Binance is one of the leading exchanges in the current crypto market. So, what are the strengths of this exchange that have allowed it to maintain its position over time? Today, let’s explore this through the article with Tonraffles!
Table of Contents
What is Binance Exchange?
Binance is a cryptocurrency exchange founded in Shanghai, China in 2017 by Changpeng Zhao. Since then, Binance has made significant strides in its development to become a leading cryptocurrency exchange. Binance currently supports over 1,000 different trading pairs on its platform. Currently, Changpeng Zhao has been sentenced to four months in prison for money laundering violations, so the head of Binance is now CEO Richard Teng.
Binance has achieved a Trust Score of 9 on Coingecko’s ranking of centralized exchanges. Additionally, the exchange recorded the highest trading volume in the past 24 hours, reaching 50.58 billion USD.
Alongside the robust growth of the Binance exchange, other Binance products also hold leading positions. Notably, BNB Smart Chain, the smart contract platform for dApps developed by Binance, ranks in the top 3 for Total Value Locked (TVL) compared to other blockchain solutions.
Furthermore, Binance has been integrated with popular payment solutions such as Visa, Mastercard, ApplePay, and GooglePay to make it easier than ever for users to access the crypto space
The history of the formation of Binance Exchange
Binance Exchange was established in 2017 in China by Changpeng Zhao. However, later on, Binance relocated its headquarters overseas ahead of the Chinese government’s cryptocurrency trading ban in September 2017.
In January 2018, Binance swiftly rose to become the world’s largest cryptocurrency exchange with a market capitalization of $1.3 billion, despite competition from Coinbase and many other exchanges. In the same year, Binance also launched its own native token called Binance Coin (BNB), which is used to pay fees on the exchange and can also be traded on other platforms.
On May 7, 2019, Binance was attacked, resulting in a loss of up to 7,000 Bitcoins, worth around $40 million at that time. Binance reimbursed customers’ assets through the “Secure Asset Fund for Users (SAFU).”
In the following years, Binance expanded its services, including decentralized exchange, peer-to-peer lending platform, staking services, launchpad, and launchpool. The company also carried out strategic acquisitions, such as acquiring CoinMarketCap, a popular cryptocurrency data website.
Today, Binance is considered one of the most successful cryptocurrency exchanges in the world, with a large user base and daily trading volume reaching billions of dollars. Binance remains a leader in the industry and continues to innovate to meet the needs of its users.
Prominent Features of Binance Exchange
- Safety and Stability: Binance employs a robust multi-tier architectural system to ensure safety and stability.
- Multi-Device Support: Binance supports various web browsers, Android, iOS, HTML5, WeChat, and other platforms.
- High Performance: Binance is capable of processing 1.4 million buy/sell orders per second.
- Multi-Language Support: Binance’s trading platform supports over 41 languages, including Chinese, English, Japanese, Korean, Russian, Spanish, etc. Binance’s direct customer support also covers more than 8 languages, including Vietnamese.
- Fiat Currency Support: Binance lists 51 fiat currencies such as USD, GBP, EUR, RUB, CNY, VND, etc.
- High Liquidity: With a daily trading volume exceeding $50 billion USD (according to Coingecko), Binance boasts the highest liquidity in the crypto market.
- Support for Various Coins: Binance allows trading of numerous cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Arbitrum (ARB), Optimism (OP), Polygon (MATIC), Binance Coin (BNB), Solana (SOL), Avalanche (AVAX), etc.
- Strong Development Team: Binance possesses an experienced development team with profound expertise in finance, cryptocurrencies, and outstanding achievements.
- Diverse Product Range: Binance’s platform has been deployed across over 30 existing interfaces, supporting all devices and multiple languages, providing an excellent user experience.
Binance Exchange’s Product Portfolio
- Spot: This platform supports over 1000 trading pairs, including popular cryptocurrencies like BTC, ETH, BNB, SOL, TRON, etc. Users experience a matching engine capable of handling up to 1.4 million transactions per second.
- Margin: Binance’s Margin product allows users to utilize loans from the exchange to trade. Traders can use a larger capital base, giving margin accounts a higher trading position. Investors can potentially earn higher profits from successful trades, but margin trading also increases the risk of liquidation if asset prices decline.
- Futures: Binance Futures enables trading of futures contracts with leverage of up to 125x.
- Earn: With this product, users can deposit cryptocurrencies like BNB, USDT, FDUSD, and other tokens on Binance to earn interest. Users can choose between Flexible or Fixed products. Flexible allows withdrawal of deposits anytime, while Fixed offers higher returns.
- Staking: Binance also allows staking of cryptocurrencies like USDT, BNB, and DAI to earn additional profits.
- Trading bots: This is an automated trading tool developed by Binance, allowing automatic execution of cryptocurrency trades based on investors’ preferences.
- Binance OTC: Binance OTC is designed for individuals and organizations seeking to execute large-volume trades.
- Auto-Invest: Introduced in 2021, this is an auto-investment program using dollar-cost averaging strategy. It currently allows investors to purchase 16 popular cryptocurrencies.
- Loans: Binance’s lending platform.
- Dual Investment: A tool for automated investing in two assets (usually in pairs—stablecoins), enabling users to profit from both assets.
- Binance Launchpad: Launchpad helps blockchain projects raise capital and increase their exposure to the cryptocurrency ecosystem.
- Binance Launchpool: A platform allowing users to stake cryptocurrencies to receive rewards in tokens from specific projects.
- P2P Trading: P2P feature enables direct trading between users or with merchants mediated by Binance.
- Binance NFT Marketplace: Binance NFT Marketplace is a leading platform for trading and exchanging NFTs globally.
- Binance Copy Trading: Binance Copy Trading allows users to copy the investment portfolios of experienced traders in real-time.
Binance Exchange has encountered numerous legal troubles with various governments.
CFTC Lawsuit Against Binance
In March 2023, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CEO Changpeng Zhao for alleged violations of derivatives trading regulations. The lawsuit included excerpts from internal Binance messages, which clearly showed the exchange’s involvement in facilitating transactions for organizations listed by the U.S. as terrorist groups, such as the Hamas movement, as well as processing transactions for users accessing prohibited platforms like the Hydra online black market. Binance was also accused of lax enforcement of policies preventing U.S. users from trading on the platform, as VPN usage could easily circumvent restrictions on accessing Binance.com. The exchange was alleged to have proactively warned VIP users that their funds might be targeted by authorities, giving them time to withdraw their assets.
SEC Lawsuit Against Binance
In June 2023, Binance and CEO Changpeng Zhao faced another lawsuit, this time from the U.S. Securities and Exchange Commission (SEC), accusing them of securities law violations. The SEC’s allegations included:
- BNB and BUSD being considered securities.
- Binance violating securities regulations by offering BNB and BUSD; providing Earn and BNB Vault staking services.
- BAM Trading (Binance’s U.S. subsidiary) violating securities regulations by offering staking services.
- Failure to register as a broker-dealer, clearing agency, and securities exchange with the SEC.
- Binance.US failing to register as a broker-dealer, clearing agency, and securities exchange with the SEC.
- CEO Changpeng Zhao violating securities regulations as the head of Binance, BAM Trading, and Binance.US.
- Binance commingling user funds for trading through companies like Merit Peak and Sigma Chain, alleged to be owned by Zhao, without informing customers.
Detailed Information about Binance Exchange Coin
What is Binance’s exchange coin used for ?
BNB is Binance’s exchange coin. Users can utilize BNB to pay for transaction fees on the Binance platform. By using BNB instead of other assets, users can enjoy reduced transaction fees. Additionally, BNB is used as the native token for other blockchains developed by Binance, such as BNB Smart Chain and opBNB.
Guide to Registering an Account on Binance Exchange
Step 1: Access this link
Step 2: Choose “Register with Email or Phone”
Step 3: Enter the Email or Phone number you want to use for registering your account -> Select “Next”
Step 4: Enter the verification code -> Select “Send”
Step 5: Enter your password -> Select “Next”
Setting up 2FA
Step 1: Select the icon as shown below -> Choose “Security”
Step 2: In the “Authentication App” section -> Select “Manage”
Step 3: Choose “Enable Authenticator App “
Step 4: Enter the Email verification code -> Select “Send”
Step 5: Use the “Google Authenticator” or “Twilio Authy” app to scan the QR code as shown below -> Select “Next”
Step 6: Enter the 2FA code from the app into the box below -> Select “Send” to complete
If you are using an Android phone, download the “Google Authenticator” app to obtain the application’s authentication code.
Account Verification Guide
Step 1: Select “Get Verified”
Step 2: Choose “Continue”
Step 3: Enter personal information (Nationality, Full Name, Date of Birth) -> Choose “Continue”
Step 4: Enter residential address (Full address, Postal code, City)
Step 5: Choose one of the 3 types of identification documents (ID card, Driver’s license, Passport) to verify your identity -> Click “Continue” to upload images and complete the process.
Guide to Depositing/Withdrawing Coins on Binance Exchange
Deposit Funds
Step 1: Select “Deposit”
Step 2: Choose “Deposit Crypto”
Step 3: Select the details about the token you want to deposit (Coin type, Network) to obtain the wallet address.
Step 4: Send funds to the wallet address provided by the exchange.
Withdraw Funds
Step 1: Select “Wallet” -> Choose “Spot”
Step 2: Choose “Withdraw”
Step 3: Enter the necessary information (Coin type, Withdrawal address, Network, Amount) -> Select “Withdraw” and enter the 2FA code to complete.
Guide to Spot Trading on Binance Exchange
Step 1: Select “Trade” -> Choose “Spot”
Step 2: Select the token you want to trade, then place an order.
Guide to Margin Trading on Binance Exchange
Step 1: Select “Trade” -> Choose “Margin”
Step 2: Select the token you want to trade and place an order
Guide to P2P Trading on Binance
Buy
Step 1: Select “Trade” -> Choose “P2P”
Step 2: Choose “Buy” -> Enter the amount of USD you want to use to buy crypto -> Select a trader
Step 3: Enter the amount of USD you want to use to buy crypto -> Select “Buy”
Step 4: Transfer the money to the seller, wait for the seller to transfer the cryptocurrency. Then verify the transaction.
Sell
Step 1: Select “Trade” -> Choose “P2P”
Step 2: Select “Sell” -> Enter the amount of crypto you want to sell -> Choose a trader
Step 3: Enter the amount of USDT you want to sell -> Choose “Sell”
Step 4: Wait for the buyer to transfer the money and verify the transaction.
Guide to Savings on Binance Trading Platform
Step 1: Select “Finance” -> Choose “Earn”
Step 2: Choose the type of token you want to deposit for savings -> Select “Subscribe”
Step 3: Enter the amount you want to deposit for savings and some related information -> Select “Confirm”
Frequently Asked Questions about Binance Exchange
Is Binance Exchange reputable?
Binance is one of the most reputable exchanges in the crypto market with a Trust Score of 9 achieved on the Coingecko exchange rating board.
Does Binance Exchange have a mobile app?
Currently, the Binance Exchange app is available on both iOS and Android, the two most popular mobile platforms.
What is the withdrawal limit on Binance Exchange?
For accounts that have not been verified, the withdrawal limit is 2000 USDT.
For verified accounts, the withdrawal limit is 8 million USDT.
Does Binance Exchange require KYC for withdrawals?
When creating a new account, Binance allows non-verified accounts to withdraw up to the equivalent of 2000 USDT within 24 hours. After 24 hours, users are required to undergo KYC to withdraw funds from their accounts.
