What Is Binance?
Binance is a leading cryptocurrency exchanging platform which allows you to trade more than a 100 crypto. Upon its creation in 2017, Binance quickly became a popular cryptocurrency exchange. In less than one year, the company had a market capitalization of $1.3 billion. Binance currently has its headquarter in Malta, a small country in Southern Europe.
The company was created by Changpeng Zhao (CZ), in China. Binance’s CEO is also the founder of Fusion Systems, a Shanghai-based company that provides IT solutions in the financial industry. He previously worked for Blockchain.info as a member of their cryptocurrency wallet's team in 2013 and is a former OKCoin’s CTO.
***** History *****
The company moved its offices to Japan before the Chinese Government ban on trading cryptocurrencies in September 2017.
In January 2018, Binance became the largest crypto exchange in the world by trade volume. The same year, in March, they moved their offices again and established their business in Taiwan.
In June 2018, Binance announced Binance Uganda, the company’s first fiat trading exchange.
January 2019, Binance partnered with Simplex, an Israeli-based payment processor, to enable traders to buy cryptocurrencies using debit/credit cards. However, the purchases are limited to Bitcoin, Ethereum, Ripple, and Litecoin. The same month, the exchange platform launched a new fiat-to-crypto exchange called Binance Jersey.
On May 7, 2019, Binance was subject to a security breach where hackers stole 7000 bitcoins ($40.000). The company has promised to cover customer losses via its Secure Asset Fund for Users (SAFU).
Binance recently (June 14) announced that it would be closing doors to its US costumers, which means that they won't be able to trade or deposit funds into their account. Users have until September to withdraw their funds. However, Binance will soon launch a dedicated US exchange (fiat-crypto) in regulation with the US laws.
How does it work
1. Opening an account
When you log into your new account, you will be asked to secure your account by setting up a 2FA (two-factor authentication). 2FA is an extra security feature that will provide you with another code other than the regular password each time you log into your account. The code can be sent via Google Authentication on by SMS on your mobile device.
Once you are done setting up 2FA, you can deposit money in the account.
2. Deposit money
At this point, you will need to add funds to your activated Binance account to start buying and selling cryptocurrencies. There are two main ways to deposit money with Binance:
Deposit with Wallet:
It is easy to transfer funds from a crypto wallet or another exchange platform like Coinbase, Kraken, eToro, Bittrex, and more. If you already have an account with another exchange like Coinbase and want to send bitcoins in the Binance one, you will need to log into Coinbase’s account. Once logged in, look for the "Accounts" tab, select Bitcoin wallet, and click on "Send."
Coinbase will then ask for a Recipient; in our case, it is Binance. You then need to log into your Binance account to recuperate the address where your bitcoin will be sent. On your Binance dashboard, select “Funds” then Deposits. Next, you enter the crypto you need the address for, Bitcoin in our example, and Binance will start creating the address under the name of BTC Deposit Address.
Binance will give you the address in the form of code; you can either scan the code or copy and paste it into Coinbase “Recipient” case. Afterward, input how much bitcoin you want to send to the Binance account and hit the Send button. Your new account will be funded in less than an hour. You can almost use the same process for other cryptocurrencies or exchange platforms.
Purchase cryptocurrencies by credit card:
If you don't have a crypto wallet, you can buy cryptocurrencies like BTC, ETH, and LTC using a credit card (Visa and MasterCard). It only takes half an hour for the money to reach your account, although they will charge you 3.5% per transaction or $10.
3. Placing a trade on Binance
With your account activated and funded, you can start trading on Binance. Binance offers a well-designed and straightforward interface. It also provides traders with a choice between two settings: basic for beginners and advanced for professionals.
The basic setting is easier to understand and has a colorful background, whereas the advanced one has a dark theme and trading charts are predominant.
On the Basic version, graphs and buy/sell boxes are placed on the center of the screen. On your left, you can view the prices, and you will see different pairs’ price along with your trade history on the right side.
To buy or sell on Binance, you will first have to choose your trading pair. The platform offers a list of hundreds of trading pairs.
***** Trading On Binance *****
On the upper right side of your screen, you can select whether you want to trade with BTC, ETH, BNB, and USDT. You will then choose the currency you have in your wallet. For example, if you have BTC in your wallet, then you select BTC Markets and trade with bitcoin. In the same case, finding a pair is deciding on which coin you want to exchange Bitcoin for; let's say Ripple (XRP).
On the same right side of the screen, you can select the pair XRP/BTC. On the left page, will appear prices individuals are willing to sell Ripple at in the red color, and prices individuals are eager to buy the coin at in the green color. If you are satisfied with the current marketplace, you can place your trade.
At this stage, you will have to determine which type of trade you want to enter either limit orders, market orders, or stop-limit orders. Next, enter the amount of BTC you want to spend and the amount of XPR you wish to buy in the middle section of the dashboard. You can enter the amount manually or pick a percentage of the Bitcoin in your account you want to spend on XRP. Finally, you will click on "BUY XRP" button to finalize the trade. Once your order is filled, the new currency will be available in your account.
4. Trading fees
Binance offers some of the best trading fees on the market. Moreover, the platform doesn’t charge you for making deposits. Binance trading fees are fixed at 0.1% per transaction; however, you will get a 25% deduction when you use Binance coins (BNB) in your purchases.
5. Withdraw funds:
Binance withdrawal charges different fees for different cryptocurrencies. To withdraw money from Binance to your Trust Wallet, go to the Balances tab, and select Withdraw. On the next page, choose the currency you want to cash out and the wallet where you want to send it. After, go to your wallet, select the coin you wish to receive and it will generate the receiving address. Copy and paste the code into Binance account, type in the amount you desire to withdraw and pay the transaction fee. After entering your F2A authentication, you will get a confirmation email of your withdrawal request.
However, some coins require a specific withdraw process such as "MEMO" for binance coins.
Also, you can store your Binance coins into other wallets such as MyEtherWallet, Mist, Ledger Nano S, and more.
There is a withdrawal limit fixe at 2BTC daily for traders in level 1, and 100 BTC for level 2 users.
What Is Binance Coin?
Binance coin (BNB) is Binance’s exchange token. BNB was initially launched as an ERC-20 token on the Ethereum blockchain. Binance later created its own decentralized exchange, Binance Chain and migrated BNB to their property blockchain.
BNB is used for trading cryptocurrencies and paying trading and withdrawal fees on the platform. You can also purchase virtual gifts on other platforms that support the token.
Binance has currently capped its total supply of BNB (200 million tokens). The exchange platform released the first half of the tokens during its ICO (Initial coin offering) in July 2017. The other half went in building the platform, branding and marketing strategies and in emergency funds.
Binance has a plan to decrease BNB supply and add more value to the token: to buy back a small portion of the tokens quarterly. Binance will then destroy or burn them until they buy back all the 100 million BNB.
As of July 30, 2019, Binance price is $27.16.
Binance currently processes approximately 1.4 million orders from around the world per second. It is among the fastest and largest exchanges on the market. It also offers some of the lowest trading fees; moreover, traders using BNB will enjoy a 50% discount.
Before trading, however, it is best to conduct your own researches and acquire minimum knowledge of the market. Besides, it is vital to trade safely. For this purpose, you will need to get the two-factor identification to protect your account. Also, remember never to reveal you're the 2FA code to absolutely anyone, only trade on the Binance official website, and use a reliable anti-virus.