What is Binance Exchange ? What is another exchange like binance

Contents

There are many different exchanges on the market today, including the Binance exchange. However, not everyone knows Binance exchange what? Is this platform reputable? What risks can be encountered when trading on Binance? And to answer these questions, please refer to the following article!

Learn about Binance exchange

What is Binance exchange?

History of Binance Exchange

There are many people wondering What is Binance exchange?. This is a P2P trading platform that specializes in peer-to-peer trading of Bitcoin and other cryptocurrencies. At Binance, people can trade cryptocurrencies with each other or with merchants. In these transactions Binance acts only as an intermediary.

Currently, Binance has become one of the largest cryptocurrency trading platforms in the world, attracting many investors to participate in trading. This exchange is supporting trading of over 1,000 cryptocurrency trading pairs.

Binance exchange development process

Binance was founded by Changpeng Zhao (Zhao Zhang Peng). Before founding Binance, he also created high-frequency trading software in 2005 in Shanghai.

Then in 2013, Trieu Truong Bang became the 3rd member of the cryptocurrency wallet group and officially joined Blockchain.info. He also briefly worked at OKCoin – a trading platform between fiat and digital assets as CTO.

In 2017, Binance was founded in China. However, because Chinese law still holds many strict regulations for cryptocurrency trading, Zhao decided to move Binance’s headquarters to Japan.

From July 1 to July 21, 2017, Binance conducted an ICO round and raised 15 million USD. Only on the first day of raising capital, there were 20,000 registrations.

By March 2018, in Taiwan, the official representative office of Binance was born. Binance Exchange officially became the world’s largest cryptocurrency exchange with a market capitalization of up to $1.3 billion. Although during its operation, Binance encountered fierce competition from other companies, Coinbase is by far the leading cryptocurrency exchange.

Binance Representative Office

In March 2018, Binance said it would open an office in the Republic of Malta. Only one month later, it successfully signed with the Government of Bermuda a Memorandum of Understanding (MoU). Not long after that, Binance successfully signed another Memorandum of Understanding with the Malta Stock Exchange.

Aiming to expand into Europe, in 2019, Binance announced Binance Jersey will officially become an independent entity.

In August 2018, to implement a stable coin project, $ 32 million was successfully raised by Binance and 3 other major exchanges.

In January 2019, Binance officially announced a partnership with Israeli payment processor Simplex. Accordingly, users can buy cryptocurrencies at this exchange with both debit and credit cards.

September 2019, perpetual futures contract officially Binance exchange provided. Just two months later, Binance announced it had completed the acquisition of Indian exchange WazirX.

On February 21, 2020, the Malta Financial Services Authority said that Binance has now become a “Malta-based cryptocurrency” company. So for many people’s question that Which country’s Binance exchange? then the answer is the Republic of Malta – an island country in Southern Europe.

Is Binance exchange reputable?

Information about Binance exchange

Here are some specs about Binance exchange that you should be concerned about:

NameBinanceFounded year2017FounderChangpeng Zhao, Yi HeOperatorChangpeng ZhaoCTORoger WangMain architectJames HofbauerHeadquartersMaltaWebsite Binance.comNumber of virtual currency pairs supported for trading> 1,000

Should you choose Binance to trade?

There are a lot of people wondering Is Binance exchange reputable?? Should you participate in trading on Binance? This is also understandable because on the market today, there have been many fraudulent exchanges.

However, Binance has been recognized as the largest cryptocurrency exchange in the world. In addition, this exchange has also undergone verification by many financial institutions as well as the customers who have participated in transactions here. That’s why you don’t need to worry Binance exchange scam.

Should you participate in trading on Binance?

Besides that, Binance exchange also pays great attention to smart security factors. With a multi-tier system, multi-cluster protection ensures that customer accounts are always absolutely secure. On the other hand, Binance’s technical team always monitors, checks and promptly fixes errors and problems encountered by the exchange in the shortest time so as not to affect the interests of customers. So, Binance exchange has attracted millions of registered customers to participate in cryptocurrency trading globally.

Not only ensuring credibility, no fraud, customer information security, but Binance also has many other advantages such as:

Support to trade a huge number of cryptocurrency pairs, up to over 1,000 pairs Support multi-language, including Vietnamese and have its own customer service channel on Telegram in VietnameseA pioneering cryptocurrency exchange in operation ref bonus, bonus up to 40%Build a large cryptocurrency ecosystemBuild user asset protection fund (SAFU)Provide a variety of transactions such as P2P, OTC or Trade spot, margin

Thus it can be seen that Binance exchange really a professional, reputable and very reliable exchange when you want to trade cryptocurrencies.

Risks of trading on Binance

When participating in Binance exchange You need to anticipate and prepare for the following 3 risks:

Market risk

Investing in Bitcoin or any virtual currency is similar to investing in other items and products. The value of cryptocurrencies can change based on market changes. The rate of change of cryptocurrencies is higher than that of other traditional assets because it is not controlled by any government. It is easy to see that over the years, Bitcoin has had a large fluctuation in value that is very strong. In 2013, there were times when the price of Bitcoin fell as much as 61% and fell even more in 2014, down to 80%.

Trading on Binance may be subject to market risk

At the same time, the market is also constantly welcoming the birth of other digital currencies. Although Bitcoin is dominating the big time, it is still subject to competition.

Security Risks

This is also a worrying risk when participating in Binance. The majority of customers are often in the habit of storing cryptocurrencies on centralized exchanges. Therefore, if you do not choose a reputable cryptocurrency exchange and take full security steps, the possibility of losing your Bitcoin or cryptocurrency is very large.

Binance exchange has been hacked

Cryptocurrency exchanges are often at risk of being hacked and stolen by malware. The crypto owner’s key may be lost and the owner’s own cryptocurrency may also be transferred to another account. Therefore, to be able to prevent this risk, it is best to store your cryptocurrency on a cold wallet or save it on paper and store instead of saving information on your computer.

Previously, Binance was also hacked once, but it was quickly remedied with SAFU funds.

Legal risk

One more risk that you should anticipate is the legal risk. Currently, there are still quite a few countries that have not legalized cryptocurrencies. Besides, there are also many activities of money laundering, illegal trading, tax evasion of cryptocurrencies. Therefore, many governments have always introduced very strict regulations to regulate and limit the circulation of cryptocurrencies.

Binance is still not legalized by some countries

For example, in the state of New York, USA, in 2015, the Department of Financial Services issued a regulation requiring companies that store, transact, and transfer cryptocurrency ownership to be required to keep records of their information. customer information, maintaining capital reserves, staffing.

Communication risks

On the internet, there are often unfavorable news about Binance such as Binance exchange crashed, scams, hacks, etc. These are news that may be released by competitors of Binance to bring down the reputation of this exchange, causing confusion among the public. Therefore, when you join Binance, you need to regularly update and check and verify information.

Or the risk of media spreading fraudulent Binance information, crashing

Ending

Overall, Binance is a large and reputable exchange that is very reliable. However, like any exchange, there are certain risks involved with Binance. Therefore, before participating in trading at Binance, you need to carefully study the information and prepare mentally.

Currently, the Vietnamese government does not provide legal support for this currency, you still have the right to exploit it, but when there is a dispute or conflict, the state does not support to solve these problems.