【Investment and Financial Management】Binance | The World's Largest Cryptocurrency Exchange

foreword

Most of the introduction articles are teaching you how to register, how to deposit and withdraw funds, how to trade, etc. Step-by-step teaching. It does not mean that these things are not important, but everyone seems to forget that the essence of the introduction of the exchange should be to let friends who have not yet entered the market. Knowing what special features and unique functions it has, otherwise, the exchanges that are not ranked so high on the roadside can still deposit and withdraw gold and buy cryptocurrencies. Why should I choose the exchange you recommended? ? In fact, there are too many introduction articles to write such exchanges, so I will not teach you how to apply and how to use them. And choose your favorite exchange to register.

As the old saying goes, before you decide to start investing in cryptocurrencies, you must first understand risk, risk and profit go hand in hand, this is a high-risk, high-reward place, if you haven’t read my previous talk about risk and basics You can click here to review the article. In the previous article , we also introduced the characteristics of the three largest Taiwanese cryptocurrency exchanges. If you have completed the registration of any of these Taiwanese exchanges, congratulations, you already have low It is a convenient and convenient channel to exchange the NTD in your hand for USD stablecoins or other cryptocurrencies.

Next, I will slowly introduce world-class exchanges, these exchanges are basically the top ten exchanges in the world, but trading in these places is not like Taiwan exchanges, in case you really encounter If you are in a situation, you can go to a physical store at least once to ask for help from someone, so do some homework before entering the market. You will never have to be afraid of it running away. This article will introduce the Binance Exchange, which has long been ranked No. 1 in the world.

doubt

Why bother to sign up for a world-class exchange? Wouldn't it be the same if I buy one and buy it as an investment on an exchange in Taiwan?

Of course you can, and Taiwan exchanges (such as: ACE Exchange ) will have debt activities that can be purchased from time to time, which is equivalent to obtaining a fixed deposit with an annualized interest rate of 8% to 14%, and the MAX exchange also has a 1% annualized interest rate. Stablecoin surviving interest, these can be used as asset allocation outside the bank, but if you want to learn more about some financial operations or gameplay, these will definitely not satisfy you.

1. The liquidity and depth of Taiwan exchanges are generally insufficient

Insufficient liquidity and depth means that there are not many pending orders from the buyer or seller. If it is a small purchase by a petty bourgeoisie, there is no difference. However, if your capital is slightly larger, it is easy to make the price in the exchange fluctuate with one operation. Many, maybe you only want to buy a certain coin for 100 yuan, but because there are fewer people to sell in the exchange, you will end up spending 120 yuan to buy the amount you want to buy, and if we are in depth Although relatively large exchanges will encounter similar problems, it may cost hundreds of millions of dollars to be able to make the price fluctuate in an instant.

2. Derivative financial products

Perhaps due to the supervision of Taiwan's regulations, the financial products such as leverage, short selling, futures options, etc. that people often hear about have not yet appeared on Taiwan's exchanges at this stage. Let's take a more practical example. If you think a stock will fall today, we will first go to the market to see if anyone is willing to lend the stock for me to sell, and then buy it at a lower price after the price drops. This is called "short-selling"; on the other hand, we may also think that a certain currency will fall. Almost all world-class exchanges provide similar functions, and even leveraged tokens, allowing us to go long. Or when shorting, you can reduce the risk of the position being liquidated to zero. This part may be deep, and if you are a newbie just think about it first, you can have more options when buying and selling cryptocurrencies.

3. More interesting features

I don’t come from a business background, so I’m not sure whether it’s a change of soup or not. I simply changed the concept of traditional finance and threw it into cryptocurrency, but a world-class exchange will have some special functions, such as new Before the listing of the cryptocurrencies, let users preemptively purchase at a price lower than the issue price, liquidity mining, NFT market, computing power mining or help you more easily participate in some main chain activities (ETH2.0 staking, Polkadot Parachain slot auctions, etc.), let us use a lower threshold to understand and participate in some things in the blockchain world, which are things that any Taiwan exchange cannot or cannot do at this stage.

Introduction to Binance Exchange

The currency trading service of Binance Exchange started in 2017, and finally stood out after the competition of a hundred schools of thought. So far, it is considered to be the largest cryptocurrency exchange in the world, and its one-day trading volume ranks second to tenth in the world. The sum of the famous exchanges is more, it can be said to be a monster-level centralized exchange!

Binance has established two main chains, namely Binance Chain (BC) and Binance Smart Chain (BSC). BC was originally established to become a relatively “decentralized” part of Binance. , and then the newly released Binance Smart Chain updated the consensus mechanism. Currently, it mainly serves some DeFi projects on Binance. I found a comparison between the two in the official documents , and you can take a look at the differences between the two:

Although it is indeed decentralized, the number of verification nodes is only 11 and 21 respectively. Compared with the current writing of this article, the 2,449 nodes of the Ethereum blockchain and the 14,678 nodes of the Bitcoin blockchain are basically super centers. This is why Binance’s two public chains have super-fast block generation capabilities.

At the moment of writing this article, Binance Exchange ranks No. 1 in the world exchange on CoinMarketCap , with 418 currencies in circulation, 1,628 different trading pairs to choose from, and supports 46 types of fiat currency deposits around the world.

Use the referral code to apply for up to 40% discount on handling fees

Binance has issued its own platform currency called "BNB" (Binance Coin). Holding their platform currency basically has the opportunity to purchase or mine unlisted tokens first, and can go to the Binance NFT market to buy NFT. Commodities, and BNB is also the fuel fee required when using Binance Chain (BC) and Binance Smart Chain (BSC) to operate.

Use my referral link or directly enter the referral code "51199321" to enjoy up to 20% discount on handling fees. This part is given back to your Binance account in the form of cashback. If the BNB platform currency is used again, the transaction fee can be reduced by 25%, so enter the referral code to first discount 20%, and then cooperate with BNB to pay the transaction fee to offset the remaining 25%. In fact, a total of transaction fees can be saved. Up to 40%!

Features of Binance Exchange

There are many functions here that are relatively advanced usage. Since this article is only about the characteristics of the exchange, I will not discuss everything in depth. I will only cover it in a limited space. I will write an in-depth introduction in the future when I have the opportunity. . So if you can, go to the Internet to check more information before using these functions and start, you can avoid the wrong way!

《Binance NFT Market》

Binance also has its own NFT trading market. The NFTs built on it are all based on the BSC chain, and the protocol part follows Ethereum, so the commonly heard ERC721 and ERC1155 are BEP721 and BEP1155 on BSC.

Since the opening of the NFT market, Binance has officially cooperated with many project parties. For example, some GameFi projects may have some NFT blind boxes for everyone to buy, and you can consider resale of these blind boxes directly, or It is to open it. Once the blind box is opened, it will become another NFT. It feels like we are drawing a gashapon. We never know what we will draw before we draw it. With different prices, this blind box NFT is also the first NFT in my life. If there is a chance in the future, I will share the story of owning NFT for the first time!

The only currencies that can be traded are the U.S. dollar stablecoin (BUSD), Binance platform currency (BNB), and ether (ETH) issued by Binance, so if you buy and hold some BNB, in addition to using it to offset the handling fee, You can also use it to buy NFTs! There are also many NFT projects that can only be purchased with BNB.

《C2C》

C2C is Consumer-to-consumer. Binance provides a peer-to-peer trading matching platform, which gives us the opportunity to directly find another Binance user through this platform to directly convert TWD/Cryptocurrency. I have tried C2C to buy with TWD USDT, but the sellers on C2C will sell a lot more expensive than the USDT obtained on the Taiwan exchange, so if you want to buy, you need to evaluate the convenience and price first.

As for the part of the sale, I have not actually sold it, because I remember that a long time ago on the Internet, someone was discussing C2C selling currency to Taiwan currency and encountered transaction cockroaches. Because of some problems, the money was frozen in the C2C wallet for a long time. If you don’t come out, I don’t know if this is still the case. If you plan to use C2C to withdraw cryptocurrency and exchange it back to Taiwan dollars, remember to do some homework and try again.

"Launchpad"

Binance Launchpad is a cryptocurrency initial public offering or fundraising activity (Initial Coin Offering, ICO). Before a new project's currency is listed on the Launchpad platform, Binance will go through layers of review, and the main general direction is the development of this project. Maturity, team quality and scale, token economic model, etc., to evaluate the potential of this token, so that good projects can be listed on Binance first, so the cryptocurrencies issued here are usually of relative quality. Gao team, and we can buy these unlisted coins one step ahead of others on Binance Exchange. Once listed, of course, the price will be determined by the market mechanism, but the first to buy on the day of listing, I will be paid dozens of times. have encountered.

There are two common subscription methods for LaunchPad recently:

1. During the event, users can freely choose the amount of BNB they want to invest. When the event period expires, users will be allowed to purchase according to the ratio of the user's average BNB holdings on Binance for seven days to the total purchase amount of the event.

This is quite abstract. Let me give a simple example. Suppose today I expect everyone to buy ITNOTE coins with 0.1 BNB on Binance Launchpad. The upper limit of the purchase is 100 ITNOTE coins.

During the last event, the average holding of Binance users was 10,000 BNB. If you convert it in equal proportions, as long as you invest 100 BNB during the event, you can get the opportunity to purchase an ITNOTE coin with 0.1 BNB, so let’s say a certain A is in the event. If he holds 240 BNB during the period, he can use 0.24 BNB to buy 2.4 ITNOTE coins after the event ends. (Sneak an advertisement here, there are really ITNOTE coins, you can get them by logging in every day in my BBS forum , so everyone is welcome to come and play! You can also read the article I wrote before to understand what BBS is Network)

2. There is a proper term called "New Coin Mining", which simply means that users can deposit BNB, BUSD and other currencies, and Binance will return the new currency to you as interest, but send it every day. The amount of coins is limited, so usually a few days before the event starts, there will be a relatively high annualized reward, and in the later stage, because everyone knows that they will gradually put the coins into mining, the annualized reward will be lower and lower.

"Binance Money"

Every financial management in this part is a huge topic, but the simplest way to explain it is to put money in for fixed deposit or living, but different financial management projects have different risks and rewards. Dig a little deeper to see what the gameplay is.

1. Binance Bao #low risk #stable income #zero fee

Binance treasure provides live and fixed deposits of some mainstream currencies. Basically, there is no risk here. Binance will use the money you deposit to lend and earn interest.

2. Staking #low risk #stable income # may have fees

This looks like the fixed deposit mentioned above, but it is actually a stricter fixed deposit. This is related to the PoS consensus mechanism of the blockchain. Simply put, when you pledge assets, it is an operation for the blockchain. Provide assistance, so you can get block rewards. Of course, you can also treat it as a fixed deposit.

3. New coin mining #low risk #latest token acquisition #zerofee

In fact, it is the second method to obtain ICO tokens that was mentioned when talking about Launchpad.

4. BNB Vault (income pool) #medium risk #The latest token to get #The income is not fixed

This income pool is specially developed and can only deposit BNB in it. Binance will allow the deposited users to have multiple incomes at the same time, such as new currency mining, Binance treasure and DeFi mining which will be mentioned later. Let our BNB It's nice to be able to do a lot of things at the same time.

5. Dual currency investment #high risk #high yield

I haven't used dual currency investment, but I think it looks more like an option seller in the stock market. When the time limit is up, if the price does not reach your position, you can get the premium, but if there is a breakthrough in your position, The loss can be unlimited, and the annualized return charged in the process is quite high, so it is a high-risk high-reward behavior.

6. Liquidity mining #high risk #high yield

This is related to decentralized exchanges, which will be specially introduced in future articles. We deposit the coins in the mining pool and become the liquidity provider of a certain trading pair. When someone comes to the decentralized pool to trade cryptocurrency, the liquidity provider can extract the handling fee and earn interest, but when When the currency price fluctuates violently, additional impermanent losses will occur, so when placing these liquidity pools, it may be possible to consider relatively stable trading pairs like USDT/BUSD or BTC/WBTC to reduce some risks.

7. DeFi mining #high risk #high yield

DeFi means decentralized financial services. In fact, the last liquidity mining is also one of DeFi, but the so-called DeFi here is to write smart contracts through code and put them on the blockchain for everyone to use, so it is possible In the event of contract loopholes, backdoors in the code, etc., the funds were hacked and ultimately lost.

"Other Features"

Others include hotel reservations, hardware mining (PoW), leveraged tokens, Binance cards, gift cards, recurring quotas, grid trading, leveraged trading... I can't write more about the functions, but I want to mention it, Binance There is a provision to pool users' money and perform some blockchain operations, such as ETH2.0 pledge, and the Polkadot parachain slot auction that just ended this month. This operation greatly reduces the threshold and makes it easier for retail investors and general users. Participate in major events on the chain.

Binance also has many trading activities or airdrop activities from time to time. However, before participating in recent events, you must go to the event page and press the button to participate in the event to confirm that you have signed up before you can participate. Special attention should be paid to this point. If you are interested, you can study it again, maybe you will find a good treasure.

Epilogue

A general introduction to all the functions of Binance Exchange, you can clearly realize that it is not of the same order of magnitude as Taiwan's exchanges, which is why I recommend you to do more world-class exchanges, from here Starting out and slowly exploring from centralized exchanges to decentralized exchanges is also a direction for steady growth. Later, maybe I will introduce other world-class exchanges. The above is not necessarily correct, so If you like it or have any suggestions, please leave a message to discuss with me. Remember to DYOR before any action, and don't lose your hard money where you can avoid it.

Finally, thank you for taking the time out of your busy schedule to read my articles. If you still like these content, I hope to get your follow-up and support. You are also welcome to click this link to find me on other platforms .

See you next time o((>ω< ))o~