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Beginners guide to cryptocurrency exchange Binance

Binance has rapidly become a market-leading cryptocurrency exchange over the past twelve months. Here is a comprehensive guide to their sign up process and training tools

Binance Guide Introduction

Binance CEO Changpeng Zhao, often called ‘CZ’, has risen to cryptocurrency stardom since creating his exchange in 2017. The Hong Kong-based exchange is an industry-leader in terms of user count and trading volume. It was reported that Binance received ‘a couple of million’ registrations every week during the climax of crypto’s bull-market in January.

Increasingly stringent regulation and laws surrounding cryptocurrency in China and Japan saw Binance relocate to Taiwan, with plans to open offices in Malta later this year.

With a range of around 390 cryptocurrency pairs, Binance caters to retail investors looking to invest in smaller market cap projects, as well as professional traders who can utilise slick UI and trading tools.

How to sign up

Registering an account on Binance is fairly straight-forward, all users need to do is input their email address and preferred password. No KYC is required as, for now, fiat deposits and withdrawals aren’t available through the platform.

However, Binance recently launched a subsidiary exchange in Uganda, aptly named Binance Uganda, which accepts deposits of Ugandan Shilling. To deposit shillings users must complete KYC in the form of a government identification card and proof of address.

Trading tools

Binance offers spot trading on 386 cryptocurrency pairs on its exchange, making it one of the most diverse exchanges in the cryptocurrency ecosystem.

While there are plans to implement margin trading in the future, for now Binance has no option of having leveraged positions.

Each cryptocurrency pair boasts a high level of liquidity, with the exchange regularly exceeding $1 billion in daily trade volume.

The user interface incorporates instantly-updating crypto charts and order books, making it easy for traders of any ability to make a trade and purchase their desired coin.

2018 also saw the launch of Binance’s $32 million backed stable-coin, TrueUSD, which is intended to be pegged 1:1 with the US Dollar.

Fees, deposits & withdrawals

Binance offers an interesting fee structure, with discounts being offered for users who trade while holding the exchange’s native token, BNB.

Without holding BNB users will be charged a standard market fee of 0.1%, whereas if a user holds BNB they will receive a 50% discount in their first year of trading.

Cryptocurrency deposits on the site are free, with no fee being charged. However, withdrawals are charged dynamically in regards to which cryptocurrency is withdrawn; for example if Bitcoin is withdrawn users will be charged a set fee of 0.0005 BTC, while if Litecoin is withdrawn users will be charged 0.001 LTC.

Future plans

As stated earlier in this Binance guide, the exchange has made the bold step to expand their operations to Africa, setting up Binance’s fiat-to-crypto exchange in Uganda, which is regarded as Africa’s hub for blockchain and cryptocurrency communities.

The move was a positive step to opening crypto up to lower economically developed nations, but it also shows Binance’s willingness to experiment with a fiat-gateway exchange.

In addition to this, Binance relocated much of its operation to Taiwan and Malta in response to increasingly stringent regulation in China and Japan.

The expansion into Malta is a bold regulatory step, with the Maltese government seemingly encouraging cryptocurrency companies to make the move into the EU.

Binance also earned an exchange licence in Jersey, allowing it to accept EUR and GBP deposits as well as trading pairs in the near future.

For a comprehensive guide on the top 10 cryptocurrency exchanges, click here.

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