What is Binance? All You Need to Know About Binance

With the belief that Cryptocurrencies will become an inevitable part of global finance, WikiBinance was born with the mission of providing transparent, understandable information about the crypto market in general and about Binance in particular.

It could be a bit challenging if you’re new to the world of crypto. This WikiBinance article will help you understand the most basic concepts: WHAT BINANCE IS and ALL YOU NEED TO KNOW ABOUT IT.

What is Binance?

Binance is a global cryptocurrency exchange, providing a platform for trading more than 500 cryptocurrencies. Since the beginning of 2018, it has been the world’s largest cryptocurrency exchange in terms of trading volume. We have collected data and statistics on Binance. Read on below to find out more.

• Binance reported a profit of between $800 million and $1 billion in 2020
• Binance had 28.6 million users as of October 2021 (while vietnam’s total securities account reached only 4.45 million accounts as of 2022)
• Binance annual spot trading for 2021 is already seven times larger than its 2020 value
• Its peak 24 hour trading volume is $76 billion

Products of Binance ecosystem

• Spot (Common Transactions)

Spot trading is the process of buying and selling digital assets for immediate delivery. There are more than 364 cryptocurrencies with 1448 pairs (as of June 2022) and fiat currencies, including Bitcoin, Ethereum and BNB on Binance Spot. It provides traders with fast, convenient, easy-trading experience and an order matching system which is capable of processing up to 1.4 million orders placed per second.

• Margin

Margin trading is a method of using funds provided by a third party to conduct asset transactions. This allows traders to access greater sums of capital, leverage their position when comparing to regular trading account. However, always keep in mind that margin is a double-edged sword and always be very careful when using leverage. The volatility of the cryptocurrency market is many times larger than that of the stock, Forex or other commodity market.

• Futures

Futures Trading is a proxy tool for traders to speculate on the future prices of a specific cryptocurrency and take advantage of price volatility with leverage of up to 125x. The order matching system, lowest trading fees, perpetual futures contracts, and many other types of futures contracts will give you the best experience. 

• Savings

Savings provides numerous options to help you use your crypto holdings to earn passive income. You can choose one of the supported cryptocurrencies, including BNB, USDT, BUSD, and DeFi coins to earn interest on your funds. Flexible Savings allow you deposite and redeem your funds at any time. Besides, Fixed Savings is so much better as it provides you with higher interest rates.

• Staking

Staking is less resource-intensive alternative to mining by keeping funds in a suitable wallet to increase your cryptocurrency holdings. It supports a wide variety of coins that will earn you staking rewards.

• Binance Pool

Binance Pool is a cryptocurrency mining platform dedicated to empowering miners and the global crypto mining industry. Binance Pool offer lowest fees and comprehensive financial services in the market to maximize profits.

• Binance Launchpad

Binance Launchpad is an exclusive token launch platform with more than 10 million users. It not only raises funds for potential projects but also support them by providing advisory services to launch products, promote brand strategy. 

• P2P Trading

P2P is a platform that allows you to buy and sell cryptocurrencies directly with other users without a third party or intermediary. Launched in Vietnam in January 2020, P2P helps Vietnamese trader to use directly VND when performing transactions. You can own BTC, ETH, USDT in VND on the Binance platform, then move from the P2P to spot, margin, futures contract with zero fees.

• NFT Marketplace

In June, 2021, Binance launched NFT Marketplace, a leading global marketplace for NFTs and digital collectibles. Its brings together artists, creators, and crypto enthusiasts all around the world on a single platform to create and trade NFTs with high liquidity and low fees.

Features of Binance

Like other cryptocurrency exchanges, Binance ensures good security, user-friendly interfaces with optimal performance. Below are some of the features of Binance:

• Safety and stability

Binance uses a powerful multi-layered system architecture. In July 2018, it established Secure Asset Fund for Users (SAFU) (its functions like a Deposit Insurance Fund) to protect investor assets. The money from the fund is used to pay back investors who lose their assets due to a hack or any other event in an exchange that leads to the loss of user assets. Binance allocates 10% of the total trading fees to SAFU. As of March 2022, the fund has reached a total value of $1 billion.

• Multi-device support

Binance supports all devices with Android App, IOS, and web versions which are compatible with all popular browsers today.

• High performance 

Binance has the ability to handle 1.4 million orders per second, host 20 million users. This exchange has huge capacity when it comes to taking on more users without slowing or stalling.

• Multilingual support

Binance supports more than 41 different languages such as Chinese, Uk, Japanese, Korean, Russian, Spanish and especially Vietnamese.

• Fiat currency

51 fiat currencies are listed on Binance such as USD, GBP, EUR, RUB, CNY, VND,…. That means you can buy cryptocurrencies directly with VND in your bank account while some others don’t support it. 

• High liquidity 

This exchange offers a number of cryptocurrency pairs with extremely high liquidity. The daily transaction value of Binance reaches more than $15 billion, accounting for more than 12% of the market’s liquidity.

• Multi-currency support

Binance offers crypto-to-crypto trading in more than 500 cryptocurrencies and virtual tokens including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), IOTA (MIOTA), NEO (NEO), Bitcoin Cash (BCH), QTUM, Monaco (MCO), Binance coin (BNB), Zcash (ZEC),… Althought this number may not be as high as other exchanges, it is worth mentioning that Binance’s team has carefully selected and censored to protect users from projects which lack of transparency.

• Strong team

Binance is operated by CEO Changpeng Zhao and more than 3000 employees around the world. Overall, their team has extensive experience in finance, cryptocurrencies on Wall Street with outstanding achievements.

• A wide variety of products 

The platform has been deployed on 30 interfaces already. It supports all devices and multiple languages to provide users with good experience.

Binance’s Success: Breaking Down All Limits and Stereotypes

“It only takes 180 days to become the largest exchange in the world…”

The story of the “unicorn” that conquered the cryptocurrency world experiences ups and downs. It only takes 180 days to become the largest exchange in the world but the road to No. 1 is harder than it seems. Binance faced industry events that required this exchange to be on the move. The head of Binance is Changpeng Zhao (also known as CZ). He is a former manager of the Development Department at Blockchain.com, co-founder and technical manager of the once-popular exchange, OKCoin.

>>> Related: CZ Binance – From zero to crypto billionaire

Founded in early 2017, Binance held an ICO in July of that year for its BNB token. Thanks to the CEO’s profile, the Binance exchange project quickly attracted the attention of the community. Binance’s ICO funding round, which lasted from July 1 to July 21, 2017, raised $15 million and had more than 20,000 registrations. Parent company, Binance is currently known to be Cayman Islands based but the exchange first launched in Shanghai. Later as the Chinese government cracked down on cryptocurrency trading, the company moved its headquarters to Japan and then Malta in March 2018.

However, Binance is still one of the most secure and reliable exchanges and its servers spread around the world. Therefore, the platform can reduce the likelihood of attacks. If one of the servers has a problem, the system will still operate normally. 

Your journey starts here…

If Binance’s achievements impress you, read guide to register Binance here. Hopefully the article has provided full knowledge about the leading cryptocurrency exchange and helped you understand what Binance is. We’ll be with you. Leave a comment below, as long as you have questions, we are always ready to respond. Wiki Binance will support you on the great road ahead!