Today we are going to talk about the Binance cryptocurrency exchange. It has recently been heard by many crypto traders, it is often talked about, it is referred to everywhere. I also trade on this site. What opportunities does she have and why in less than two years she gained such popularity – this will be discussed in the article.
I will also devote 3 publications to the Binance exchange, as well as the TradingView online chart. As with the previous series of articles, this first text on Binance will be introductory. We will talk about what this platform is, how it entered the cryptocurrency market, which led to its success. Let’s consider the main advantages and disadvantages of the service, talk about its creators, our own cryptocurrency, and even touch on other Binance projects. Traditionally, it will be interesting and informative!
But in the following articles I have prepared a practical part for you. I will tell you in detail how to register on the exchange, replenish your account and withdraw funds, go through verification and enable two-factor authentication to protect your account from hacking and malicious attacks. You will learn how to connect the exchange to third-party services such as 3commas, and what it is for. We will also analyze how to work on Binance, what tools are provided for this. To be continued very soon!
- 1.1 Binance is the world’s # 1 cryptocurrency exchange
- 1.2 How Binance entered the market?
- 1.3 How the Binance exchange works?
- 1.4 Other projects Binance
- 1.5 what such Binance Coin (BNB)?
Binance is the world’s # 1 cryptocurrency exchange
A cryptocurrency exchange is a platform that brings together traders and the market. This is where they make deals and trade. The trader chooses the most suitable exchange according to his preference, because each of them differs in its advantages, disadvantages, somewhat different conditions, compared to others, according to a number of criteria:
- number of currency pairs;
- the size of the commission;
- security level;
- convenience and efficiency of deposit / withdrawal of funds.
The cryptocurrency market is developing at an enormous pace. Once a week, a new exchange enters it, today there are about 400 of them. Of course, only the strongest players remain and defend their “place in the sun”.
Binanas is the fastest growing cryptocurrency exchange. It managed to grow to a leading position in 6 months from the moment of its inception – it entered the top 3 crypto exchanges in terms of trading volume per day. And as of today, February 1, 2019, it ranks first in all ratings according to a number of criteria (research was carried out by cryptonisation.ru, coinmarketcap.com):
By trading volume
As a platform with the most convenient Russian-language version
According to traders’ reviews and reliability
By the size of the commission
As the site most suitable for beginners
Among crypto traders, a survey was conducted which exchange, in their opinion, is the # 1 exchange in 2019. The company had no competitors for the championship.
So, as we have already seen, today Binance is in 1st place in the ranking of cryptocurrency exchanges. Thanks to what she was able to achieve this?
Even at the start-up stage, the company’s managers chose an early placement of coins, literally immediately after the ICO. The low commission of the exchange, in comparison with competitors, played its role. This has attracted many traders and investors. Using the platform, they noted the high speed of the CMS exchange – the puzzle came together, and the project was “doomed” to success.
The community of cryptocurrency exchanges gladly accepted a new strong player into their team, on the site of which over 20 thousand users were registered during the first few days.
In terms of daily trading volume, the Binance Exchange took 1st place in the world in January 2019.!
- Official site: https://www.binance.com/
- Site language: available in 14 languages, including Russian and English
- Site registration: 01 April 2017
- Referral bonus: 20% of commission
- Cryptocurrency pairs: more than 240 pcs.
- Internal cryptocurrency: Binance Coin (BNB)
- Twitter: @ binance_2017
- According to coinmarketcap.com, the company’s turnover per day as of February 1, 2019 amounted to $ 376 365 510 or 107 862 BTC.
- in the screenshot below – TOP-5 cryptocurrency pairs by volume per day:
How Binance entered the market?
The Binance exchange entered the cryptocurrency market in 2017. It was opened in Switzerland. The founder is the Shanghai Beiji Technology Corporation, which is headed by the experienced leader Changpeng Zhao. This is the co-founder and CTO of OKCoin, and before he led the development department at Blockchain..
The team consists of top specialists with impressive experience of working on Wall Street in the field of cryptocurrencies and are the leading professionals in their field. So, one of the team members is a leading financier, an influential figure in the Chinese online economy – Yi He. The company is attractive to sponsors and investors, which ensures the rapid development of the platform. Headquartered in Shanghai.
Immediately after the launch of the ICO, within the first few days, 20 thousand users joined it, 9 months after the launch, the site had 3 million traders, and today more than 6 million people are trading on it. In January 2019, a record value was reached: 250,000 people registered on the exchange in 1 hour.
In 2018, it turned out that the platform had to briefly close the registration of new users, since the technical capabilities of the service did not provide for and could not cope with such growth and the corresponding load. But soon the situation was resolved, today anyone can join it..
The platform processes more than 1,400,000 orders per second. It gained great popularity among Russian-speaking crypto traders, thanks to the fact that it supports the Russian language.
The company got its name from a combination of two words: “binary”, which translated from English means “double, binary” and “finance” – “finance”. At first, the site supported 6, then 8 languages, today there are already 14:
Therefore, the Binance platform can be safely called a full-fledged multilingual platform. It has round-the-clock technical support, which also pleases traders. Another attractiveness factor is a 0.1% commission for a deal with a 50% discount in case of payment of Binance Coin (BNB), that is, it can be reduced to 0.05% (users had this opportunity until the end of 2018, from the beginning of 2019 the discount is 25%).
Another advantage is that you do not need to undergo mandatory identity verification to withdraw funds less than 2BTC per day.
How the Binance exchange works?
Binance cryptocurrency exchange is an online platform, that is, all trades are carried out through the official website of the company. The site has two versions: Basic for novice traders and Advanced for experienced crypto traders who prefer active trading, as well as a mobile application that runs on popular mobile platforms.
Both interfaces are thought out, designed and distinguished by high-quality usability. If you have come across at least a little and know how cryptocurrency exchanges work, then you can easily understand the platform and understand how everything works here..
The key difference between these two types of interfaces is that the advanced has broader functionality in terms of technical analysis, including on charts. In this case, the main one quickly switches from pair to pair. The history of transactions, as well as order books are present.
Main interface screenshot
Binance advantages and disadvantages
Before this part of the article, I told you all the time about what a wonderful Binance exchange, thanks to which it gained such popularity. But, like any other cryptocurrency exchange, it is not without its drawbacks. Although it has a lot more advantages, so I am sure that it is worthy of your attention, as well as of trying to trade on it. But for objectivity, you need to talk about the weaknesses of the service. Therefore, we will once again emphasize the advantages of the project and reveal its imperfections..
Key benefits of Binance
- Huge selection of currency pairs. There are more than 240 of them here. New coins, which are definitely worth paying attention to, often appear on Binance immediately after the ICO;
- Large daily turnover, the largest volume of Ethereum, NEO, TRON;
- No need to verify your identity (verify) as long as you do not plan to withdraw more than two bitcoins per day;
- Russified version of the exchange. This makes it perfect for Russian-speaking beginners;
- Intuitive interface, simple and easy to use. Two modes with wide functionality;
- Really low commission, which can be reduced by another quarter if you pay with the internal cryptocurrency of the exchange;
- Binance issues monthly GAS to all NEO holders;
- The resources are impressive – the platform’s capabilities allow it to process almost 1.5 million orders in 1 second;
- Providing API for third party developers;
- A brilliant team, eminent investors, including Morgan Stanley, Roger Ver and others;
- Technical support 24/7;
- Decent referral reward – 20% of the commission;
- The site takes care of protection against attacks and is constantly improving, making the level of security even higher, which is achieved thanks to two-factor authorization using Google Authentificator;
- Support for mobile platforms;
- Impeccable reputation and high level of trust among users.
Disadvantages of Binance
- Fiat abandonment due to tougher Chinese anti-money laundering legislation. You can replenish your account only in cryptocurrency. But the platform has launched a crypto-fiat exchange in the East African country of Uganda. More on this later;
- Russification is still lame. Experts are working on this and, I hope, they will fix it in the near future. In the meantime, you can put up with clumsy, or use the English version;
- References are available exclusively in English and Chinese;
- Some coins cannot be withdrawn with tenths and hundredths, only the whole amount.
As you can see, the advantages of the exchange significantly outweigh the disadvantages of Binance. Therefore, it is definitely worth trying your hand at it.!
Other projects Binance
In addition to the cryptocurrency exchange, Binance is actively developing other services that will be useful to many people from the cryptocurrency community. The most popular among them:
• Binance Labs
This program was designed to support the start-up, entrepreneur, and community from the crypto industry. Binance selects the most promising startup projects and helps them to develop, enter the cryptocurrency market, and provide financial support.
From time to time, the laboratory launches various programs, for example, the Labs Incubation Program, specially designed to support the best cryptocurrency projects at the initial, “incubation” stage and help them implement ideas. Binance regularly invests 10% in the program.
• Binance Academy
This is an educational project for the purpose of which the company provides absolutely free of charge useful and important information about blockchain technologies and the crypto industry. Regardless of the age of the package, it already contains an extensive database of video and text information. Academy materials are freely available. Users can also post and request content that interests them.
• Binance Uganda
A cryptocurrency-fiat service in the East African state of Uganda. This is the first such project, the platform uses the Ugandan shilling (local currency) together with the cryptocurrency.
• Binance Charity Foundation
Blockchain charitable foundation which was founded with the support of the President of Malta.
• Binance Chain
The developer announcement project will be a decentralized exchange. It will be launched very soon (it was announced at the beginning of 2019). The platform is being created not only for operations with digital assets, which are managed by traders themselves, but also for users to issue their coins and trade them on the exchange..
• Binance Info
Information platform, a database dedicated to cryptocurrency and blockchain technologies, digital assets, from which users, including novice traders, can get the necessary data about tokens and coins. Here they can find out the latest news, price dynamics, read about key economic, political and other important events that may affect the behavior of a particular digital currency..
what such Binance Coin (BNB)?
Binance Coin is the internal cryptocurrency of the Binance exchange, issued based on the Ethereum blockchain. The company created it to strengthen its position in the market, accelerate trading, and released it during the ICO. With the help of currency, the exchange improves the functionality of its services and develops new.
The exchange buys and burns BNB tokens once a quarter in the amount of 20% of the profit for a given period. This is provided in the Whitepaper so that their value grows due to a limited number. The process will continue until the exchange redeems 50% (100,000,000 coins) of the total Binance Coin volume.
For a long time, the currency has shown stable growth. At the time of Binance registration, its value (exchange rate against the dollar) was $ 0.1. On January 6, 2018, it reached a price tag of nearly $ 25. But during 2018 there were several sharp drops to $ 4.58.
Nevertheless, Binance Coin is considered a promising exchange-traded asset, since in proportion to the growth in the popularity of Binance exchange projects, and they have a colossal one, the value of the currency will inevitably grow..
If you look at the dynamics of BNB in comparison with BTC, then all last year this altcoin felt more confident than its grandfather.
Today BNB is worth $ 6.72. Given that Binance is growing and developing much faster than other trading platforms, the asset has every chance of continuing to grow..
The coin can be used for trading to trade on Binance, it is presented in many currency pairs, or it can be used to pay a commission for transactions on a cryptocurrency exchange, for which the user receives a 25% discount on the size of the commission, as we have already mentioned above.
Over the next few years, the discount will be halved annually. Since 2018 is no longer counted, there are still three reductions in the discount until it is completely disabled: 12.5%; 6.75% and 0%. Judging by the rapid development of Binance projects, how responsibly it treats each of its undertakings, most likely the company will soon build a full-fledged blockchain ecosystem.
If you are already going to carry all your savings to buy BNB, then I have to cool your ardor. The fact is that recently, the processes of regulation and whitening of the cryptocurrency market are in full swing, so all crypto-assets, which are quasi-securities, are at great risk of being sanctioned by the regulator. Therefore, cryptocurrency and BNB in particular remains a very high-risk asset, where you cannot invest more money than you can afford to lose..
So, now you know everything about how the Binance cryptocurrency exchange and its currency entered the market. In the following articles, we will definitely figure out how to work on it. See you soon!
Good luck and good profits!