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It would be impossible to discuss trading cryptocurrencies without taking a moment to look at the popular exchange Binance. Binance has been the largest cryptocurrency exchange in terms of market capitalization since 2018. According to the company’s CEO, Changpeng Zhao, a combination of factors including experience, skill, and “luck” helped the platform achieve its legendary status.
What is Binance?
Today, Binance is the largest regulated cryptocurrency exchange platform in the world. To put its size into perspective, only the US-based Binance platforms average over $2 billion USD in trades per day. When you combine this information with the fact that the exchange is federally regulated in all but 15 countries, it’s easy to see how they became a household name in the sector.
Binance wasn’t always the industry leader. A careful review of their past demonstrates that the company’s flexibility and willingness to embrace change have made it what it is today. For example, in its early days, Binance didn’t offer fiat to crypto trading pairs. This decision allowed the exchange to avoid much of the regulatory oversight that stifled other exchanges in the markets earlier days.
Why Binance (BNB) Matters
The history of Binance dates back further than the actual founding of the platform. The companies CEO, Changpeng Zhao is no stranger to the exchange sector. Interestingly, he helped develop a variety of high-frequency trading systems for brokers via his company Fusion Systems in 2005.
Zhao entered the blockchain in 2013 when he took a high-level position at the wallet app blockhain.io. From there, he went on to co-found one of China’s largest exchanges, OkCoin. There’s no doubt all of this experience carried over directly into the development of Binance.
China Missed Out
Binance officially launched in China in early 2017. However, the Chinese government became sour towards cryptocurrencies starting in June of that year. Sensing the change in tides, Zhao packed up Binance and went in search of friendlier shores. By the end of 2017, Binance had an office in Japan.
Sadly, this would not be the last time Zhao felt the need to migrate his operation to avoid regulatory headaches. In early 2018, Binance again moved its operations to Malta. The company also opened an office in Taiwan the same year.
This flexibility and foresight helped Binance establish itself as an exchange for the people. Investors felt confident that Binance would do what was necessary to remain a vital part of the crypto community. By 2018, the exchange was the largest in the world in terms of market capitalization ($1.3 Billion). A combination of an easy to operate interface, a wide variety of coins and high security helped Binance achieve its title as the champ.
What are BNB Tokens?
In 2017 Binance issued a native utility token known as the BNB token. This token allows users to pay fees at discounted rates. Additionally, it provides for more flexibility in regards to trading pairs on the platform.
The BNB token launched during an Initial Coin Offering (ICO) crowdfunding event that raised $15 million in days. The ICO was held from June 26th to July 3rd. During that time, the company offered 100,000,000 BNB tokens to the public. The total supply of BNB is set at 200,000,000 coins.
The first BNB tokens were issued on the Ethereum blockchain as ERC-20 tokens. Within a few months, developers shifted the tokens over to Binance’s native blockchain. The transfer gave Binance more control over its inner workings and future operations.
Like all exchanges of its size, Binance is a tempting target for would-be hackers. In March 2018, one such attempt was made. The attack utilized multiple attack vectors to overwhelm the network. Luckily, Binance had protections in place that stopped the attack. However, fearing for future attacks, Binance went on the offensive. The exchange began a hacker bounty program.
Binance was set to make an example of those that attacked the platform. For example, they offered a $250,000 reward for information leading to the hackers. Additionally, the platform put aside $10 million to fund future bounties. It wasn’t long before this bounty came in handy.
In May 2019, a group of hackers struck again. Unlike the first attempt, this time the scamster made off with a significant amount of cryptocurrency. In total, around $40 million in crypto was lost. Discussing the hack, company officials acknowledged that the hacker set off preliminary warnings but operated in a manner that they still were able to make off with their ill-gotten gains. These losses pushed Binance to up its security standards even further.
How to Trade on Binance
Trading on Binance is easy. You will need to head over to their registration page and fill in all the relevant information. Notably, you need to provide valid identification for KYC/AML compliance purposes.
Once you have your identification validated, you can link your funding source. You have a few options to consider here. You can choose to use a debit card if you plan to make smaller purchases. Linking your bank account directly will provide you with more flexibility in terms of purchases and withdrawals.
If you are planning on buying BNB tokens you should do so from Binance in order to take advantage of the benefits BNB tokens provide.
Fund Your Account
Once you have linked our banking information, you are ready to fund your account. You can load USD into your wallet directly from your bank. Next, you need to convert your funds over to cryptocurrency.
Luckily, Binance offers a variety of fiat trading pairs to meet your needs. Select the trading pair you desire and the amount you wish to purchase. Your cryptocurrency will arrive in your wallet in under a minute.
Binance – A Pillar in the Market
Binance has come a long way on its journey to the top. While the road wasn’t always easy, these developers managed to always come out on top. Today, Binance stands as an inspiration to other exchanges seeking to go global.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com