Cryptocurrencies have come a long way since the days when Bitcoin was still thought of as some sort of hoax. Given the epic rise of cryptocurrencies and the disruptive way they have forever changed the world of global financial systems, it isn’t surprising that the crypto world is now a super industry on its own.
As a result of the number of currencies in play now and the sophistication of the trading environments they operate within, crypto exchanges have become an integral cog in that machine. Those like Binance may have reached premium status among crypto enthusiasts, yet many people still don’t know how it works.
Binance in a Nutshell
Binance is simply the name of a holding company that runs the world’s largest crypto exchange in terms of trading volume. According to Sam Cooling, Binance’s sterling reputation is built on its excellent security, its user-friendly interface, and its rapid adoption of new cryptocurrencies. As a result, the best new Binance listings on the market today provide a wide selection of crypto investments and innovative trading features for amateur and seasoned traders to trade with.
Binance was founded in 2017 by Changpeng Zhao, who has become commonly known as CZ. With a net worth estimated in the region of $40 billion, according to Bloomberg, he is the richest Canadian in the world. Despite pleading guilty to a money laundering charge and facing sentencing in April 2024, Binance itself was largely unaffected by the scandal though CZ did resign his position as its CEO.
The company remains a world-leading crypto exchange, attracting more than 190 million users from 180 countries. Offering more than 500 cryptocurrencies to choose from, it’s like a one-stop platform for crypto owners, enthusiasts, and investors to trade on. Through its variety of advanced trading options, it also offers many ways for traders to earn a passive income.
Features and Pros
Aside from offering users the opportunity to trade and buy or sell a myriad of different cryptocurrencies, Binance also offers trading tools and resources. Among these, it offers educational resources for crypto novices and provides a safe and secure platform for them to use as they dip their toes into the world of crypto trading for the first time.
More astute crypto enthusiasts will know that the ever-evolving world of NFTs has also become a massive part of digital finance. Binance caters to this aspect of crypto trading too as it provides an expansive NFT marketplace for users. According to Binance itself, the platform enables users to do everything from minting their own collectibles to buying, selling, trading, collecting, showcasing, or transacting in blockchain collectibles. These may take the form of a non-fungible token (NFT) linked with certain digital media and art — known as NFT art.
Other pros also include an insurance fund for assets held on the platform. It also has its own token known as BNB (Build ‘N’ Build). Originally known as Binance Coin when first launched, it now has one of the highest market capitalizations of any cryptocurrency. Originally forked from Ethereum, it was later moved to its own place on the Binance blockchain.
The company has since also rolled out the BUSD, also known as Binance USD, a stablecoin issued by Binance and backed on a 1:1 basis by USD reserve. While all of this has contributed to Binance’s incredible success, the company and its offerings haven’t always been immune to controversy and regulatory issues.
Regulatory History and Controversies
While the entire concept of cryptocurrency rests on the fact that it provides a decentralized financial system, Binance usually provides users with a regulatory framework within the countries it operates in. This assures users that its activities and services are not offered in a purely laissez-faire manner and makes it less the product of Wild West capitalism and more like a valid business platform that has checks and balances in place.
For example, since the Australian Binance exchange is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), it’s able to effectively stave off the spectres of fraud and corruption against users that have infected many other crypto platforms. That being said, the platform hasn’t been immune from controversy, although this has mainly come from the alleged activities of individual executives who have sought to benefit from things like tax avoidance and money laundering.
Originally founded in China, the company had to move offices and its servers after China placed an outright ban on cryptocurrencies. Despite perks like celebrity endorsements from stars like Cristiano Ronaldo over the years, the company has also had to move around and has faced many issues and even lawsuits in places like the US. Individual instances of tax evasion against executives and continuous complaints and investigations into its ability to help money laundering and financial crime fester have plagued it too.
That being said, for smaller investors and average users who are just looking for a foothold as a crypto trader or investor, the platform is still largely secure and is certainly among the best exchanges out there. While there have been issues and controversies, these mostly stem from individuals seeking to use it for nefarious ends, rather than any systemic security problems with the platform itself.
A Necessary Risk
It’s only been fifteen years since Bitcoin first hit the market and there are now literally thousands of different cryptocurrencies out there and a massive world of new opportunities being built on the potential of blockchain technology. Like it or not, understand it or not, blockchain technology and cryptocurrencies are here to stay. Cryptocurrencies continue to enjoy more widespread adoption every day.
Whether from the multitude of online casinos that use them, or the growing number of online stores and retailers that allow them as a payment method, cryptocurrencies can no longer be ignored as a mainstream medium of exchange. For that reason, there is a very real need for platforms like Binance that can effectively handle their exchange and trade in a safe manner.
Like any product or system borne of capitalist ideals, it isn’t the system that is inherently greedy or prone to being corrupted, but the people who choose to exploit it that bring about these concerns. While Binance and other exchanges like it certainly pose a risk when it comes to issues like money laundering, it arguably becomes a necessary risk when compared to the massive economic benefit it provides the world too.
Conclusion
The proliferation of cryptocurrencies as a modern medium of exchange has necessitated the variety of crypto exchanges that have been created to facilitate their trade. Among those crypto exchanges, Binance holds a special place since it’s been the largest by market trading volume for some time now. A massive digital platform that facilitates the trading, investing, buying, selling, and holding of over 500 cryptocurrencies, Binance is now recognized as a giant among crypto exchanges.
Offering everything from all things NFT-related to educational resources for users, it’s a one-stop shop for crypto enthusiasts, hardcore investors, and novice traders alike. Despite facing issues and controversies since it has become a way for nefarious users to exploit ways to launder money and avoid tax, it’s also a very necessary platform in a world that is proving it’s likely to continue growing more crypto-centric with each year that passes by.
