Challenge #3 | Binance All in One

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Binance?

Today I am going to talk about another side of Binance as my final explanation. As we all know, Binance is the perfect choice not only for the beginners but also for experienced traders. Here we have a lot of alts to buy & sell on Binance. If a coin is going to list on Binance surely that coin should have a good potential. You can compare with other exchanges that are listing some coins that don’t have at least a vision. And always, Binance cares about their users and gives some competitions regarding trading.

_{Ongoing competitions on Binance}

You can see Binance is launching IEOs for new projects also. Those new IEOs have good potential and from my experience, the price of those coins will go at least to 2x, 3x price from the initial value. At the start, Binance gives chances to exchange alts only. But as the best cryptocurrency, Binance allows many services like staking, saving, lending, future trading and more.

History of Binance

Even Though Binance is the best among cryptocurrency exchanges, It is a kind of young exchange and the starting of the Binance was gone 3,4 years back. 2017 is the year which the Binance born as a new exchange and imagine their improvement during the last few years. At the beginning, Binance had a good ICO( Initial Coin Offering ) which we can say It worked perfectly to the success of Binance. That’s the reason why the Binance coin has the potential value in the current market. I think you already know the CEO of the Binance. He is well known on twitter because he is offering many kinds of giveaways from the beginning also. He is Changpeng Zhao Normally called as CZ Binance) who is well known in the Asian cryptocurrency market.

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The initial coin offering for the Binance was held in 2017 at the beginning. In that sale, more than 100 million tokens were sold with giving the best start for the exchange. If you were there at the first hase you could buy 2700 Binance coins for 1 Eth. (1 Eth = 280$ in that time). That means the initial value for a Binance coin is approximately 0.1 $. Just imagine your profit if you buy in that time? The current price for a Binance coin is nearly 30 $. I am recommended to buy BNB as much as BTC, ETH because BNB has great potential & most investors like to invest in BNB coin. And also if you hold BNB, you can get discounts on trading fees also. So the Binance coin is a good coin to invest for the future.

Advantages & DIsadvantages Of Binance

Actually, Binance has lots of advantages and few disadvantages. I will explain one by one.

Advantages

List of Alts

Binance has a lot of alts in their list. All those coins have huge potential to survive in the cryptomarket. And also when a coin is listed in the Binance, they normally give several trading pairs for the buyer. That will help for traders because even though they don’t have btc , if they have eth,usdt, BNB they can directly buy alts using other pairs. When we compare with Coinbase which has a huge buy & sell on bitcoin, Binance has a very long alts list and coinbase has very few numbers of listed coins.

Low fees

This is also a very important part in Binance. They have the lowest fees in the crypto market than other exchanges. There is no deposit fee. Any cryptocurrency can be deposited into the Binance wallet without any fee. And also withdrawal fees are very low values. That will depend on the type of cryptocurrency. As a special case, We can withdraw our funds with zero fee If we use usdt. First, you have to convert your fund to usdt and through the TRC20 network you can send usdt to any wallet. That will have a zero fee. I always use this method & other exchanges are not doing that. When talking about the trading fee that also has lower fees than some of other exchanges. Only 0.1% charge on the trade will be charged. That means If you buy 1 eth you have to pay 0.001 eth as the fee..that value is very small. As a special case for trading fees, If you have BNB in your wallet, you can have a lower fee than normal value. You have a 25% discount from normal fee and traders are eno]couraged to hold BNB in their wallets.

ICO / IEO launching

Many investors will invest their funds in new cryptocurrencies if those cryptocurrencies list on Binance. So most project owners try to list on binnace but Binance doesn't list any coin if that coin doesn't have a good potential. Binance support on ICO/IEO launching and I'm pretty sure if any coin starts their crypto journey in binnace that project should go to the top in the crypto market.

Security

Many traders are attracted to Binance because of security. Binance has a perfect security system to protect funds from hackers. Binance uses several protection methods for security like Strong password, 2FA, Anti Phishing code, address management, checking unauthorized devices etc. In my first article, I have described how to enable your security in your binance account. So here I am not going to repeat that.

High volume

When you check on https://coinmarketcap.com/ you can see the volume on Binance. It has the largest volume than other exchanges. The advantage of high volume is you can sell your funds instantly. You don’t want to wait like in other exchanges. If any exchange has low trading volume may be sellers have to wait several days,weeks, months to fill their orders. But in Binance you can always sell or buy cryptocurrencies when you want.

Disadvantages

Difficult to use If you are a very beginner

This is the one & only disadvantage of the Binance according to me. The interface is not easy to understand if you're a beginner. You need to understand one by one and then you are able to use Binance.. If you try to use Binance for trading on your first day, maybe you will end your journey in crypto. So if you are a beginner just learn about Binance. There are lots of youtube videos about Binance. So learn first. Then you will be the best trader in the future.

Why is Binance popular?

The correct and strong leadership is the base to the success of any company. The CEO of Binance, Changpeng Zhao who is well experienced in the development of trading platforms became the strength of Binance. He made the smartest decision of launching Binance during the 2017/2018 bull run. It was a push to increase the popularity of Binance. The best thing is Binance has a larger number of pairs and coins so many traders gather around it. So that altcoin lovers mostly choose it.

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BNB token is also a success factor to Binance become so popular. The coin combined with the exchange so the users are getting advantages like low fees. This causes to attract users to BNB and remain in Binance.

We saw through this contest, everyone talked about the attractive and super easy user interface of Binance. It provides a desktop app, web app and also a mobile app. All work smoothly and efficiently. The user experience is good so even beginners can use and learn quickly. If someone is interested, can find some Binance APIs to use in their own apps.

On the other hand, Binance is well known for providing good and efficient customer service. They have 24x7 customer service and more than that many rich official tutorial guides to follow.

How to use our funds correctly on Binance?

There are lots of ways that you can earn money using Binance. I am going to explain one by one.

P2P service

This is the service that connects buyer and seller to deal with cryptocurrency through a peer to peer service.There are various kinds of payment methods because the buyer can be anywhere in the world.

Spot trading & Future trading

I have explained these two functions in my previous two articles. Spot trading is a normal buy & sell procedure as other exchanges. But future trading is something a miracle to traders. If you want to know about that just read my previous article.

Binance Saving

If you don’t want to trade on Binance this method will be a good way to find profits. But you should have a considerable fund to get profits. This is like the bank system. There are two types of savings. They are flexible and fixed. If you hold your assets in flexible, you can return your assets to your main wallet at any time. But If you hold in fixed deposit, you have to wait until the contract ends. However the interest for the fixed deposit is quite higher than interest for flexible deposit. So if you just want to have your assets in your wallet, saving is a good way to increase your asset value.

Staking

This is also a good method in which we can earn profits return on proof-of-stake and Defi coins. We don’t need any technical knowledge to stake. Here also we have two types of staking which are flexible and fixed.

Binance Smart Pool

This is for the miners to perform a larger minner group that makes profits. The reward will be divided within members.

Binance Visa Card

This is something good for the future of crypto. The Binance visa card allows us to pay our crypto funds where we have to pay only using fiat currency. What happens is when you use a Binance card for payment to buy something you convert your crypto assets to fiat currency without fee. So that will be a good improvement because you don’t need to hold fiats.

Crypto Loans

You can have loans in Binance. The way is you can get stable coins like BUSD, USDT with equal value of BTC, ETH. The advantage is you can hold stable assets with crypto loans.

Binance Hacking

This is a very famous incident, on 7th of May 2019, a hacker took 7047 BTC out from the Binance using stolen account details. Point is, the hacker withdraws all in one single transaction. So that the alarm system in Binance didn’t make any alert at the moment.

However, Binance took immediate actions and held their all withdrawals after realizing the hack. They paid the amount of BTC to holders from the Secure Asset Fund for Users. The CEO and team maintained a great communication with stakeholders in order to face the issue. After this incident, they further increased the security and also their trust more increased.

Binance Main Problem & The Solution

Here I am going to talk about several problems with Binance and I will propose my solutions for those problems.

The main problem with Binance is when there is any kind of update in Binance, that makes the crypto market to downward movement. Actually, I had a kind of experience regarding this. One Day I entered into future trading without knowing about the update announcement. Actually, I was in a long position. But After seeing the update announcement before 1 hr, I had no choice. So I had to close my position with a small loss. But I am happy because On that day, If I didn’t close my position, after the update the price was dumped to the liquidation price. If I hold my position on that day, My assets will surely be liquidated.

When an update is happening We shouldn’t enter into trading. The reason for this price movement is, lots of traders are waiting until the market is reopening. So there should be a solution to this.

My solution is after the update, Binance should reopen the market with regional wise. Then the number of people who entered the market at the same time will be low. That will help to maintain the market without price movement due to Binance updates.

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Thank you for reading!