THE LEADER SINCE 2017
Binance launched in the heart of the bull run of 2017. The exchange experienced almost instantaneous success, as users of other popular exchanges began to migrate over to Binance. The exchange managed to establish itself as a leader in the space within a matter of months! From the word go, it was clear that Binance would become a dominant player in the world of Cryptocurrency exchanges.
Binance has managed to jump on every opportunity that has materialized over the past few years. Whether it be staking, DeFi or NFTs! Binance has managed to remain in step with the market by timeously launching services to accommodate these new developments.
When it comes to the recent regulatory issues that Binance and other exchanges have faced, one needs to be aware of the following: Crypto has been an unregulated space for so long because the SEC and other regulatory boards were not interested in regulating it. It’s that simple!
This means that exchanges were not given any regulatory guidelines. You cannot say that an entity is not compliant without issuing rules of compliance. Now that there are guidelines being put into place, Binance and others are adhering to them in order to attain and maintain compliance.
One has to be careful of how the media can sometimes distort fact in order to gain views and clicks.
FULL RANGE OF SERVICES
Though Binance initially began as a spot exchange, it has grown and matured to now offer a full range of services. Users can now also take part in futures trading, which implies leverage and therefore increased risk. This is however not available for US citizens.
US citizens are limited in that they may only make use of the Binance.US platform. Binance users are also able to trade tokenized stocks as well as P2P (person to person) trading. For those users who are simply wanting to swap their coins and avoid setting up buy and sell orders, there is a solution. The Convert & OTC Portal enables users to simply exchange coins and tokens in a simple conversion process. Execution is immediate, with converted balances being available within seconds.
There are a number of additional financial services available on Binance, making it more than just another exchange. One such service is Binance Earn, offering users interest on their idle assets.
Some of these offerings may not necessarily seem very high but there are other higher yielding options available as well. Currently, both Solana and Polkadot are offering 10% to 11%, which is in line with the current staking rewards of these chains. There are also other options that provide significantly higher returns.
The High Yield section of Binance Earn generally facilitates the DeFi model of providing liquidity in the form of pairs.
To understand how these pairs work, I suggest reading this article, which gives a very simple overview and understanding of yield farming. Risk increases significantly when utilizing DeFi opportunities. This is unavoidable, even if accessed through a service such as Binance.
The exchange also facilitates mining via the Binance Pool, which may be attractive to users who are actively involved or interested in the mining industry.
Binance have also added Crypto loans to their arsenal of services and offerings! However, unless you are looking for a short-term loan, I would rather make use of Celsius. This is a personal view due to Celsius offering lengthy repayment terms. You can of course repay the loan earlier if you so choose. The longest term on Binance is 180 days.
This doesn’t fit my personal loan strategy, so I don’t personally utilize this service. It may however be perfect for others. The initial LTV (loan-to-value-ratio) is 65%, while margin calls are triggered at 75%. Liquidation takes place at 83%, at which point it is too late to add collateral. Margin calls provide an opportunity to add collateral and subsequently decrease the LTV.
The addition of NFTs is a fairly recent development on Binance. Once again, CZ and the team were quick to incorporate the latest trend hitting the Crypto market. This is a very sensitive niche within the Crypto space, especially when it comes to the valuation of these assets. Clearly a lot of NFT owners have made fortunes during the recent craze. However, I still believe that the deciding factors contributing to the value of these assets is still to be established.
It is definitely a great space for speculators though, many of which are securing enormous gains trading and collecting NFTs.
BINANCE DEBIT CARD
Binance users can now also get their hands on a debit card, which can be used to make purchases at more than 60 million merchants worldwide! The card is connected to your funding wallet, which can be credited from your spot wallet. In this way users can decide how much capital they wish to have access to. The funding wallet can be topped up at any time and all funding and control of your capital takes place within the Binance application.
There are no administrative or processing fees charged by Binance. However, there may be conventional transaction fees charged. This is an awesome service to have access to and serves as another great reason to have your own Binance account.