Binance Crypto Exchange is a cryptocoin broker with headquarters in Shanghai. The platform Binance can be used to trade crypto currencies, including the most popular coins, such as Bitcoin, Ethereum or Litecoin. The trading platform is clearly arranged and the broker works with different security systems. There is a fixed fee of 0.1 percent for trading. Although it is an internationally oriented Cryptocoin Broker, which is especially clear from the fact that, among other languages such as English, Chinese or Russian are supported. Unfortunately, the website lacks various information, for example on security, crypto currencies in general or accessibility of customer service. While the overall package is competitive, it can be worth trading on the Binance platform. However, the broker addresses above all customers from the Asian region, where he is one of the market leaders. Everything else you need to know about Binance including Binance customer experience can be found here.
Binance Coin - Introduction
Binance Coin refers to the cryptocurrency of the Binance platform. The Binance platform is a trading platform exclusively for cryptocurrencies. The name "Binance" is a word combination of "binary" and "finance". To German "binary" and "finances". Thus, the startup expresses that only crypto currencies can be traded against each other. It is not possible to trade cryptocurrencies against Fiat. The platform has achieved tremendous success within a very short time, focusing mainly on the Chinese market. The cryptocurrency currently has a market capital of $ 218 million, with $ 18 million traded per day.
The Binance Coin
Binance's cryptocurrency (BNB) is Binance's token coin. Overall, there will be only 200 million BNBs. Binance uses the ERC 20 Token Standard from Ethereum for the cryptocurrency. BNB should be distributed as follows. 50% of the coins are sold in an ICO, 40% goes to the team and 10% to Angel investors. Angel investors are investors who buy a lot of coins at once. The coin can be used to pay fees. These include trading fees, transaction fees, listing fees and others.
Binance Crypto Exchange advertises a discount when paying fees in BNB. In the first year of use, there is a 50% discount on all fees, in the second year 25%, in the third 12.5%, in the fourth 6.75% and from the fifth year no discount. In addition, Binance announced in a repurchase plan to buy back up to 100 million BNB. The coins are then burned. That is, they are devalued to increase the value of the remaining coins. That benefits investors. In the future, the cryptocurrency should remain an asset on the trading platform and should be used as gas. A transaction costs a fee of 0.1% of the trade amount.
The Binance Crypto Exchange platform
As already mentioned, only crypto currency pairs can be traded on the exchange platform. In addition to Bitcoin, Ethereum and Bitcoin Cash, trading platforms include QTUM Coin, NEO Coin or Iconomi. It is striking that many crypto currencies are traded from Asia. This is obvious because the platform operates mainly in the Chinese area. On the exchange platform itself, ICOs can be started or coins placed, if they are not yet available. The platform is currently launching the "Community Coin per month" campaign. Users of the platform can vote on which coin can be traded monthly without transaction fees.
What is cryptocurrency?
The origin of the term "crypto" lies in the term "cryptography" - the science of encrypting information and data and thus protecting it from unauthorized access or manipulation. By "cryptic" money, we therefore understand money in digital form. Whether Bitcoin, Litecoin or Ethereum - all these terms are the names of different virtual currencies. That's all fine and good. But where does this digital money come from? And what makes it so special? Exactly here is already a very crucial difference between crypto currencies and the money that we use in everyday life - cryptic money is not created by states or banks, but by the users themselves. This feature brings many advantages and peculiarities with it.
The very first cryptocurrency was Bitcoin. To date, he is one of the most famous and popular coins worldwide. It was first presented on 01.11.2008 by Satoshi Nakamoto. However, this name is just a pseudonym. Who the inventor of Bitcoin actually is, is still unknown and probably will remain forever.
The invention of this currency was inspired by the financial crisis in 2008. The basic idea was to develop an alternative financial system independent of states and banks.
However, the Bitcoin achieved wide media attention for the first time in the summer of 2011, in which there was also one of the first major course jumps. Since its first introduction in 2008, the Bitcoin, like other cryptic currencies, is constantly being revised and improved by volunteer programmers.
In the meantime, numerous companies of all kinds have emerged - payment services such as Coinbase, exchanges such as Bitfinex, account management services such as blockchain.info, news portals such as Coindesk and many more - all around the Bitcoin.
For the system to work behind Bitcoin, each transaction must be validated and verified. The confirmed transactions are listed in so-called blocks. Blocks are directories that are strung together to become a chain or blockchain. The blockchain is completely independent of state regulation and banks and is not stored on a central server. The examination of the individual transactions is done by the miners. They work according to the proof of work principle.
Translated, proof of work means proof through work. This procedure is also known as mining. Miners enrich the coin system in two ways - firstly, they confirm all transactions and secondly, they bring new coins into circulation.
When a transaction is performed, a mathematical equation must be solved for its verification. This is edited by independent miners around the world. The equation can only be solved with randomly generated numbers. Miners try to enter random numbers into the mathematical function until they find the right one. As a reward for the solved equation, miners get a percentage of the coin of the transaction. The arithmetic tasks are organized in such a way and distributed to the different miners that they take over the accounting of the system in their entirety.
Mining consumes large amounts of electricity, making the process both costly and environmentally damaging. For this reason, the first alternative systems have already been developed, such as the principle of the proof of stake.
Proof of Stake translates as "Proof of Shares". In this approach, transactions are not verified by the solution of mathematical equations, but by so-called validators. These compare several possible versions of the blockchain and then select the correct one.
The validators are a certain number of coins the miners already own. They provide these for the verification of the transactions. All transactions already carried out are stored in the currency and are used to determine the accuracy of subsequent transfers. So the miners can determine that no "mark" is spent twice.
The proof of stake principle specifies the number of available coins. If such double bookings were confirmed, you would have to take away a coin somewhere else, so that the number remains the same. If the validators choose a wrong version of the blockchain, the miners lose their money.