Binance is an online cryptocurrency exchange. It supports the most popular cryptocurrencies as of now. Binance gives traders a crypto wallet where they can store their electronic money. The platform also provides services for users to earn interest and conduct transactions using digital currency. Binance Coin (BNB), the blockchain-based token of the exchange, is separate from other coins on this list.
Binance, which is primarily known for crypto-to-crypto trading — that is, trading between two cryptocurrency pairs —is one of the cheapest exchanges when it comes to transaction fees for cryptocurrencies. It has excellent liquidity and gives discounts to customers who pay in BNB coins.
Binance combines the words "bitcoin" and "finance" in its name. It boasts of high levels of security and safety, with multi-tier and multi-clustered architecture, as well as high processing performance—it claims it can handle around 1.4 million transactions per second. It supports trading in over 500 cryptocurrencies, including bitcoin, ether, litecoin, and Binance's own native BNB tokens. Binance is restricted for customers from the United States; there are fewer names available to trade. Furthermore, Binance US does not currently support 22 U.S. states including New York until 2021.
Aside from the trading of digital assets, Binance likewise provides services including listing, fundraising, and de-listing or withdrawal of cryptocurrencies. Customers looking to create their own tokens can utilize Binance to raise money through ICOs (initial coin offerings). Binance is utilized by a large number of traders and investors to trade and invest in various crypto coins.
To begin trading, users must satisfy KYC criteria. Users may deposit cryptocurrency funds to their public wallet address provided by Binance after successful account creation. The Binance exchange supports three sorts of trade orders: limit, market, and stop-limit. Limit orders are only executed at the trader-defined limit price. Market orders are carried out as soon as possible at the highest available market price. Stop limit orders become valid orders when the price reaches a specified level.
In June 2021, the Financial Conduct Authority (FCA), Britain's regulatory agency, banned Binance Markets Limited, a UK affiliate of Binance.com, from offering authorized services to clients. The notification bars Binance Markets Limited from providing trading and derivative services to consumers in the United Kingdom. The company's social media staff stated that the prohibition had no impact on services such as trading offered by Binance.com to customers in the United Kingdom.
Binance Trading provides five distinct kinds of orders for crypto derivatives, including futures contracts. These trade orders are as follows: A limit order is a buy or sell order at a specific price (e.g., $400).
Binance currently restricts global users to making only US dollar deposits through SWIFT, as of 2021. It does, however, allow you to purchase a limited number of cryptocurrencies using a credit or debit card directly. Deposits in 12 additional fiat currencies are permitted, including the euro.
Binance also provides a variety of other tools, platforms, and services in addition to exchange-specific services. The exchange offers investors various choices and interest rates for these coins, depending on the coin and the duration.
The Binance Visa Card is a credit card that allows users to exchange their cryptocurrency for fiat currency and then spend it on things like as meals or entertainment. While the conversion does not have any costs, third-party expenses in the form of payment network fees apply. Miners can switch between different cryptocurrencies for mining to optimize and increase their earnings using Binance smart pool.
Binance has a blockchain technology incubator named Binance Labs, which focuses on developing innovative pre-ICO startups. It assists deserving cryptocurrency project teams by providing funding for development, advisory services, and a launchpad for any necessary listing and fundraising activities. LaunchPad is a website dedicated to hosting new and innovative blockchain projects as well as API interfaces. As of March 2021, 42 projects had been created using the site.
The Binance ecosystem, which was founded in July 2017, debuted its own Binance Coin (BNB) coin through an ICO in the same month. The market value of BNB is approximately $36.4 billion as of March 2021. It will become the native currency of the decentralized Binance exchange.
The Binance Coin (BNB) is the internal currency of the platform. It's used on the Binance exchange to ease cryptocurrency trading. In July 2017, the coin was introduced during an initial coin offering (ICO). Through an ICO, Binance gave 20 million BNB tokens to angel investors, 80 million tokens to the founding team, and 100 million tokens to other participants.
Around 50 percent of the funds obtained through the ICO were earmarked for Binance's branding and marketing, while one-third went toward developing the Binance platform and performing necessary upgrades to the ecosystem. Binance Coin is based on Ethereum with the ERC 20 standard and a limit of 200 million BNB tokens. As of Q1 2021, one BNB is worth about $650. It has a market capitalization of roughly $3.6 billion, ranking it third by that measure behind Ripple ($17 billion) and Stellar Lumens ($4 billion).