Introduction
Binance is indeed a third-party exchange platform that started up at the end of 2017. Users can buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, etc. Even though the company's main office is now on the European island of Malta, it was started by a Chinese citizen named Changpeng Zhao (CZ).
Binance has grown and become one of the largest cryptocurrency exchanges in the world in less than two years. The platform is often used for trading more than $2 billion worth of goods and services every day.
Binance was mostly a cryptocurrency-to-cryptocurrency exchange until recently. This meant that it didn't handle deposits or withdrawals in fiat currency. But, as we'll talk about below, the platform now only supports a small number of bank accounts and credit card deposits.
Still, Binance has become well-known for more than one reason. First, the platform has a list of supported cryptocurrency pairs that is very long. It includes well-known coins like Cryptocurrencies, including tokens with small to micro caps. Second, Binance has very low fees for trading. Even though the average trading fee is a very low 0.1 percent, this can be even lower for people who hold Binance Coin, the platform's own digital asset.
Binance has its hands in several different things besides its main exchange platform. For example, last year, It was said that the company was planning to open the first blockchain bank in Malta. To make it easier to trade digital securities, the platform also has a memorandum of Understanding with the Malta Stock Exchange.
How Does Binance Work?
So you can see how the platform works as a whole, we've broken down the main steps you'll usually need to take to get started.
Go to Binance's home page and sign up for an account. If you only want to use cryptocurrencies to deposit and withdraw money, you only need to give your email address.
Binance Review, will ask you to set up two-factor authentication on your account to be safe (2FA). You'll need to put an app on your phone like Google Authenticator. Then, every time you would like to log in or do something important with your account, like ask for a withdrawal, you'll have to enter a unique code that you can only find on your phone.
Even though many countries can now deposit funds with a credit card or bank account, we'll assume you want to use a cryptocurrency. If you want to look into a fiat currency deposit, go to the "Funds" section of your account and follow instructions (if available).
Once your cryptocurrency deposit has been credited, which usually takes between 10 and 20 minutes, you can start trading. Move your cursor over the "Exchange" button just at the top of the page and choose between "Basic" and "Advanced." If you're just getting started, choose the first one.
Why is this important?
It's not easy to tell if a cryptocurrency exchange is safe. Most of the time, cryptocurrency exchanges don't qualify for programs that cover deposits, so you need to be extra careful when choosing a provider. In general, it's a good sign if the exchange has a large number of clients, a high number of trades per quarter, has been around for a while, and has a lot of employees, or if the company that runs the exchange-listed is on a stock market.
Binance is one of the biggest exchanges, if not the biggest, based on the volume of trades. It has more clients than its competitors, but it hasn't been around as long as those companies.
Spot Trading
Users can choose between two main interfaces when trading in the spot market. The "Convert" interface is good for beginners because it takes away all advanced features, like charts and different types of orders. This makes it very easy for people new to cryptocurrencies to trade between them at market rates.
There is also a regular trading interface for more experienced users. This interface has typical exchange features, such as charts, order books, different order types, and more.
Conclusion
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