How The Binance P2P Platform Works
Quick Introduction
P2P stands for Peer to Peer, and
it is a form of networking that has applications extending even beyond
cryptocurrencies. P2P networks allow people to directly carry out transactions
with each other without a third party having to mediate.
Of course, there has to be a
platform facilitating the interactions between participants in the P2P network
and overseeing security and maintenance, but that's where it ends. The actual
transactions are between participants and do not need the oversight of the
platform managers.
Binance
Created in 2017, Binance has
grown to become the world’s largest cryptocurrency exchange with a $1.3 market
capitalization. There are various activities which can be performed on the
platform. Users can share, buy, trade and store all cryptocurrencies and stable
coins on the Binance platform. The first step is creating a wallet by signing
up.
Creating a Wallet
This is a simple step that can be
taken by visiting the Binance website. All you have to do is supply an email
address to use and pick a password. It is advisable to enable 2-factor
authentication (2FA) for security reasons. Hackers often attempt to steal
passwords and gain unauthorized access to your wallet. 2FA ensures that a
one-time password is sent to your phone anytime a login attempt is made.
Features on the Binance Platform
Spot Wallet
This is the wallet that holds a user’s cryptocurrencies and shows a quick summary of the balance and the various cryptocurrencies in the user’s position.
Deposits can be received into
the spot wallet either by sending the wallet address to another person who will
send cryptocurrencies to the wallet or by purchasing directly from a bank
account or with a credit/debit card. Withdrawals can also be made from the
wallet by transferring cryptocurrencies to another user's wallet address.
Read Also: Smart Contract Gateway To The Future
Spot trading
Here's where selling and buyingof cryptocurrencies are carried out. There are a variety of options to explore,
and they range from simple transactions involving buying or selling
cryptocurrencies to more complex ones including, Over-the-Counter Trades and
advanced Peer to Peer trading tools for handling large transactions. There's
also a margin trading option that allows you to trade margins and take trade
positions above your cryptocurrency balance.
Derivatives
The concept of derivatives
predates cryptocurrencies; they are financial instruments like futures that
allow people to make reservations to purchase an underlying commodity on a
future date at its current price. Binance allows traders to buy and sell derivatives
that are backed by cryptocurrencies.
Finance
Under finance, there are features
like earning rewards on your cryptocurrency deposits as well as being issued
debit cards that can be used to make cryptocurrency payments around the world.
In addition, a loan feature allows users to borrow against cryptocurrency
backed assets.
Market
This is a portal where you can
monitor the movements in the price of the different cryptocurrencies via charts
in real-time, cryptocurrency pairs can be selected to observe metrics such as
Market cap, Volume, 24-hour high or low prices.
The best way to understand
anything is by doing, so why not sign up for a Binance account to explore the
platform yourself?
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