In this continuation of our series on Binance, we’ll be looking at Binance’s history. Binance has come a long way in the crypto market. The crypto exchange launched in 2017 and has gone on to offer its services in different parts of the world.
Binance users are often curious about how the exchange makes money since it operates a low-fee policy. Others asked about the origin of the trading platform. If you missed our previous Binance FAQ, you can read it here. Let’s get more answers!
How Binance Makes Money
Binance operates in a lucrative market and makes its money from fees from its broker program, trading fees, spreads, cloud offerings, mining services, profits from investments, interest on loans, and interchange fees. In 2020, Binance posted a net profit of $20 billion. These figures have since skyrocketed.
Binance makes enough profit to ensure that if anything goes south, users get reimbursed. That’s what the Secure Asset Fund for Users (SAFU) is for. Binance offers its services in over a hundred countries.
Binance offers a vast service, making it the top choice for crypto users. Apart from running an exchange, Binance offers
- stop limit or market orders,
- margin trading,
- peer-to-peer trading.
How Binance Started
Binance was established in 2017 by Changpeng Zhao. Zhao built software for futures trading while working at financial firms, including Bloomberg LP in New York and Tokyo, after completing his studies in computer science. Before his days in the crypto world, CZ, as his followers call him, was mostly unsatisfied with his regular job, and learning about crypto gave him the perfect adventure he sought.
Zhao claimed that he initially learned about bitcoin in 2013 while playing poker in Shanghai. After that, he sold his Shanghai flat for bitcoin and worked for numerous cryptocurrency firms. Although this was risky for a tech guru, Zhao was fascinated by the idea of a decentralized currency that could be used anywhere without banks or central authority.
Zhao founded Binance with a handful of other programmers in 2017. The exchange initially concentrated on trading bitcoin and many of its offshoots, but it didn’t allow customers to trade digital coins for physical currency.
Zhao claimed that Binance didn’t require a bank account or a headquarters when it started operating. Binance later made $15 million in the 2017 ICO of its coin, BNB. This was a huge feat for the young exchange.
Within six months, Binance became the largest cryptocurrency exchange thanks to a surge in users from a number of nations, including those with less developed economies like South Africa, India, Nigeria, and the likes of Russia.
Furthermore, Binance has made a reputation for promptly adding new cryptocurrency projects to its exchange. As a result, it consistently had the widest selection of offerings, attracting cryptocurrency enthusiasts looking for specialized prospects. Our Binance FAQ part 2 has more details about Binance and CZ’s history.
Where is Binance Located?
Binance is currently registered in the Cayman Islands. The company has had to move its base often due to regulatory concerns. Binance’s CEO claims the company has offices in Paris and different parts of the world and has a flexible operation. They are also registered in Malta.
Will Binance Go Under?
There are no guarantees in the crypto industry. But, Binance looks solid. The company has not had it easy with regulators, but it has found ways to stay above water. Binance is also one of the most secure crypto platforms. So the chances of it being another 3AC or Voyager are very unlikely.
Binance, Can I Withdraw?
Binance allows you to withdraw fiat currency in any amount from your account using various payment methods. For example, you can use an instant card withdrawal or a bank transfer SWIFT method to withdraw money from your account into a bank account.
That’s it for this part of our Binance FAQ. You can read up on previous editions here. We’ll publish more Binance FAQ in the coming days.
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