Add3, Content
August 16, 2023
10.2 min reading
In the early days of crypto, getting Bitcoin was complicated because exchanges like Binance didn’t exist yet. Obtaining crypto involved the dark web and sometimes finding shady characters to trade for some tokens. But nearly 15 years later, getting crypto is much easier. Most people do it through a centralized exchange (CEX).
Depositing fiat onto an exchange and trading it for Bitcoin, Ethereum, or any other crypto takes just a few minutes. Binance is currently the largest centralized crypto exchange in the world. In this article, we’ll explain the significance of Binance and its rise to prominence in the crypto world.
Binance was founded in 2017 by Changpeng Zhao (CZ). He wanted Binance to be a user-friendly and innovative exchange that improved on all other existing CEXs. Today, CZ is one of the biggest movers in the crypto world, especially after his crucial role in igniting the collapse of FTX in 2022.
Binance Exchange started with an Initial Coin Offering (ICO) to raise funds for its operations. In addition, the exchange issues a platform token called Binance Coin (BNB) as its native cryptocurrency.
The new exchange quickly gained popularity and focused on expanding its services and improving user experience. Soon, the team started adding features like spot trading. In addition, Binance also launched its blockchain called Binance Chain, which later became BNB Chain in 2022.
Binance is most widely known as a centralized exchange. But as more features were added, along with the native layer-1 blockchain, the ecosystem grew. Binance Launchpad was created as a platform for hosting token sales and ICOs.
The exchange also introduced margin trading, futures trading, a decentralized exchange called Binance DEX, and BUSD, a stablecoin. Today, the Binance exchange has the largest daily trading volume of any CEX.
Binance is a top exchange because of its features and ease of use. Here are some things that make it such a heavy hitter as a CEX.
Binance strives to create a user-friendly interface that is easy to navigate. Both beginners and experienced traders like it for this reason. The crypto industry is not known for its cutting-edge UX and UI design, but Binance offers an easy-to-use and intuitive platform.
There are more than 360 cryptocurrencies listed on Binance for crypto-to-crypto exchanges. It also provides a crypto wallet for users to store their investments easily.
The exchange uses industry-standard security protocols like two-factor authentication (2FA) and encryption. Users must also adhere to Know Your Customer (KYC) and Anti Money Laundering (AML) standards. And depending on the jurisdiction, Binance complies with local regulations.
Some of the features on Binance are spot trading, margin trading, and futures trading. These allow users flexibility with their trading strategies and leverage positions. The platform also provides advanced trading charts, indicators, and order types to assist traders in making informed decisions.
Binance’s native cryptocurrency is called Binance Coin (BNB). It serves several purposes within the ecosystem. For example, you can use it to pay trading fees on the platform or participate in token sales on Binance Launchpad. It’s also useful for accessing certain features and benefits.
In 2023, Binance had $67,610,320,486.33 in total assets. It also continued to dominate the share of trading volume among exchanges, despite sinking from 70% to 54% in April.
Also, in 2023 The US Commodity Futures Trading Commission sued the exchange and founder, Changpeng Zhao. The CFTC alleged Binance offered unregistered crypto derivatives products in the US against federal law. This lawsuit is partially to blame for the exchange’s reduced market dominance.
Binance is available in more than 100 countries worldwide. Although the US banned Binanced in 2019, the company opened Binance US. This separate exchange complies with US federal laws. However, Binance.US is still banned in six states: Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
If you want to use Binance to buy or trade crypto, you’ll need an account. First, check to see if Binance is available in your country or region. Next, create an account and submit your KYC information. Once your account is verified, you can unlock various trading limits or certain platform features.
Next, you’ll need to fund your Binance account. You can do this by depositing fiat using a bank transfer or a third-party payment provider. You can also send crypto directly to your Binance account from another wallet.
Binance users have multiple options for orders for crypto derivatives, specifically futures contracts. Here are the types of orders you can make:
There are no fees to deposit funds on Binance, but there are varying withdrawal fees that users should be aware of.
There are more features users can take advantage of besides trading. For example, earning rewards with staking or taking out loans is possible.
Binance Earn allows users to gain interest or rewards on specific tokens. There are options for flexible savings, locked savings, and high-yield products. Flexible savings lets you deposit and withdraw your funds at any time. Locked savings provides higher interest rates for fixed-term deposits. Finally, staking options allow users to stake specific cryptocurrencies to support the blockchain network and earn rewards.
Users can also get a Binance Card. This lets them purchase with any merchant that accepts this kind of debit card. When you pay with a Binance Card, the equivalent amount in cryptocurrency automatically deducts from your Binance account balance.
There are also loan options that use crypto as collateral. Binance users can access additional funds without selling their assets by using cryptocurrency holdings as collateral.
Binance Coin (BNB) is the native cryptocurrency of the Binance exchange. It was introduced as part of the Binance ecosystem and had various use cases on the platform.
BNB serves as a utility token, providing benefits and discounts to Binance users. You can also use BNB to pay for trading fees, participate in token sales, access premium features, and more. BNB tokens incentivize users to participate in the ecosystem.
After CZ’s ICO to raise funds and launch the Binance platform, he launched a layer-1 blockchain. BNB tokens were then migrated from the Ethereum network to become the native tokens in BNB.
The BNB token reached an all-time high in 2021 at $690.93. In May 2023, the price hovered around $310, and the total market cap was $48,599,875,238. BNB has no supply cap, and as of May 2023, the total circulation supply was 155,856,890.01 BNB.
Like many companies and projects in the crypto space, Binance has had its ups and downs. However, many people still trust the exchange and are willing to put their crypto – even if briefly – in the hands of CZ. As a result, the exchange and its ecosystem have become one of the biggest names in crypto.
The biggest exchanges can and have fallen, like Mt. Gox back in the day and FTX in 2022. But Binance remains a significant player and has shown no signs of decline. Major exchanges like Binance are some of the most important platforms for driving crypto adoption worldwide. The more accessible crypto is, the sooner the industry will reach mass adoption.
Platforms like Add3 also contribute to the Binance ecosystem by supporting BNB Chain tokens. Let us know if you want to launch your cryptocurrency in the Binance ecosystem. We’re happy to help you set up your crypto management dashboard and launch a token in just a few clicks.
