What is Binance

Binance is the world's largest cryptocurrency exchange by trading volume, founded in July 2017 by Changpeng Zhao (CZ) initially in China before relocating internationally. With over 250 million registered users across 180+ countries and daily trading volumes frequently exceeding $50 billion, Binance has become the defining platform of the modern crypto industry.

CORE TRADING PRODUCTS

Spot Trading: Buy and sell 350+ cryptocurrencies at current market prices. The primary trading product for most users.
Futures Trading: Trade perpetual and quarterly futures contracts with leverage up to 125x on Bitcoin.
Options: European-style crypto options.
Margin Trading: Borrow funds to amplify position sizes, with cross and isolated margin modes.
P2P Trading: Direct peer-to-peer trading with local currency payment methods critical in regions with limited banking access.

THE BNB TOKEN

Binance Coin (BNB) is Binance's native cryptocurrency, originally an ERC-20 token migrated to Binance's own BNB Chain.

BNB serves as: a trading fee discount token (25% fee reduction when paying in BNB), the native gas token for BNB Smart Chain transactions, collateral and governance in the BNB Chain ecosystem, and the subscription currency for Binance Launchpad token sales. Binance conducts quarterly BNB burns using a portion of profits, permanently reducing supply.

BNB CHAIN ECOSYSTEM

Binance launched BNB Smart Chain (BSC) in 2020 an EVM-compatible blockchain supporting smart contracts and DeFi applications. BSC hosts PancakeSwap, Venus, and hundreds of DeFi protocols, handling millions of daily transactions.

ADDITIONAL PRODUCTS

Binance Earn (savings, staking, liquid products), Binance NFT marketplace, Binance Pay (crypto payments), Binance Card (Visa debit), and Binance Academy (education).

REGULATORY HISTORY

In November 2023, Binance and CZ pleaded guilty to AML violations in the US, paying a $4.3 billion settlement. CZ was replaced as CEO by Richard Teng. Binance subsequently registered with India's FIU-IND and continues expansion under strengthened compliance frameworks.

Terms in addition to the Binance

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.