What is the Binance Exchange?

Cryptocurrency is something that has been a hot topic of discussion for many years now because of its low fees and independence from government interference. Cryptocurrencies are now traded on exchanges like Binance exchange between various people today for other assets such as conventional fiat money or other digital currencies.

Exchanges may accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies. A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets

Also read: Are mobile wallets the way to a crypto future in East Africa?

The name “Binance” is based on a combination of the words ‘bitcoin’ and ‘finance’. It claims high standards of safety and security and delivers high processing throughout with the capacity to process around 1.4 million orders per second. It supports trading in more than 150 coins, including popular ones like Bitcoin, Ethereum, Litecoin, and its own native BNB tokens, and the list continues to grow.

Primarily known for crypto-to-crypto trading—that is, trading between two cryptocurrency pairs and not national currencies like dollars or yen—The Binance exchange has gained immense popularity because of its low transaction fees, high liquidity, and additional discounts if users pay in the native BNB cryptocurrency tokens. Its exchange services were launched in 2017. 

Trading on Binance

Like other crypto exchanges, Binance exchange offers services around the trading, listing, fundraising, and de-listing or withdrawal of cryptocurrencies. Cryptocurrency enthusiasts willing 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 various cryptocurrencies.

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To start trading, users have to complete the necessary KYC requirements. Upon successful trading account creation, users can add cryptocurrency funds to their public wallet address provided by Binance to start trading.

Binance exchange supports three types of trade orders: limit, market, and stop-limit orders. Limit orders are executed only at the limit price set by the trader, market orders are executed immediately at the best available market price, while stop-limit orders become valid orders only when the price reaches a specified level.

There is no fee charged for cryptocurrency/fund deposits, though withdrawals do come with a transaction fee that varies depending upon the cryptocurrency and amount.

Advantages of Binance exchange

In addition to exchange-specific services, Binance also offers other tools, platforms, and services for supporting the overall blockchain ecosystem.

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 funding for development, advisory resources, and a launchpad for any necessary listing and fundraising exercises.

Binance also offers a site called LaunchPad for hosting new and emerging blockchain projects and API interfaces. As of March 2021, 42 projects have been launched.

It launched its own Binance Coin (BNB) cryptocurrency through an ICO in July 2017. BNB has gained popularity and actively trades with a market cap of around $36.4 billion as of March 2021. It is set to become the native currency of the decentralized Binance exchange.

Read more: Nigeria’s central bank makes a shocking ban on cryptocurrency in Nigeria

Read more: There are many Ugandans investing in Bitcoin today more than ever before

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