Cryptocurrency Exchanges Guide
Chinese Name: 幣安
Founder and CEO: Zhao Changpeng
Binance was a cryptocurrency exchange that was founded at China by entrepreneur, Changpeng Zhao (赵长鹏) in year 2017, but eventually grew to become a global cryptocurrency exchange platform for market participants worldwide to trade cryptocurrencies.
Binance moved its offices and headquarters to Japan in anticipation of China’s ban on cryptocurrency exchanges and trading platforms in September 2017. Thereafter, Binance established offices in Taiwan by March 2018 and opened fiat-to-cryptocurrency exchanges in Uganda, Jersey and finally Singapore in 2019. The exchange in Singapore with their payment processing fintech partner, “Xfers”, only supports fiat purchase of Bitcoin as of April 2019, but both exchanges in Uganda and Jersey can support bitcoin and ethereum.
This year in 2019, Binance is working to launch one more fiat-to-cryptocurrency exchange in Malta and eventually aims to achieve a bigger plan to establish two fiat-to-cryptocurrency exchanges on each continent with rumored locations to be at Argentina, South Korea, Russia, Turkey and Lichtenstein.
In April 2019, Binance launched its own blockchain, the Binance Chain with its native token, BEP2 BNB coins replacing the previous ERC20 Ethereum based BNB coins. Migration to the new Binance Chain was completed and traders can now exchange their older ERC20 BNB coins with the new BEP2 native tokens at Binance Cryptocurrency Exchange.
After months of rigorous testings with around 8.5 million transactions reported by Binance to have been made across programs and competitions, Binance launched its first Decentralized Exchange (DEX) ahead of schedule in April 2019 as well. The User Interface (UI) of DEX is quite similar to its existing centralized exchange although the DEX uses a darker grey background.
There are very few trading pairs in the DEX after the initial launch, but a lot more trading pairs are expected to be added in the near future. For now, Traders can create their wallet on the DEX exchange first.
There are no deposits and withdrawals in Binance DEX, traders trade directly from their wallets and Changpeng Zhao commented that Binance DEX Exchange or Network will never have custody of users funds.
Binance’s native token is Binance Coin (BNB) and general trading fee is 0.1%, but traders can enjoy reduced trading fees of up to 50% discount if they hold sufficient BNB coins in their Binance account to pay for the trading fees as shown below. The fees will be deducted automatically from the traders’ BNB balance.
Trading Fees discount rate:
Year 1: 50%
Year 2: 25%
Year 3: 12.5%
Year 4: 6.75%
Year 5: 0%
Today as of April 2019, Binance is the world’s largest cryptocurrency exchange in terms of cryptocurrency trading volume and its native token, Binance Coin (BNB) is ranked 7th in the world by market cap of at least $3.18 billion. BNB has an initial coin supply cap of around 200 million but Binance has committed in its whitepaper that it will use 20% of its profits to burn off (destroy) BNB coins every quarter until 50% of the total circulating supply (or 100 million coins) remains.
Official Website: Binance Cryptocurrency Exchange