Binance is a prominent cryptocurrency exchange founded in 2017 in Hong Kong. This exchange focuses a lot on trading altcoins. Binance offers pair-to-pair transactions in more than 500 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Dogecoin, etc. In 2018, in response to China’s strict regulations on trading and exchanging cryptocurrencies, the Binance exchange moved its corporate headquarters to Malta, located in the European Union.
Changpeng Zhao is the founder and founder of the Binance cryptocurrency exchange. Many consider him the Bill Gates of the cryptocurrency industry because he turned Binance into the largest cryptocurrency exchange in the world in less than 7 months. This exchange, under the management of CZ, quickly followed the path of growth and development, and now it has become one of the main pillars of the digital currency market, and its activities cover a wide range of blockchain and cryptocurrencies.
Binance exchange has the lowest transaction fees for exchanging cryptocurrencies. In fact, this exchange has high liquidity and gives discounts to users who buy BNB tokens. The name of the Binance exchange is a combination of the words “Bitcoin” and “Finance”. This exchange claims to have high standards for safety and high processing. It also claims to be capable of processing around 1.4 million orders per second. It supports the trading of more than 500 coins, including Bitcoin, Ethereum, Litecoin, and its native token BNB.
Binance Pros & Cons
Binance Types of Trading
In Binance exchange, it is possible to perform four types of transactions, which are:
1. Limit transactions
In these transactions, the buying or selling price is determined by the user by entering the Price field. Also, use the Amount field to determine the desired digital currency.
In this type of transaction, we place an order and if the market price reaches our order price, the transaction will be completed.
2. Market transactions
This type of transaction is buying or selling at the current market price. For this purpose, the transaction is done instantly.
Using this type of transaction is not suitable for altcoins with low value; Because the highest bid price is recorded when buying and the lowest bid price is recorded when selling.
It should be noted that the trading fee in Limit mode is much lower than trading in Market mode.
3. Stop Limit transactions
In this type of transaction, the user can set a condition in such a way that if the last market price reaches a certain limit (Stop), the desired amount of digital currency (Amount) will be bought or sold by the user himself at the set price (Limit).
4. OCO transactions
This type of transaction is a combination of simultaneous buying and selling in Stop Limit transactions. For example, at the same time, you can determine if the price of the desired currency rises to a certain level or falls to a certain level, sell and buy it. This type of transaction is extremely useful for the daily fluctuation of digital currencies and is recommended to users.
Binance Trading Fees
In Binance, the fee amount is different for different levels of users. This exchange does not charge a fee for operations such as depositing to an account. But it should be noted that in order to withdraw from the account in this exchange, users are required to pay a fee based on the type of their digital currency.
And if you use the exchange’s own currency, which has Binance Coin (BNB), you get a 50% discount on every transaction.
In the following, you can see the different fees of the Binance exchange for different user levels.
In Binance, apart from exchange services, several other services are provided, the most important of which are:
- Margin transactions: it is possible to make margin transactions on the Binance exchange by borrowing from the exchange through various levers, which, of course, has a very high risk and is not recommended for novice traders.
- Future transactions: It is possible to trade on the future price of cryptocurrencies using futures contracts in Binance, which, like the risk margin, is very high.
- Binance Lending: You can lend your assets to Binance and get fixed annual interest.
- Staking: In Binance, it is possible to participate in the proof of stake of many cryptocurrencies. Staking unlike mining does not require hardware equipment. In this way, you must buy the desired cryptocurrency and allocate it to the network to participate. In this way, the transactions of the network are confirmed and every year some amount is added to their currency.
- Binance Earn: is a platform for staking or depositing stablecoins to the exchange.
- LunchPad: Binance also offers a site called Launchpad to host new and emerging blockchain projects and APIs. As of March 2021, 42 projects have been launched.
- Binance Smart Pool: Enables miners to mine between different cryptocurrencies to optimize and multiply their earnings.
- Binance Visa Card: A credit card that allows users to convert their cryptocurrency into fiat currency and spend it on products and services.
- Binance Labs: Binance has blockchain technology that focuses on nurturing promising pre-ICO projects. It helps cryptocurrency project teams by providing development funding, consulting resources, and a launch pad for any necessary activities.
Binance offers all the expected security features including two-factor authentication and universal factor authentication as added security.
The Binance platform also provides FDIC insurance on all US dollar balances. It has created its own insurance fund by storing 10% of all trading fees in a secure fund meant to cover any losses from hacking.
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