Users can trade cryptocurrencies on Binance. It supports most of the popular digital currencies. Additionally, the exchange offers programs for miners, trading assistance, and interest earner programs. It also offers cryptocurrency-related services for users.
The History of the Binance Coin
Binance Coin’s story would be difficult to tell without explaining what Binance is all about. An initial coin offering (ICO) for Binance Coin was conducted in July 2017. During the Binance ICO, BNB tokens were distributed among different participants, which included angel investors and the Binance founding team.
In a nutshell, here’s how BNB tokens were distributed at first:
Binance raised $15 million from the ICO in Bitcoin (BTC) and Ethereum (ETH). The company sold 100 million BNB tokens at a price of 15 cents each.
In total, 35% of the $15 million raised was utilized to upgrade Binance’s platform and exchange system, 50% for marketing and education of new innovators, and 15% for reserve purposes.
A BNB token was built on the Ethereum blockchain during its ICO in the early days. Soon after the conclusion of Binance’s ICO in mid-2017, the crypto exchange platform was launched.
With the launch of its own native blockchain in 2019, Binance launched its own BNB coin called Binance Chain (BC). By the end of 2019, users swapped their BNB ERC-20 tokens for the new BNB coins.
Price Dynamics for BNB
Price fluctuations of BNB are similar to those of other crypto assets that trade on the market. Since Binance’s initial coin offering, BNB sold for about $0.10 per token. Binance Coin’s market cap has exceeded a valuation of $70 billion.
In the aftermath of Binance’s ICO, BNB has seen a significant increase in value, sometimes reaching more than $600 per coin. Is Binance Coin worth investing in? With its historical price rise, investors likely made a profit if they invested and sold at the appropriate times. Regardless, only time will tell what the future holds for BNB’s price.
Regulatory and Financial Aspects of Binance
Since Binance began operation in 2017, it has become one of the leading players in the crypto market. Regulation difficulties, however, emerged in 2021 against Binance. In 2021, Binance was subjected to regulatory actions from countries and jurisdictions such as Canada, the Cayman Islands, Japan, Malta, the Netherlands, Malaysia, the United Kingdom, and Thailand.
Binance’s operations in the U.K. were ordered to cease by the Financial Conduct Authority because it did not possess the necessary authorizations, registrations, or licenses. Likewise, Malaysian authorities responded by filing a criminal complaint against Binance for operating as an unauthorized virtual asset service provider (VASP) the month after.
Binance announced in 2019 that U.S. users would no longer be accepted on its main exchange, although Binance launched a platform compatible with U.S. users the same year, called Binance.US. Prior to its 2021 headwinds, Binance removed U.S. users from its main exchange in 2019.
Binance plans to open additional offices throughout the world as a response to the increased regulatory scrutiny it has received. It also notes that it plans to apply for licensing in each jurisdiction where it operates. Additionally, a number of high-risk items are also being phased out or restricted by Binance as it expands its compliance capabilities and resources.
Binance’s Trading Guide
The Binance platform has two trading settings: Basic and Advanced. Beginning traders should begin trading on Binance in Basic and Advanced settings for experienced traders.
Using the Basic trade settings, you will have a simple layout that is easy to understand. The only information to make a trade is displayed there. As a professional trading platform, Binance might appear confusing to newbies, so even the Basic trade settings may seem overwhelming. However, you won’t find it complicated, once you get the hang of it!
Trades made through the Advanced setting are accessible to expert traders, giving them access to all price charts and market data that they require to make complex decisions.
Traders’ fees
The trading fees on Binance are among the lowest on the market. There are no fees for depositing funds on Binance.
Binance: Buying crypto on the exchange
Binance accounts can be created quite easily. You just need to sign up for Binance on the official website and click the “Register” button.
You must verify your identity
You can complete the identity verification by selecting “Identification” from the drop-down menu. On Binance’s help desk you will find a detailed description of the verification process.
You can buy crypto by depositing money
Your trading account is ready once all steps have been completed. With Binance, you can deposit fiat currency, purchase cryptocurrency, or buy cryptocurrency using a credit card.
Using a bank transfer
Transferring money to Binance will save you the most money when buying crypto on Binance. Click “Wallet” and then “Fiat & Spot”. Then click the “Deposit” button.
The following steps are available on Binance’s help desk. For a more detailed explanation, visit the platform’s help desk.
The next step is to begin trading on Binance after depositing funds. As soon as your account is debited, you can start trading crypto with Binance’s “Cash Balance” and “P2P Trading” features.
In the menu bar, hover over “Buy Crypto” to access these features. Beginners will benefit most from the Cash Balance option, which incurs extra fees, whereas advanced users will prefer P2P Trading because it allows them to limit purchases or stop losses.
Payment by credit card
When buying crypto on Binance, using a credit card is the easiest method. You can purchase cryptocurrency by clicking “Buy Crypto,” then selecting “Credit/Debit Card”. From there, enter the USD or EUR amount and choose the crypto you wish to purchase.
Your purchase will be completed after you have entered your credit card details and the validity of your purchase has been verified with MasterCard SecureCode or Visa 3D-Secure.
Binance also provides the following services
Binance offers a variety of tools, platforms, and services besides exchange-specific services. Some of them are the following:
The Binance Earn platform allows investors to earn interest from depositing stablecoins with the exchange. For these coins, the exchange provides multiple options and interest rates to investors depending on the coin and the tenure.
Using the Binance Visa Card, users can exchange their cryptocurrencies for fiat currency and spend it on products and services. In addition to no administrative fees, third-party fees for payment networks apply.
Bitcoin smart pools enable miners to switch between different currencies to optimize and multiply their mining income.
Binance has an incubator for blockchain projects called Binance Labs, which nurtures promising projects in the pre-ICO stage. This project helps deserving cryptocurrency projects with funding, advisory resources, and a platform to launch their listing and fundraising efforts.
There is also a site called Binance LaunchPad, which is dedicated to hosting blockchain-based projects and API interfaces. As of March 2021, 42 projects have been launched on the site.
Conclusion
There is no shortage of platforms competing for investor/trader attention in the crypto exchange market today. However, Binance has managed to shine a light on the crowd by becoming the largest crypto exchange platform based on volume, something that is not easily achieved. Thus, the platform speaks for itself in terms of quality and reliability.