What Is the Binance Exchange?
The Binance Exchange is a leading cryptocurrency exchange founded in 2017 in Hong Kong. It features a strong focus on altcoin trading. Binance offers crypto-to-crypto trading in more than 600 cryptocurrencies and virtual tokens, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own token Binance Coin (BNB).
Key Takeaways
- Binance is an online exchange where users can trade cryptocurrencies. It supports most commonly traded cryptocurrencies.
- Binance provides a crypto wallet for traders to store their electronic funds.
- The exchange also has supporting services for users to earn interest or transact using cryptocurrencies. It also offers programs for miners and to help traders make investment decisions.
- Binance has its own blockchain-based token, Binance Coin (BNB).
Understanding the Binance Exchange
Primarily known for crypto-to-crypto trading—trading between two cryptocurrency pairs —the Binance exchange has among the lowest transaction fees for cryptocurrency exchanges. It has high liquidity and offers discounts to users who pay in the native BNB cryptocurrency tokens.
With high standards of safety and security and multi-tier and multi-clustered architecture, Binance delivers high processing throughput with the capacity to process around 1.4 million orders per second. It supports trading in more than 600 coins, including bitcoin, Ethereum, litecoin, and its own native BNB tokens.
Binance US is limited for some U.S. customers. Hawaii, New York, Texas, and Vermont are not supported by Binance US, as of July 2022.
Trading on Binance
Like other crypto exchanges, Binance offers services around the trading, listing, fundraising, and de-listing or withdrawal of cryptocurrencies. Cryptocurrency enthusiasts willing to launch their tokens can use Binance for raising funds through initial coin offerings (ICOs). Binance is used by a large number of traders and participants for exchanging and investing in various cryptocurrencies.
To start trading, users have to complete the necessary KYC requirements. Upon successful trading account creation, users can add cryptocurrency funds to their public wallet address, provided by Binance, to start trading.
The Binance exchange supports three main types of trade orders: limit, market, and stop-limit orders. Limit orders are executed only at the limit price set by the trader. Market orders are executed immediately at the best available market price. Stop-limit orders become valid orders only when the price reaches a specified level.
U.K. Ban
Binance Markets Limited, a UK subsidiary of Binance.com, was banned from offering regulated services to customers in Britain by the Financial Conduct Authority (FCA), the country's regulatory agency, in June 2021. The agency's notice prevents the subsidiary from offering trading services in cryptoassets and derivatives to customers in Britain. The company's social media team clarified that the ban had no effect on service offerings, such as trading, by Binance.com to users in the United Kingdom.
Binance offers an additional four types of orders for crypto derivatives, specifically futures contracts. These trade orders include:
- Stop market order
- Trailing stop order
- Post only order
- Limit TP/SL order
There is no fee charged for cryptocurrency or fund deposits. However, withdrawals do come with a transaction fee that varies depending upon the cryptocurrency and amount.
As of July 2022, Binance only allows for U.S. dollar deposits by global users via SWIFT or Signet. However, it does allow you to directly purchase a select number of cryptocurrencies with a credit or debit card. Deposits using 9 other fiat currencies are allowed, including the euro.
Other Services of Binance
In addition to exchange-specific services, Binance also offers other tools, platforms, and services. Some of them are as follows:
Binance Earn is a platform for staking or earning interest by depositing stablecoins with the exchange. Depending on the coin and the tenure, the exchange offers investors multiple options and interest rates for these coins.
Binance Visa Card is a credit card that allows users to convert their cryptocurrency into fiat currency and spend it on products and services. While the conversion does not incur administrative fees, third-party fees, in the form of payment network fees, apply.
Binance smart pool enables miners to switch between different cryptocurrencies for mining to optimize and multiply their income.
Binance has a blockchain technology incubator called Binance Labs, which focuses on nurturing promising pre-ICO stage projects. It helps deserving cryptocurrency project teams by providingnecessary funding for development, advisory resources, and a launchpad for any necessary listing and fundraising exercises.
Binance also offers asite called LaunchPad for hosting new and emerging blockchain projects and API interfaces. As of July 2022, 64 projects have been launched.
It launched its own Binance Coin (BNB) cryptocurrency through an ICO in July 2017. BNB has a market cap of around $38.8 billion, as of July 2022.
Binance Coin (BNB)
Binance Coin (BNB) is the platform's internal token. It is used to facilitate crypto trading on the Binance exchange. The coin was launched during aninitial coin offering (ICO) in July 2017. Binance offered 20 million BNB tokens toangel investors, 80 million tokens to the founding team, and the remaining 100 million tokens to the various participants through the ICO process.
Almost half the funds raised during the ICO process were intended to be used for Binance branding and marketing, while around one-third were used to build the Binance platform and perform necessary upgrades to the Binance ecosystem.
Binance Coin initially ran on theEthereumblockchain with theERC 20 standard. However, in 2019, Binance Coin became the native coin of the BNB Chain. As of July 2022, one BNB is worth around $237. It is the fifth most valuable blockchain-based token by market cap, at roughly $3.9 billion.
Correction-Oct. 10, 2022: This article previously misidentified the origin of the name "Binance" as associated with the exchanges, Binance.com and Binance.us.
FAQs
Binance.US is ranked among the top exchanges for staking in Forbes Advisor's best staking platforms. In addition, Binance.US carries high-security rankings as well as ultra-low fees. In fact, some Bitcoin (BTC) pairs can be traded at no fee whatsoever.
Has Binance exchange Been hacked? ›
Binance, the world's biggest cryptocurrency exchange, is investigating a hacking incident that affected a number of crypto tokens Friday. According to its founder and CEO Changpeng Zhao, a private key, used to encrypt or decrypt data, had been hacked.
Is exchange better than Binance? ›
See how Binance compares to similar products. Binance's top competitors include Coinbase, Kraken, and Huobi Global. Coinbase (NASDAQ: COIN) operates a bitcoin wallet and platform. Its platform allows merchants and consumers to transact with digital currencies like bitcoin, ethereum, …
Should I use Binance as a beginner? ›
Trading on Binance can be a wonderful experience if you know how to use the platform. Before you start trading, you need to create an account and then make a fund deposit, after which you can start trading. The good news is that fees are very low for withdrawals so you can withdraw your amounts with no issues.
Is Binance high risk? ›
While it has its benefits, there are associated risks such as slashing, malicious attacks, and stringent technical requirements. Binance Staking can reduce some of these risks and will return the number of tokens staked by a user that would otherwise be lost through slashing.
What is the disadvantage of Binance? ›
Not available in four U.S. states. Fewer crypto-to-crypto currency pairs than global Binance site. Smaller selection than global Binance platform.
Can Binance recover funds from a scammer? ›
They cannot. If they could, they could just as easily empty your bank account right now - but they cannot do that either. It's just a simple 'Advanced Fee Fraud'. They will ask for money up front, and never do anything (even if the claim to have 'recovered your finds' and need a 'transfer fee' to send it).
Can crypto be stolen from Binance? ›
Binance Blockchain Hit by $570 Million Hack, Exposing Crypto Vulnerabilities. The world's biggest cryptocurrency exchange confirmed that assets were stolen from the Binance Smart Chain network, the latest in a series of attacks on so-called cross-chain bridges.
What is the biggest crypto exchange in the world? ›
Binance is the world's largest cryptocurrency exchange by trading volume, and its United States partner, Binance.US, offers many of the former's advantages.
Which is the safest crypto exchange? ›
We have picked Gemini as the crypto exchange with the best security because it has robust security protocols, insures user funds, and is SOC 2-certified.
In comparison to Binance, Coinbase offers more features for U.S. residents but fewer options for international traders. The features include: A secure, standalone digital hot wallet that you can use with Coinbase and other exchanges. The ability to withdraw funds to your PayPal account.
Which is safer Binance or Coinbase? ›
Coinbase is the winner here as it's more accessible to beginning traders, offers a rewards debit card, displays clear security measures, and doesn't have the legal issues of Binance.US.
Can you actually make money on Binance? ›
Binance Earn allows users to without requiring much time, effort, and in-depth knowledge. This method of passive income opportunity allows users to profit from not only HODLing but also growing it. There are several ways to generate income using Binance Earn.
How do I make a small profit on Binance? ›
There are many ways to earn crypto rewards, but one of the simplest involves using the Binance P2P platform in tandem with Binance Earn. Binance P2P allows to buy and sell cryptocurrencies directly between users, while Binance Earn lets both new and experienced crypto users earn rewards on the digital assets they hold.
How does a beginner Binance make money? ›
The first step, find cryptocurrencies available on both Binance Spot and the P2P market. Next, go through each currency till you find a profitable price difference. Once you've found a suitable price difference, the final step is straightforward—buy low and sell high.
Can I lose money on Binance earn? ›
The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. Binance is not responsible for any losses you may incur. For more information, please refer to our Terms of Use and Risk Warning.
Should I keep my money in Binance? ›
Binance is one of the safer exchanges compared to others. So if you're actively trading crypto and need to keep it on an exchange, Binance is a pretty secure choice. However, if you're holding large amounts of crypto long term, a private hardware wallet may be a better choice than keeping it on an exchange.
Is Binance a gambling? ›
Binance coin is one of the fast-increasing cryptos in the gambling market. However, its acceptance is not so broad compared to alternative options such as Bitcoin and Ethereum.
Which country uses Binance the most? ›
See the global distribution of visitors to your competitor's website and start tapping into overlooked markets. Binance.com's core audience is located in United States followed by India, and Russian Federation.
Is Binance good for long term? ›
Certain cryptos, such as Terra (LUNA) and Binance Coin (BNB), may be considered long-term investments. Shiba Inu (SHIB) and other meme currencies can generate short-term bursts but can suffer from regular troughs. Newcomers such as Caprice Finance (CFT) have prospects for 2022 and beyond.
Changpeng Zhao is the founder and CEO of Binance, the world's largest cryptocurrency exchange. Zhao — who's often known as CZ — is one of the most prominent people in cryptocurrency, as well as the wealthiest person in the industry.
Can Binance reverse a transaction? ›
If you transferred assets to an incorrect deposit address—an address that is not owned by Binance.US—we cannot reverse the transaction or recover your deposit. You will need to contact the owner/support staff of the address that the assets were sent to.
What happens if you get caught using a VPN for Binance? ›
If Binance detects that you're using a VPN, it might ban you from the site. It is crucial to pick a reliable VPN that doesn't leak your DNS or keep logs when using Binance. For this purpose it is best to choose a top VPN with strong encryption features and an audited no-log policy, such as NordVPN.
How can I recover my stolen $30000 Bitcoin? ›
Here are the approaches you should pursue when trying to recover stolen Bitcoin.
- File a Police Report.
- Check Your Devices for Malware.
- Contact Your Bank, Exchange, and Wallet Provider.
- Change Your Login Details.
- Track the Money.
While most crypto and NFT fraud victims will not get their investments back, they may be able to take advantage of tax benefits due to their losses. The most beneficial is the theft loss deduction, which can be used to offset ordinary income, although the Tax Cuts and Jobs Act has limited its use for personal losses.
When was Binance last hacked? ›
The largest cryptocurrency hack to date was conducted in March 2022 and targeted the network that supports the popular Axie Infinity blockchain gaming platform.
How much was stolen from Binance? ›
Cryptocurrency exchange Binance temporarily suspended its blockchain network after hackers made off with around $570 million worth of its BNB token.
Is Binance a Chinese company? ›
Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software. Binance was initially based in China, but later moved its headquarters out of China shortly before the Chinese government imposed regulations on cryptocurrency trading.
What are the 3 biggest crypto? ›
- Bitcoin (BTC) Market cap: $327.2 billion. ...
- Ethereum (ETH) Market cap: $153.9 billion. ...
- Tether (USDT) Market cap: $65.6 billion. ...
- Binance Coin (BNB) Market cap: $46.2 billion. ...
- U.S. Dollar Coin (USDC) Market cap: $43.3 billion. ...
- Binance USD (BUSD) Market cap: $22.11 billion. ...
- XRP (XRP) Market cap: $19.5 billion. ...
- Dogecoin (DOGE)
Crypto Market Overview: New Crypto Top 3 is BTC, ETH, BNB
As the crypto bull market continues and several cryptocurrencies make impressive leaps, the main story of this week involves the elevation of BNB into the Big 3 of cryptocurrency rankings by market cap, following Bitcoin and Ethereum.
Even if you purchase your crypto on an exchange, it doesn't have to stay there. In the event of a bankruptcy, keeping your crypto in a web-based wallet could mean having your funds frozen or losing them altogether.
Is crypto safer than forex? ›
The forex structure is mostly within the formalised markets and regulated. On the other hand, cryptocurrencies have a less formal structure, making them more susceptible to criminal activity and or fraudulent transactions.
Which crypto exchange is good for beginners? ›
Thanks to its simple, easy-to-use interface, we found Gemini to be the best crypto exchange for beginners.
Why is Binance the best exchange? ›
Binance offers a relatively secure, versatile way to invest in and trade cryptocurrencies. Binance could be overwhelming for beginners and experienced traders alike. Binance offers lower fees than many other cryptocurrency exchanges.
Which crypto exchange is best? ›
NerdWallet's Best Crypto Exchanges and Apps of December 2022
- Gemini: Best for crypto exchanges.
- Robinhood Crypto: Best for online brokers.
- Webull Crypto: Best for online brokers.
- TradeStation Crypto: Best for online brokers.
- eToro: Best for crypto exchanges.
- Binance.US: Best for crypto exchanges.
Top 10 Best Crypto Exchanges With Low Fees [2022 Ranking]
- Comparison Table of Top Crypto Exchanges.
- #1) Pionex.
- #2) Bitstamp.
- #3) NAGA.
- #4) CoinSmart.
- #5) Crypto.com.
- #6) Binance.
- #7) Bybit.
Binance annual users 2017 to 2021 (mm)
| Year | Users (mm) |
|---|
| 2017 | 1.5 |
| 2018 | 13.3 |
| 2019 | 16.5 |
| 2020 | 21.5 |
1 more row6 Sept 2022
While Binance offers a secure custody solution to keep your crypto safe, you may want to experiment with directly holding your crypto assets. If you want to go this route, you should always store your funds in a secure, self-custodial wallet like Trust Wallet.
What is better than Binance us? ›
Binance.US is the number of available currencies. Coinbase Pro offers more than 170 coins, while Binance.US offers more than 90. As a result, if you want access to more digital assets and trading pairs, Coinbase Pro might be a better choice.
How much profit should you take in crypto? ›
Most of the time, the key is focusing on the percentage of profits you've already made. People have different preferences depending on how much risk they're willing to take. However, most traders target at least 50% before they take profits. That being said, you can target 100% profits too before you decide to take.
You can now sell your cryptocurrencies for fiat currency and have them transferred directly to your credit/debit card on Binance.
- Log in to your Binance account and click [Buy Crypto] - [Credit/Debit Card].
- Click [Sell]. ...
- Select your payment method. ...
- Check the payment details and confirm your order within 10 seconds.
When should you sell crypto?
- The value has doubled or tripled since you bought it. If your investment has shot up in value, you should probably sell at least a portion of it. ...
- You no longer believe in its long-term success. ...
- You've found better investment opportunities.
10 Ways to Get Rich off Crypto
Investing in Presales - Buy Newly Launched Crypto Tokens at Presale Prices. Day Trading - Buy and Sell Crypto Throughout the Day to Make Regular Gains. HODLing - Invest in Crypto and Hold on a Long-Term Basis. Staking and Interest - Earn Passive Income on Idle Crypto Holdings.
Is my crypto safe on Binance exchange? ›
Binance has a secure asset fund for its users to help protect their money. Also called SAFU for short, this fund keeps a portion of every fee taken by Binance in case a financial loss happens. The SAFU was established in 2018 and it will allow users to get refunded if any money gets lost because of Binance.
Is Binance safer than Coinbase? ›
Coinbase is the winner here as it's more accessible to beginning traders, offers a rewards debit card, displays clear security measures, and doesn't have the legal issues of Binance.US.
Is Binance better than Coinbase? ›
Bottom line. On what's probably the single most important feature of an exchange – cost – Binance gets the win. Low trading costs played into Binance being named the best crypto exchange for beginners by Bankrate. However, on the finer details, such as available coins, Coinbase wins outright or has a small advantage.
Are my coins safe on Binance? ›
Binance's cold storage – Binance holds the majority of their funds on their cold storage, hence the majority of their funds are significantly harder to steal compared to the minority of their funds stored on their hot wallet. Exchanger24 - very good and safely crypto site.
Is it better to keep crypto in wallet or exchange? ›
Custody your own assets
Related to the points just made, rather than keeping coins on exchanges or with brokerages, it's far safer to custody your own assets. This means keeping them in a physical hardware wallet similar to a USB drive or alternatively, in an online software wallet.
Can I withdraw money from Binance? ›
At a Glance: To withdraw from Binance, a user must login and click “Withdraw.” Under the “Crypto” tab, they can then choose the network and desired currency then click “”Receive.”” After a 2FA code is entered, the transaction will be complete. Binance is a platform that many people have started using in the past years.
Should I buy ETH Coinbase or Binance? ›
Coinbase is best for buy and hold investors who want to purchase a currency and hold it for the long term. Binance offers much lower fees per transaction, as well as incentivizing high-volume traders with their fee structure. While they use a maker-taker fee structure, both the maker and taker fees are identical.
Binance is the no. 1 global crypto-currency exchange situated all over the world.
What is the safest cryptocurrency app? ›
Coinbase is the world's most trusted cryptocurrency exchange to securely buy, sell, trade, store, and stake crypto. We're the only publicly traded crypto exchange in the U.S., with over 108 million users across 100+ countries.
Should you leave crypto on exchange? ›
Bottom line, says Fraser, is that crypto investing as a whole remains safe. But exchanges and brokerages continue to lack transparency. "Don't confuse what's happening on these exchanges with crypto itself,” says Fraser. “Absolutely do not leave money on exchanges.
