What is Binance? Binance Exchange Review 2024

What is Binance?

Binance, a cryptocurrency trading and exchange platform, was founded in 2017 in China. It is currently the world’s largest cryptocurrency exchange with over 1000 trading pairs.

CZ, the head of Binance, previously worked as a manager in the Development Department of Blockchain.com and was the founder and technical manager of the famous exchange OKCoin. Currently, due to legal issues, CZ has transferred leadership to Richard Teng.

In early July 2017, Binance conducted an ICO with the CEO’s support. The project quickly attracted attention from the community and raised $15 million from the ICO held from 01/07 to 21/07/2017 with over 20,000 registrations in the early days.

Initially, Binance was based in China but later moved its offices to Hong Kong and Japan due to suspicions from the country regarding cryptocurrency regulations. However, legal issues continued to haunt Binance, leading it to leave Japan and settle in Malta in March 2018.

Basic information about Binance:

• Name: Binance
• Type: Cryptocurrency exchange
• Year founded: 2017
• Founder: Changpeng Zhao (CZ)
• Headquarters: Malta

Register for trading on Binance here.

What is Binance Launchpad?

Binance Launchpad has received support from the investor community and especially from startups. Why is that?

Binance Launchpad can be seen as a promising opportunity for startups. For investors, this is a golden opportunity to assess the potential of new projects.

In simple terms, Binance Launchpad is a platform supported by Binance for new cryptocurrency projects, helping them reach customers within the Binance ecosystem.

However, getting selected and passing through this gateway is not easy for projects. Binance applies investor protection mechanisms and sets strict standards for new projects listed on the exchange.

This is the most stringent place for new projects, including:

• The maturity of the project.
• Market development potential.
• Impact and application of the token on a large scale.
• The development team must be reputable individuals in the community and have clear policies for users.

Related: Binance Announces Listing of Saga (SAGA) on Launchpool

What is Binance Staking?

Binance Staking is a service provided by Binance to help you save and generate passive income from your cryptocurrency, similar to opening a savings account at a bank.

To participate in Staking on Binance, you only need to deposit the supported coins into your account.

There are two types of Staking on Binance:

Locked Staking:

This type is similar to depositing money into a fixed-term savings account. You can choose a Staking period of 30, 60, or 90 days. This is suitable for long-term investors who are not concerned about short-term fluctuations and want to increase the amount of cryptocurrency they hold.

DeFi Staking:

This is the simplest form to access DeFi for those unfamiliar with the field. You delegate Staking to Binance to do it for you. Binance will invest on your behalf in DeFi projects and distribute rewards back to you.

However, this method also comes with some risks. You do not have direct control over Staking, so be sure to equip yourself with knowledge and research before deciding to participate.

What is Binance Futures?

Binance Futures is a platform for trading futures contracts on Binance. This allows investors to profit by predicting the price trends of a cryptocurrency at a specific time without needing to own that cryptocurrency.

Currently, Binance offers 2 futures trading platforms. The first platform is Binance Futures, which Infina is introducing to readers.

The other platform is Binance JEX. However, with extremely high leverage ratios in cryptocurrency trading, Binance Futures remains the golden egg for Binance, while JEX is currently lagging behind.

By 2022, Binance had added many perpetual futures contracts beyond BTC, such as BCG, XRP, EOS, ETH,…

So what are the advantages and disadvantages of Binance Futures:

Advantages

• Extremely high leverage up to x125 compared to equivalent markets.
• High liquidity, with large trading volumes.
• Can be used by linking to a basic registered Binance account.

Disadvantages

• Difficult for beginners to use Futures contracts.
• Limited trading pairs such as BTC/USDT, ETH/USDT,…

Is Binance a scam?

In any business, rumors and unavoidable issues always exist. When there are rumors of Binance being a scam, most actual traders understand that this is impossible.

With a market cap of billions of USD and advanced security technology, Binance cannot have any issues related to scams.

In some cases, customers who do not understand the market volatility and use low leverage ratios, combined with high leverage, are susceptible to margin calls and account burn risks. This can lead to the conclusion that the exchange is a scam.

Binance Review

Advantages

• Low trading fees: Binance is one of the exchanges with the lowest trading fees, starting from 0.075% if paid with BNB and 0.1% if using other coins.
• Diverse trading pairs: Binance offers over 1000 different cryptocurrencies and a variety of stablecoins, providing convenient conditions for investors.
• High trading volume and liquidity: Binance has a large trading volume and high liquidity, allowing continuous and convenient trading for investors.
• Withdrawals without KYC: Users can withdraw up to 2 BTC per day without identity verification, facilitating quick transactions.
• User protection fund (SAFU): Binance has established the SAFU fund to protect users’ assets from risks such as hacker attacks.
• Multilingual support: Binance supports over 41 different languages, including Vietnamese, and has a full Vietnamese support team.

Disadvantages

• Slow processing during market volatility: During periods of high market volatility, transaction processing on Binance may be slower than usual, leading to price slippage and high risks for users, especially on Binance Futures.
• No direct Fiat deposit/withdrawal support: Binance does not provide direct Fiat deposit/withdrawal services on the exchange.
• Hacker attack risks: Due to the large user base, Binance becomes a target for hackers and has been attacked in the past, so caution is needed when trading to avoid asset loss.

Conclusion

Through the article “What is Binance? Is Binance a scam?“, readers must have gained an overview of Binance and its special features. For investors considering investing in the cryptocurrency market, mastering knowledge before making decisions is extremely important.

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