Binance tutorial: tutto sul più noto exchange crypto

What is an exchange?

An exchange is nothing more than an exchange venue where people can buy and sell cryptocurrencies of all kinds. In return, the platform charges the customer a small commission on each sale or purchase transaction made.

To learn more about this type of service, here is an article dedicated to exchanges.

What is the Binance Coin?

The Binance Coin (BNB) is the Binance cryptocurrency, the utility token of this platform. The user can leverage this coin to obtain certain facilities:

• Through staking, accrue interest;
• Accessing Binance Launchpad propositions;
• Paying Binance fees, obtaining discounts;
• Paying the network fees of the BNB Smart Chain (BSC);

In addition, the value of BNB is expected to grow along with the company’s revenue growth. Each quarter a certain amount of tokens is burned, just according to the amount of profits that were generated in that particular quarter. BNB Coin is therefore a different way to invest in this reality.

BNB Smart Chain (BSC)

The BNB Smart Chain (BSC) is a semi-decentralized blockchain, created by Binance itself, where costs are very low and transaction processing per second (TPS) averages high.

This type of blockchain must sacrifice some of its decentralization in favor of scalability, speed, and convenience.

In fact, the BNB Smart Chain is not a totally decentralized blockchain: it, uses DPoS, or the consensus algorithm called Delegated Proof-of-Stake, as its validation method. With DPoS, the consensus needed for validation and creation of new blocks is reached by a group of delegates elected by users.
On the one hand, delegates benefit from maintaining honest and efficient conduct, otherwise they will not be re-elected. On the other hand, decentralization suffers.

Despite this, numerous DApps (Decentralized Application) have been built on top of the BSC. This blockchain hosts several applications that mirror those we encounter in the Ethereum Virtual Machine, as well as others that are original instead.

Some examples of DApps that have achieved good results are Pancakeswap (DEX, fork of Uniswap), Beefy Finance (Combo Farm), and Venus protocol (Decentralized Stable Issued Lending, fork of MakerDao).

Binance card

Please note: as of December 2023, the Binance Card is no longer available in Europe. However, we leave this paragraph for completeness.

Binance offers customers its own debit card, called precisely Binance Card. Applying for it is simple: it is all done through the platform; you must have a Binance account and have successfully completed the KYC (Know Your Customer) recognition process.

Depending on the amount of BNB tokens we hold in the Binance platform, the card will possess a certain level and earn us a proportional cashback.

The cashback is paid out in BNB Coin. We will receive it whenever we go to spend the cryptocurrencies deposited on the exchange through the card itself.

The Binance Card relies on the VISA payment circuit and can be used in almost all stores and e-commerce sites.

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Binance registration: what does it take to open an account on Binance?

How to open a Binance account? Signing up for Binance involves a rather simple procedure. In fact, it will be enough to have at hand an e-mail address or our phone number.

To proceed, simply go to the dedicated Binance page, click on the Sign up with phone or email button and follow the simple instructions. By following this link you will use our referral code that will entitle you to 20% off commissions forever (not available for Binance US).

Owning an account is the first step. To use the services of the well-known exchange, you must go through the KYC recognition process. This is a legal requirement designed to ward off illicit activities.

This section of Binance’s customer service contains the procedure in detail. Document checking is the practice and there is no cost involved.

How to deposit on Binance?

Let’s begin to understand how Binance works by starting with the basics: how to deposit on Binance?

The operation is easy and can be completed at negligible cost.

From the main menu, we select with the mouse pointer the words Buy Crypto EUR; a drop-down window will open in which we will click Bank Deposit.

At this point, we will have the following options in front of us to proceed with the deposit:

• SEPA bank transfer: it takes 1-3 business days and implies a fee of 1 euro, independent of the amount we are going to deposit. Recommended.
• Online banking (giropay): immediate deposit mode but involves a fee of 1.5% of the total.
• Bank card (Visa and Mastercard): another immediate method but expensive (1.8% commission).
• Easy Bank Payment: 0.5€ fee and 1-3 business days required.

Figures shown may vary: always consult official documentation before proceeding.

Deposit made, we will be ready to buy and sell cryptocurrencies on Binance.

Since this is an exchange, those who already have digital coins can safely turn them over to the relevant Binance wallet. This official guide explains the procedure.

"Depositing on Binance is simple and there are many possible variations"

How to withdraw on Binance?

Let us now turn to the binance withdrawal procedure. Recall that converting crypto to traditional currency is called a cashout and may be subject to tax, provided there is some capital gain. Regulations change from country to country, so extreme caution to avoid unpleasant surprises.

First, let’s differentiate the type of asset we wish to withdraw: is it cryptocurrency or traditional coins?

In the first case, Binance allows you to move directly via blockchain various coins and tokens. The steps are meticulously described in this tutorial; at this address you will find the one dedicated to the mobile app instead.

Briefly, crypto withdrawal is done by following these steps:

• Accessing your spot wallet and choosing the asset to be withdrawn.
• Selecting the quantity and network. This step is crucial to execute correctly: if we wanted to deposit funds to a wallet via Ethereum blockchain, on Binance we should indicate this network, and not, for example, Polygon or Arbitrum. Beware also of reverse transactions, of depositing via blockchain: getting the network wrong could result in irreparable loss of the funds involved in the transaction.
  Indicate the address to which to send the amount. We will have to follow a two-factor validation procedure for security issues.

Moving to fiat withdrawal, we will still start with the fiat and spot wallet from Binance. Then we will have to select the asset, indicate the amount to be withdrawn and most importantly the method.
Binance makes SEPA transfer or card withdrawal available to the customer. Depending on the geographical area, there may also be other options. Unless there are special requirements, we recommend the SEPA transfer: it is fast, secure and inexpensive.

"Crypto or fiat withdrawal? We can safely choose from several quick and/or inexpensive methods"

What crypto does Binance have?

As a major player in the industry, Binance boasts a huge selection of cryptocurrencies.

Frequent new arrivals are complemented by the continuous removal (delisting) of coins and tokens that are of little value, or have not shown themselves to be serious and reliable.

All the most popular cryptos are of course available, from bitcoin to Ethereum to memecoin king Dogecoin.

The choice, however, ranges further and includes numerous altcoins, as well as some well-known stablecoins.

"Binance offers a huge choice of cryptocurrencies"

What is Binance used for?

Through the www Binance com exchange it is possible to perform a number of operations. Let’s look at them more specifically and try to understand “where is it worthwhile to invest on Binance?” assessing security and risk.

Trading on Binance exchange

It starts with trading cryptocurrencies on the spot market. By buying or selling crypto from this section, we are in effect buying tokens and not derivatives. Consequently, this is the best way to buy a real asset that we can then eventually move to a wallet or other exchange.

Also available is trading in tokenized shares.
Tokenized shares are holdings of a publicly traded company that are recreated by the Binance application in token form. These, too, represent derivative products that are not suitable for long-term trading.
Tokenized stocks arise from the need on the part of many investors in the crypto world to be able to trade stocks without cashout, that is, to switch from cryptocurrencies to FIAT money.
They do not entitle investors to receive the dividends that some publicly traded companies pay periodically to their shareholders.

Passive return on Binance

Let’s start with the Binance Earn program, which is divided into Simple Earn, Double Investment, and Self-Investment. The products just listed may vary by country.

As the name suggests, Simple Earn is an easy-to-use product designed even for those who are not experts in the field. We simply subscribe to the service with the coin we wish to earn, indicating the time period for locking in funds: flexible, 30, 60, 90 and, in some cases, 120 days. Interest, paid in the same crypto, grows as the duration increases.

Double Investment works on the natural “buy low, sell high” concept. Buy and sell prices are given, based on one’s view of the market. However, high rewards bring higher risks. In addition, some knowledge is required to make forecasts based on serious and thorough analysis. On a positive note, there are no trading fees.

Auto-investment is what the name makes us think of: an automatic, scheduled investment in a particular cryptocurrency. It puts us in a position to plan an accumulation strategy even over several years, tailored to our needs.

Finally, Savings, which allows one to put one’s crypto to income.

There are three categories of savings: flexible, restricted and assets.

The first type is the simplest and has no constraints, in fact you will be able to lock your coins within this application to receive interest paid in tokens. In addition, it will be possible to remove the liquidity entered on the same day without losing the interest accrued.

In the second type, captive savings, we have the same annuity method, but we have to tie up our coins for a specific period of time, usually 30, 60, 90 or 120 days, in order to get a slightly higher annual interest than the one seen above.

In the last category, assets, we find bargains that are only valid for a period of time or until a certain coin threshold is reached that will give us even higher interest than the first two types.

Let’s move out of Binance Earn and into DeFi Staking, an annuity tool that allows us to tie up our coins for a defined period of time, getting interest as a reward. All of this is done by leveraging Binance’s DeFi partners, which include Venus Protocol and AAVE.

The high return is accompanied by an equally high risk. Weighing up well whether the service might be right for us is not for everyone.

Binance Pool allows you to mine cryptocurrencies through the exchange application. An interesting way to approach the world of mining, as long as it is actually profitable (to each the appropriate calculations).

Let’s move on to Binance’s Liquidity Farming. It is nothing more than a centralized version of the various pools that exist in decentralized exchange (DEX) platforms.
Basically, this service consists of placing two cryptos of equal countervalue within a pool, so as to promote their balance.

From this moment we will be liquidity providers: thanks in part to our funds, other people will be able to buy and sell the coins in a matter. For example, by providing liquidity to the ETH-USDT pair, any trade involving these two coins will also take place because of the cryptos deposited by us.

Our service will be repaid by a percentage on each individual transaction. The reward may be in BNB or other matched coins and tokens. The interest is usually higher than that seen above. Beware, however, of APY volatility (which changes daily), asset value fluctuations, and impermanent loss.

ETH Staking is Binance’s service that allows us to bind our ETH through the platform. The operation and steps required to take advantage of staking are extremely simple:

First of all, we will have to bind our ETHs (only whole values example 1 ETH or 3 ETHs)
Immediately after that, the platform will render us BETHs, which are tokens that have a similar value to ETHs but slightly reduced; this is to discourage people from releasing coins too soon. We will receive interest in BETH that will accumulate with existing interest.

Let us now look at the BNB Vault, a product entirely dedicated to Binance Coin (BNB) holders/holders.

The Vault offers the possibility to lock BNB and get passive remuneration. Binance itself will annuitize our coins in earn, stake, etc., so we can generate the income we are going to receive.

Usually, the returns are lower than manual operaitivty. However, we have the convenience of not having to do anything except precisely deposit the BNBs in the Vault. We can imagine this type of return as a “bind and forget,” although it is always recommended to monitor its performance from time to time.

We conclude with Launchpad. This service allows us to bind some coins chosen by Binance in order to farm the tokens of a nascent project.

The return is usually higher than those seen above; however, the service is not always active and since our interest is paid with the launchpad coin, care must be taken.

"The many services make Binance an excellent choice for putting your crypto into yield in CeFi"

What commissions does Binance have?

We said that Binance’s fees are among the most competitive in the market. Let’s study them in detail based on their type.

These costs vary depending on the user profile. The normal person falls under the normal user. On the other hand, large investors can be part of the VIP profiles, structured from level 1 up to level 9. It all depends on the volumes generated and the amount of BNB moved, as the table at the end of the paragraph illustrates.

That said, let’s look at the fees for the regular user profile.

How much does Binance cost? Spot Trading charges a 0.1% commission for both Maker and Taker. This can decrease if a discount is accessed.

Interest on margin loans changes from crypto to crypto. They are expressed on a daily basis and visible in this table.

Trading Future USDⓈ-M varies by coin: USDT has Maker fees 0.02% and Taker fees 0.04%; BUSD, Binance’s stablecoin, lowers fees to 0.013% and 0.03%, respectively.

As for COIN-M futures, Maker fee is set at 0.01%, while Taker is 0.05%.

Single commission for options trading: 0.02%. Variable for swap farming (see table) and zero for P2P trading.

The numbers just given are valid as of the date of writing and may be subject to change. Consult official documentation before trading so you can avoid higher than expected fees.

Who is behind Binance?

While there are several important faces behind the exchange, the key figure is undoubtedly one: Changpeng Zhao, known as CZ, founder and CEO of Binance until November 2023.

He boasts a distinguished track record of success with a variety of startups. In 2017, CZ started Binance; in about 6 months he led it to become the world’s leading cryptocurrency exchange.

At the time of writing, the CEO of Binance is Richard Teng, a figure with 30 years of experience in financial regulation.

As we have seen, today Binance is much more than a place to buy and sell cryptocurrencies. The services offered are many and range from basic to very complex.

According to numbers reported on the official website, in 2022 Binance was the scene of as many as 300 billion spot transactions. The average trading volume stands at about $65 billion daily.

Binance has several locations scattered around the world. The main European one, located in Paris due to favorable local regulations, is important.

Where is Binance headquartered?

Binance’s holding company headquarters is located in the Cayman Islands in the Caribbean. However, the company has always defined itself as decentralized, thus lacking a headquarters as one might traditionally imagine.

The company does, however, have headquarters and offices scattered around the world, from Bahrain to Dubai to Paris.

Can I use Binance in the US?

The answer to the question is “it depends on the state.”

In the U.S. you can use Binance in some countries, while in others it is banned or restricted. On this page you can find the list of states periodically updated.

Is Binance safe?

As we have already mentioned, Binance.com is one of the world’s largest exchanges, a giant in the crypto world and a benchmark for all crypto investors worldwide.

Given its importance, Binance is in a safe and stable position. However, as other companies teach, it is always best to never let your guard down. That is why we recommend using crypto exchanges, not just Binance, to buy and sell digital assets but not to store them.
After the purchase, it’s best to move coins and tokens to a non custodial wallet of our own; we will have more responsibility but we will be the real owners of what we deposit. You might also consider a hardware wallet such as Ledger or Trezor.
In case we decide to leave the funds on an exchange, perhaps to put them in annuity, keep in mind that in case of liquidity problems we may not be able to get them back.

In any case, Binance has so far proven to be safe even with regard to external attacks, although a little extra care never hurts.

Rounding out the offerings is Binance customer support that is available every day and at all hours. Some users complain of slowness in resolving issues, but the majority say they are satisfied.

Now you know how Binance works and can take advantage of all the services it offers. Here you can sign up for the Binance exchange and get 20% off fees forever-an offer not to be missed (not valid from the U.S.).