- 1 Binance
- 2 Where is Binance based? How does it work?
- 3 How does Binance work?
- 4 The main features of Binance
- 5 Pros of using Binance
- 6 Cons of using Binance
- 7 Conclusion
Trading in cryptocurrencies has become an important driving force in popularizing cryptocurrencies. At first, many people were skeptical on everything that touched cryptocurrencies. Not any longer.
Today, even people who do not want to get involved directly in mining still target getting hold of the crypto asset of choice such as the fast appreciating Bitcoin. It is because of this that cryptocurrency exchanges have become extra creative to deliver value and meaning to users. One of the top exchanges in the market is Binance. Here is a complete review of the exchange to establish how it works, crucial features, and draw appropriate conclusion about its use.
Where is Binance based? How does it work?
Binance is a cryptocurrency exchange that has demonstrated a lot of potential by reaching the top 20 most popular platforms. It is especially strong in pairs such as BNB/BTC, ETH/BTC, GAS/BTC and NEO/BTC.
The exchange is based in Shanghai and is owned by Changpeng Zhao who runs it under another company called Beiji Technology. In 2017, Yi He (the OKCoin co-founder) joined Binance to give it a boost in the Chinese market and entire the Far East.
Yi is a tech guru who has gained a lot of respect in the Chinese online area because of her evangelism on cryptocurrencies. Her entry to Binance after a successful launch and explosion of Zhi Bo gave Binance a lot of popularity that catapults it to the current highly revered position.
Since Yi joined Binance, the value of the exchange and its native coin has grown progressively by over 40%. The exchange is winning a lot of people’s trust because of its fast processing speed and low trading fees of only 0.1%. Every second, Binance is able to process about 1.4 million orders. This makes it the global leader in the potential to process the highest volume at any one moment.
How does Binance work?
Binance works by providing traders with an opportunity to focus on the most lucrative pairs. The focus of the Binance team is to simplify the entire trading process so that even newbies can learn and trade like experts within no time. Here is an account of how to go about using Binance.
- The process starts with registering a trading account on the platform. It is the account that will give you access to Binance’s trading interface. Make sure to verify the account using a personal email address.
- Log in to the Binance account using the login details generated when signing up. Remember always to ensure that the Binance site you are using has the https protocol to avoid phishing attack.
- If you want to deposit funds, simply navigate to the Deposits/Withdrawal tab to select the supported currencies.
- The deposit address will be generated for you when you click deposit. This is the QD (public address) that you should enter in the personal cryptocurrency wallet to initiate crypto assets transfer.
- After the funds get to the Binance account, you can access them in the Available Balance section. Now, you have to visit the exchange tab and pick the level of trade (basic or advanced).
- Then, select the preferred trading pair and start trading the preferred coins. Select the desired amount of currency to buy, set the price you are willing to pay, and hit Buy.
- After purchasing a new cryptocurrency, the funds will show on your Binance account as Available Fund. If you want to withdraw the funds, additional account verification will be required.
Though the process may appear lengthy to follow especially for new users, it is relatively easy when one gets used. However, it is important to get accustomed to all trading features before starting the actual trading.
The main features of Binance
The Binance native coin (BNB)
Unlike other cryptocurrency exchanges that only provide a trading platform, Binance is different. Binance is also a full cryptocurrency with the native coin referred as BNB. This is one of the main features that make more traders prefer Binance compared to other platforms.
This is a reward system on Binance network aimed at encouraging users to trade more. The network attaches a token to your sales and credits it to the account. You can accumulate the token and use it to trade in different cryptocurrencies.
The Binance app
This is the mobile version of the Binance platform that targets taking the platform to mobile devices. Traders who do not want any opportunity passing them can, therefore, download the mobile app and access the trading platform.
Though It is a Chinese based company; Binance has set its eyes on the global market. The Multi-language support ensures that the platform is available in major languages including English, Korean, Japanese, and Chinese among others.
As a platform based on the latest technology, Binance has extensive API that supports third-party applications. This is crucial in extending the utility of the platform.
Pros of using Binance
- The low transaction fee is a unique attraction to the platform because users are sure of trading in crypto assets without incurring huge losses.
- Extra fast trading speed. It is the global leader in processing the highest volume of orders per second.
- The organization is backed by a highly experienced team that gives people trust on Binance.
- Users feel valued when they are motivated by the bounty reward system of Binance model.
- The mobile platform apps help users to remain in touch with Binance and trade on the go.
Cons of using Binance
- While the exchange is based on a very vibrant platform, it is located in a country that has expressed discontent about cryptocurrencies. Users have expressed fears that the looming Chinese regulations could affect Binance negatively.
- The exchange only deals with cryptocurrencies. If you want to buy or sell the cryptocurrencies for fiat currencies, this might be the wrong place.
- The platform collects and stores user data on its servers. This has been a great concern because traders and buyers are unsure of how Binance could use that data.
Binance is one of the newest cryptocurrency trading platforms in the market today. While it is indeed very young and most of the features are evolving, many traders have shown trust in its system. It is a unique trading exchange that will no doubt define the future of cryptocurrency trading.