Overview | What is

What is Binance?

Binance Exchange is a centralized cryptocurrency exchange (CEX) that was founded in 2017 and registered in the Cayman Islands (an overseas territory of the United Kingdom of Great Britain and Northern Ireland located in the United Kingdom of Great Britain and Northern Ireland).

Binance is a global leader in trading volume, providing a platform to trade over 500 different coins and tokens.

• Binance Exchange Reported 2020 Profit of He $1 Billion From Nearly $800 Million
• As of October 2021, Binance had over 28.6 million users
• The trading volume of Binance in 2021 had reached 77 trillion USD more over 7 times than in 2020
• $76 billion is Binance’s highest trading volume in 24 hours

Who is the founder of Binance Exchange?

Binance Exchange was founded by Changpeng Zhao (aka CZ Binance) who was born in 1977 at China. However, his parents were accused by the government of being “pro-bourgeois intellectuals” and were forced to move to Canada to live.

• Changpeng Zhao was head of Bloomberg’s Tradebook Futures development division at 27 years old and just after he worked for two years.
• In 2005 he founded his Fusion Systems.
• In 2013, CZ was the development manager of Blockchain.info and CTO of the OKCoin Exchange.
• In 2017, CZ launched the Binance Exchange. CZ was surprised by the exchange’s success, as the Binance exchange was growing very quickly in terms of both users and trading volume.

Until 2018 and from 2018 to present, Binance is the best exchange in the world in terms of trading volume. This means high liquidity and stable trading performance.

What are the products of the Binance exchange ecosystem?

The new investors often ask the question “how to use Binance?” or “what is Binance?” Perhaps, the most complete answer is when you understand the products that Binance offers, or in other words, the services that you can perform on the Binance exchange.

What is Binance Spot: Trade Binance Spot (commonly known as spot trading), with over hundreds of digital currencies and the world’s high liquidity.

What is Binance Margin: Helps you to use the loan based on the capital you have, leverage 10 times the account.

Binance Futures: Trade futures with up to x125x leverage. The highest level that several exchanges can offer.

Binance P2P – Peer-to-Peer trading – buy and sell cryptocurrencies like BTC, BNB, USDT directly with others via bank transfer using Fiat like USD or EUR.

Binance Earn: A set of financial products including Saving, Staking, Launchpad, etc… to help you generate income from cryptocurrencies or participate in project investment opportunities with exclusive rights directly validated and selected by Binance. Here is the full product of Binance Earn:

• Binance Saving: This is a power saving unit provided by Binance for the benefit of investors. It allows users to deposit their money savings into the Binance Savings wallet. This money will be locked and the users will receive interest.
• Liquidity Farming: Liquidity Farming is the process of depositing money into a Liquidity Pool (Liquidity Pool) to increase liquidity of other decentralized exchanges, giving providers trading fees as a reward.
• Binance Launchpool: Launchpool allows users to create new assets and receive rewards in exchange for BNB, BUSD and other tokens without paying any fees.
• Binance Launchpad: Binance Launchpad is a platform that allows projects to potentially raise capital through Binance users, the process is quite similar as an initial public offering (IEO).
• Binance Staking: Staking is a cryptographic key to receive rewards. Currently, many exchanges also offer staking services that users can use. Binance exchange makes it easy for users to earn rewards and all you do is keep your coins on the exchange.
• Binance Pool: Binance Pool is a coin mining platform that provides cryptocurrency Mining Pool services from the Binance exchange. It is a comprehensive platform for miners to bring more opportunities to the cryptocurrency mining industry.

Binance NFT Marketplace: The NFT trading platform for artists and FANs or art collectors.

BNB Coin and BNB Chain: Binance launched the BNB coin (Binance Coin) in 2017 that is used to reduce trading fee on Binance Exchange and pay gas fee when executing transactions on BNB Chain.

What are the pros and cons of the Binance exchange?

Advantages

• High liquidity, always at the top of the market.
• Available in most countries and territories.
• Supporting to exchange with 64 fiat currencies.
• Offering low transaction fees, only 0.1%.
• Users can use BNB coin to reduce transaction fees by 25% and get more incentives when using Binance Launchpad.
• The exchange has a SAFU insurance fund, which helps to insure customer’s accounts in case the exchange is hacked.
• Large ecosystem, diverse products.

Disadvantages

• Not available in Ontario (Canada), China, Malaysia, Japan, Singapore, Thailand,…
• There are many competitors like FTX, Crypto.com, Bybit,…

The major milestones of Binance Exchange

• In July 2017: Binance had officially launched in China but moved its servers and headquarters out of China and into Japan in advance of the Chinese government ban on cryptocurrency trading.
• In January 2018: Binance became the largest crypto exchange with a Market Capitalization of $1.3 billion.
• In March 2018: Binance opened an office in Taiwan, then the company continued to announce the opening of an office in Jersey. Hence, It moved its headquarters to Malta to enhance its influence in Europe.
• In August 2018: Binance and other three exchanges raised $32M for a stablecoin project.
• In January 2019: Binance announced a partnership with Simplex firms of Israel to allows users purchase crypto currencies by debit and credit cards, including Visa and Mastercard.
• In November 2019: Binance announced it was acquiring Indian crypto exchange WazirX
• In 2022: After 5 years of establishment and development, Binance has become the leading crypto exchange with 30M+ users over the world.