Out of the thousands of exchange sites in the crypto world, giants such as Bitcoin and Ethereum have always been one of the leading cryptocurrencies that are included in the system. But new digital assets mean new and improved solutions like the Binance exchange.
Regarded as one of the most trusted crypto exchange sites, Binance not only offers different ways to trade but also little to no fees for each transaction that enables users to trade in volatile markets efficiently.
If you’re new to cryptocurrency or unaware of Binance, it is worth noting that cryptocurrency has come a long way since its launch. Other digital assets have emerged and while some might think that cryptocurrency won’t get any more innovative, new and revolutionary digital assets flourish in the market.
What is Binance exchange?
Binance is one of the leading cryptocurrency exchanges in the globe that supports some of the most popular digital tokens such as Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and more. Binance is a crypto-to-crypto exchange site where users are allowed to only trade cryptocurrencies. Its name is a combination of the words ‘Binary’ and ‘Finance.’
Binance was founded in 2017 by Changpeng Zhao and Yi He who both worked for the OKCoin before collaborating to create what is now known as one of the most successful platforms in the crypto industry.
Binance has its own token called Binance Coin or BNB. The creation of Binance started with an initial coin offering that lasted almost a month and raised a total of $15 million worth of funding.
Binance’s BNB coin
Binance coin has the BNB ticker symbol and was launched on July 25, 2017 on the Ethereum blockchain. After raising $15 million worth of funding, it was then moved from Ethereum’s blockchain to the Binance blockchain.
The BNB is used to make payments and receive a discount for the fees made on the Binance exchange. When traders make purchases using the Binance coin, they will get a 25% discount. By 2017, the discount increased to 50%. This encouraged a lot of crypto users to make transactions on the Binance exchange and purchase BNB tokens.
Since Binance was created on top of the Ethereum blockchain, it’s no surprise that the technology behind Binance is similar to Ethereum’s. But after switching to their own blockchain, Binance made major changes. Unlike Ethereum, Binance coin can’t support smart contracts within the blockchain.
How Binance Exchange works
Binance, like any other crypto exchange, provides services for crypto trading, listing, fundraising, and withdrawal. Through initial coin offerings (ICO), crypto users who want to create their coins can use Binance to raise the funds they need to start building tokens. It is also used for trading and investment of various cryptocurrencies.
Before users can begin trading large amounts, they must complete the required Know Your Client (KYC) specifications. Once they’ve successfully created an account, users can now add cryptocurrency assets to their public wallet address provided by Binance.
Binance features four types of trade orders and only one position per pair of traders is permitted. Meaning, you are not allowed to open positions in both directions. Doing so will cancel one of the two positions.
Here are the four trade orders:
- Limit Order – If you choose Limit Order, you can place an order at a particular amount.
- Market Order – With Market Order, the order will be matched at the best price available.
- Stop-limit Order – This is a conditional trade with stop price and limit price over a fixed timeframe. Once the stop price has been reached, a stop-limit order will be executed at a certain price.
- Stop-market Order – Similar to Stop-limit order, the Stop-Market Order makes use of stop price as a trigger. But when the stop price has been reached, it activates a Market Order instead.
How to open an account in Binance exchange
If you want to begin trading, sign up on Binance first. Follow the steps below for an easy and fast process:
- Visit Binance website and take extra precautions before creating an account because there are fake sites that replicate the original one. Look for the padlock logo beside the search bar that indicates the site is safe and secure.
- At the top right corner of the site is where the register tab is located. Click that and provide the necessary information.
- When you log-in for the first time, you will be asked to enable 2-factor authentication to increase the security of your account. You can choose between Google Authentication and SMS Authentication. Once you’re done, you can now fund your account!
How to fund your account in Binance
Once you’ve successfully created an account with Binance, you can now begin depositing your tokens into your account. To get the discount offered by Binance, it’s important to make transactions only with Binance itself.
Here’s how you can fund your account:
- Go to the deposit page of Binance’s website and click on the ‘funds’ which is located on the top right corner of the page.
- Select the coin you want to deposit. Search for the coin and once you see it, click on the ‘deposit’ button. Each coin has a different address, so you should be mindful of the button and click only on the coin you want to make a deposit.
- Transfer your coins to the address given by Binance.
Try Binance today!
With tons of crypto exchange platforms these days, nothing beats seamless and cost-effective trading of Binance. The reduced fees just prove that investing in the BNB coin is a good choice. Using Binance gives you the opportunity to purchase the coin you want that might not be available in other exchanges. If you’re planning to invest other coins, Binance is the exchange to be because it’s reliable and stable.
Bitcoin (BTC) $ 34,264.00 0.69%
Ethereum (ETH) $ 2,134.44 2.78%
Tether (USDT) $ 1.00 0.25%
Binance Coin (BNB) $ 296.49 3.66%
Cardano (ADA) $ 1.20 3.76%
XRP (XRP) $ 0.594998 4.39%
USD Coin (USDC) $ 1.00 0.03%
Dogecoin (DOGE) $ 0.195829 3.09%
Polkadot (DOT) $ 13.27 4.81%
Binance USD (BUSD) $ 1.00 0.08%