serves as a platform for hosting token sales and initial coin offerings (ICOs), with the option for participants to utilize Binance’s native token, BNB, for participation.
• Academy: Binance Academy serves as an educational platform providing a wealth of resources and information on cryptocurrency and blockchain technology.
• Labs: Binance Labs serves as the venture capital division of the company, specializing in investments in blockchain and cryptocurrency startups.
• API: The Binance API provides developers with the capability to build applications that seamlessly interact with the Binance platform.
Ratings
1. CoinMarketCap: According to CoinMarketCap, Binance is the world’s largest cryptocurrency exchange by trading volume.
2. Nomics Rating: Binance has received an A rating on Nomics, a renowned provider of cryptocurrency data and analytics. Nomics rates exchanges based on characteristics such as transparency, data accuracy, and trading volume.
3. Cointelligence Rating: Binance has achieved a rating of 8.9 out of 10 from Cointelligence, a prominent cryptocurrency research and analysis firm. Cointelligence assesses exchanges, taking into account criteria like security, fees, and user experience.
Pros and Cons
Pros
- Extensive Cryptocurrency Selection: Binance provides a wide variety of cryptocurrencies for trading, encompassing renowned coins like Bitcoin, Ethereum, and Litecoin, as well as lesser-known coins and tokens.
- Competitive Fee Structure: Binance boasts low trading fees, offering the opportunity for further reductions when utilizing Binance Coin (BNB) for fee payments.
- User-Friendly Platform: Binance offers a straightforward and user-friendly interface, catering to both seasoned traders and beginners alike.
- Robust Liquidity: Thanks to its substantial trading volume, Binance facilitates effortless cryptocurrency trading at fair market prices.
Cons
- Payment Options Constraint: Binance offers limited payment options, potentially necessitating the use of third-party payment providers for depositing funds.
- Customer Service Responsiveness: Binance’s customer service response times may lead to delays in resolving user issues.
- Regulatory Ambiguity: Binance has encountered regulatory scrutiny in various countries, raising concerns among users.
- Withdrawal Limits: Binance imposes withdrawal limits, which could be disadvantageous for users aiming to withdraw substantial amounts of cryptocurrency.
NFts
• Binance operates an NFT creation platform known as “Binance NFT Create.”Artists and creators can use this platform to mint their own NFTs and sell them on the Binance NFT Marketplace.
• Transaction Fees: Binance applies fees for each NFT transaction, with rates contingent on the blockchain and the NFT’s valuation.
• Multi-Blockchain Support: Binance NFTs enjoy compatibility across diverse blockchains, encompassing Binance Smart Chain, Ethereum, and TRON.
• Binance NFT Marketplace: Binance has created a dedicated NFT marketplace where users can buy, sell, and trade NFTs. NFT Marketplace Diversity: Within the marketplace, users can peruse a wide-ranging array of NFTs crafted by different artists and creators, enabling tailored searches based on individual interests.
• Robust Security Protocols: Binance has instituted an array of security measures, including multi-signature wallets and encryption, to safeguard NFTs within its platform.
Competitors
| Exchange | Binance | Coinbase | Huobi Global |
|---|---|---|---|
| Founded | 2017 | 2012 | 2013 |
| Definition | Cryptocurrency exchange platform | Cryptocurrency exchange and wallet service | Cryptocurrency exchange platform |
| Coins | Over 5001 | Over 1502 | Over 6103 |
| Fees | 0.1% per trade | Varies depending on the transaction method and region | 0.2% per trade |
| Payment Methods | Bank transfer, credit card, and more | Bank transfer, debit card, and more | Bank transfer, credit card, and more |
| Security | Two-factor authentication, SSL encryption, and more | Two-factor authentication, SSL encryption, and more | Two-factor authentication, SSL encryption, and more |
| User-friendliness | Intuitive and easy-to-use interface, mobile app available | User-friendly interface, mobile app available | User-friendly interface, mobile app available |
| Pros | Low fees, extensive range of coins, high liquidity | Well-established, user-friendly, and regulated in many regions | Good range of coins, high liquidity |
| Cons | Limited customer support, not available in all regions | High fees for some transactions, limited range of coins | Limited customer support, not available in all regions |
How to set up an account
- Go to the Binance website (www.binance.com) and click the “Register” button in the upper right corner.
- Create a password and enter your email address.
- Prioritize the use of a robust password and ensure its secure storage.
- Proceed by accepting the terms of service, followed by clicking the “Register” button.
- Keep an eye on your inbox for a verification email sent by Binance to the provided address. Upon receipt, click the included verification link.
- Following email verification, access your Binance account by logging in.
- Initiate the KYC (Know Your Customer) verification process, which involves supplying your name, date of birth, address, and uploading a government-issued identification copy. Be prepared for potential additional requests from Binance, such as a selfie with your ID, to complete the verification process.
- Once your account is successfully verified, you can deposit funds using one of the accepted payment methods on Binance.
- With funds deposited, you can commence cryptocurrency trading on the Binance platform.
How to trade
1. Access your Binance account.
2. Select “Basic” or “Advanced” trading view by clicking on “Trade” in the top left corner of the page. New traders may find the Basic view suitable, while the Advanced view, designed for experienced traders, offers more complexity.
3. Select your preferred cryptocurrency for trading. You can search for a specific cryptocurrency or choose one from the list of available cryptocurrencies.
4. Select a trading pair. Trading pairs are cryptocurrency pairs that can be traded against one another. For instance, if you aim to exchange Bitcoin for Ethereum, you should opt for the BTC/ETH trading pair.
5. Select the type of order you wish to place. Binance provides support for different order types, including market orders, limit orders, and stop-limit orders. With a market order, execution occurs instantly at the most favorable available price, while a limit order empowers you to stipulate a precise buying or selling price.
6. Enter the desired amount of cryptocurrency. Depending on the trading pair, you have the flexibility to input the amount using either the base currency or the quote currency.
7. Examine your order and click “Buy” or “Sell” to complete the transaction.
P2P trading
• Global Availability: Binance P2P is accessible in over 180 countries and regions, offering support for more than 40 fiat currencies.
• Payment Diversity: Binance P2P accommodates a diverse range of payment methods, encompassing bank transfers, mobile payments, and third-party payment providers.
• Fee Structure: Binance P2P implements a fee structure for each trade, with rates contingent on the payment method and transaction amount.
• Cryptocurrency Inclusion: Binance P2P embraces a wide spectrum of cryptocurrencies, including Bitcoin, Ethereum, Binance Coin, and numerous others.
• Secure Escrow: Binance P2P employs an escrow service to securely hold cryptocurrencies during transactions, ensuring both parties receive their agreed-upon amounts.
• Dispute Resolution Mechanism: To address potential trade disputes, Binance P2P has established a resolution system for prompt issue resolution.
• KYC Verification: In compliance with regulatory standards and fraud prevention measures, Binance mandates KYC (Know Your Customer) verification before granting access to the P2P trading platform.
Deposits and Withdrawals
Deposits
1. Access your Binance account.
2. Select “Deposit” from the drop-down menu after clicking “Wallet” in the top right corner of the page.
3. Choose the cryptocurrency you wish to deposit. Given Binance’s acceptance of an extensive range of cryptocurrencies, it’s crucial to select the appropriate one.
4. Copy the deposit address or scan the Binance QR code.
5. Send the cryptocurrency from your external wallet or exchange to the Binance deposit address.
6. Exercise patience while the blockchain validates the transaction. The duration of confirmation hinges on the deposited cryptocurrency and network congestion.
Withdrawals
1. Access your Binance account.
2. Click on “Wallet” in the top right corner of the page, then select “Withdraw” from the drop-down menu.
3. Select the cryptocurrency from which you want to withdraw funds. Ensure that you’ve accurately selected the desired cryptocurrency and that the withdrawal address is correct.
4. Enter the withdrawal address and the desired amount of cryptocurrency.
5. Click “Submit” to complete the withdrawal.
5. Expect a confirmation email from Binance at the email address you’ve furnished. To complete the withdrawal, check your email and click on the confirmation link.
6. Wait for the blockchain to confirm the transaction. The duration required for the transaction to obtain confirmation relies on both the withdrawn cryptocurrency and the current network congestion.
Future roles
Binance, a prominent cryptocurrency exchange, is poised to maintain its pivotal role in the cryptocurrency industry’s evolution. Potential domains where Binance could exert influence include:
- Market Expansion: Binance may extend its services into fresh markets and regions, aiming to broaden its user base and offer cryptocurrency access to individuals currently lacking it.
- Sustained Growth: With increasing global interest in cryptocurrency and the expanding adoption of digital assets for various purposes, Binance is anticipated to experience ongoing growth in the years ahead.
- DeFi and NFT Focus: Binance has already ventured into services related to DeFi (decentralized finance) and NFTs (non-fungible tokens), and it is likely to maintain an active role in these domains as they gain more popularity and widespread adoption.
- Innovative Solutions: Renowned for its innovation in introducing novel features and services to its platform, Binance is expected to continue its commitment to innovation, ensuring competitiveness and offering users fresh and exciting avenues for cryptocurrency utilization.
FAQ
How long does Binance verification take?
The time it takes Binance to verify your account depends on a number of factors, including the volume of verification requests they are receiving at any given time, as well as the completeness and accuracy of the information you provide during the verification process.
Binance’s standard verification process usually concludes within a span of minutes to a few hours. During this process, you’ll be prompted to furnish fundamental personal details, including your name, address, and date of birth.
Binance’s advanced verification process, which is required for higher withdrawal limits and access to certain features, can be time-consuming. In certain cases, this procedure might require supplementary documentation, such as a passport or government-issued ID. Completion timelines for this extended verification process can vary from a few days to several weeks, contingent upon the influx of verification requests and the precision of the information supplied.
How to add binance smart chain to metamask
1. Set up Metamask: Download and set up the Metamask browser extension compatible with your chosen web browser, if you haven’t done so already.
2. Establish a New Wallet or Import an Existing One: Once Metamask is installed, click on the Metamask icon within your browser and follow the instructions to either create a new wallet or import an existing one.
Network Transition: Transition to the Binance Smart Chain Network within your Metamask wallet. Simply access the network dropdown menu (typically set to “Ethereum Mainnet” by default) and make your selection. “Custom RPC” at the bottom.
Enter “https://bsc-dataseed1.binance.org/” in the “New RPC URL” field, and “56” in the “Chain ID” field. Next, in the “Network Name” field, enter “Binance Smart Chain,” and in the “Symbol” field, input “BNB.” Click the “Save” button.
4. Incorporate Binance Smart Chain into Your Metamask Wallet: Following the switch to the Binance Smart Chain network, ensure you add Binance Smart Chain to your Metamask wallet.
To accomplish this, access the Metamask icon in your web browser, then navigate to the “Assets” tab and select “Add Token.” Opt for “Custom Token” and complete the necessary details as follows:
The contract adress is: 0xbb4CdB9CdBd36B01bD1cBaEBF2De08d9173bc095c.
BNB is the token symbol.
Precision decimals: 18
5. Inclusion in Wallet: To incorporate Binance Smart Chain into your Metamask wallet, simply click on the “Add Token” button.
How to buy Safemoon on Binance
1. Create a Binance Account: If you don’t already have one, go to the Binance website and click “Register” in the top right corner of the page. To create an account, simply follow the prompts.
2. Verify Your Account: Complete the required identity verification steps to verify your Binance account.
3. Fund Your Account: After your account verification, proceed to deposit either cryptocurrency or fiat currency into your Binance account.
4. Locate the SafeMoon Trading Pair: Within the Binance website or app’s “Markets” section, search for the SafeMoon trading pair.This is usually denoted as “SAFEMOON/BTC” or “SAFEMOON/USDT,” depending on the currency you want to use to buy SafeMoon.
5. Initiate an Order: After identifying the SafeMoon trading pair, initiate an order to purchase SafeMoon by indicating the desired quantity and the price you’re willing to pay.
You can either place a market order, which will purchase SafeMoon at the current market price, or a limit order, which allows you to specify the price at which you want to purchase SafeMoon.
6. Verify Your Order: Prior to finalizing your order, ensure that all the provided details are accurate and as intended.When you are prepared, click on the “Buy” button to execute your order.
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