Binance is the world’s largest cryptocurrency exchange by trading volume, offering a diverse ecosystem for traders, investors, and blockchain enthusiasts. Founded in 2017 by Changpeng Zhao (CZ), Binance quickly became a dominant player in the crypto space thanks to its extensive range of cryptocurrencies, competitive fees, and advanced trading features.
What makes Binance stand out among hundreds of other exchanges? In this article, TopCoin9 will dive deep into its history, key features, trading fees, and a step-by-step guide on how to use Binance effectively.
What is Binance?
Binance is a global cryptocurrency exchange that allows users to buy, sell, and trade a wide range of digital assets. Known for its high liquidity, low trading fees, and extensive selection of cryptocurrencies, Binance has become the go-to platform for both beginners and professional traders. It offers various trading options, including spot, futures, margin, and peer-to-peer (P2P) trading, along with additional services like staking, savings, and token launches through Binance Launchpad.
More than just an exchange, Binance has expanded its influence through the Binance Smart Chain (BSC), enabling decentralized applications (dApps) and smart contracts. With continuous innovation and global expansion, Binance has played a significant role in shaping the crypto industry.
But how did Binance rise to dominance in such a short time? Let’s take a look at its history and background.
History and Background of Binance
To become the largest cryptocurrency exchange in the world today, how did Binance develop? Please refer below.
Founding and Establishment
Binance was founded in 2017 by Changpeng Zhao (CZ), a developer with extensive experience in financial software and blockchain technology. Initially launched in China, Binance quickly gained traction due to its fast transaction processing, low fees, and a growing selection of cryptocurrencies. To support its expansion, Binance raised $15 million through an Initial Coin Offering (ICO), introducing its native token, BNB, which offered trading fee discounts and additional utilities within the Binance ecosystem.
With a user-friendly interface and advanced trading features, Binance rapidly became one of the largest crypto exchanges in the world, attracting millions of users globally within just a year of its launch.
Headquarters and Global Expansion
Due to increasing regulatory restrictions in China, Binance relocated its operations to Japan and later to Malta, a crypto-friendly jurisdiction. However, as global regulations evolved, Binance adopted a decentralized structure, operating in multiple regions without a fixed headquarters. Despite this, Binance continues to comply with regulatory frameworks in various countries, securing licenses in France, Dubai, Bahrain, and other regions.
To expand its reach, Binance has launched several regional platforms, such as Binance US for American users and localized exchanges in Europe, Asia, and the Middle East. Additionally, the introduction of Binance Smart Chain (BSC) has positioned Binance as a key player in decentralized finance (DeFi), further strengthening its dominance in the blockchain industry.
With its rapid growth and global presence, Binance offers a wide range of features that set it apart from competitors. Let’s explore the key features that make Binance a leading exchange.
Key Features of Binance
Binance exchange has many outstanding features, giving investors the best experience. You can refer to it below.
Wide Range of Cryptocurrencies
One of Binance’s biggest strengths is its extensive selection of cryptocurrencies. The platform supports 350+ coins and tokens, including major assets like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and stablecoins like USDT and USDC. Users can trade various pairs across spot, futures, and margin markets, making Binance one of the most versatile exchanges for crypto traders.
Advanced Trading Options
Binance offers a variety of trading tools to accommodate both beginners and professional traders. Users can access spot trading, margin trading, futures contracts, and peer-to-peer (P2P) trading. Additionally, Binance provides automated trading bots, stop-loss orders, and advanced charting tools, enabling users to execute sophisticated trading strategies with ease.
Binance Smart Chain (BSC)
Beyond just an exchange, Binance has built Binance Smart Chain (BSC)—a blockchain network designed for fast, low-cost transactions. BSC supports decentralized applications (dApps), DeFi projects, and NFT marketplaces, positioning Binance as a major player in the blockchain ecosystem. With BNB as its native token, Binance Smart Chain has attracted thousands of developers and projects.
Security and User Protection
Binance prioritizes security with multiple protective measures:
- Two-Factor Authentication (2FA) for user accounts
- Secure Asset Fund for Users (SAFU), which protects against losses in extreme situations
- KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance to enhance regulatory security
These measures make Binance one of the safest crypto exchanges available.
Binance Launchpad
For investors looking to participate in new blockchain projects, Binance Launchpad provides early access to promising token sales. Many successful crypto startups, including Polygon (MATIC) and Axie Infinity (AXS), were launched through Binance’s Initial Exchange Offering (IEO) platform, offering high growth potential for early adopters.
Staking, Savings, and Passive Income
Binance allows users to earn passive income through various programs:
- Staking: Locking up crypto assets to earn rewards
- Savings: Flexible and fixed deposit accounts with interest in cryptocurrencies
- Liquidity farming: Providing liquidity to pools in exchange for rewards These features make Binance a top choice for those looking to grow their crypto holdings without actively trading.
With so many advanced features, Binance remains the most comprehensive crypto exchange. But how much does it cost to trade on Binance? Let’s explore its fees and transaction costs.
Binance Fees and Transaction Costs
Binance is known for its competitive and transparent fee structure, making it one of the most cost-effective exchanges for traders. Here’s a breakdown of the key fees users should be aware of:
Trading Fees
Spot Trading: Binance uses a tiered fee structure based on trading volume and BNB holdings. Standard fees start at 0.1% per trade but can be reduced by:
- Holding Binance Coin (BNB) and using it to pay trading fees (25% discount)
- Increasing trading volume to qualify for VIP levels with lower fees
Futures Trading: Maker fees start at 0.02%, and taker fees start at 0.04%, with similar discounts for high-volume traders and BNB holders.
Deposit and Withdrawal Fees
- Deposits: Most cryptocurrency deposits on Binance are free, though blockchain network fees may apply.
- Withdrawals: Fees vary depending on the coin and network used. For example, withdrawing BTC incurs a small fee that adjusts based on network congestion.
Other Fees
- P2P Trading: No fees for buyers and sellers, but advertisers may incur small charges.
- Binance Convert (instant swap between assets): No additional fees, but rates include a small spread.
- Staking and Savings: No direct fees, but Binance takes a small percentage of earned rewards.
By leveraging BNB discounts and VIP trading levels, users can significantly lower their trading costs.
Now that we understand Binance’s fees, let’s go through a step-by-step guide on how to use Binance effectively.
How to Use Binance – A Step-by-Step Guide
Getting started with Binance is simple, but new users may find its vast range of features overwhelming. Whether you’re a beginner looking to buy your first cryptocurrency or an experienced trader seeking advanced tools, this guide will walk you through the essential steps to navigate Binance efficiently.
Creating a Binance Account
To begin trading on Binance, you first need to create an account. Follow these steps:
- Visit the Binance on the website and click “Sign Up”.
- Enter your email or phone number, create a strong password, and agree to the terms.
- Verify your account by entering the code sent to your email or phone.
- Complete identity verification (KYC) by submitting a government-issued ID and a selfie. This step is required to access all Binance features, including withdrawals and higher deposit limits.
After successfully registering an account, to make a deposit, please refer to the following steps.
Depositing Funds
Once your account is set up, the next step is to fund it:
Log in and go to “Wallet” > “Fiat and Spot”.
Click “Deposit” and select either crypto or fiat currency.
- Crypto deposits: Choose the coin and blockchain network, copy the deposit address, and transfer funds from an external wallet.
- Fiat deposits: Depending on your region, you can use bank transfers, credit/debit cards, or third-party payment services.
Trading on Binance
With funds in your account, you’re ready to start trading:
- Go to “Trade” and choose a trading mode (Convert, Classic, or Advanced).
- Select a trading pair, such as BTC/USDT.
- Choose the order type:
- Market Order: Executes immediately at the best available price.
- Limit Order: Lets you set a specific price for buying or selling.
- Stop-Limit Order: Executes a trade once a predefined price is reached.
- Enter the trade amount and confirm the transaction.
By following these steps, you can easily navigate Binance and make your first trade. However, like any platform, Binance has its advantages and drawbacks. Let’s take a look at the pros and cons of using Binance.
Pros and Cons of Using Binance
Like any cryptocurrency exchange, Binance has its strengths and weaknesses. Understanding them can help traders make informed decisions when using the platform.
Pros
Binance exchange has the following outstanding advantages:
- Wide selection of cryptocurrencies – Binance supports hundreds of cryptocurrencies, including major coins and emerging altcoins.
- Competitive trading fees – Binance offers some of the lowest trading fees in the market, starting at 0.1% and further reduced when using BNB.
- Advanced trading features – The platform provides various trading options, including spot trading, futures, margin trading, and peer-to-peer (P2P) transactions.
- Binance Smart Chain (BSC) ecosystem – Users can access DeFi projects, decentralized applications (DApps), and token staking through Binance Smart Chain.
- High liquidity – Binance has one of the largest trading volumes, ensuring fast order execution and minimal slippage.
- Security measures – Binance implements strict security protocols, such as two-factor authentication (2FA), withdrawal whitelisting, and cold storage for funds.
Besides the advantages, Binance exchange also has some disadvantages. Please follow the section below.
Cons
Binance exchange has some disadvantages as follows:
- Regulatory challenges – Binance has faced regulatory scrutiny in several countries, leading to restrictions on certain services.
- Complex interface for beginners – While Binance offers a basic trading mode, its extensive features and advanced tools can be overwhelming for new users.
- Limited customer support – Binance primarily relies on a ticket-based system and chat support, which can sometimes result in slow response times.
Despite these drawbacks, Binance remains one of the most popular and widely used cryptocurrency exchanges. Next, let’s explore Binance security and safety measures to understand how the platform protects users and their funds.
Conclusion
Binance has established itself as one of the leading cryptocurrency exchanges, offering a wide range of trading options, low fees, and innovative features like Binance Smart Chain and staking. While it faces regulatory challenges and has a complex interface for beginners, its strong security measures and high liquidity make it a preferred choice for traders worldwide. Whether you’re a beginner or an experienced investor, Binance provides the tools and opportunities to navigate the crypto market effectively.
