Recap: what is a cryptocurrency exchange?
A Cryptocurrency exchange is a platform on which you can trade cryptocurrencies. It depends on the platform in which coins can be traded, so there can still be a reasonable difference between the exchanges. But you can assume that you can trade in Bitcoin on every Bitcoin exchange. On some exchanges, it is only possible to trade in some of the largest currencies such as Ethereum and Litecoin. But on other exchanges, you can trade in smaller, unknown Cryptocurrencies. The trading volume also varies per exchange. The trading volume is the number of coins that are traded. This is often indicated by displaying the trading volume of the last 24 hours.
In addition to the trade volume, the number of trading pairs is also important for an exchange. A trading pair is “the market” on which you trade. With the trading pair BTC / LTC it means that you can exchange Bitcoin for Litecoin and vice versa. For trading pair LTC / ETH it means that you can trade Litecoin for Ethereum in that market and vice versa. I also always pay attention to the Bitcoin withdrawal fee. This is the amount that you have to pay to get Bitcoins off the exchange to send it to your hardware wallet, for example. This fee differs per exchange and this can sometimes save quite a bit of money. Incidentally, it is not unwise to register on multiple exchanges. No exchange has all cryptocurrencies listed. The more you want to trade, the more exchanges you can use.
Binance is a cryptocurrency exchange based in Tokyo and Malta. At this crypto exchange, people can buy, sell and store hundreds of types of cryptocurrency in wallets. Binance is the most popular cryptocurrency exchange in the world and is used daily by millions of traders. The Binance exchange is known for its low trading fees (0.1%, if you use the Binance coin, you only pay 0.05%) and its fast transaction processing.
Binance is currently the largest Cryptocurrency exchange and also one of my favorite exchanges. I chose to create an account there because there were some trading pairs with a high volume that could not be found elsewhere. Binance also has a referral program and its own cryptocurrency: Binance Coin (BNB). Binance has an Android application, which makes it easy to trade on the move. This Bitcoin exchange is very suitable if you are looking for a wide range of Cryptocurrencies and has a very good reputation so far.
- Trading volume: The total trading volume is currently $ 5,946,664,331
- Trading pairs: 263 trading pairs are currently available on Binance
- Bitcoin withdrawal fee: The withdrawal fee for Bitcoin is 50,000 Satoshi (0.0005BTC)
Advantages vs disadvantages
- Security and user-friendliness: The trading platform uses a multi-tier and multi-cluster system architecture.
- Multiple device support: Binance supports web browsers, Android, HTML5, WeChat and other platforms.
- High Performance: Binance can process 1.4 million orders per second.
- Multi-Language Support: Binance supports Chinese, English, Japanese and Korean. Recently they also offer the Dutch language.
- High Liquidity: Binance offers strong liquidity in a number of cryptocurrency pairs.
- Multiple Coin Support: They accept transactions in a variety of crypto coins, including BTC, ETH, NEO, LTC, and BNB.
- Strong team: Binance is led by Changpeng Zhao. In general, the company claims that the team has a lot of experience in both Wall Street and crypto finance, along with a track record of successful startups.
- The most user-friendly exchange at the moment and I think that it will remain a while since they are constantly developing (improving).
- Proven products: The underlying Binance platform is already being used on 30+ exchanges. The platform supports all devices and multiple languages and offers a seamless user experience.
- Superior technology: Binance uses a certified matching engine that can process 1.4 million orders per second, making Binance one of the fastest exchanges in the market, explains the official website. At the moment there is no exchange that can match this.
- A drawback is that Binance was originally established in China and, as you probably know, the Chinese government is not a big fan of cryptocurrencies. That could cause problems and the exchange has already run into some things in China. However, they are trying to move to a country where they are not being haunted. They have tried to make a new start in Japan, but they were not very welcome there either. Malta is now the new option and hopefully, it will be all right there.
- – Binance tries to make it even more attractive to get started with BNB, by giving discounts if you use the tokens to pay costs. In the first year that you use Binance, you will receive a 50 percent discount on the trading fees if you use BNB. This discount will decrease every next year until you no longer receive a discount in the fifth year. However, because you do get a discount for years, there is a greater chance that people will use the tokens.
However, the question is whether people are still just as motivated to use Binance Coin when they have arrived in the fifth year. Then there is no longer a discount and the interest in the token could decrease considerably. If the cryptocurrency is not already strong at that time and is being used for other reasons, it might look bad.
It is possible to lend cryptocurrency to Binance and receive interest on this. This is called Binance Lending. The interest rates can vary from 3.5% to 15% on an annual basis. There is a maximum of the cryptocurrency to be borrowed and this is clearly indicated. If you temporarily do nothing with your cryptocurrency then this is a handy way to achieve extra returns.
Certain coins can be staked through the platform. You can strengthen the network simply by holding coins. In return, you will receive a reimbursement. This reward differs per currency and is usually between 1% and 14%. You can also achieve a return on this by doing nothing with your cryptocurrency.
Binance Margin trading
This is functionality for more experienced users, with which you can take more risk by working with a lever. You can speculate with more money than you actually have. This allows you to take a higher risk and you can lose all your money faster. With margin trading, you cannot lose more than you own, but you can lose everything very quickly. This is not recommended by rookie traders or beginners!
Our own Binance experience is very good. I have been using the platform for more than a year (since 2017) and have seen so much being developed on the platform. For example, new coins are added regularly, there is very good communication and the system works flawlessly. It is not without reason that Binance is the world’s most popular exchange. We rate this company with a 9/10.