The future of the biggest cryptocurrency trading company in the world.
What is Binance?
Every cryptocurrency enthusiast who wants to exchange some cryptocurrencies or safely keep them will probably need an exchange platform. That is a service with the possibility to buy and sell different cryptocurrencies (in this case) at market-determined values.
Undoubtedly, one of the most popular exchanges today is Binance, which has gained recognition in the crypto world due to the wide variety of currencies it offers and its meager transaction fees.
Changpeng Zhao is the leading name behind Binance. This Chinese-Canadian entrepreneur is the company's founder that today stands as the world's largest cryptocurrency exchange platform in terms of transaction volume.
Binance began its China ventures in July 2017 after a $15 million funding raised during an initial coin offering (ICO). But just that year, it had to move its offices to Japan because the local government banned cryptocurrency trading. Thus, by March 2018, Binance was already the exchange with the most significant number of global operations and had headquarters in Japan and Taiwan. Even today, it has project partnerships in Bermuda, Malta, Israel, and part of Europe.
Zhao is aware of the future of the crypto world. That's why his bet is blunt. "Binance is ready to survive any number of years, regardless of whether it's bear or bull... Our target is much longer than another year. Our goal is 10, 50, 100 years. So we'll be here for a while," he once said.
So, it's worth knowing more about Binance.
Binance allows its users to trade (investment in the market with the aim of making a profit) in real-time with more than 100 cryptocurrencies.
What does Changpeng Zhao think?
The last couple of months have been a constant up and down in the price of cryptocurrencies. Elon Musk's appearance on the comedy show Saturday Night Live on May 8, as well as his controversial tweets regarding coins like Dogecoin or Bitcoin (which stopped being accepted at electric car company Tesla because of its environmental impact), have participants in the business with their eyes fixed on the movement of the value of their crypto assets... except one.
During a conversation with Forbes, CZ predicts, with conviction, that eventually, the fluctuation of cryptocurrencies will be immune to the "Elon Musk effect." For the executive, part of the analysis lies in the industry's size, which has between 1 and 2 billion users who handle at least one cryptocurrency in the world.
It should also be noted that many of them are not actively watching the market but are only paying attention to Musk's reactions on Twitter, leaving just 10% of the total as active traders. "Elon has 57 million followers. His fan base is large enough to compare to the active cryptocurrency population that Twitter has, who tend to be very active traders."
Another aspect that strengthens CZ's confidence in the demise of the "Musk effect" is that more and more people are joining the industry. "If 7 billion people were using crypto, the impact would diminish as Bitcoin's market capitalization grows," he adds.
Binance operates in 180 countries, where the primary operation is the exchange of cryptocurrencies, which currently reach 400 on its server and can be traded by users regardless of their location, which has allowed the platform to maintain simultaneous growth in all nations has a presence. As a result, CZ sees his company as the most international startup globally because "we move in a very different way to traditional startups, which grow in one country first and then go to the next."
This growth is conditioned by the way cryptocurrencies work in each region of the world, and here there are important differences in terms of regulations. For this reason, Forbes asked CZ about the potential of electronic currencies in different world regions. The executive praises countries like the United States, where there is an innovation that Bitcoin and cryptocurrencies are legally accepted as things that can be owned. However, they have strong regulations in traditional finance.
In the case of China, there was a different approach, as the country is trying to have its cryptocurrency central bank. This fact makes it legal for its citizens to have Bitcoin while it does not welcome exchange platforms to operate.
Where it has not had an easy road is in the United Kingdom, as the British government banned the company's digital operations in circulation on June 27, because it "did not have the legal permissions to operate in the country," according to the Financial Conduct Authority (FCA).
For its part, Latin America has been helped by governments adopting a positive regulatory status, as happened in El Salvador early last month, when it became the first country in the world to make Bitcoin legal tender. Despite being a country of only 6 million people, the decision has enormous connotations for cryptocurrencies, pending whether they will be adopted as a legal trend.
How to register on Binance?
To register with Binance, you need to go to their website https://www.binance.com and select the register option. There you need to provide an email address or a mobile phone number. In both cases, it is necessary to enter a password and accept the terms of service. Then, a box will appear with a simple puzzle, which works as a captcha, which the user will have to complete to continue the process.
After completing these steps, you will have your Binance account active, and the system will redirect you to another page, "Your first steps on Binance," where the platform indicates some basic procedures to ensure a good experience and performance within the forum.
"Get into the world of cryptocurrencies", "Deposit cryptocurrencies to start trading" and "Buy cryptocurrencies with your credit card" are the main options to get started on the platform. It is also possible to look for the option "Buy cryptocurrencies on Binance P2P".
Improve Binance options?
After being registered on the platform, the user will see on the main page the option "Verify your account." By clicking on it, another page will appear where the first thing to do is enter the country of region or residence.
In the central part of the same page, three types of checks will be displayed: basic, intermediate, and advanced. This is sequential, that is. First you must do the basic one to access the middle and finally the advanced one; however, none of these is mandatory, but it offers significant improvements within the platform, such as increasing the limit of purchase of digital assets.
Responding to China's regulations
Cryptocurrency exchange Binance will remove the Chinese yuan from its peer-to-peer trading platform, the company said in a statement released today, becoming the latest organization to sever ties with China as Beijing cracks down on the industry.
Binance, one of the world's largest cryptocurrency exchanges, said it will stop supporting the Chinese currency on its peer-to-peer platform, where users can exchange it with cryptocurrencies such as bitcoin and ethereum, on Dec. 31.
At the same time, Binance said it will verify its users to make sure they are not located in mainland China. Accounts in mainland China will be switched and will only allow funds to be withdrawn, the exchange said.