Everything You Need to Know about Binance
Binance Coin (BNB) is currently the fourth-largest cryptocurrency in market capitalization. The rapid rise in popularity of Binance is due to the development of Binance Smart Chain and Binance exchange.
In order to trade cryptocurrencies, you must first go to a cryptocurrency exchange website. A slew of new exchanges is popping up due to the growing adoption of crypto technology, Defi, and NFTs. At the moment, Binance is the world’s largest crypto exchange. It was founded in 2017.
Let’s find out more about the Binance Smart Chain and other factors that will help you better understand BNB.
What’s the Difference Between Trading & Investing?
Investors and traders alike aim to make money from the financial markets. Nevertheless, their methods differ significantly.
A return over a more extended period of time – say, years or decades – is what investors are generally seeking. Investors typically target greater returns for each investment because they have a longer time horizon.
In contrast, traders try to profit from market volatility. It’s likely that they’re entering and exiting positions more frequently and that they’re seeking smaller returns with each trade (because they’re often entering multiple trades).
What is the better of the two? Which one fits you best? The choice is yours. Depending on your financial goals, personality, and trading profile, you’ll be able to determine which one is best for you. Experience is a great way to learn about the markets.
How is the Financial Market Driven?
In the end, supply and demand determine the price of an asset. That is, it’s determined by demand and supply. Whenever supply meets demand, a market exists. How else does an asset’s value increase?
We have discussed earlier that fundamental factors, such as the economy, can play a role. Additionally, a cryptocurrency’s market capitalization is another factor to consider. Additionally, other factors may be considered, such as recent news or market sentiment.
This is just a list of factors to consider. At any given moment, the price of an asset is determined by simply the balance between supply and demand.
What Is Binance?
With over 180 countries in its user base, Binance is the world’s leading cryptocurrency exchange by volume. Beginners will find it easy to use, and it has a variety of features that are perfect for them. Binance Academy also offers excellent learning resources to enhance your crypto knowledge.
Since regulatory pressure has increased in certain countries, Binance has implemented a reliable user verification method and removed (or limited) certain controversial services, such as security tokens and high leveraged trading.
There is no Headquarters for Binance
More than 2,000 employees work at Binance around the world, but the company has no headquarters. Binance believes crypto should have no borders. According to Zhao, cryptocurrency organizations aren’t required to have an office or a bank account, as traditional business models do.
However, countries like the U.S. it does have licensed companies that must be registered to comply with federal regulations. Binance had wanted to establish this in the U.K., but it withdrew its application.
Binance’s lack of a headquarters can be seen as an indication of the way it approaches regulation. Bitcoin was founded on the principles of decentralization and openness. However, to function and remain accessible, it must compromise.
The company owns CoinMarketCap
CoinMarketCap, a popular cryptocurrency data site, was acquired by Binance in 2020. Neither company is affiliated with the other. In the long run, Binance’s exposure to retail investors would be increased with the acquisition of a site with millions of users.
In addition, the company operates TrustWallet, a decentralized wallet for storing coins, and Swipe, which enables crypto and traditional payments to work together.
The Price Has Increased 900% in Two Years
Today, your BNB would be worth around $100,000 if you had purchased it for $10,000 in 2019. When you see that jump, you need to determine how much more the token is likely to grow as an investor. It is not just a cryptocurrency exchange; it is also a thriving ecosystem with a lot of competitors. Combined, however, they make for a formidable proposition, especially if a strong team is behind it.
BNB has a clear use case, which cannot be said about every cryptocurrency. The company offers a balance between education and accessibility. Investors are taught how to use more complicated products and are informed of their risks.
How to Buy Cryptocurrency on Binance
To purchase cryptocurrency on Binance, you must complete the Know Your Customer (KYC) process. KYC helps us ensure that you are who you say you are and comply with our legal requirements.
Once you have verified your identity, you can purchase crypto using different methods.
- Credit/debit card: the easiest way to begin using the website.
- Fiat currency must be transferred from your bank account to your Fiat and Spot wallet.
- Invest in crypto directly with other users through Binance’s peer-to-peer marketplace.
Buying & Selling Crypto on Binance
Are you cashing in your profits and buying the dip? Binance makes it easy to sell your crypto. Sell your crypto on Binance by going to the cash balance section, clicking on “sell crypto”, selecting the crypto you want to sell, entering the amount, choosing the FIAT currency, and hitting the Sell button! The profit can be withdrawn to your Binance account or converted and kept in your Binance fiat wallet.
Upon confirming your request, you will receive a confirmation message, after which the transaction will be processed and the money transferred.
You can sell your coins/tokens by clicking “Sell” in the top menu. You can also sell your cryptocurrency through P2P trading. For P2P trading, you will need to transfer the cryptocurrency you want to sell to your P2P wallet first.
Choose a payment method and proceed. Once the buyer makes payment and confirms the receipt, the transaction will show “pending payment”. To release the crypto to the buyer, tap “Confirm” after receiving the payment.
How Binance Fees Work
Binance, only withdrawals do not charge deposits. A transaction’s fees will fluctuate if there is congestion in the network, such as with crypto withdrawals.
Withdrawal fees vary between coins. Fees are reduced by 25% when you trade and pay with Binance Coin (BNB). Among the reasons Binance is so popular are its low rates & fees and discounted BNB trading.
Liquid Swap Binance: What is it?
A liquidity pool developed according to the AMM (Automatic Market Maker) principle is referred to as Liquid Swap. Liquidity pools consist of multiple digital tokens or liquid assets. Each pool consists of two digital tokens or liquid assets.
You can earn flexible interest and transaction fees
by providing liquidity in the pools.
You can also swap two digital tokens or fiat assets in liquidity pools.
Liquid swaps can be classified as either stable investments or innovative investments.
In the stable token, a constant function automatic market-making system is used to simplify the trading process, provide a low slippage trading experience, and realize transactions between two stable tokens. The market-making income is more stable than the Innovation income because the token prices are affected more by changes in the exchange rate/token price.
The transaction and pricing for two digital tokens or fiat currencies are caused by an automatic market-making model based on the constant mean value. In the pool, prices of the two tokens fluctuate dramatically based on fluctuations in exchange rates/token prices, while market-making returns fluctuate even more.
Binance customers can use BNB to reduce trading fees and earn interest. Binance Coin can be used for other purposes as well. In addition, the Binance Smart Chain runs smart contracts through its programmable blockchain.
Blockchain databases serve as tamper-proof ledgers that record transactions and information.
As a technology, blockchain is powerful because it cuts out middlemen such as banks and governments. You can use smart contracts to take out a loan without an institutional lender or set up an insurance policy that pays out automatically when certain conditions are met.
Because it is also a cryptocurrency exchange, Binance is particularly attractive. If you want to learn more, head over to the Binance academy to find out further!