What Is Binance and What Is It Used For?

Binance is a leading crypto trading platform founded in 2017 in Hong Kong. However, the exchange has since moved its headquarters to Malta following China’s crackdown on the cryptocurrency business. Binance has grown into a big crypto ecosystem, giving users multiple opportunities for crypto trading. Binance provides crypto-to-crypto trading with more than 500 crypto assets. It’s powered by its own native cryptocurrency, Binance Coin (BNB). The company has its US subsidiary, Binance.US, which serves the United States market.

As a platform that offers crypto-to-crypto trading, Binance’s biggest advantage is the low fee it charges users of its platform. Being one of the cheapest exchanges has made it a hit with crypto traders looking for competitive rates around the world. It offers a good variety of crypto assets, high liquidity, and advanced features to ensure expert traders enjoy their trading experience. With its easy-to-use interface, Binance is considered favorable for almost all levels of traders, from newbies to experts. As such, depending on your level, you can choose between the “basic”, “classic” and “advanced” interfaces.

Binance as a crypto exchange allows users to trade fiat for cryptocurrencies. It allows peer-to-peer (P2P) trading, connecting crypto buyers and sellers directly. To enable smooth P2P trading, the platform offers a variety of payment options that depends on the users’ preferences.

Other than trading, Binance offers services such as listing, fundraising, and de-listing of cryptocurrencies. If you’re a crypto enthusiast and would like to launch your own tokens, Binance offers a good starting point as you can use their initial coin offerings (ICOs) services. Additionally, the Binance ecosystem has its own crypto wallet, where users can store their crypto assets.

Is Binance Safe?

One of the most important features of a crypto exchange is the safety of its platform. Binance as a leading exchange is considered safe and secure. The exchange uses Two Factor Authentication (2FA), which is an advanced way of keeping your account safe. Binance is a centralized platform, hence can sometimes be prone to hacking just like all other centralized platforms. For example, Binance was hacked on May 7, 2019, which led to a loss of 7000 Bitcoins. But this does not make it unsafe as the platform has since taken massive steps into ensuring users' crypto assets are kept safe.

Can you make money on Binance?

You can earn money through saving, staking, or being a liquidity provider in its decentralized finance (DeFi) markets. You can also buy your crypto low and sell high to make a profit. You can earn passive income and compound interest with Binance Earn- a program designed to rewards holders. To make money on Binance, you will need to register on the platform and complete the account verification process.

Is Binance good for beginners?

For beginners, the best platform is that which is easy to use and intuitive. Although Binance is not a complicated platform, it may take a newbie time to learn how it works. As you learn your way of navigating the platform, it becomes easier.