At present Binance coins are the largest and most extensive cryptocurrency exchange of the globe and it comprises of more than $6 billion within an average span of 24 hours. It has risen to the top quite swiftly and smoothly since it has been in existence for less than a year but has grown at a very fast pace. Millions of users all across the world sign up for using it every week. Binance is also a cryptocoin that is traded as well as used on the Binance exchange. The value of the cryptocoin BNB has grown with considerable rise in exchange. But what drives billions of users across the globe to this cryptocurrency? The answer lies in the simplicity of its business model that has been the key to its success so far.
Understanding the advantages offered by Binance coins BNBBinance coins stands for the digital currency of the Binance stage. It means that nothing but the digital form of money can be exchanged against and one cannot exchange the cryptocurrency against Fiat. This platform has eventually achieved an enormous success within an unbelievably short span of time and it has a focus on the global market though it has its headquarters in China. This cryptocurrency has a whopping market capital lying between 180 and 218 million US dollars out of which, around 18 to 35 million USD are traded at a daily basis.
Binance makes use of the ERC 20 token from Ethereum. It offers a huge discount when the fees are paid in BNB in place of BTC. During the first year of usage, there is 50 percent discount on almost all the fees while there will be 25 percent discount in the second year and it will go on like this, until you reach the fifth year when there will be no discount. This particular structure is quite attractive and can be used as an incentive for the users who are willing to buy BNB and indulge in trading within the Binance exchange.
It is very important to have an in-depth understanding of the basic mechanisms of Binance cryptocurrency. One of the key advantages of Binance is that it can solve technical issues with utmost dexterity. Let’s discuss the two other points of advantages which are matching and liquidity.
Reliable matchingTypically, an exchange functions as a market maker for buying and selling orders. It is critical to understand that the exchange doesn’t buy or sell the coins while an individual makes an exchange. On the contrary, the exchange helps an individual to match him with another user who is looking to buy the asset at the price that the individual is demanding for. This matching of buying and selling orders is one of the most vital functions of the exchange. When the exchange matches this buying and selling order for completion of the trade, it will charge a fee for the transaction to both the parties for the service of finding a suitable match. This is how an exchange succeeds in making money.
The function of matching orders often creates a bottleneck situation for numerous cryptocurrency exchanges. In case there are more trade requests than what the software can handle, there will be an invariable delay in orders. The most impressive innovation of Binance coins lies in the fact it is capable of handling 1.4 million trades within a second. This makes the Binance platform as one of the fastest in the market. Due to this reason, numerous crypto investors are flocking in to Binance.
Fast liquidityAnother critical component of the Binance exchange lies in its liquidity. Liquidity refers to the amount as well as frequency with which the assets can wander about in the exchange. For finding a quick match and complete the order at a reasonable price, there is required a lot of activity on the order book. Needless to say, Binance has the busiest order book in the globe which makes it a safe and competitive market for transactions. Binance comes with high liquidity in a lot of assets which is not restricted in Bitcoin and other top coins. It also includes numerous coins from Asia which may not be available from Western-based exchanges. This is one of the pivotal factors that contributes to the rapid rise of the Binance coins.
Using the Binance coins exchangeSince Binance do not support fiat currencies, it is not possible to convert yen, pounds, euros and dollars. The name Binance actually stands for the combination of Binary and Finance which indicates that they primarily deal in digital assets only. In order to use Binance, a person has to own cryptocurrency. Once it is completed, it is fairly easy to register and set up.
Binance coins have done in constructing a brilliant user interface without having to sacrifice the graphs, charts or any other information for making an informed decision. Trading Binance coins is quite easy and you are just a few clicks away for selecting the currency pair that you want to trade and create. The best part is that the user interface can be accessed online and may also be installed as a mobile application for Android and iOS.
It is worthy of mention here that the availability of eight different languages makes Binance coins a highly commendable one. So, no matter whether you speak English, Japanese, Russian, German, French, Spanish or Chinese, you can have the support of the Binance exchange.
Low feesAn applaudable feature of Binance lies in the competitive fees that it charges. It is absolutely free to fund the account and in case there is a successful exchange, you will be charged at 0.1 percent trading fee. It also demands for a withdrawal charge if you wish to move assets out of the account into your own private wallet. Though the withdrawal fees vary in accordance with the coin, they are flat and not based on any percentage.
With these features, it is quite understandable that Binance has successfully established itself as a demarcator of the new era.