Binance is considered one of the giants of the global crypto market. So what specifically is the Binance exchange and how to use Binance to invest effectively? Let's learn more about Binance through the following article!
Overview of Binance exchange
What is Binance? What is the Binance App?
Binance was born with the development of Blockchain technology, which has strongly contributed to the explosion of the global cryptocurrency market. It is the world's largest electronic currency (crypto) exchange with billions of trading volume per day. The trading volume on Binance is up to more than 1,000 trading pairs.
With its large scale, Binance allows trading of many different cryptocurrencies. One of the biggest highlights when it comes to Binance is that transactions can be made reliably, quickly and securely.
The Binance App is an App version on Android and IOS operating systems, with the same features as Binance on the website, but investors will install and use it via phone.
Who is the founder of Binance?
The father of Binance is Changpeng Zhao (CZ) or Zhao Changpeng – a Chinese-Canadian who is considered the founder of Binance. It is estimated that CZ holds up to 70% of the shares in the Binance cryptocurrency exchange.
Which country is Binance in?
Binance virtual currency exchange was established in China. However, for strategic purposes, the office of this exchange was moved to Hong Kong and Japan. In March 2018, Binance moved its office from Japan to the island nation of Malta.
What is Coin BNB?
Binance Coin (Coin BNB) is simply the official currency of Binance, issued by this exchange itself. Binance Coin was launched through the ICO (initial coin offering - the first cryptocurrency issuance) mechanism in July 2017.
Highlights of Binance exchange
To achieve breakneck growth and maintain its leading position in the cryptocurrency market, Binance has been actively developing features to optimize customer experience. Some of the most prominent features that attract investors to use Binance include:
Relatively stable operation thanks to the use of a powerful multi-layer architecture system.
Multi-device support with many different web browsers such as Android, HTML5, WeChat, ....
High performance with the ability to handle 1.4 million buy and sell orders per second.
Supports more than 41 different languages such as Chinese, English, Japanese, Korean, Russian, Spanish, Vietnamese, etc.
Supports many listed fiat currencies such as USD, GBP, EUR, RUB, CNY, VND, etc.
Liquidity on Binance is relatively high thanks to a variety of cryptocurrencies and always maintains a leading position in the industry.
Supports various cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), NEO (NEO), Bitcoin Cash (BCH), Qtum (QTUM), Monaco (MCO), Binance coin (BNB) ), IOTA (MIOTA), Zcash (ZEC), …
The strong development team has extensive experience in finance, cryptocurrency and many outstanding achievements in the financial field.
The Binance platform has now been deployed on more than 30 interfaces, supporting all devices and multiple languages to provide the best user experience.
Products and services are provided on the Binance virtual currency exchange
Among most cryptocurrency exchanges currently on the market, Binance is considered to have the most diverse ecosystem. Some of the most typical products and services of Binance virtual currency exchange include:
Spot trading (spot delivery)
There are over 740 cryptocurrency and fiat currency pairs listed including Bitcoin, Ethereum, BNB on Binance Spot, etc. with an order matching system capable of processing up to 1.4 million orders per second.
Margin loan trading
This is a method of trading assets using loans (leverage) provided by a third party. This allows investors to use large capital with the opportunity to make large profits.
Trade Futures Contracts with leverage up to 125x
Futures trading allows investors to buy cryptocurrencies in anticipation of future prices. If there are correct assessments of market fluctuations, it will create a huge profit opportunity whether cryptocurrency prices go up or down.
Save directly on the Binance exchange (Savings)
Investors can choose one of the cryptocurrencies supported by Binance such as BNB, USDT, BUSD, DeFi coins, etc. Flexible savings form allows you to receive interest and you can choose to withdraw deposits at any time or fixed savings for higher profits.
Binance Pools
Binance Pool is a comprehensive and feature-rich service platform built specifically for miners to increase their income. The platform pays miners regularly and offers low fees and many other products to help maximize profits when mining cryptocurrency.
Binance Launchpads
This is a platform that helps Blockchain projects call for investment capital while increasing the projects' access to the cryptocurrency ecosystem. Currently, Binance Launchpads is operated with many functions such as: token selling platform with more than 10 million users on Binance, support for product launch projects, brand promotion, etc.
P2P trading
This is a fundamental feature of Binance trading that allows direct transactions between users or with merchants where Binance only acts as an intermediary.
This feature was launched in the Vietnamese market in January 2020, allowing investors to own BTC, ETH, USDT in VND right on the Binance platform. After that, investors can switch from the P2P feature to the Spot, margin or contract (futures) trading feature without fees and without going through intermediary platforms.
Binance NFT Marketplace
This is considered a "stormy" tool recently when it creates opportunities for artists to conduct exhibitions and sell their art products through the form of NFT. Binance NFT Marketplace is expected to be a turning point for the art products business.
How to trade on Binance?
Currently, transaction steps on Binance are supported relatively easily and conveniently online, specifically as follows:
Transaction fees on Binance
When learning about Binance, we will immediately see that one of the strengths of the exchange is transaction fees. Currently the fee is 0.1% for both Taker and Maker. In particular, if investors use BNB coin as a transaction fee, the cost will be reduced to 0.075% or even lower depending on the transaction size.
How to make transactions on Binance
Investors can buy and sell Crypto on the exchange easily via mobile phone or Website. The steps to place an order are as follows:
Step 1: Select the coin you want to buy and sell in the section on changing trading pairs.
Step 2: Choose buy or sell.
Step 3: Choose the order type you want to use to make the transaction.
Step 4: Set your desired price.
Step 5: Press the buy or sell button on the screen.
Popular types of trading orders on Binance include: Limit orders, market orders, Stop-limit orders, OCO orders.
Is Binance reputable? - Analysis of advantages and disadvantages
Currently, with a leading position in the Crypto market, Binance is considered relatively reputable by experts and investors. However, this trading floor also has certain advantages and disadvantages that investors should note as follows:
Advantages of Binance floor:
Wide variety of Cryptocurrencies traded on the exchange: One of the main reasons why Binance is popular is because it allows trading of many cryptocurrencies. Currently, there are more than 100 different cryptocurrencies such as: Litecoin (LTC), Ethereum (ETH), CyberMiles (CMT), ZCoin (XZC), ....
Low trading fees: As stated above, Binance trading fees are among the lowest in the industry. Customers are only charged 0.1% per transaction or even lower if the transaction size is large.
High trading volume and high liquidity: Since Binance is a leading cryptocurrency exchange, a lot of transactions are happening all the time. This is an important factor demonstrating high liquidity for investors to trust.
Withdraw without KYC: Users can withdraw up to 2 BTC/day without registering for KYC. This helps investors with retail transactions not need to provide too much personal information.
There is a user protection fund: 10% of trading fees at Binance will be used to create a SAFU fund. This is a fund to protect assets for users when trading at this exchange.
Disadvantages of Binance:
Since transactions need to be processed continuously, some interface errors may occur from time to time.
The exchange's server has not yet reached maximum performance, so in case there is too much traffic, it can lead to the exchange being slow when processing transactions.
In history, there have been a number of times that Binance was attacked by hackers and BTC was stolen. Therefore, investors need to be careful about the security of this floor.
Some notes when using Binance virtual currency exchange
One of the important issues investors need to keep in mind when using Binance is the issue of security. To keep our account safe, we can use a number of measures such as:
Set a strong password and change it regularly: This seems very basic but will help a lot because there are actually a large number of investors participating in this exchange. Also, make sure to keep your password safe and don't share it with anyone.
Enable two-factor authentication (2FA): This helps create an additional layer of security, even if a hacker gets the password, access to the investor's physical 2FA device is still needed to log in.
Enable Binance anti-phishing code: When you add the anti-phishing code to your Binance account, any emails you receive from cryptocurrency exchange Binance will display this code at the top. This way, we can be sure that what we are receiving is actually from Binance and not from a fake email address.
In addition, when we detect unusual incidents such as strangers accessing the account or suspicious withdrawal actions, we need to quickly disable the Binance account by doing the following:
On IOS app: Go to the “account” section on the app and tap the “disable” button.
On Android: In the account on the app, click the button next to email and tap “deactivate account”.
On the website: Go to “Account,” then select Security. In the “account activity” section, click on the words “Deactivate account” and proceed with confirmation.
FAQ – Some frequently asked questions about Binance
New investors entering the market probably have many questions about Binance, especially about the safety of using this exchange. Finhay will answer some common questions as follows:
What year was Binance founded? Who is the owner of Binance?
Binance is recorded as being founded in August 2017 by Changpeng Zhao in China. Zhao is known to be a talented person who has lived in Canada since he was 12 years old, then he returned to his hometown to found Binance in Shanghai, China.
After its founding, it only took Binance about 6 months to become the largest cryptocurrency exchange globally and maintains that position to this day.
On what devices can I use Binance?
Investors can invest in Binance with many different devices from computers to mobile phones (IOS or Android operating systems). For mobile devices, the Binance app has been integrated with similar features on the website. You can download the application for easy use on mobile.
Is Binance a scam?
Currently, Binance is one of the largest cryptocurrency exchanges in the world in terms of both number of users and trading volume. Up to now, there has been no recorded fraud case related to Binance.
In the history of Binance, the exchange has been attacked by hackers, but no damage was caused to investors because of the timely handling steps of Binance's technical team. This partly also shows that Binance's technological capabilities help investors feel more secure.
Binance support phone number
Currently, Binance does not support customer care via phone number. Therefore, if there is a problem, investors can seek support at the "Live Chat" section of Binance. Then, the exchange's AI Bot will suggest solutions based on the information provided by investors. You can also find answers to common problems mentioned on the “Binance FAQ” page.
Although there is still much debate about the future of Crypto, Binance exchange has been demonstrating its remarkable growth in both scale and technological features. Since then, it has become a useful and reliable tool for investors who are passionate about cryptocurrencies.
