Binance Exchange Definition

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 deal. Binance offers crypto-to-crypto trade 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 .

The name “ Binance ” is a combination of the words “ bitcoin ” and “ finance. ” It claims high standards of safety and security system, with multi-tier and multi-clustered architecture, and delivers high process throughput—it claims it has 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.

trade on Binance

Like other crypto exchanges, Binance offers services around the deal, listing, fund-raise, and de-listing or secession of cryptocurrencies. Cryptocurrency enthusiasts uncoerced to launch their own 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 assorted cryptocurrencies .

To start trade, users have to complete the necessary KYC requirements. Upon successful deal report initiation, users can add cryptocurrency funds to their public wallet address, provided by Binance, to start trade .

The Binance exchange supports three main types of trade orders : limit, marketplace, and stop-limit orders. specify orders are executed only at the specify 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 intend level .

U.K. Ban

Binance Markets Limited, a UK subsidiary company of, was banned from offering regulated services to customers in Britain by the Financial Conduct Authority ( FCA ), the state ‘s regulative means, in June 2021. The means ‘s notice prevents the subordinate from offering trade services in cryptoassets and derivatives to customers in Britain. The company ‘s sociable media team clarified that the banish had no impression on service offerings, such as deal, by to users in the United Kingdom. Binance offers an extra four types of orders for crypto derivatives, specifically futures contracts. These trade orders include :

  1. Stop market order
  2. Trailing stop order
  3. Post only order
  4. Limit TP/SL order

There is no tip charged for cryptocurrency or investment company deposits. however, withdrawals do come with a transaction fee that varies depending upon the cryptocurrency and total .

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 choose act of cryptocurrencies with a credit or debit card. Deposits using 9 other decree currencies are allowed, including the euro.

other Services of Binance

In addition to exchange-specific services, Binance besides offers other tools, platforms, and services. Some of them are as follows :

Binance Earn is a chopine for staking or earning interest by depositing stablecoins with the exchange. Depending on the mint and the tenure, the exchange offers investors multiple options and sake rates for these coins .

Binance Visa Card is a credit poster that allows users to convert their cryptocurrency into decree current 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 chic 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 providing necessary fund for development, advisory resources, and a launching pad for any necessary number and fund-raise exercises .

Binance besides offers a site called LaunchPad for hosting raw 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 marketplace hood of around $ 38.8 billion, as of July 2022 .

Binance Coin ( BNB )

Binance Coin ( BNB ) is the chopine ‘s internal token. It is used to facilitate crypto deal on the Binance substitute. The coin was launched during an initial coin offer ( ICO ) in July 2017. Binance offered 20 million BNB tokens to angel investors, 80 million tokens to the establish team, and the remaining 100 million tokens to the respective participants through the ICO process .

about half the funds raised during the ICO process were intended to be used for Binance stigmatize and market, while around one-third were used to build the Binance platform and perform necessary upgrades to the Binance ecosystem .

Binance Coin initially ran on the Ethereum blockchain with the ERC 20 criterion. however, in 2019, Binance Coin became the native mint of the BNB Chain. As of July 2022, one BNB is worth about $ 237. It is the fifth most valuable blockchain-based keepsake by market cap, at approximately $ 3.9 billion .

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