What is Binance?

Binance is known for being one of the world's leading cryptocurrency exchanges .

On the Binance cryptocurrency exchange, users can buy, trade, and sell cryptocurrency. Although this cryptocurrency exchange is the main reason why most people know or have heard about Binance, it also offers other types of products and services in the world of crypto.

 

What is Binance?

In simple terms, Binance is a company with a digital ecosystem focused on cryptocurrencies. Some of the main product offerings that Binance offers are:

• Cryptocurrency exchange – Binance Exchange
• Binance Coin – BNB Coin
• Binance Chain – BNB Chain
• Binance Smart Chain – BNB Smartchain
• Launchpad – Binance Launchpad
• Wallet/Wallet for cryptocurrencies – Trust Wallet

Note: If you do not have a basic understanding of what cryptocurrencies are, I recommend you first read our article on What Are Cryptocurrencies?

The beginning of Binance

Binance was founded in July 2017 by its current CEO, CZ (Changpeng Zhao). At first, Binance acted solely as a cryptocurrency exchange (digital platform where users can buy, sell and trade cryptocurrencies) and it would, in just one year, become the largest cryptocurrency exchange in the world.

Cryptocurrency exchange ( Binance Exchange )

Binance Exchange offers a very complete platform to exchange (buy/sell) cryptocurrencies. This includes very basic trading tools and more advanced ones such as futures and margin trading .

Don't worry if you don't know what some of these terms mean, just keep in mind that Binance Exchange is a platform that allows users to buy and sell all kinds of cryptocurrencies. This is ideal for beginners or even for more experienced traders .

The Binance exchange is also very popular among people who buy and sell cryptocurrency as it offers a large number of coins. From the most popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), to meme coins like Shiba Inu (SHIB).

Binance Coin ( BNB )

Almost at the same time that the cryptocurrency exchange ( Binance Exchange ) was created, and in order to raise funds to promote and develop this platform, CZ launched the BNB Coin or Binance Coin (BNB).

BNB initially ran on the Ethereum blockchain, in other words, it “lived” on the Ethereum blockchain . However, in 2019 CZ decided to create its own blockchain and BNB would become the native currency of Binance's blockchain, Binance Chain (BNB Chain).

BNB is used to facilitate the trading of cryptocurrencies on the Binance Exchange . One of the main benefits of the BNB token is that users of the Binance Exchange can gain access to lower trading fees when using BNB to buy or sell their cryptocurrencies.

Binance Chain + BNB Smartchain = BNB Chain

As mentioned above, in 2019 Binance decided to create its own blockchain, Binance Chain (BNB Chain). His goal was to create a fast blockchain that could handle more data and be used solely for trading.

However, and seeing the popularity that Ethereum was having with Smart Contracts , in 2020 Binance decided to create the Binance Smart Chain (BSC).

BSC introduced the ability to program smart contracts on a Binance blockchain. This allowed users to create their own apps, tokens, NFTs, and other DeFi apps. This is very important because many of the “ meme coins ”, like SHIB, that gave returns of 100x or 1000x are born on the Binance Smart Chain .

So yes, although it's a bit confusing, Binance runs two blockchains parallel to each other, but connected via the BNB token. However, it is important to mention that in February 2022, Binance merged Binance Smart Chain and Binance Chain to form the new BNB Chain .

Launchpad ( Binance Launchpad )

Binance Launchpad is a platform that allows users to invest in tokens that have not yet been released to the market. The most immediate advantage is that you can get access to unreleased tokens at a very good price.

TrustWallet

Trust Wallet is a digital cryptocurrency wallet owned by Binance. Trust Wallet allows users to store and access their cryptocurrencies from their mobile devices.

Trust Wallet gives users full control over their digital assets, from cryptocurrencies to non-fungible tokens (NFTs). According to bybit.com, Trust Wallet currently supports 65 blockchains such as Bitcoin, Ethereum, and Binance, along with more than 4.5 million cryptoassets, including NFTs. It also includes access to decentralized applications (DApps).

Storing cryptocurrency in Trust Wallet is considered a more secure method by, for example, simply leaving your cryptocurrency on an exchange . The app is free to download on Android and iOS and features a simple, straightforward and interactive user interface, which has helped the platform amass over 10 million active users.

Conclution

Binance Exchange is the world's most popular and widely used cryptocurrency exchange.

BNB is the native currency of Binance Chain and Binance Smart Chain, the same ones that were "merged" in February 2022 to form the BNB Chain.

Many of the “ meme coins ” and “ shit coins ” with exaggerated gains run or “live” on the Binance Smart Chain , so it is important to become familiar with this ecosystem.

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