binance what is

Binance Coin (BNB) is the native token for Binance’s blockchain. It can be used like many other cryptocurrencies as a payment method for products and services globally. Binance Coin is the cryptocurrency issued by the Binance exchange and trades with the BNB symbol. In May 2024, Binance Exchange was the second largest (as verified by Coinmarketcap) cryptocurrency exchange in the world, with a daily trading volume of $11.8 billion. Binance Coin (BNB) had a 24-hour trading volume of $1.45 billion. Binance Card is a Visa credit card that allows users to convert their cryptocurrency into fiat currency and spend it on products and services.

Binance Coin (BNB)

Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high-frequency trading software. Binance was initially based in China, then moved to Japan shortly before the Chinese government restricted cryptocurrency companies. Binance subsequently left Japan for Malta and currently has no official company headquarters. Fiat to crypto – Binance is largely known as a crypto to crypto exchange.

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own cryptocurrency. Binance is used by millions that trust the exchange as a medium for cryptocurrency transactions.

  1. However, as with all third parties involved in blockchain and crypto, it is vulnerable to hacking, as seen when hackers stole $570 million BNB in 2022.
  2. The name Binance is a mashup of the words ‘binary’ and ‘finance’.
  3. It has high liquidity and offers discounts to users who pay in BNB—the exchange’s native cryptocurrency token.
  4. Subsidiary of Binance.com, was banned from offering regulated services to customers in Britain by the Financial Conduct Authority (FCA), the country’s regulatory agency, in June 2021.
  5. Since then, its uses have expanded to numerous applications on a wide range of platforms.
  6. Amid regulatory issues in Nigeria, Binance disabled its Naira services on 8 March 2024.

Binance Crypto Loans allow users to borrow for spot, future, and margin trading. Terms of seven, 14, 30, 90, and 180 days are available, with interest calculated based on the number of hours you’ve borrowed for. As of June 2023, Binance does not allow U.S. dollar deposits by global users. Deposits using 27 other fiat currencies, including the euro, are permitted. However, withdrawals come how to buy and sell bitcoins with a transaction fee that varies depending on the cryptocurrency and transaction amount. To start trading, users must complete the necessary know-your-customer (KYC) requirements.

The exchange cleverly offers different types of trading interfaces depending on how experienced you are. The Nigerian government subsequently filed a criminal what is the difference between bitcoin and ripple charge against Binance for tax evasion. Amid regulatory issues in Nigeria, Binance disabled its Naira services on 8 March 2024. Binance issued 20 million Binance Coins at its ICO, and will eventually buy back half of them and destroy them.

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Please note that buying crypto on Binance with fiat currency is not supported or allowed in some countries. Please make sure you follow your country’s laws when interacting with Binance. As of May 2024, the Binance Smart Chain processed as many as 3.5 million daily transactions, more than double Ethereum’s all-time high.

The Binance Exchange is a leading cryptocurrency exchange founded in 2017. Binance offers crypto-to-crypto trading in more than 350 cryptocurrencies and virtual tokens, including start forex broker from scratch turnkey solutions bitcoin (BTC), ether (ETH), litecoin (LTC), dogecoin (DOGE), and its own coin, BNB. Binance is a cryptocurrency exchange that lists more than 350 cryptocurrencies globally.

binance what is

For example, if you trade another cryptocurrency for bitcoin on the exchange, Binance will charge you a 0.1% trading fee. However, if you use Binance Coin to pay the fee, they will reward you by charging a lower fee. That has helped increase demand for the exchange’s own currency. Binance Coin can also be used to buy other cryptocurrencies on the exchange. Additionally, some real-world retailers accept it – including all stores at Brisbane Airport in Australia.

Tokens

Binance has a blockchain technology incubator called Binance Labs, which focuses on nurturing promising pre-ICO stage projects. It helps deserving cryptocurrency project teams by providing necessary funding for development, advisory resources, and a launchpad for any necessary listing and fundraising exercises. Binance Smart Pool enables miners to switch between different cryptocurrencies for mining to optimize and multiply their income, while Binance Pay lets you use cryptocurrency to pay for purchases worldwide with zero fees.

However, this is down from a record of more than 32.6 million daily transactions reached in December 2023. When people buy and sell cryptocurrencies on an exchange, speed is key. The value of currency fluctuates so quickly that any long delays can be costly. Binance Coin initially ran on the Ethereum blockchain with the ERC 20 standard. However, in 2019, Binance Coin became the native coin of the BNB Chain.