Probably you might have heard about this cryptocurrency exchange platform called Binance.
Its currently being used by many users and has reached 240,000+ customers all over the world. The exchange is growing fast considering it was founded in 2017 and within these few months it has made around 15 billion dollars of profit.
Changpeng Zhao being the founder of Binance got this name from combining these two words “Binary finance”. The exchange platform purely deals with crypto-to-crypto exchanges. It does not include fiat currencies like US Dollars, Yen among others.
Binance has its own cryptocurrency. What is BNB? It’s the binance cryptocurrency (ERC20) which is based on Ethereum. It can be used on the platform for various purposes. These are;
• It can be used to make exchange fees payment.
• The Launchpad ecosystem allows you to make investments in Binance.
• You can pay for services on Binance such as advertising on Binance and other features coming soon.
Users of BNB are given 50% discount on using BNBs in the platform in the first year. The discounts progresses negatively on a certain ratio yearly.
The value of BNB has risen with its increase in demand and also the growing rate of binance. The exchange provided 200 million tokens of which it maintains this number of supply. Binance buys BNB tokens at the current market price from its holders and burns them to maintain the supply hence its value continues to ascend.
Deposit And Withdrawals
You are able to deposit cryptocurrencies only on your account. It’s a cryptocurrency exchange and its nature does not allow you do deposit dollars or any other fiat currency. However you can deposit any cryptocurrency as listed in the platform such as Bitcoin (BTC), Ethereum (ETH) and many more.
Withdrawals are also follow the same criteria. There’s a button named “funds” on the top right side of the platform where you can click and make either a deposit or withdrawal of your funds.
One of the key things that have led to the growth of Binance in a such a short period of time is its competitive low trading charges. It charges you 0.1% on each trade you take. Trading is quite simple on this exchange platform since you are provided with various options of cryptocurrencies to choose.
How Binance Works
The paradigm here is just simple. Binance works by matching a buyer with a seller. For example you are selling Bitcoin at the current rate. What Binance does is matching you another trader who wants to buy Bitcoin at the same price and your sell order is completed.
The interface this platform is user friendly and it has a high frequency in that it performs your actions as soon as you execute the instructions. This has also been the selling point of Binance.
Why Use Binance
- The engine underlying binance does fast executions. It’s speed is high compared to other exchanges.
- • BNB discounts
- • Low trading fees
- • Neutral deflation every quarter where Binance uses 20% of it’s profits to buy BNBs and destroys them.We’ve seen what Binance entails and it’s up to you to decide if you want to grow with it. Binance is growing where more cryptocurrencies will be added to the platform to increase your range of options as a user of Binance.