Binance is currently the biggest cryptocurrency exchange in the world, making up a $16.91 billion volume at this time of writing. This number is larger than the other top 5 exchanges combined, according to Statista (Biggest crypto exchanges 2022 | Statista).
Founded by the former computer scientist Changpeng Zhao, or CZ for short, in 2017, Binance's story of how it grew to the biggest cryptocurrency exchange in the world is a very interesting one.
What is Binance?
Binance is a leading cryptocurrency exchange founded in 2017 in Hong Kong. It features a strong focus on altcoin trading, offering crypto-to-crypto trading of more than 600 cryptocurrencies and virtual tokens. This includes Bitcoin (BTC), Ether (ETH), Ripple (XRP), Litecoin (LTC), Dogecoin (DOGE), as well as its own token Binance Coin (BNB), and more.
Not only is a whole range of tradable currencies available, but Binance also has among the lowest transaction fees for cryptocurrency exchanges. It has high liquidity and offers discounts to users who pay in BNB coins, making it very attractive to big traders.
Not to mention the high standards of security and multi-tier/multi-clustered architecture, Binance has gained a lot of trust from its users. Moreover, Binance can process around 1.4 million orders per second to support its large user base.
Services on Binance
In addition to exchange trading services that most people use, here are the other main services that Binance offers.
Binance Earn - This is a platform for earning interest by staking stablecoins. Depending on the coin and staking period, the exchange offers different kinds of rewards.
Binance Visa Card - Binance offers users credit cards that allow them to convert their cryptocurrency into fiat currency upon spending.
Binance smart pool - Binance enables miners to switch between different cryptocurrencies for mining to optimize and multiply their income.
Binance Coin (BNB)
Binance Coin (BNB) is Binance's native token. BNB is used to facilitate crypto trading on the exchange. The coin was launched during an initial coin offering (ICO) in July 2017.
Binance Coin initially ran on the Ethereum (ETH) blockchain within the ERC20 system. In 2019, Binance Coin switched from the ETH chain to become the native coin of the BNB Chain. BNB is currently one of the most popular cryptocurrencies in the world.
Wide Variety of Cryptocurrencies is Available on Binance
Binance has more than 365 cryptocurrencies available for trade on its exchange and 65+ in the U.S. Outside the U.S., it supports many fiat currencies like USD, EUR, AUD, GBP, HKD, and INR.
Binance supports popular cryptocurrencies such as:
- Bitcoin (BTC)
- Ethereum (ETH)
- Polkadot (DOT)
- Avalance (AVAX)
- Solana (SOL)
- Cosmos (ATOM)
- Ripple (XRP)
- Litecoin (LTC)
- Cardano (ADA)
Variety of Trading Tools
Binance offers a wide variety of trading tools and great accessibility. Users can trade efficiently through Binance APP, Website, and desktop APP.
Binance also provides various order types: stop order, limit order, stop-limit order, stop-market order, and trailing stop order. Users can choose multiple trading options ranging from classic trading to margin trading and OTC views.
Low Fees Compared to Other Exchanges
Binance boasts one of the lowest trading fees among all exchanges. Fees on Binance vary based on the trading volume and amount of Binance Coin (BNB) in balance. The more you trade, to lower your fees. This attracts big traders to the exchange.
Using BNB in trades, referring other users, reach VIP status in Binance can also lower your fees even more.
Higher Security, Higher Trust
Interestingly, at this great scale of Binance, there has never been a big scare regarding security issues. One of their slogans has always been "Your funds are SAFU", inducing trust in the users.
Binance uses two-factor authentication (2FA) through the Google Authenticator app or short message service (SMS) for the login process.
Binance's meteoric rise is thanks to the exchange being able to attract all kinds of traders, from big to small. With a large number of currencies available to be traded and low fees, traders choose Binance as their first choice.
For Extra Security, Use a Cold Wallet
Although nobody has lost money on Binance as a result of hacking or liquidity issues, it is always best to store your cryptocurrency in a place where you have full custody. As shown by the recent downfall of the FTX exchange, the money you store in exchanges can disappear in a matter of seconds and can never be recovered back, even if nothing is your fault.
It is best to store your assets in secure cold wallets like the ELLIPAL Titan Mini Cold Wallet. By taking your coins off exchanges and storing them in cold wallets, you have full custody of your coins and you can create backups as necessary. Cold wallet protection also assures you that your crypto will not be hacked and will be kept secure as long as you don't expose your private keys.