**How Binance Makes Money: The Secrets Behind the Crypto Giant's Success**
Binance, founded in 2017 by Changpeng Zhao, is the world's largest cryptocurrency exchange by trading volume. Its rapid rise and profitability are impressive. Let's break down how Binance makes money and the strategies that keep it at the top.
### Key Revenue Streams
1. **Trading Fees**
- **Basic Fees:** Binance charges a standard 0.1% fee for each trade.
- **BNB Discounts:** Users paying fees with Binance Coin (BNB) get up to a 25% discount.
- **VIP Tiers:** High-volume traders get lower fees based on their trading volume and BNB holdings.
2. **Listing Fees**
- Binance charges fees to list new cryptocurrencies, providing them visibility and liquidity.
3. **Withdrawal Fees**
- Users pay fees when withdrawing crypto from Binance, adding to its revenue.
4. **Binance Earn**
- Users can stake or lend their crypto to earn interest. Binance takes a cut from the interest.
5. **Futures and Derivatives Trading**
- Binance offers leveraged trading in futures and derivatives, earning fees from high-volume transactions.
6. **Binance Launchpad**
- This platform hosts Initial Exchange Offerings (IEOs), and Binance earns a percentage of the funds raised.
7. **Crypto Loans**
- Binance provides loans against users' crypto holdings and earns interest on these loans.
8. **Binance Smart Chain (BSC)**
- Binance benefits from transaction fees on its blockchain network, BSC, where users pay fees in BNB.
### Strategic Moves
1. **Global Expansion**
- Binance has expanded worldwide, creating localized exchanges to comply with regional regulations and attract more users.
2. **Regulatory Compliance**
- By engaging with regulators and obtaining licenses, Binance ensures its operations are legitimate and secure.
3. **Innovation and User Experience**
- Regular updates and new features keep users engaged and attract new ones.
4. **Education and Community**
- Binance invests in educating its users through initiatives like Binance Academy, building a loyal user base.