This article is the first in our series of articles in which we undertake the task of explaining the most popular crypto exchanges out there. Not only would these articles serve as a foundation for explaining different exchanges but also highlighting distinctive features of each exchange that you can opt for in your trading process. This article will thoroughly discuss and go in detail of the famous cryptocurrency exchange Binance.
Binance was founded in China in 2017 by two former employees of OKCoin Exchange, Changpeng Zhao and Yi He. Now headquartered in Malta, Binance is currently the top exchange in terms of crypto volume being traded each day. A blend of two words Bitcoin and Finance, Binance was createdinitially for trading altcoins and now it supports more than 500 cryptocurrencies and tokens including the famous ones like Bitcoin, Ethereum, Litecoin and Cardano. Binance is famously known among the traders as the best exchange for crypto-to-crypto transactions providing high liquidity rates, minimaltransaction charges and tons of discounted offers if trading is done through their native coin BNB.
Moreover, Binance claims it to be the most secure exchange offering users to enable more than four different authentications to their wallet or account. The company emphasizes on their high quality standards equipped with multi-tier architecture ensuring extreme safety and security of the users and traders. The exchange has the ability to process more than 1.5 million orders each second complimenting its highly efficient clustered architecture. It allows user to not only trade but also list, raise funds, de-list, deposit, withdraw and buy crypto from more than 150 coin pairs. Binance also support the ICOs (Initial Coin Offerings) allowing new companies and developers to raise funds for developing and launching their own tokens instead of reliance on banks and stocks. Binance supports three different types of trading options listed as follows:
Limit orders– Through this type of trade, the user can set a specific price for their trade and crypto will be purchased or sold at that set limit.
Market orders- It is about placing buy or sell order by taking advantage of the best possible rate in the market at that particular instant.
Stop Limit Orders– these type of orders execute only when the market reaches a specified level or limit.
Apart from trade orders, Binance also offers multiple advanced tools for experienced traders and developers i.e. Spot Trading, Margin Trading and Future Trading. For those traders handling Future contracts and trades, there are numerous additional types of orders, which include Stop market order, Trailing stop order, Post only order, Take Profit and Stop Loss Order.
Not only as an exchange, Binance also offers multiple other platforms and services for the betterment of overall cryptocurrency and blockchain ecosystem. Binance also launched its own cryptocurrency in the form of Binance Coinwhich forms a considerable amount of the total market volume it formed an approximate market capacity of $35 billion in March 2021. Binance labs is the incubator launched by Binance itself for nurturing, development and sourcing of new blockchainprojects and coins.
Comparison to other platforms or exchanges:
Binance comes with extensive trading tools, features and charting data for an easy understanding and market analysis for the trader or user. It is now one of the famous and widely used exchanges due to its very low transaction fees in comparison to other similar exchanges.
It starts at 0.1% for both the buying and selling side but reduces down to around 0.02% when the crypto volume is larger or transactions consist of huge amounts. Moreover, an additional discount i.e. reduction of transaction feeby 25% is offered when the trade is done through BNB (Binance Coin).
The exchange has enlisted more than 500 coins and virtual tokens and around 150 trading coin pairs making it very easy to switch between different cryptocurrencies along with an additional support of multi fiat currencies as well. While, none of the exchanges in the market are equipped with such diversified cryptocurrency trading options and this much lower fees.
One of the few setbacks which allow some users to go for other options is the unavailability of Binance in various states of United States including Texas and NY. Although Binance offers extensive charts, data and trading options but a more detailed knowledge is to successfully trade on this exchange making this platform more suitable for developers and advanced users.