What is Binance Exchange?
The Binance exchange is an exchange founded in 2017 with a strong focus on altcoin trading. Binance has quickly grown to become of the most\ popular cryptocurrency exchanges, offering trading in more than 500 cryptocurrencies and virtual tokens (but only about one-tenth of that amount of names for U.S.-based customers) including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own token Binance Coin (BNB).
Binance is an online exchange where users can trade cryptocurrencies. They support many of the most commonly traded cryptocurrencies.
Binance provides a crypto wallet for its traders, where they can store their electronic funds.
The exchange also has supporting programs that help traders make investment decisions.
Binance has its own blockchain-based token, Binance Coin (BNB).
Understanding the Binance Exchange
Primarily known for crypto-to-crypto trading—that is, trading between two cryptocurrency pairs and not national currencies like dollars or yen—The Binance exchange has gained immense popularity because of its low transaction fees, high liquidity, and additional discounts if users pay in the native BNB cryptocurrency tokens. Its exchange services were launched in 2017.
The name "Binance" is based on a combination of the words 'bitcoin' and 'finance'. It claims high standards of safety and security with multi-tier and multi-clustered architecture and delivers high processing throughput with the capacity to process around 1.4 million orders per second. It supports trading in more than 150 coins, including popular ones like Bitcoin, Ethereum, Litecoin, and its own native BNB tokens, and the list continues to grow.
Binance is limited for U.S. customers, with fewer names available to trade. Furthermore, 22 U.S. states, including New York, are not yet supported by Binance US as of 2021.
Trading on Binance
Like other crypto exchanges, Binance offers services around the trading, listing, fundraising, and de-listing or withdrawal of cryptocurrencies. Cryptocurrency enthusiasts willing to launch their own tokens can use Binance for raising funds through initial coin offerings (ICOs). Binance is used by a large number of traders and participants for exchanging and investing in various cryptocurrencies.
To start trading, users have to complete the necessary KYC requirements. Upon successful trading account creation, users can add cryptocurrency funds to their public wallet address provided by Binance to start trading.
Binance supports three types of trade orders: limit, market, and stop limit orders. Limit orders are executed only at the limit price set by the trader, market orders are executed immediately at the best available market price, while stop limit orders become valid orders only when the price reaches a specified level.
Binance offers an additional five types of orders for crypto derivatives, specifically on futures contracts. These trade orders include:
Stop limit order
Stop market order
Trailing stop order
Post only order
Limit TP/SL order