Binance Exchange is a significant cryptocurrency exchange based in Hong Kong that created in 2017.
It places a heavy emphasis on cryptocurrency trading.
Binance supports over 500 cryptocurrencies and virtual tokens, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own Binance Coin (BNB).
In reaction to China’s tight limitations on crypto exchange operations, it relocated its headquarters to Malta, EU, in 2018.
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).
Understanding the Binance Exchange
The Binance exchange, which is especially famous for crypto-to-crypto trading (trading between two cryptocurrency pairings), boasts some of the lowest transaction fees among cryptocurrency exchanges. It has a lot of liquidity, and consumers who pay in BNB cryptocurrency tokens get discounts.
The name “Binance” comes from the words “bitcoin” and “financial.” It promises to have high levels of safety and security, as well as a multi-tier and multi-clustered architecture that allows for great processing throughput—it claims to be able to process 1.4 million orders per second. It accepts more than 500 different coins, including bitcoin, ethereum, litecoin, and its own BNB tokens.
Trading on Binance
Binance, like other crypto exchanges, provides services related to cryptocurrency trading, listing, fundraising, and de-listing or withdrawal. Binance is a cryptocurrency exchange that allows cryptocurrency enthusiasts to raise capital through initial coin offers (ICOs) (ICOs). A huge number of traders and participants use Binance to exchange and invest in various cryptocurrencies.
Users must first satisfy the relevant KYC criteria before they can begin trading. Users can start trading after successfully creating a trading account by depositing bitcoin funds into their Binance public wallet address.
Limit, market, and stop-limit orders are the three types of trade orders. Only the trader’s limit price is used to execute limit orders. Market orders are filled at the best available market price right away. Only when the price hits a certain level does a stop limit order become a legal order.
Binance offers an additional five types of orders for crypto derivatives, specifically futures contracts. These trade orders include:
- Limit order
- Market order
- Stop limit order
- Stop market order
- Trailing stop order
- Post only order
- Limit TP/SL order
There is no fee for cryptocurrency or fund deposits. However, withdrawals do come with a transaction fee that varies depending upon the cryptocurrency and amount.
Other Services of Binance
Binance provides a variety of tools, platforms, and services in addition to exchange-specific offerings.
The following are a few of them:
Binance Earn is a platform for depositing stablecoins with the exchange and staking or earning interest.
The exchange provides investors with a variety of alternatives and interest rates for these coins, depending on the coin and the tenure.
The Binance Visa Card is a credit card that allows users to exchange bitcoin for fiat currency and spend it on goods and services. While there are no administrative fees associated with the conversion, third-party fees in the form of payment network fees do apply.
Miners can switch between multiple cryptocurrencies for mining on the BInance smart pool to maximize and multiply their earnings.
Binance Labs is a blockchain technology incubator that focuses on fostering promising pre-ICO stage startups.
It provides required cash for development, advising resources, and a launchpad for any necessary listing and fundraising exercises to worthy cryptocurrency project teams.
Binance Coin (BNB)
The platform’s internal token is Binance Coin (BNB). It’s utilized on the Binance exchange to make crypto trading easier. The coin released in July 2017 as part of an initial coin offering (ICO). During the ICO process, Binance distributed 20 million BNB tokens to angel investors, 80 million tokens to the founding team, and the remaining 100 million tokens to diverse participants.
Binance Coin is a cryptocurrency that runs on the Ethereum blockchain and follows the ERC 20 standard, with a total supply of 200 million BNB tokens. One BNB is currently worth roughly $650 as of Q1 2021. With a market worth of almost $3.6 billion, it is the third most valuable blockchain-based token.
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