What is Binance ? The platform, the crypto but also the blockchain
Arrived in 2017, Binance is what is commonly called in the world of cryptocurrency, a exchange platform. In summary, it is a platform on which a user can buy cryptos with “normal” money (fiat currencies).
What is FIAT currency?
The term “fiat currency” does not refer to the car brand but to currencies managed and regulated by governments. For example, Euro, US Dollar, British Pound, etc. This term began to emerge with the arrival of cryptos, to be able to differentiate virtual currency and “real” currency.
Among the existing exchanges on the crypto market, Binance is the best known and most used around the world. Indeed, every day, the equivalent of more than 15 billion euros is traded on the platform. In comparison, the runner-up, FTX, sits at 2 billion trades.
Binance offers many features. First, a site and an ergonomic mobile application with a Beginner version and an Expert version. The first being much easier to use and light in terms of possibilities and information.
In addition to the more than 600 cryptocurrencies offered on Binance, the platform now offers the exchange of NFT but also investment programs (Earning, Staking, Farming, etc.) or even crypto trading programs (Binance Futures).
If you want to invest in cryptocurrencies, Binance is a complete solution that could be right for you.
Binance : when the platform creates its own crypto
With such enthusiasm, it is certain that Binance did not stick to its platform and its investment solutions. Indeed, the most famous exchange in the world has also developed its own crypto.
Or rather… Its own cryptos. Because Binance has 2 distinct cryptos :
- BNB Binance Coin : Binance’s speculative token
- BUSD Binance USD : Binance’s stablecoin
With BNB, Binance wanted to create a speculative crypto but also make life easier for its users. Indeed, in the ecosystem, BNB is the parent currency that allows you to pay fewer fees, benefit from higher interest, etc.
Binance USD is the stablecoin developed by the platform.
As a reminder, stablecoins are those cryptocurrencies supposed to follow the price of another asset (often the dollar) and which allows non-volatility unlike the global market which is very volatile. To learn more about these stablecoins, read our article “What is a stablecoin in cryptocurrency?”
Binance developed this stablecoin with the Paxos company (which also made the PAX, HUSD and PAXG stablecoins). The crypto is backed by the US Dollar and regulated by New York State Financial Services.
The BUSD is audited monthly by an auditing firm and the dollars are held in US accounts.
Binance Smart Chain and Binance Beacon Chain become BNB Chain
In recent years, Binance has developed two blockchains. First the Binance Chain (now BNB Beacon Chain) which played the role of governance for the BNB token. The blockchain enabled Binance cryptocurrency transactions and staking.
Then, Binance created the Binance Smart Chain in 2020 which was comparable to the Ethereum blockchain, notably using smart contracts.
Today, Binance has decided to bring these two projects together under the name BNB Chain. Binance’s goal is clearly to turn to Web3.
What services and features does Binance offer ?
One of Binance’s strengths is that the platform offers a range of financial features and services. It is a complete and versatile solution that can be used as a single platform for investing in cryptos.
The major drawback of this kind of platform is that it is centralized, which goes against the crypto and decentralized finance ideology that wants a fully decentralized world and not dependent on any structure. By having your capital on a platform such as Binance, you retain the risk of bankruptcy, theft, etc.
The first main service, without which no other makes sense, is obviously the purchase and sale (exchange) of cryptocurrencies. Binance offers more than 600. It’s far from the thousands of crypto that exist, but it’s still a completely honest offer.
For more “underground” cryptos, you have to turn to platforms like KuCoin.
Binance offers unique crypto investing features. Thus, on the same platform, you can use your capital to :
- Trading cryptos;
- Save your cryptos (earning);
- Farming and staking (means of earning interest);
- Buy NFTs.
Trade cryptos on Binance
The very essence of a crypto exchange platform is trading. In the common mind, trading is often associated with buying and selling assets quickly to generate profits, or lose all your money.
However, the word trading itself only means “to exchange” and therefore when you exchange your euros for bitcoins, you are trading cryptos.
On Binance, however, there are several ways to trade. The simple trade, at market prices, which simply allows you to buy and sell tokens on pairs.
For example, I buy Bitcoin with BUSD (the Binance stablecoin) to own bitcoins in my wallet (crypto wallet).
There are also leveraged trades. In particular via Binance Futures, which is a more “offensive” technique for trading. This space is reserved for investors who want to do real trading with their cryptos. They open a position up or down according to their “prognosis” and determine a lever that multiplies the bullish and bearish movements.
Save at attractive rates with Binance Earning
A well-known feature on Binance in France is “earning”.
Binance offers kinds of savings accounts and offers “flexible earning” programs. That is to say, for each cryptos, it is possible to earn daily interest by simply leaving them in this program.
Interest rates can go up to 10% on certain stablecoins such as USDT or BUSD. The “flexible” earning means that you withdraw your money at any time to put it back in your main wallet.
This functionality is a competitive advantage at a time when most investors are looking for secure and easy investments.
Crypto staking and farming
The terms “staking” and “farming” may be familiar to you. They are very common in the world of cryptocurrency, especially staking.
Staking is the basis of the verification consensus of the Proof of Stake (whose main brother is the Proof of Work).
Owners of tokens based on Proof of Stake blockchains have the option of making their capital available to the blockchain to be used to verify transactions.
Participants in transaction verification are then compensated in the crypto they stake. Binance offers a staking program for many cryptos. Investors can choose to stake a certain amount for a fixed period (21, 30, 60 or 90 days).
They can thus earn interest from 1% to 20% depending on the crypto and the duration for which they make their capital available.
Farming is similar to staking. Investors gather cryptos in a pool (or pool) and receive tokens in exchange. Generally, the tokens received are not the same as those made available.
Binance also includes a farming feature on its solution.
Binance NFT : buy non-fungible tokens on the giant Binance
For several months, it has been possible to obtain NFTs directly on Binance.
As a reminder, NFTs are those images that sometimes sell for millions of euros. They can take several forms: images, sounds, videos, etc. and are stored on the blockchain, thus becoming a token. It is a concrete way for artists to make their virtual works unique.
In the same way as on the famous Opensea NFT platform, you can, on Binance, consult the NFT collections of the moment and obtain them.
Binance registration: open an account in a few steps
Creating an account to start investing on Binance is very simple. It only takes a few minutes to have the world of cryptocurrency just a click away.
Binance registration is done in a few simple and intuitive steps :
- Go to www.binance.com
- Click on the “Register” button
- You can sign up with your phone number, email, Apple account or Google account
- Choose your country of residence
- After entering your email address and password (in case you register with email address), you will receive a verification email
- Enter a phone number and verify it by receiving an SMS
You then move on to verifying your identity. This step is important and mandatory on all investment platforms. The aim is to prevent fraud, money laundering, etc.
- Fill in your nationality, first name, last name and date of birth
- You must then download the Binance app to complete the verification
- Download the application on Apple or Android and log in with your credentials
- When you are connected, the app directly offers you to finish your verification
- Take a photo of your ID document and a selfie
- You must then wait a period of time before receiving a notification whether your account is verified and activated or not (usually a few hours)
Your Binance account is created !
Buy your first cryptos on Binance
You can now buy your first bitcoins or one of the many cryptos on Binance. To do this, nothing simpler. You can buy coins from the mobile app or the website.
When you start, the mobile app is in “Lite” version. It is very intuitive and does not offer all the features of Binance.
Buy crypto via the Binance app
Here is how to buy cryptocurrency via the Binance mobile application in Lite version :
- Just click on the central button with the two arrows.
- Then click on “Buy”
- Select the crypto you want to buy
- You can then pay with a credit card or bank transfer.
Buy cryptos via the Binance site
Via the site, buying cryptos is just as easy.
- Click on “Buy cryptos” in the top menu
- Choose the payment method you want
- Select the crypto you want and the amount
What are Binance fees?
Binance charges its users fees based on the actions they take on the site. The fees charged by Binance in 2023 are :
- Purchases (1.8% of the amount by credit card and 0.1% by bank transfer))
- Withdrawals (1%)
- Spread – difference between the buy price and the sell price (variable)
- Trading (0.1% on buying and selling)
Binance review : is the platform reliable?
Binance is the largest cryptocurrency exchange in the world. It is a very reliable platform on which tens of thousands of exchanges are made daily .
We like the versatility of Binance’s offering which spans many different services.
However, Binance can seem a little hard to handle for a complete beginner. Also, some trading features can be dangerous for someone who doesn’t know what they are doing.
Overall, Binance is a very serious platform that is worth using in 2023 in France if you have any interest in crypto.