The most important exchange with the highest volume currently moving is Binance . This exchange not only offers cryptocurrency exchange, it offers futures, buying / selling cryptocurrencies, a debit card, NFT, stacking for Ethereum 2.0 and a lot of other things.

What is Binance

It is a cryptocurrency exchange platform with the largest volume and number of users in the world. Binance was launched in July 2017, which is also when an ICO was launched to finance the development of the exchange. This allows the platform not to depend on venture capital companies, being financed by the community.

Changpeng Zhao is the CEO and founder of Binance. Zhao has extensive experience developing trading software architecture for Wall Street. Before developing his own exchange, he already had a long history within Bitcoin.

Binance launched its ICO on July 3 , putting up for sale a total of 100 million ERC20 tokens under the name BNB (Binance Coin) . The sale of the tokens lasted just 3 minutes and managed to raise the expected 15 million dollars. On July 14, just 11 days after launching the ICO, the exchange was made available to users. It had a massive user registration after the launch, generating some access problems due to the large volume of users. Currently Binance is valued at more than 2 billion dollars , which is the one with the highest market valuation.

How to register with Binance

The process of creating a new user account is really simple, we just have to go to the Binance website. There we will be asked to enter an email account and password. Once we register, a verification code will be sent to us so that the account becomes active. What we will get is an entry-level account.

If you want to buy cryptocurrencies, we recommend doing it with  Binance, with this link you get a 20% discount on fees. 

Account types

Depending on the operations we want to carry out, there are three levels of user account

• Basic: When we register with Binance, the basic account is activated that allows the deposit of cryptocurrencies without limit and the withdrawal of a maximum of 2 BTC per day . The amount of 2 BTC per day is adding up all withdrawals, regardless of the cryptocurrency that is withdrawn. We can use the rest of the functions of the centralized exchange without problems .
• Intermediate: To achieve this level we must carry out an identity verification process , or what is the same, pass the KYC-AML process . This process is based on uploading images of a national identity document and facial recognition. It is enabled, once the identity is verified, the deposit and withdrawal using fiat currency, with a limit of $ 50,000 per day or $ 500,000 per month. Cryptocurrency deposit is still unlimited, but cryptocurrency withdrawals are still limited to 100 BTC per day, regardless of the cryptocurrency. In addition, there is access to LPDs, OTCs and the possibility of claiming a Binance VISA card.
• Advanced: It is the same process as the intermediate level, but an identity check is added , which is based on uploading some type of invoice or receipt where our data and address appear . It offers the same advantages as the intermediate level, modifying only the deposit and withdrawal amounts. In this case we can withdraw and / or deposit up to $ 200,000 per day and up to $ 2 million per month.

What Binance offers

The platform not only offers us the possibility of buying cryptocurrencies and trading, it offers many other possibilities. Let’s see the additional elements that this exchange offers us:

• Capacity: Currently the Binance exchange offers us the capacity to process 1.4 million transactions per second.
• Gifts: The platform usually offers different types of promotions, gifts and different contests , as well as reward programs with interesting incentives.
• Application: The exchange has an application for both iOS and Android . This application allows us to access our balance no matter where we are, being able to operate with ease.
• Academy: This exchange, like others, offers the possibility of learning about different cryptocurrencies and blockchain. We can find interesting articles which are cataloged by user level.
• NFT: R ecently the exchange has introduced a platform for buying, selling and creating non-fungible tokens .
• Finance: The exchange has a specific section in which we can earn cryptocurrencies and tokens in different ways.

What can we do on Binance

We are now going to give some brushstrokes of all the things we can do on the Binance exchange. It should be noted that this centralized exchange offers us much more than the conventional tranding that can be found on other similar platforms.

Buy cryptocurrencies

The usual thing when one accesses one of these platforms is that it lacks cryptocurrencies with which to operate. To start trading, of course, we need to acquire cryptocurrencies , a service offered by Binance. We have three different mechanisms to acquire cryptocurrencies:

• Credit / debit card: The exchange offers the possibility of buying different cryptocurrencies, tokens and stablecoins by card . In order to enjoy this service we need an intermediate level account, at least.
• P2P exchange: Another possibility is to buy cryptocurrencies directly from other users. There is a large number of users who put their cryptocurrencies on offer, Binance being the one who guarantees the security of the operation. This service currently has no commissions and is available for intermediate users.
• Third-party payment: Binance allows through third-party buying and selling platforms to acquire cryptocurrencies. All of these companies are associated with Binance and offer security. The Simplex, Koinal, TrustToen and Paxos platforms are currently available.

Markets and trading

Within the Binance exchange we find different systems for the exchange of cryptocurrencies. This service is open to all users, but their use depends on the knowledge and skills of the users. It offers a simplified market service for novice users and also offers more advanced panels for those with more knowledge of trading.

We find within the platform different types of operations with cryptocurrencies. We can find the Spot, Margin, Futures, P2P, Savings and Pool Account systems . It should be noted that these services offer specific wallets to which we will have to add the funds that we already have on the platform or import them at any given time.

As the simplest service to operate with cryptocurrencies within Binance we have Spot. This will be the wallet that offers us access to all the services of the platform.

Spot

Wallet that allows you to search all the cryptocurrencies that are listed on the Binance platform. This is where the balances (if any), the market price and the estimated value available in Bitcoin are reflected . In addition, the Deposit, Withdraw and Transaction options appear .

To deposit a cryptocurrency or token in Binance, you just have to look for it in the Spot wallet. If we do not find the cryptocurrency or token we are looking for, it is a shame, but it would not be supported by this exchange. When we find the token or cryptocurrency, we simply have to click on “Deposit” and copy the address of the Binance wallet. Once we make the deposit, we must wait for the transaction to be validated by the corresponding blockchain. The “Withdrawal” process is similar, in this case we must copy and paste the address of the wallet to where we want to send the token or cryptocurrency.

Margin

It offers us access to the Binance leverage market. Margin is a system designed for experienced users of cryptocurrency exchange and trading. It allows through collateral access to loans and thus be able to do large volume trading and follow advanced investment strategies such as “Long” and “Short”.

Futures

It offers us a portfolio with leverage services for expert users. Here we have a high risk and a great complexity , much higher than in the trading section. It is not recommended for users with basic or intermediate knowledge, it is designed for professional traders with great knowledge in this segment.

Through the service of derivatives markets such as Binance Futures, we will have access to 125x of leverage.

Binance has recently introduced the Quarterly Futures Contracts platform. Here we have Bitcoin derivative contracts with an expiration period every 3 months and that has a physical settlement . This means that there is a settlement of the contract itself with a purchase / sale of bitcoins in the market. The characteristics of the quarterly futures contracts of Binance are:

• Settlement in BTC: These contracts are settled based on Bitcoin . They offer ease for new users the ability to participate in these complex markets with greater ease.
• Expiration date / time: The c ontratos quarterly Bitcoin end at a certain date and time . Orders are closed 10 minutes before the expiration date.
• Multiple of the contract: The multiple of a contract represents the value of the contract . Each contract has an equivalent representation of 100 USD.

How to make money with Binance Finance

In addition to offering us the ability to buy, sell and trade cryptocurrencies, we can also earn cryptocurrencies and tokens. Binance offers a section called “Finance” that adds different solutions to be able to earn cryptocurrencies and tokens. We are going to explain, above, the characteristics of these systems.

Binance Earn

It would be the same as a fixed term. When we have cryptocurrencies and we are not using them, we can generate a passive income by entering them in this program. “Savings” offers us the possibility of lending these cryptocurrencies and obtaining an annual return on the balance. There are two types of options:

• Flexible savings: We can enter at any time during the contract. An annual interest rate of between 1-2% is offered .
• Blocked savings: A date of entry and exit of the fixed capital is set, with time periods of 7, 14, 30 and 90 days. Here the performance for the user is greater, since up to a 10% annual return can be offered , depending on the cryptocurrency.

Smart pool

This Binance “Smart Pool” service offers mining for users conducting proof-of-work consensus trading . What is done in this case is the mining of Bitcoin or some of its derivatives. Currently Binance offers a mining pool of Bitcoin and Bitcoin Cas h, two cryptocurrencies with the SHA-256 algorithm. An Ethereum mining pool and its Ethash algorithm are also offered, but not other cryptocurrencies based on this algorithm.

We pay

The platform offers the possibility of requesting a loan in different cryptocurrencies . As collateral for these cryptocurrencies that we borrow, we must deposit the same amount in another cryptocurrency. This is commonly referred to as cryptocurrency collateralized loans.

Currently the platform offers us loans for 7 days, 14 days, 30 days, 90 days and 180 days. The commission will depend on the period of time and the type of loan that we request, which usually ranges from 13% commission to 35% commission

Liquid Swap (DeFi)

It offers the possibility of adding liquidity to different liquidity pools and thus making a profit. What we do is leave our cryptocurrencies leveraged for as long as we want and without losing them at any time. It is a different version of the liquidity pools of the decentralized exchanges aimed at decentralized finance (DeFi) .

We can find a large number of pairs and different percentages of annual profitability. It is a good way to make money without the need to trade and the like. This mechanism is quite similar to that offered by the decentralized exchange PancakeSwap , but here we can leverage Bitcoin, Tron and other cryptocurrencies, something that cannot be done in PancakeSwap, since it only supports tokens from the Binance Smart Chain.

Visa card

Additionally, the exchange Binance offers us the service of acquiring a debit card . This card is characterized by being able to pay in more than 60 million establishments with cryptocurrencies . We only need to have a balance in our Spot portfolio and when we make the payment, the conversion is done instantly.

This card has no commissions, it exchanges our cryptocurrencies for fiat only when we pay and offers us a refund of up to 8%, on selected purchases.

What is Binance DEX

A dexcentralized exchange (DEX) is an exchange platform that operates within a blockchain and that does not store funds or personal data of users on its servers. The DEX user establishes the buy or sell orders directly, without intermediaries. Thus we obtain a platform for the exchange of cryptocurrencies and / or tokens without the need for reliable third parties.

DEX requires an infrastructure, such as a series of servers where to store the purchase and / or sale of assets. Private keys , in this case, are always in the hands of the users , not in the hands of a trusted third party.

One interesting thing about DEXs is that they offer much more security. The tokens are at all times in the property of the user until the transaction is closed . If there was a breach in a user’s wallet, the rest of the user’s wallets would not be hacked. This is because the portfolios are not linked to each other.

To meet the needs of users and to meet the needs of the decentralized finance (DeFi) segment, Binance develops its own DEX. This decentralized exchange was launched at the end of February 2019 in the testnet phase (test version) and is built on the Binance Chain blockchain .

The definitive version of Binance DEX was launched in the mainnet phase at the end of April 2019, allowing you to create portfolios and start trading with BNB and other tokens. This platform offers the benefits of the decentralized platform, but adding the security of decentralized platforms.

Objectives of Binance DEX

It seeks to create a highly reliable and transparent decentralized financial platform. In addition, it offers a high level of freedom for users, by offering greater control over their own assets . Binance DEX has different trading tools and a native wallet on Binance’s own blockchain.

It has a simple interface where anyone can create a new portfolio quickly and easily. We can create a wallet for BNB tokens with the ability to send and receive the tokens.

All operations are stored on the Binance blockchain, but guaranteeing the privacy of users . During the registration process we must not provide personal information, guaranteeing security. This also allows you to see all the transactions carried out on the network.

Binance DEX Features

Within the platform, what we find is the traditional interface of any centralized exchange. We have a simple and easy-to-understand user interface, which is segmented as follows:

• List of exchange pairs
• Commercial history
• Seed with “open orders”, “order history”, “transaction history” and “balances”.
• Order book
• Forms for creating orders.
  
• Panel with the trading charts , which allows us to see the evolution of the exchange price. It also has a TradingView dashboard.

Users have the ability to carry out their trading studies, just like any other exchange. Add a “depth” button where we can see the amount of market orders. This allows anyone to explore the different asset markets of this DEX.

Binance DEX only allows to establish buy and sell orders, it does not allow advanced functions such as stop-loss. In addition, the established operations have an expiration date, after 72 hours the operation is automatically deleted.

Note that the seller’s assets are always the same until the transaction is closed. When a buyer acquires the seller’s tokens, a portfolio-to-portfolio transfer is made. This is instantaneous and without the need for trusted third parties.

Not surprisingly, Binance DEX charges a small commission for each call or put option added to the decentralized exchange. Commissions on this platform are paid only with the BNB token. The commission price is between 0.00005 BNB and 0.0005 BNB.

Binance Smart Chain

They have developed their own blockchain network, which is practically traced to the Ethereum blockchain . Some aspects of the operation, some aspects of the consensus and the algorithm are changed. This blockchain has been developed with the intention of competing with Ethereum in the development of decentralized applications and decentralized finance through the use of smart contracts .

Currently there are still few solutions developed on the Binance Smart Chain (BSC). The most important is the decentralized exchange PancakeSwap, which was created as an alternative to Uniswap and its “copy” SushiSwap. But it is betting on supporting developers who use BSC.

Tokens

Binance DEX allows adding any type of token that is based on the BEP-2 standard (a copy of the ERC-20 standard). This requires the execution of a specific script in the node that allows creating an application in the blockchain so that the validating nodes can consider the listing of the token.

To start the token listing process, a deposit of 1000 BNB must be made . This amount of tokens will be returned whether or not the proposal for the inclusion of the new token is accepted. If after the vote of the nodes the inclusion of the new token is accepted, the creator of this new pair must pay a fee of 2000 BNB. After paying the commission for the inclusion of the new token, it will be listed as any other token.

BNB Token

The Binance Coin token was launched in 2017 to fund the development of the Binance exchange. Initially, the BNB token was developed under the ERC-20 standard for the Ethereum blockchain . But, the BNB coins were switched to the BEP-2 standard, which passes these tokens to the BSC blockchain . Users as of April 2019 can request the conversion of BNB ERC-20 tokens to BNB BEP-2 tokens in a 1: 1 ratio.

This token can be used as a payment method and is a useful token for the Binance decentralized exchange. Users who trade with BNB will not have to pay commissions for transacting with this token. It is also used to be used within the platform to finance different projects or to leverage them in the liquidity pools.

What is Binance Labs

It is an incubator and accelerator for startups, that is, they support projects and young companies that are in an initial phase of creation and construction . All companies supported and supported by Binance Labs are focused on the cryptocurrency segment.

Currently this branch of the exchange has a presence in Africa, Latin America and Europe. Any start-up company or project focused on the world of cryptocurrencies and blockchain can apply for direct investment or be included in the incubation program.

Binance Labs’ mission is to support industry projects that help grow the largest blockchain ecosystem, realizing the full potential of blockchain technology and its social impact, while increasing the adoption of cryptocurrencies globally.

Binance Labs

For those who want to request direct investment , Binance Labs requests a product with an initial development . While the incubator offers a 10-week program where startups are accompanied in the process of creating / identifying a product that fits the needs of the market.

Binance Labs even offers information on focus based on geographic area. For those interested, for Latin America developments are currently being sought in the following areas:

• Stablecoins  – stable cryptocurrencies
• Payments
• Payment gateways connected with fiat
• Remittances
• Commercial infrastructure

What fees Binance charges

We have to be aware that the centralized exchange Binance is a company destined to make money. For this reason, the platform charges a series of commissions according to the operations we carry out . Let’s see the commissions that can be charged to us.

Withdrawal fee

If we want to send our cryptocurrencies to a wallet of our property or to another exchange, we will have to pay a commission . If the transaction is between internal wallets of the exchange, the commission will be returned to us when the transaction has been made.

Here we leave you the link so that you can check the minimum withdrawal amount and the commission that we will be charged.

General commissions

We have decided to group the most common fees for trading within Binance . These are:

• Regular trading (Spot) : 0.1% maximum (the more BNB we have in our account, the lower the commissions will be)
• Futures trading : 0.04% maximum (the more BNB we have in our account, the lower the commissions will be)
• Convert : no commission
• Deposits : no commission
• Cryptocurrency purchases with a card : 2% maximum
• Fiat deposits by bank transfer : 0.5%
• Fiat deposits by Advcash : 0%
• Fiat deposits by Etana : 0.1%

Maker and taker commissions

The fees charged by Binance can vary in percentage based on various factors. Mainly they can vary according to the volume, the balance or if we operate as a maker or taker .

We must understand that the maker (creator) is the one who launches an operation to the market for a certain amount and value. These operations are not executed instantly. The trade is in the market until a taker (taker) accepts the conditions, matching the trade and executing it. Thus the maker makes a proposal and a taker must accept this transaction proposal.

We can see in this table a summary of the commissions according to the level:

Is Binance a secure exchange

During the last few months Binance has been attacked by some international regulators. Although this may make you think that the exchange is not legal or safe, nothing could be further from the truth. The exchange is licensed to operate internationally without major problems. These attacks by regulatory bodies of different states is simply an attempt to try, in a tortuous way, to control cryptocurrencies and try to prevent their use.

We have to go back to May 2019, when Binance suffered a hack into one of its hot wallets . These wallets are constantly online so that there are funds that allow users to operate normally . Binance suffered a hack in one of these hot wallets, which allowed the theft of 7,000 BTC , which represents 2% of the exchange’s assets. The exchange has reimbursed all stolen funds from users and has continued to operate like nothing after this incident.

Binance highlights that the platform is “designed from the ground up with security, efficiency, speed and scalability taken into the utmost consideration . ” James Hofbauer is the chief architect of the platform, having extensive experience in the development of high-level security systems. He is supported by Roger Wang, owner of the security-focused cloud hosting platform Bijietech.

Final words on the Binance exchange

Currently this exchange is the most important in the world and works constantly to remain so. Binance has added features that cannot be found on other exchange platforms, such as NFTs, Ethereum 2.0 stacking, a Bitcoin and Ethereum mining pool, a cryptocurrency liquidity pool, a decentralized exchange, its own blockchain and even a decentralized exchange, among others. All in order to establish itself as the best exchange in the market.

In this article we explain what blockchain technology is and how it works

A large number of elements that allow you to differentiate yourself from the rest of centralized exchanges and attract users. It has opted for non-fungible tokens, riding a wave that generates enormous profitability for users and the platform itself. They have also developed a decentralized exchange within their own blockchain as a solution for the decentralized finance (DeFi) ecosystem. But it also offers many options to earn money passively and constantly offer contests and sweepstakes to generate activity and presence on the networks.