Binance 101: Learn the basics in this full-length guide
Binance 101: Learn the basics in this full-length guide
Binance is one of the world’s largest crypto exchanges, and it has quickly become a popular option for many traders. It has also been responsible for an increase in the adoption of cryptocurrencies by hosting its own ICO – offering BNB tokens that can be used to pay trading fees on the platform. But what is Binance? How does it work? What are some things you should know before signing up? In this article, we will walk you through everything you need to know about the basics of using Binance so that you can have more success with your trades!
What is Binance?
Binance is one of the most popular cryptocurrency exchanges around today. It offers a range of currency pairs that include bitcoin (BTC), Ethereum (ETH) as well as other altcoins like Bitcoin Cash (BCH). In addition, they offer crypto index funds that reflect the performance of all cryptocurrencies listed but do not charge any fee. Only profits are distributed back to investors making it an attractive option for traders looking for long-term investments with low management costs or those wishing to diversify across different sectors
How does Binance work?
To start using an exchange like Binance for your trades, there are three steps: Setting up an account by registering on the site, verifying your identity as needed (which will vary depending on where you live), and then depositing funds into the platform. Once your funds has reached the platform you are able to start trading right away.
How many cryptocurrencies are listed on Binance?
There are a lot! Not all currencies may be available for trade at all times, but there is always an up-to-date list of what’s currently open and trading on the site.
Which cryptocurrencies can I buy?
You have access to purchase Bitcoin, Ethereum, Litecoin, Ripple, Dash, and hundreds of other altcoins as well–and if you’re unsure how much any particular coin is worth in USD then you can plug it into Binance’s own price converter that converts from one currency to another. You also have the option of transferring your coins out of the platform once they’ve been bought or sold so long as they haven’t yet reached their two-week limit before the withdrawal.
How many users does Binance have?
Binance has over seven million users and handles about $350 billion in trades each year.
Is Binance better than Coinbase?
Both exchanges come with their pros and cons, and it depends on the type of user you are. Binance is a more diverse exchange, meaning that there’s a greater chance to purchase coins that aren’t available at Coinbase, but with this comes to some disadvantages as well–for one thing, Binance has not been registered in any country and must therefore remain based out of China which prevents them from being regulated by U.S. authorities or even having access to American banking systems like Coinbase does (which means your USD deposits may take longer).
Additionally, since cryptocurrency exchanges have no centralized repository for customer funds they can be significantly affected by external events such as company shutdowns or DDoS attacks which might lead to traders losing their money if their funds were stored solely on an exchange rather than inside a wallet.
Is Binance Safe?
The company is officially based out of China but maintains offices abroad–including the United States and Japan–which could serve to safeguard their user’s information if ever a breach or hack were to occur on any one single server. Beyond this, they’ve also integrated multiple security features as well as an advanced hot wallet system that allows them to handle sudden surges in volume without impacting users’ funds. This all comes with some disadvantages though: for one thing, since exchanges like Binance have no centralized repository for customer funds they can be significantly affected by external events such as “company shutdowns” or DDoS attacks which might lead to traders losing their
Binance stance against money laundering
Binance takes a strong stance against money laundering and has employed various strategies to protect itself from this. These include:
Requiring all accounts on Binance be either verified or have the funds needed for verification deposited in them before trading is allowed
Conducting KYC checks to verify identities of users withdrawing more than 2000 coins per day, which triggers an additional review by compliance teams;
Implementing strict policies that prohibit any activity that may involve market manipulation like wash trades or spoofing as well as other illegal activities.
Binance support, do we get any help when we need it?
Binance offers comprehensive customer support in a variety of channels, including the following:
They also provide 24/365 availability for all our customers and aim to resolve any issues within 30 minutes from when they are reported. With such an extensive level of service, it’s no wonder that users have given them high marks on Trustpilot!
Do I need a wallet for Binance?
You’re always best of with a hardware wallet for storing your cryptocurrency. Ideally, this would be a Trezor or Ledger Nano S but it might also be an Electrum or Exodus wallet if you’re just using Bitcoin. There is no need to use the Binance exchange’s built-in wallets as they are known to experience outages when the site gets very busy and can’t handle all of the volumes on their servers–especially during times like Christmas when people buy lots of presents!
In addition to these security features, Binance has something called “onboarding” which makes it easy for newcomers to register by only requiring them to provide some basic information and provides a simple interface that doesn’t require too much knowledge about trading pairs and charts.
Why is the Binance withdrawal fee so high, and how does Binance Coin BNB interfere with that?
The withdrawal fee for Binance is much higher than other exchanges because they have a coin that can be traded on their platform called “BNB” which means users are able to trade coins like Bitcoin (BTC), Ethereum (ETH), and others while paying less in trading fees.
This incentivizes people who would otherwise not use the exchange and instead just buy or sell through another service, it actually encourages them to register an account with Binance first before making trades; this serves as a way of marketing/getting new signups. It also creates a type of stability within the market–you’re more likely to want your assets available on both platforms so you don’t lose out if one gets shut down or experiences downtime.
Is Binance tax-free?
According to the IRS, crypto is treated as property fortax purposes. This means that they will usually be subject to capital gains taxes.
Binance’s exchange is based in Malta, which has a tax-friendly regulatory environment for cryptocurrencies.
It offers an 80% reduction on all trading fees and doesn’t require any personal information from traders–only the wallet address where their cryptocurrency funds are stored.
I doubt many of you care, but some do and this info is for them. The rest of you. Hang in there!
What Is Binance Coin (BNB)?
BNB is Binance’s own token. It pays users 50% of the trading fees on its exchange, which will eventually go up to 100%.
In order for a user to buy and sell coins using Binance coin (BNB), you must have some amount of it in your account. You can use this cryptocurrency as payment when investing into ICOs hosted by binance or other companies that partner with them. They also offer their own crypto index funds, which reflect the performance of all cryptocurrencies they list but don’t include any fees–only profits are distributed back to investors.
Users who hold more than 1000 BNB tokens in their accounts receive discounts on trading rates and withdrawal charges over time, based on how many tokens they have in their possession.
Who Are the Founders of Binance Coin?
Binance coin (BNB) is founded by was created by Changpeng Zhao and the company’s team.
Wrapping things up
Binance is one of the world’s largest cryptocurrency exchanges, with more than 9 million users. The exchange was founded in China but moved its operations to Japan after China banned crypto trading in September 2017. Withdrawal fees on the platform are often higher than other exchanges because it has fiat-to-crypto and crypto-to-crypto trading pair options (meaning you can deposit or withdraw money for free). You don’t need a wallet before using Binance as they provide an online wallet service that is secured by two-factor authentication. Are you going to join? If not, why?