What Is Binance?
Binance is the leading third-party cryptocurrency exchange platform by volume and it is not uncommon for it to facilitate more than $2 billion worth of trading activity each day. It was launched in late 2017 by Chinese national Changpeng Zhao in Hong Kong but has now recently moved its headquarters to the European Isle of Malta. There are several reasons Binance has risen to number one. Standard trading fees are competitively low at 0.1% and can be further reduced if you hold the platform’s proprietary Binance coin digital asset. Also, their platform offers an extensive list of supported cryptocurrency pairs and over 100 coins along with the hallmark coins like Bitcoin, Ehtereum, and Litecoin. Their website looks and feels very professional and for someone with general knowledge of exchanges is easy to use. In the recent past, Binance was only a crypto-to-crypto exchange that had no involvement in fiat withdrawals and deposits but now they offer some support for bank account and credit card deposits. Now, let’s take a look at how Binance works.
- First, you will need to go to Binance’s homepage and open an account. You will only need an email address if you are only planning to deposit and withdraw cryptocurrencies.
- Now that you have your account, Binance will ask you to set-p a two-factor authentication (2FA) for an extra layer of security. You will need to install an app like Authy or Google Authenticator on your phone. These apps will send a unique code to your phone that you will need to enter every time you log in or perform functions like withdrawal requests.
- A select number of countries can now use a credit card or bank account to deposit funds or you can deposit a cryptocurrency. From the deposit page, you can scroll down the list of coins that they support then choose the one you want to deposit. Use the wallet address to transfer the funds that you purchased for other platforms like Coinbase or from your private wallet.
- Binance gives you the choice to use either the “Basic” or “Advanced” trading platform to trade from. If you are new to Binance and trading, the “Basic” platform will be the easiest to navigate and use. Hover over the “Exchange” button at the top of the screen to choose your platform.
- Binance has recently introduced margin trading to its platform. If you are interested in margin trading, you will need to apply for a margin account which will include a disclaimer stating that you understand the risks involved. You should only trade on margin if you understand these risks.
It is amazing to see how far Binance has come over the last few years. Recently they adopted the Secure Asset Fund for Users (SAFU) that functions like a reserve fund in the awful event of the platform experiencing a hack and funds stolen. The reserve is funded by taking 10% of all trading fees they generate. With an easy to use platform and security of the SAFU, it’s not hard to see why Binance is the largest trading platform.