What is Binance?
Binance means “Binary Finance”, and as an exchange, it aims to power the future of crypto finance.
It is a centralized exchange and they’re based out of China. It claims to be a better alternative to many other centralized exchanges because they have identified the most major pain points of centralized exchanges and are working rapidly to provide solutions.
Problems That Binance Is Aiming To Solve
These are the following problems that Binance is claiming to solve:
- Poor crypto trading technical architecture
- Insecure platform
- Poor market liquidity
- Poor customer service
- Poor internationalization and language support
Binance’s Answers To These Problems
Binance has introduced and is in the process of introducing, several features to counter these problems.
Some of the features that Binance has in place are:
- Matching Engine – Binance’s matching engine, as claimed in their whitepaper, is capable of handling 1,400,000 orders/second, making Binance one of the fastest exchanges in the market today. So there is no risk of being “stuck” due to matching issues on Binance.
- Device Coverage – They are providing cross-platform trading clients for:
● Web-based trading
● iOS and Mobile iOS app
● Mobile HTML5
● PC (Windows)
- Multilingual Support – In their white paper, they promised that they will launch Binance on all of their user interfaces in English, Chinese, Japanese, and Korean. They have already added support for their website in Japanese, Spanish, and Korean (along with English and Chinese). I would say this is a good start in just two months, and I am sure there will be more languages to come as adding full language support is explicitly mentioned in their whitepaper.
Features and Benefits of Binance:
Spot/Margin and Future trading:
Binance offers trading terminal for all kinds of traders. Be it a seasoned, hobbyist or pro traders. They started as a spot trading crypto exchange, and now they offer Margin and futures trading as well.
Binance offers crypto lending feature where you can earn interest on your crypto holding. They support many coins including Bitcoin, Binance, Stable coins to name a few.
Many of you may be aware of proof of stake coins and you would be surprised to know that Binance also offers crypto staking features. One benefit I see here is, you can also discover some interesting projects that offer staking feature.
Crypto Sub-account (manage account for your friends, family or clients)
How often you wish to have multiple accounts on the same exchange? Well, the Binance sub-account feature is exactly for you. You can use it for creating and managing the binance account of your friends, family, and clients. You can create up to 200 sub-accounts under a single Binance account which is something remarkable.
If you want to trade or use Binance exchange under a legal entity (Corporation, LLP, Pvt. limited) or any other, you can apply and open a corporate account as well.
Buy crypto assets using fiat currencies
Binance has started adding a lot of fiat payment options to enable users across the globe to be able to buy Crypto assets using their local bank account or credit card. The benefit that you get here is, they charge pretty low fees for the same and you can directly start trading or even earn interest.
Binance pay is the latest feature which was added in 2022. It works as a payment gateway and also you can use it for P2P payment. To use Binance pay, you need to have a verified Binance account, and then you can follow this video steps to start using Binance Pay.
Binance is one of the top P2P exchange platform as well. Once you have done your KYC, you can perform a P2P transaction with other interested traders. This video guide will help you get started with Binance P2P:
Binance’s team members have been in both the finance and crypto industry for many years. The team has worked on and operated a number of exchanges, and they have accumulated a large network of partners in this space.
- Changpeng Zhao – CEO
- Roger Wang – CTO
- James Hofbauer – Chief Architect
- Paul Jankunas – VP of Engineering
- Allan Yan – Product Director
- Sunny Li – Operations Director
They are clearly not newbies trying to run a scam exchange; they understand the risks and challenges very well.
In my opinion, the Binance exchange and BNB tokens are here to stay.
- From a subjective economics point of view, Binance’s business model makes sense, and it is based on the simple law of supply and demand. So it wouldn’t be wrong to say that the price of BNB will continue to go up because people want to get a fee discount while trading on the Binance exchange.
- Another observation is that Binance is expanding very fast and is already in the top 10 cryptocurrency exchanges by volume – a feat worth mentioning for a 3-month old exchange.
- It’s clear from their business model that the price of BNB will be strictly driven by their business profits that will eventually be used to destroy 50% of all BNB tokens.
- They are launching themselves in various international languages across all platforms which is a good strategy for mass adoption.
- And last but not least, the way Binance is expanding and its volume is growing day by day, in 2022 they are #1 exchange by volume. In just 2 months, they have built a list of 50 cryptocurrencies that are being traded with a nominal 0.1% trading fee – far cheaper than most of its competition.
Binance Exchange Review 2023
Binance started in China in mid-2017 but shifted base to Hong Kong and now in Malta after the China government banned cryptocurrency exchanges.
It is a centralized exchange but a reliable one because despite handling the volume it does on a regular basis, there have been no reports of it or going down.
Binance, being a centralized exchange like Bittrex and Poloniex, adopted a unique way of funding themselves through the ICO, which concluded in July 2017. And with the money raised, Binance has to an extent and continues to solve the pain points of centralized exchanges that they had identified and elucidated in their white paper.
Some more important points…
Binance offers both (Crypto-to-crypto) and (fiat-to-crypto) exchange, and you will find a very good market for these pairs with enormous volume and liquidity on Binance.
Currently, Binance is #1 exchange in terms of volume on CoinGecko.
They have their native Binance tokens too which I will explain further in this article.
Binance Registration, Login and Security
Binance’s registration process is quite straightforward and your account gets activated immediately. To get started with Binance, you need to register using your email ID following which you will be granted the basic account in which you have a withdrawal limit of 2 BTC per day.
After you register, you can log in using your email ID and password to be able to see the screen below, where you can, and MUST, setup your 2FA and SMS authentication for extra security (highly recommended to do so).
You can also use this dashboard to submit additional KYC documents to increase your withdrawal limit from 2 BTC to 200 BTC.
After you log in and have set up all the security measures, go to Binance’s home page to see this dashboard.
Binance’s dashboard also gives you access to both advanced and basic dashboard versions. The main difference between the advanced and basic version is that the former has more charting tools and compact UI with more parameters to analyze whereas the latter has a more open UI and less charting features.
The basic version looks like this:
Binance Mobile Apps
The Binance mobile app is absolutely fantastic, to say the least. I came across the Binance app when I was searching for options to trade on the go.
To reiterate, the Binance trading apps for both iOS and Android is the best you can find in the market.
To use the mobile app, you need to create an account on Binance for which you can register here. Once you are registered, you can download their iOS or Android app and start trading cryptos from your smartphone.