The Rise of Binance Cryptoexchange

Binance

Cryptocurrency exchange Binance is the top-ranked exchange in the world (version of Crypto.ru). The platform offers a wide range of trading opportunities for professionals and beginners alike. There are 383 underlying instruments and 158 derivatives, making the site a leader in the cryptocurrency market.

History

The Binance exchange was established in July 2017. The creator of the project is Chinese investor Changpeng Zhao. Initially, the project was headquartered in Hong Kong. As the platform grew, it was decided to re-register it in Malta. Along with the launch of the project, the first batch of exchange tokens – Binance Coin (BNB) – sold out at the ICO. They allow for savings on exchange fees. As of 2019, the number of users of the platform was around 15 million, and the daily trading volume exceeded $3 billion at peak times.

The legal status of the cryptocurrency exchange deserves special attention. For example, in 2021, the PRC government imposed a number of restrictions on Binance. The measures were related to the lack of a license. In order to avoid problems with the authorities of the leading states, the management of the exchange announced a quick launch of the procedure for obtaining the required permits, which fundamentally contradicts the idea of decentralization.

Trading on Binance Cryptoexchange

Services

The main development focus of the Binance cryptocurrency exchange remains spot trading. Extensive opportunities are open to those wishing to engage in margin trading with high leverage. Other options on the exchange include:

  • lending;
  • Derivatives trading;
  • P2P transactions based on smart contracts;
  • Purchase of digital assets for fiat (via cards or bank accounts).

A yield mechanism related to liquidity in the DeFi pool is gaining momentum. The instrument is also available on the exchange. It is essentially a repository for a significant number of tokens locked up with smart contracts. The liquidity provider can set a more favourable purchase price for itself, especially if the offered digital asset is in demand.

Features

The cryptocurrency exchange Binance is a leader in terms of trading mechanisms available and average daily trading volume. The site emerged later than others, but has managed to outpace numerous competitors due to its high level of protection, rich functionality, and strict adherence to privacy policy. There is a referral programme for users, according to which they can receive a portion of the funds from the profitability of the clients they have attracted.

Until August 2021, the anonymity of digital asset trading was considered by many to be the main advantage of the platform. With certain deposit and withdrawal limits, account verification was optional. That all changed in the summer of 2021. Many governments spoke out against the anonymity of trading because it could launder criminally derived money. The exchange was threatened with a ban and a number of restrictions, so Binance management was forced to introduce mandatory account verification. There are now 436 tokens and coins that can be traded on the platform. There are more than 1,500 pairs on the spot market. This number is constantly increasing. The exchange has supported around 150 cryptocurrency derivatives, including futures trades, classic options, etc. Today, Binance is considered a recognized leader in digital asset trading. Users appreciate the resource for its great opportunities, huge list of trading pairs, advanced mechanisms for investing funds and making profits.