Binance – Crypto Exchange, All You Need to Know About It

Binance is the leading name not only amongst the Crypto Exchanges so far but also blockchain economy.

Binance Crypto Exchange

The exponential rise and demand for cryptocurrency has augmented the interest of many towards the new zone of investment. A whole new everyday addition of users spread across the globe to crypto trade has become customary now. This in turn has lead to surge in demand of Crypto Exchanges which serve as a hub for buyers and sellers who want to invest in Bitcoins or Altcoins.

Since the concept of crypto is still in its evolving stage amongst many investors, the Exchange that takes care of users experience is generally appreciated. Apart from this, the range of coins and services available, also plays a major role in the choice of the exchange. The analysis here is about the market leader – Binance.


Binance is the leading name not only amongst the Crypto Exchanges so far but also blockchain economy. It was founded in 2017 by Changpeng Zhao. It was originally started from China, but later on moved it headquarters to Cayman Islands when China proclaimed the ban against the use of cryptocurrencies.

Changpeng Zhao, popularly known as ‘CZ’ in crypto world, was born in China. When he was still a child, his family moved to Canada, and thus he is now a Canadian national.

Binance CEO Changpeng Zhao, Image Source: Twitter

An Overview

Binance is a centralized exchange which implies that some personal information is required to open an account. Besides Bitcoin, there are more than 600 cryptocurrencies listed on this platform and is trusted by over 90 million users which is a proof enough to understand the global acceptance of the platform.

Binance Coin

Binance has also launched two crypto-coins on its own by the name of Binance Coin (BNB) and Binance Smart Chain (BSC). Though BNB came to the market in June 2017, BSC rocked the market after almost 3 years in September 2020.

Binance Coin – Image Source: Pixabay

Binance Smart Chain works on “Proof of Staked Authority”, which is a combination of proof of stake and proof of authority. The users of Binance exchange can also compensate for the transaction fee with Binance Coins.

Binance in NFTs

Apart from cryptocoins, Binance also facilitates the buy and sell of NFTs. Binance Pay and Binance Marketplace channels assist the customers to make and receive international payments digitally in cryptocurrency. Another cherry on the cake is the low transaction fee levied by Binance on each buy and sell. It is as less as 0.10% on each trade. The transaction fee is further discounted if the users are paying for it through BNB.

The Binance user interface gives two options, to cater to the needs of both new and experienced investors. Moreover, the clients are also helped with historical data of cryptocurrencies and charts depicting future probabilities. The information resource available to the investors helps them to take the right and timely decision.

Binance also takes care of investors whose statement reflects a series of loss making trades over a short span of time. It suspends the activities of these account holders on temporary basis calling it as anti addiction settings. However, it is the complete responsibility of the users to carry out thorough analysis before investing in cryptocurrency and manage their risk accordingly.

Trust Wallet

Though there is no  built-in crypto wallet for the account holders but there is a provision of a custodial wallet on its platform. It suggests Trust Wallet, a cryptographic wallet which supports number of cryptocurrencies on major blockchains. To transfer assets from Binance to a Trust Wallet or other external crypto wallet is a simple process.

The Bitcoin Hack

Binance has been no exception and fallen a prey to hacks in the past. Binance founder Changpeng Zhao has himself disclosed a theft of 7000 Bitcoins worth 40 million dollars in May 2019. Following which the company promised to indemnify the loss of its users via its “Secure Asset Fund for Users (SAFU).

Regulatory Challenges and the Binance US

Binance was banned in the United States in 2019 on grounds of non compliance with regulations of the State. After this, an independent exchange by the name of Binance US was mapped out in San Francisco which adhered to US laws. It has been specifically crafted for the citizens of United States though it is still not available to the residents of the states namely Idaho, Louisiana, Hawaii, New York, Vermont and Texas.

Although all crypto coins available on Binance global interface are not available on Binance US yet it has been the most extensively acknowledged crypto exchange in US. The credit for this goes to the rock bottom fees along with similar kind of features and facilities as were being provided by Binance in the other parts of the world.

In May 2021, Binance was also accused by Forbes and it was claimed that Binance has been earning unrevealed profits from crypto users of US and thereby duping United States regulators. Therefore it came under the probe of both the Internal Revenue Service and the United States Department of Justice. The allegations of tax evasion and money laundering are being investigated and no charges have been filed against Binance yet.

Binance’s Brush With Authorities in Nations Other Than USA

Apart from US, Binance has been the center of attention with regulatory authorities in other countries also. Japan and United Kingdom have warned Binance to halt its activities in these countries. The same kind of challenges are faced by Binance in Canada, Singapore and Thailand. The functionalities and array of coins offered by Binance keep it bringing under the lens of regulatory bodies. This may not go down well with the Binance customers as the trading activities are often hampered in these cases.

Inspite of some allegations in the past, it is still the big cheese in crypto business when it comes to the daily trading volume. At present, Coinbase offers a tough competition to Binance.

Cryptocurrencies pose a high speculation risk, so much so that the price may rise or dwindle on the basis of just one tweet. Hence most of the investment experts do not guide to put all your eggs in one basket. But if you are still ready to sweep the crypto market, choose the right exchange for hassle free investments.

Disclaimer: The author has not made any monetary investment in any of cryptocurrencies or digital assets as of now, till the date of publishing this article. The views presented here are purely for educational and information purposes and not to be meant as financial or investment or technological or legal advice. Readers are advised to consult with their financial advisor and check legal provisions with regard to trade in cryptocurrencies as per their country jurisdiction. The author or our website shall not be responsible for any kind of loss caused to reader due to forming any decision on the basis of material presented here. Please read the complete Disclaimer here.