Many of you will have heard of the Binance exchange, especially those who work in the cryptocurrency sector.
Some may not know it, but Binance represents the reference point for cryptocurrency exchanges.
In fact, it manages a daily volume of about billions of dollars and is still expanding.
For those who work in this sector, sooner or later they will have to end up on the Binance exchange.
In this guide I explain how the platform and / or service works and does not concern financial advice.
But let’s see together what we are talking about and above all how it really works.
What is the Binance exchange
Today, in the cryptocurrency sector, we have an infinite number of tokens that will have to be exchanged, or because they are mined or are earned or simply purchased.
We will also need a secure and liquid enough site to be able to trade our cryptocurrencies.
Binance is for us, because in addition to being very liquid it also has a level of security from the point of view of sensitive data.
Born from the mind of the current CEO Changpeng Zhao in 2017, binance has grown so much that it is the largest cryptocurrency exchange in the world.
Its site reachable from here, provides a series of products that are part of the crypto sector.
From Staking to loans to leveraged futures, via the IEO (initial exchange offering).
He also created his Binance coin token, which serves not only to pay less fees in transactions, but also gives the opportunity to participate in the exchange’s activities.
Recently, he created his stablecoin Busd anchored to the dollar, and the token was also listed on the Zurich stock exchange.
In addition, he created his blockchain in order to develop a project and quote it directly on the exchange.
How Binance Exchange works
As I said before, Binance supplies a series of products related to the cryptocurrency sector.
But let’s go in order and start saying that in order to take advantage of these products you must have registered.
Go here, and enter your email and password, then confirming the email and cell number.
Also by entering this referal ID 25375787 you will have a 40% discount on transactions.
After confirming the data, the screen where you can upload your identification document will appear.
When the email you entered previously arrives, where the registration and therefore the confirmation of the documents will be confirmed, you can enter the platform.
At the first access it will appear like this.
On the upper left part there will be the main menu where you can edit your personal data, while in the upper part you can see a bar.
There you can choose the available services, the trading platform and make the deposit in fiat currency through a credit or prepaid card.
Then if you go to the upper right of the wallet screen, you will be able to choose the type of wallet from the spot, futures, margin, loan and P2P wallet.
Instead in the earnings item, it will be possible to accept loan contracts that Binance provides for a time interval in exchange for interest in that cryptocurrency.
Also if you have cryptocurrencies like Eos or Tron, in this section we can find the staking function where we freeze tokens.
The Binance blockchain
Previously I mentioned an internal blockchain of its own, because Binance wants to have its own system.
Originally it relied on ethereum, having the ERC-20 standard, but now it has a BEP-02 standard with its own blockchain.
This is because it made a switch from the Ethereum blockchain to the current one.
All the Tokens that are created on this blockchain have the BEP-02 specifications and can be exchanged within the network.
So The Exchange, develops a project, and then accompanies it to the market.
Furthermore, by introducing a stablecoin, it has ensured that a perfectly combined internal transaction system is available.
Using this stablecoin and your token you have interesting advantages such as paying much less fees or earning from lending.
Comparing Binance to the others, you can see how really big this exchange is.
For example, taking into consideration the normalized daily volumes on the Blockchain Transparency Institute website, we see how the difference from the second is evident.
So to say that Binance is a simple exchange is very risky considering the volumes.
The pairs present on the exchange are around 767 and 221 are the tokens present.
While if we consider futures contracts we see that Binance is in 3rd place as the best exchange of derivative contracts.
Furthermore, we can see in the previous image how the exchange has more currency pairs than the others.
In addition to this data, the company has tried and is trying to bring more fiat currencies within the platform to allow for more mass adoption.
The services of the binance exchange
The Binance exchange offers many services, its system has changed a lot in recent years.
Furthermore, it is possible to lend many cryptocurrencies with interested interests, this would passively increase their tokens.
It has multiple integrated exchange platforms, one is the one where you simply exchange the tokens called spots.
Instead the others where there are Futures or margin contracts on crypto that use leverage.
These sections have their own wallet that can be reloaded with the desired amount, also the derivatives mode must be activated.
I remind you that these contracts are particular compared to normal cryptocurrencies as they use leverage and if you do not know how to use them they can make you lose all the capital.
The spot platform is available in advanced and basic mode, making only the main controls appear.
Instead the advanced mode looks like this.
The desktop platform is also available, very light and which includes all the functions of the online one.
Same thing for the one for smartphones compatible with both Android and iOS systems.
The BNB token
Binance has a BEP-02 type token called BNB, which serves to pay less tax in transactions.
The token was originally of the ERC-20 type but after emigrating to the new blockchain it took on the characteristics of BEP-02.
There is a total of 180 million BNB tokens all unlocked, and every 4 months binance repurchases and burns an equivalent percentage in dollars earned.
Eventually you will need to have a total of 100 million tokens.
In addition to having the discount function, it also has the function of having exclusive inputs on the exchange, for example new quotes or launching a project.
To conclude, I say that Binance is not just any exchange but “The cryptocurrency exchange”.
Although he is still young compared to Coinbase or Poloniex, etc., he has become a central pivot of the cryptocurrency ecosystem.
In my opinion, he is one of the few who is trying to take crypto adoption levels to the next level.
I always remember that this market is not certain and therefore these data that I have reported before can vary.
Furthermore, I always repeat to be careful with the access data keeping them safe and always activate security levels recommended by the platforms.
I remind you not to use leveraged instruments if you have not understood how they work and to invest sums that you can lose.
This is not a financial advice but only a guide of how the platform works.
That’s why I’m waiting for you in the next article.