The world has evolved over time and technology has played a great role in that. Money isn’t just paper anymore, it has taken the form of digital currency as well. The word cryptocurrency is always on-trend now. People are realizing its characteristics slowly but steadily.
A few years ago, the concepts of cryptos were not that popular. The cryptocurrency was invented in 2008 by an unknown individual or group called Satoshi Nakamoto but started gaining momentum in recent years.
To be specific, Cryptocurrency is nothing but a form of digital currency that runs on blockchain technology which means it is decentralized in nature and cannot be controlled by any Government or any mediator.
Cryptocurrency can be exchanged through various trading sites and amongst all those sites, we have CoinDCX. In this article, we will talk about India’s first crypto unicorn, CoinDCX’s business model and how it makes money. So let’s get started.
“Cryptocurrency will change market structures, and maybe even the architecture of the Internet itself.” -Abigail Johnson
CoinDCX is a company that focuses on providing cryptocurrency-related financial services and is into cryptocurrency trading networks. It concentrates on giving the customers a quick, risk-free, effortless, and reliable trading experience. It is also considered the safest and largest cryptocurrency legal exchange platform where one can buy and sell various types of cryptocurrencies.
CoinDCX Website
The company has developed a trading platform where traders using CoinDCX have given the facility to trade various industry-first products by using exchange liquidity.
CoinDCX was founded by Neeraj Khandelwal and Sumit Gupta in the month of April 2018, both of the founders have graduated from IIT Bombay.
Neeraj Khandelwal and Sumit Gupta
When Bitcoin started gaining momentum in 2014, the founders realized that it would be great to take the support of blockchain technology to get started with financial inclusion.
Both of them strived hard to make this site the safest place for traders to buy and sell cryptocurrencies. As of over 188 people are working in CoinDCX as their employees.
Features of CoinDCX
CoinDCX is attracting the attention of crypto traders because of its several amazing features. Some of them are down below:
It is quite easy, simple, and fast. One can just start investing in just 10 minutes.
Another significant feature is that is CoinDCX is safe to use. Any kind of trading or investment is safe here on this site.
The adding and withdrawing of the fund can be done very quickly. It is not time taking.
Target Audience of CoinDCX
People who are interested to buy and sell their cryptocurrencies in huge amounts are mainly the target audience of CoinDCX. It is in a mission to entice the people from millennials and Generation Z. It is operated worldwide and is for all types of traders taking into consideration their trading history, risk tolerance, and the number of times they have traded.
CoinDCX provides a number of tokens for exchange to the traders. Some of the popular tokens are:
Bitcoin
Ethereum
Bitcoin Cash
Litecoin
Binance Coin
Chainlink
EOS
Tether
Cardano
Stellar Lumens
Ripple
Tron
Matic Network
Basic Attention Token
Business Model of CoinDCX
The development of the single point access by the CoinDCX helps in trading all kinds of cryptocurrencies that can be found in over 500 markets. Such is their trade machine engine is built that it is able to process 1 million transactions in just a second.
CoinDCX makes money like any other trading platform by charging a transaction fee during every exchange. Apart from that the company also makes money through the withdrawal sum, deposit fees, and the commission received from trading. INR is converted into cryptos by the trader and cryptos are converted into INR on DCXInsta.
How Does CoinDCX Make Money?
CoinDCX basically makes money from deposit fees, withdrawal fees, trading commission, and listing fees. Deposit fees are charged while exchanging currencies. Plus withdrawal fees and trading commission are derived from any normal transaction and exchange.
Revenue Of CoinDCX
CoinDCX’s current value is $1.1 billion and with people taking an interest in cryptocurrencies the amount will increase in the near future. Recently, it has been able to raise funds over $109 Million from five investors, thus leading it to add its name to the list of unicorns and it has also become the first crypto unicorn of India.
Current Scenario Of CoinDCX
With the sudden bump in the journey of cryptos, the company’s future is also in question. After the ban on cryptocurrency by the Chinese Government, the digital currency market faced a big loss.
CoinDCX at first during the early period of this year roped in Bollywood superstar, Amitabh Bachchan as their Brand Ambassador. Following some tension regarding the cryptocurrencies clarity in its legality, Bachchan withdrew his name as its ambassador.
CoinDCX Amitabh Bachchan
After that CoinDCX again announced Bollywood actor Ayushmann Khurrana as its new brand ambassador for their campaign ‘Future Yahi Hai’. This campaign was set to promote the safety of the platform for trading cryptocurrencies and acknowledge all the concerns related to cryptos.
In the last few weeks, there is a huge ruckus going on regarding the legality of cryptocurrencies in India, the decision regarding the future of Crypto would be taken on the 13th of December 2020 by the Prime Minister of India, Narendra Modi. The fate of CoinDCX and its other competitors will be decided in just a few days.
Cryptocurrency, even after its fluctuating nature was able to hold the attention of the people, naturally trading platforms like CoinDCX were quite a help for the traders that wanted to exchange cryptocurrencies safely. It tried its level best. Although the future of the company is unknown and depends on the Cryptocurrency bill of the country, one cannot deny the successful model and ways of the company that helped them in becoming the first Unicorn that too in the field of cryptos in just a span of three years.
FAQ
How much does CoinDCX charge per trade?
CoinDCX charges takers 0.04%, and makers 0.06%.
What is CoinDCX and how it works?
CoinDCX provides crypto-related finance services. It has a trading platform that traders can use to invest in crypto.
Who is the founder of CoinDCX?
CoinDCX was founded by Sumit Gupta & Neeraj Khandelwal on 7 April 2018.
Changpeng Zhao is the founder of the world’s largest crypto exchange Binance. He has turned out to be a true inspiration to many since the company’s inception in 2017. In a span of a few months, Zhao turned the company into the largest exchange platform for the crypto trade. Changpeng Zhao, popularly known as CZ, was valued as the 11th richest person in the world. Recent estimates revealed that his net worth is around $96 billion.
From selling his apartment to buy cryptocurrencies to turning out to be one of the richest people in the world, the life of CZ is something inspiring and exciting to learn about. Let us see where and how Changpeng Zhao’s journey started, his early living and his life as the CEO of Binance.
Changpeng Zhao is a Chinese-Canadian business person who was born in Jiangsu province of China on 10th September 1977. Both of his parents were teachers. Zhao’s father was working as a professor in a university and he was exiled after getting labeled as “pro-bourgeois intellect”. As a result, the family moved to Vancouver, Canada by the late 1980s. During his teenage years in Canada, Zaho started working part-time to support his family’s expenses. He used to work at McDonald’s and a few gas stations after his school.
Changpeng Zhao – Initial Career
Changpeng Zhao was a computer science graduate from McGill University, Montreal. After graduation, he started his career as an intern in Tokyo. He worked for a trader on Tokyo Stock Exchange, who asked Zhao to develop software for matching orders in the stock trade. After the initial experience, he joined the Bloomberg Tradebook LLC in 2001 and worked as the head of Futures Development sector for the next 4 years.
Later in 2005, Zhao co-founded a company called Fusion Systems. The company was involved in providing IT solutions and other business consultancy services. Changpeng Zhao remained as a partner in Fusion Systems until the end of 2013 and then entered the world of Crypto.
Changpeng Zhao – Professions in the Crypto World
Changpeng Zhao – Binance Founder
By 2013, Changpeng Zhao joined as the head of the development team in Blockchain. Blockchain.com is a company that provides various cryptocurrency-related services. It created a cryptocurrency wallet that has dealt with almost 28% of the bitcoin transactions between 2011 and 2020. Zhao worked in this company for developing software related to crypto wallets.
After working in Blockchain for about a year, Zhao resigned from the company and joined as the Chief Technical Officer in a company named OKCoin. OKCoin, like Binance, was a Crypto Exchange company and is considered to be one of the largest in the world. But Zhao felt that the company doesn’t suit his vision on crypto exchange and he decided to quit his position.
Coming out of OKCoin, CZ founded a company named Bijie Tech. This company provided crypto exchange services to people in Shanghai. It kept serving people for two years from 2015 to 2017, until one day, all the platforms and websites of Bijie tech went dead. There was no information given or clarified from the management regarding the disappearance of the company. But with the death of Bijie Tech emerged a mighty company named Binance.
Changpeng Zhao – Journey as Binance CEO
Binance Logo
Changpeng Zhao’s interest in cryptocurrencies started as early as 2014 while he was playing a poker game with his friend. During that time he got to know about Bitcoin and started investing in it. He even sold his house to buy Bitcoins. Such was his interest in the crypto market. Zhao added experience to his interest by working in various companies.
Bijie Tech slowly disappeared only to bloom as Binance. All the top management and resources of the former company structured Binance. Changpeng Zhao has remained the CEO of the company since its formation in 2017. This cryptocurrency exchange platform is the largest exchange in terms of trading. Binance made Zhao a billionaire within just 180 days of its operation. He has grown to be the 11th richest person in the world with his net worth estimated at $96 billion.
Zhao faced myriad challenges during these 5 years in Binance. China’s stringent policies on crypto forced him to shift the headquarters from the Chinese land to Caymen Islands. The United States Department of Justice has put Binance under investigation for money laundering offenses. Similarly, many other countries like Germany and UK have also raised legal actions or warnings against the company. In fact, in 2019, there was a huge theft of bitcoins from Binance whose value stood around $40 million. Zhao faced all these challenges explicitly including the bitcoin theft. He made sure that the company makes up for all the losses and never let his customers down.
Conclusion
The story of Changpeng Zhao is truly inspiring. Everything we think as impossible was made possible by him. Cryptocurrencies and their market are just getting popular and most people are less knowledgeable or still unaware about it. In such a situation CZ created his own pathway and set a benchmark for aspiring leaders. Zhao created a belief that it is possible to start a business and make it the world’s largest in 5 years. He showed that becoming one of the richest in the world would take just a couple of years. He also proved that despite any hardships from the superpower countries, it is possible to flourish a business in every part of the world. A lot to grasp from such a stimulating personality.
FAQs
Who is Changpeng Zhao?
Changpeng Zhao is the founder of the world’s largest crypto exchange Binance.
When and where was Chengpeng Zhao born?
Zhao was born on 10th September 1977 in Jiangsu province of China.
What is the work of Binance?
Binance is the cryptocurrency exchange platform that helps people trade cryptos for assets.
Which is the largest crypto exchange platform?
Binance is the largest crypto exchange platform in the world.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Binance.
The advent of cryptocurrencies spawned a slew of crypto exchanges to make trading and purchasing cryptos easier. Because cryptocurrencies are digital assets, investors have a variety of problems exchanging them on current networks. One of the key reasons for the creation of many exchanges is this.
A small number of bitcoin exchanges have suddenly grown into multibillion-dollar businesses. The rise in popularity of bitcoin has transformed previously small-time platforms into powerhouses that generate millions of dollars in income every day.
The staggering profits are a slap in the face to stock and currency trading companies that have chosen to stay out of the digital asset industry. They must watch while start-ups with just four years on the market brag about huge profits. What remains to be seen is, how long the euphoria will persist.
Know more about the company profile, startup story, founder, business model, etc., of Binance by reading this article further.
Binance is a cryptocurrency exchange platform that mixes finance and digital technologies. Binance is a company that provides blockchain and cryptocurrency infrastructure. The company allows users to trade digital currency pairings on the market while retaining security and liquidity, allowing them to transact safely and efficiently with anybody, at any time and from any location.
Trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and other crypto products and services are all part of its portfolio.
In its whole journey, to date, Binance has introduced two cryptocurrencies that it created: Binance Coin (launched June 2017) and Binance Smart Chain (launched September 2020). The Binance Smart Chain uses “Proof of Staked Authority,” which is a hybrid of proof of stake and proof of authority. 21 validators have been approved. Binance Coin was the third-largest cryptocurrency by market value in 2021. Binance users may use Binance Coin to pay fees on the exchange.
Binance is a FinTech firm that provides clients in over 180 countries with a variety of crypto-related goods. The Binance exchange, which allows both retail and institutional investors to purchase, sell, and trade bitcoin, is the company’s main product. On the site, you may trade over 500 different currencies.
Binance is also distinguished from other exchanges by the large number of trading choices it provides. Stop limit or market orders, leverage trading, and peer-to-peer trading are some examples. Users can also contribute their current crypto assets to one of Binance’s organizations. The platform does not take a cut, and all revenues are donated to the user’s preferred charity.
Binance – Latest News
9th January 2022 – While probing a multi-million dollar scandal connected to fraudulent online investing mobile apps, Pakistan’s Federal Investigation Agency issued a warning to a major cryptocurrency exchange, Binance,
“An order of attendance has been issued to Hamza Khan, the general manager/growth analyst at Binance Pakistan, to explain his position on the company’s linkage to “fraudulent online investment mobile applications,” an FIA Cyber Wing (Sindh) press release said.
The inquiry was launched to investigate a series of online investment scams taking place in Pakistan under the pretext of Ponzi schemes, in which naive investors are promised large returns on their money if they bring in additional clients, according to the agency.
“A relevant questionnaire has also been sent to [the] Binance Headquarters [in] the Cayman Islands and Binance US to explain the same,” it said.
According to the company, Binance is the “biggest unregulated virtual currency exchange” in the world, with Pakistanis spending millions of dollars. The agency received multiple complaints from citizens around the country on December 20 last year, alleging that they had lost billions of rupees while using specific mobile applications.
According to the FIA, these apps convinced consumers to sign up for Binance Crypto Exchange (Binance Holdings Limited) and then move money from their Binance Wallet to the app’s account. At the same time, all members of the group were joined to Telegram groups where the anonymous owner of the program and moderators of the Telegram groups provided professional betting indications on the rise and fall of Bitcoin.
Once a substantial capital foundation had been formed, these applications failed, depriving users of millions of dollars through the “referral bonus mechanism.” According to the FIA’s preliminary results, each app had an average of 5,000 subscribers, with the HFC app boasting the highest client base of 30,000.
The agency has contacted Telegram to request information on the location of the administrators of fake applications.
“Legal letters are also being sent to social media influencers pushing these applications to clarify their point of contact with the apps,” according to the press release.
Binance – Industry
A cryptocurrency exchange, also known as digital currency exchange (DCE), is a company that lets consumers swap cryptocurrencies or digital currencies for other assets like fiat money or other digital currencies. Credit card payments, wire transfers, and other modes of payment may be accepted through exchanges in exchange for digital currencies or cryptocurrencies.
A cryptocurrency exchange may either be a market maker that charges a transaction commission based on the bid-ask spreads or a matching platform that simply collects costs.
COVID-19 has had an unprecedented and astounding worldwide impact, with cryptocurrencies experiencing a positive demand shock across all areas as a result of the epidemic. According to the research, the worldwide market will rise by 10% in 2020, compared to a 5% year-on-year increase from 2017 to 2019.
During the period 2021-2028, the market is expected to increase at a CAGR of 11.1 percent, from USD 910.3 million in 2021 to USD 1,902.5 million in 2028. This market’s demand and growth are responsible for the continuous increase in CAGR, which will revert to pre-pandemic levels after the pandemic is ended.
Binance – Name, Logo, and Tagline
The designers intended to use two squares in the company logo to reflect the bids and requests on the exchange while also repeating the “binary” term in the logo (Binance = Binary Finance).
Binance Logo
The term “Binance” comes from the words “bitcoin” and “financial.”
Binance’s company tagline says, “Revolutionary Trading With Half the Fees & Your Dividends Paid.”
Binance – Founders
Changpeng Zhao founded Binance crypto-exchange in 2017.
Founder of Binance – Changpeng Zhao
Chanpeng Zhao
Changpeng Zhao is a Chinese-Canadian business executive who goes by the moniker “CZ.” Zhao is the founder and CEO of Binance, which, as of April 2018, was the world’s largest cryptocurrency exchange by trading volume. Zhao was a part of the Blockchain.info development team and also served as the chief technical officer of OKCoin.
Zhao founded Binance, a cryptocurrency exchange, in 2017, after leaving OKCoin. After obtaining $15 million in an initial coin offering, the firm was launched in July 2017.
As of April 2018, Zhao had grown Binance into the world’s largest cryptocurrency exchange by trading volume in less than eight months. He was ranked third on Forbes Magazine’s list of “The Richest People in Cryptocurrency” in February 2018. His net worth is expected to be $96 billion in 2022.
Forbes Richest People in Cryptocurrency
Binance – Startup Story
Zhao’s life would be forever changed by a single night in August of 2013. He was playing poker in Shanghai with two of his pals, Bobby Lee, the creator of the BTCC Bitcoin exchange, and Ron Cao, a partner at Lightspeed Ventures at the time. Cao continued saying something that sounded like “Bit Coin,” but pronounced it as two syllables. It was Zhao’s first time hearing about it.
He overheard Cao suggesting that he should launch a startup on Bit Coin or blockchain. Then Lee suggested that he should invest 10% of his net worth in it. If it reaches zero, he would lose 10% of his investment. There was a good probability that it would go 10X and he would double his money.
His pals weren’t kidding when they said the same. Zhao was enthralled. He eventually raised him: a few months later, he sold his house for $1 million and placed everything on Bitcoin. BTC was trading for $600 per coin at the time. Despite Bitcoin’s price plunging as low as $200 at times, Zhao told Decrypt he hasn’t touched it. The value of the savings account has risen to $17 million.
The man has never shied away from taking chances since then. Changpeng Zhao, a developer who had previously designed high-frequency trading software, launched Binance. Binance was founded in China but moved its headquarters out of the country after the Chinese government tightened its grip on cryptocurrencies.
Fusion Solutions, founded by CEO Changpeng Zhao in Shanghai in 2005, specializes in high-frequency trading systems for stockbrokers. In 2013, he became the third member of the team at Blockchain.info, a bitcoin wallet. He also spent less than a year as the CTO of OKCoin, a platform for spot trading between fiat and digital assets.
With a market value of $1.3 billion in January 2018, Binance was the largest cryptocurrency exchange, a record it maintained until April 2021, despite competition from Coinbase and others.
Binance has introduced two cryptocurrencies that it built itself throughout its history: Binance Coin (BNB) in June 2017 and Binance Smart Chain (BSC) in September 2020.
Binance’s vision statement says, “Our vision is to increase the freedom of money globally. We believe that by spreading this freedom, we can significantly improve lives around the world”
Binance’s mission statement says, “Our mission is to be the infrastructure services provider for the blockchain ecosystem.”
Binance – Employees
Changpeng Zhao – CEO & Founder
Teck Chia – Partner
Yi He – Co-founder and CMO
Jarred Winn – Senior Vice President
Gleb Kostarev – CIS and Eastern Europe, Russia
David An – Director BD | NFT
Mai Lu – Vice President of Asia Pacific
Binance – Business Model, and Revenue Model
Trading fees, interest on loans, fees from its broker program, spreads, cloud products, interchange fees, mining services, and investment earnings are all sources of revenue for Binance. The site used to make money by charging listing fees when new cryptocurrencies were launched.
Binance is also distinguished from other exchanges by the large number of trading choices it provides. Stop limit or market orders, leverage trading, and peer-to-peer trading are some examples. Users can also contribute their current crypto assets to one of Binance’s organizations. The platform does not take a cut, and all revenues are donated to the user’s preferred charity.
Binance does not provide free cryptocurrency trading. Binance charges a range of fees for the various trading items it provides. On Binance, both retail and institutional investors can trade in a variety of ways, including on margin, through future contracts, and by acquiring synthetic stock tokens.
When it comes to cryptocurrencies, Binance charges a fee every time a customer buys or sells a digital asset. Binance charges a 0.1 percent commission on all trades. Those costs will be reduced if traders utilize BNB, Binance’s currency. In addition, when a trader wishes to cash out his or her profits, Binance imposes a withdrawal fee.
Binance has raised a total of $35 million in ten rounds of fundraising.
Date
Round
Amount
Lead Investors
Dec 1, 2020
Initial Coin Offering
–
–
Oct 23, 2018
Venture Round
–
Vertex Ventures
Nov 1, 2017
Initial Coin Offering
–
–
Nov 1, 2017
Initial Coin Offering
–
–
Sep 1, 2017
Series A
$10M
–
Sep 1, 2017
Series A
$10M
Black Hole Capital, Funcity Capital
Jul 21, 2017
Initial Coin Offering
–
–
Jul 1, 2017
Initial Coin Offering
$15M
–
Jul 1, 2017
Initial Coin Offering
–
–
Jan 1, 2017
Initial Coin Offering
–
–
Binance – Investments
Binance has invested in 56 different companies.
Date
Organization Name
Round
Amount
Nov 23, 2021
Avocado Guild
Series A
$18M
Nov 4, 2021
Mythical Games
Series C
$150M
Nov 2, 2021
SecondLive
Seed Round
–
Nov 1, 2021
StarSharks
Seed Round
–
Oct 22, 2021
Melos Studio
Venture Round
–
Sep 16, 2021
LayerZero Labs
Series A
$6.3M
Apr 13, 2021
MOUND
Seed Round
$1.6M
Apr 1, 2021
Mask Network
Venture Round
–
Mar 30, 2021
PureStake
Series A
$6M
Mar 29, 2021
EPNS
Seed Round
$660K
Binance – Acquisitions
Binance has acquired seven businesses.
Acquiree Name
About Acquiree
Date
Amount
Swipe.io
Swipe.io offers a multi-currency crypto wallet app as well as a crypto-to-fiat funded Visa debit card.
Jun 30, 2020
–
CoinMarketCap
CoinMarketCap provides transparent data to the cryptocurrency community, enabling users to form conclusions and interpretations.
Apr 1, 2020
$400M
BxB
BxB is building KRWb, a stable bridge from Korea to anywhere. It’s a globally accessible, 1:1 stable coin backed by the Korean Won.
Mar 31, 2020
–
DappReview
DappReview is a DApp ranking evaluation platform
Dec 3, 2019
–
WazirX
India’s leading bitcoin exchange
Nov 21, 2019
–
JEX Customer Care Number
JEX is a crypto futures and options exchange.
Sep 3, 2019
–
Trust Wallet
Trust Wallet is a mobile wallet company for Ethereum and ERC20/ERC223 tokens.
Jul 31, 2018
–
Binance – Growth
In 2020, already-vulnerable economies and countries witnessed unprecedented volatility and instability in global markets. With global economic uncertainty, inflation, and traditional assets all suffering as a result of the pandemic’s macroeconomic shock, individuals all around the world are rapidly turning to bitcoin and cryptocurrency as alternative assets. As a result, the cryptocurrency industry has exploded, allowing mainstream audiences to embrace cryptocurrency adoption for the first time.
Binance, a crypto version of the London, New York, and Hong Kong stock markets, was founded just four years ago and already towers over the digital currency industry. According to data source CryptoCompare, Binance conducts more deals for cryptocurrencies like bitcoin and ether each day, totalling $76 billion, than its four top competitors combined.
Binance, a prominent cryptocurrency exchange, has been chased by financial regulators all around the globe. Some have prohibited the site from engaging in specific operations, while others have alerted users that it is operating without a license. Because Binance does not provide financial information, it’s difficult to assess whether the company has suffered a setback.
Despite the regulatory pressure, the exchange has taken several important movements. Zhao, the CEO of Binance, stated that he wanted to repair his relationship with authorities. Their consent would be sought, and regional headquarters would be established.
Binance has also scaled back certain of its cryptocurrency goods that may be subject to regulatory oversight. It announced in 2021 that it will cease its European futures and derivatives business, with users in Germany, Italy, and the Netherlands among the first to be affected.
It has also limited Hong Kong customers’ ability to trade derivatives, citing the decision as “in keeping with our commitment to compliance.” Binance likewise ceased trading digital tokens connected to stocks in July 2021 after authorities slammed its “stock token.” It also announced that it will no longer allow crypto margin trading in the Australian dollar, euro, or pound sterling.
Binance hit an all-time high of $15 billion in 24-hour spot trading volume in 2021, while the average daily spot trading volume climbed by 36% to $3.88 billion. In addition, consumers looking for hedging and liquidity went to the crypto futures market. Binance Futures has risen to become the world’s leading crypto futures contract, with the highest trading volumes for Bitcoin and numerous other cryptocurrencies.
The company’s objective is to continue complying with local norms and regulations so that it can safeguard and give the finest services to its consumers while also increasing adoption.
In addition to the numerous RegTech solutions it invests in and compliance partner organizations with whom it collaborates, the company continues to collaborate closely with regulators, complying in the places where it operates as a global decentralized organization and assisting in the positive influence of regulations that will benefit our industry. According to the creator, the firm aims to collaborate with more local governments and officials in the coming years and encourages them to do so.
Binance – FAQs
Is Binance bigger than Coinbase?
Yes, Binance is the largest cryptocurrency exchange by volume.
How much does Binance make in a day?
Binance makes approximately $76 Billion a Day.
Which countries cannot use Binance?
The people in the UK cannot use Binance, as the crypto exchange is banned in the country.
We are at a time, where digital currency holds the utmost importance, in our life. Payment card, UPI, and now cryptocurrency, it seems like complete domination is inevitable.
The digital currency has literally grasped the mind of people and the big stacks of notes may become obsolete in the future. In recent years, Cryptocurrency has somehow started gaining momentum, especially amongst the younger generation. So much is the craze that almost everyone is willing to invest some funds in them.
Cryptocurrency at this point has been able to gather attention on itself from everyone. Some are already investing, some are speculating, and some are just watching it from the side. Whatever it is, the world’s eyes are on this, and it cannot be ignored anymore.
The rising star suddenly got a bump in the road, this year in the month of May, Cryptos suddenly saw a great deal of decline, and the market got crashed. Again on the mid of September, the market crashed and somehow it has created tension.
“As the value goes up, heads start to swivel and skeptics begin to soften. Starting a new currency is easy, anyone can do it. The trick is getting people to accept it because it is their use that gives the ‘money’ value.”
– Adam B. Levine
In this article, we will find out about the reasons for the crashing of the Crypto market. Before that, let’s find out about what Cryptocurrency is.
A cryptocurrency is a form of digital currency that is decentralized in nature, with the help of Blockchain technologythat means it is not controlled by the government or any other mediator.
It is the direct exchange of this digital currency between two people. People use this to buy goods and services but mostly they are used for investment. Most of the countries still haven’t declared it as legal tender.
There are some common forms of cryptocurrency that are used in the world and they are:
As mentioned above Crypto market crash in the month of May and again in September of this year, the fluctuating nature of cryptocurrency is creating uncertainty amongst investors and others. There are a few reasons that can be identified to be the cause of the crashing of the cryptocurrency market.
Elon Musk Denies Cryptocurrency
In the month of March 2021, Elon Musk the CEO of Tesla, the most valuable car company announced that they are willing to accept the most popular cryptocurrency, that is Bitcoin as a payment method in the USA. With that, it was also said that they will try to introduce this payment method in other countries as well.
By the month of July, the market experienced a 50% dip, and that was quite a lot. Bitcoin faced a 35% plunge at that time.
Bitcoin Price after Elon Musk tweet
We can say that, although cryptos future seems great, but it not being environmentally friendly is causing it a great deal of concern. The news causes apprehension and over 8 lakh traders decimate their investment.
China asked the institutions to refrain from providing services to those who are trying to get them by using cryptos and ordered banks to stop providing support to cryptocurrencies. China even instructs bitcoin has to close down its mining operation in Sichuan and like that it got shut down there.
Even though this prevention did some damage to this digital currency market, in August the market saw a surge, and as per the report, the value rise above $2 trillion.
The good weather didn’t stay good for a long time; China central bank permanently announced that any transaction done with cryptocurrencies is illegal and banned any type of virtual currencies use.
As per them, it placed people’s assets in danger. China banned the trading of cryptocurrencies in 2019 but foreign exchange through online continued happening.
This announcement of China in the month of September of 2021, put the last nail on the coffin of the crypto market in the World’s most populous country. Following this announcement bitcoin showed a 9% drop again.
China was one of the top names in the crypto industry but this sudden move has plummeted the virtual currency business in the country, with that it has also destabilized the entire crypto market of the world.
Although this fluctuating nature of cryptocurrency is turning people’s heads more towards into them but with industry giants like Tesla giving up and refraining from considering crypto coins as a method of payment is straining the virtual currencies presence in the market.
Not to forget China’s ban on crypto is questioning the digital currencies’ entire authenticity because of that people are now being skeptical over-investing in them.
FAQ
What is cryptocurrency?
Cryptocurrency is a digital currency that is decentralized in nature.
Is Cryptocurrency Banned In China?
China’s Central Bank termed all virtual currency transactions illegal, which is done by cryptocurrency from 24th September 2021.
What is the reason for Cryptocurrency crash?
Cryptocurrency crashed in may because Elon Musk denied purchase of tesla using bitcoins and later China banned all the cryptocurrency transactions.
In the era when cryptocurrencies have taken up the centerstage of the new dawn of the digital economy, there are a plethora of options available to you to invest. However, it is extremely important to be aware of the cryptocurrency that you are planning to invest in and its future implications. It is mainly because of the fact that the world of investment is full of uncertainties and with great rewards come greater risks. In this article, a cryptocurrency named Stellar Lumens is scrutinized to come to a conclusion whether it is a good investment or not.
Stellar is an open-source network for currencies and payment where it is possible to create, send and trade digital representations of all forms of money—dollars, pesos, Bitcoin and what not. It was incubated in 2014 and was launched in 2015.
It aims to bring together all of the world’s financial systems under a single network. They have designed it in a way that is suitable for the users in developing countries as well. It had added to Stellar’s popularity significantly.
The decentralised network of Stellar is spread across multiple servers like any other platforms that makes use of blockchain technology. It has no single owner, but is owned by the public.
What is unique about Stellar?
It uses blockchain technology to complete its transaction. Being a decentralized network, it handles millions of transactions every day. What makes Stellar unique is its compatibility with the requirements of a common man.
Unlike traditional blockchain based systems like Ethereum and Bitcoin, Stellar is faster, cheaper and energy efficient. Its end user experience is more like that of cash.
Lumens are the native digital currency of Stellar. It requires only a small amount of Lumens to initiate the account and transactions. After that, the platform does not give preference to any one currency.
Being a decentralized network any kind of currency can be used through Stellar. Its primary intention is to make people’s savings more useful and accessible. It has a built in system which converts money sent through Stellar into desired currency.
At first the currency is automatically converted to Lumen and then if the recipient is an India, it is converted to India rupee.
How does Stellar work?
To cover its basic intention to track ownership, it uses ledger where a network of independent computers cross check each other’s works. Its lack of central authority makes it impossible to tweak the numbers and transactions in Stellar.
Its efficient algorithm called Stellar Consensus Protocol (SCP) overlooks the process and ensures that everything is in sync. The Stellar ledgers store two important pieces of data for each account. First, how much they own and secondly, what do they plan with this money.
It is the Nodes that check the ledger and run the core Stellar software. The agreement between the nodes when you initiate a transaction completes it. Hence, Stellar networks are verified by multiple nodes. Their well-documented functions help you proceed with your transactions in ways that you prefer. You are even capable of issuing assets.
Why is Stellar a good Investment?
Growth of Stellar has been phenomenal in 2021. It has returned 424.4 percentage year to date. Analysts who have studied the growth of stellar for a long period of time do not see it slowing down in the near future.
Stellar Growth Chart
Its current affordable prices and potential to improve makes it ideal as an investment destination. Another reason why Stellar is a good choice for investing is because of its unique upgrades that augments the flexibility of Stellar core and customer based applications.
Furthermore if Stellar encourages further decentralized applications in its platform it will result in massive increase in the value of Stellar which will make it further profitable for the people who invested in it.
Another reason why it is preferred amongst prospective investors is because of its simple and low-cost transactions and through it, the accessibility to the global economy.
Before you move on to invest large amounts of money in Stellar, remember that there are lots of risks that are associated with such investments. While it provides great incentive and returns also expect that there will be potential risks although lumens has been faring well till date.
Be sure to analyze your financial stability before making any investment moves. Stay up-to-date with the information regarding Stellar by also having sound information about current market and trends.
Where to Buy Stellar Lumens?
Apart from purchasing Lumens directly from the Stellar platform the following are a few places from where you can purchase Lumens
Bitfinex
Binance
GMO Coin
NovaDAX
Coincheck
Bittrex
Upbit
Huobi
Coinbase
Kraken
Godex
FAQ
Can I buy stellar on Coinbase?
Yes, you can buy, sell, convert, send, receive, or store XLM on Coinbase.
Is Stellar energy efficient?
Yes, Stellar is more energy efficient than Bitcoin based systems.
Who is the founder of Stellar?
Jed McCaleb is an American programmer and entrepreneur who founded Stellar in 2014.
Some people find such a predicament in order to trade their cryptocurrency into various cryptocurrencies such as Bitcoin, Litecoin, NEO, Cardona etc. So, here a cryptocurrency exchange company Binance established a smooth and reliable platform that aids in trading a cryptocurrency into various cryptocurrencies.
Binance was founded by a Chinese-Canadian business executive Changpeng Zhao in 2017. The main purpose of building Binance is to enhance high-frequency trading software. The company holds more than 500 cryptocurrencies trading software and virtual tokens for instance- Ether, Dogecoin, Cardona, Litecoin etc.
Moreover, Binance tolerates exchanging its own Blockchain-based cryptocurrency Binance Coin BNB. Binance provides various services to its users like helping out in making investment decisions, transfer of electronic funds and eligibility to earn interest.
As of now, Binance is currently functioning in more than 180 countries except the United States of America, Italy and the United Kingdom. In the past two years, Binance has been struggling with multiple warnings from various governments regarding its spurious and counterfeit activities in the name of global trading of cryptocurrency.
Financial Conduct Authority banned the world’s biggest crypto exchange company Binance from conducting illegal ‘regulatory activity’ in U.K. as the company didn’t register with the FCA in order to operate their services in the country.
Binance helps in trading, listing, de-listing, fundraising and withdrawal of international cryptocurrencies. Besides, the company also provides services in exchanging its own cryptocurrencies with enormous benefits through initial coin offerings.
Binance allows the trading process with the support of these seven types of trade orders- Limit Order, Market, Trailing stop order, LLimit TP/SL Order (Strategy Order), Stop market order and Stop-limit orders. People can exchange their cryptocurrencies with these trade orders.
Other than the exchange of cryptocurrencies, Binance also generates users to earn interest by funding Stablecoins in the market for an exchange. Besides, interest is estimated on the coin’s tenure, value in the market, interest rates available on such coins.
Binance bestows Visa Card which is a credit card that accesses users to convert their cryptocurrency into fiat current and can spend that liquidity money on products.
Target Audience of Binance
Binance highly targets those investors who are ready to fund a hefty amount of cryptocurrency in the market for the exchange of high-frequency cryptocurrency.
Binance, being the largest and most famous cryptocurrency exchange in the world with its own two forms of cryptocurrencies, has a business model that makes the company a highly profitable enterprise.
The company earns its profit by trading fees, fees from its broker program, interest on loans, stock token spreads, mining services, interchange fees, cloud offerings and profits from investment.
One major source of income for Binance is by charging brokerage fees in Binance Coins (BNB) for every transaction that takes place on the exchanging platform. It also makes capital gains on the coin investments and thus makes the BNB coin price rise.
What is unique about the Business model of Binance
Binance charges a fee for trading cryptocurrency. When a user buys or sells a cryptocurrency, generally Binance charges a 0.1 per cent fee for the trade. But the charge can differ according to the currency and type of exchange.
Investing
In 2018, Binance began investing in other cryptocurrencies and it also distributed ledger technology projects. The company can earn when the investments are sold at a profit and the incoming dividends also serve as a source of income.
Mining Services
In 2020, Binance introduced two mining pools for mining bitcoin and Ethereum. Bitcoin users are charged 2.5 per cent and Ethereum users are charged 0.5 per cent pool fees by Binance.
Spreads
Users of Binance can buy stock tokens from April 2021. Stock tokens are similar to real stock and the value of the underlying shares determine the value of the token. Binance earns through spread from the difference between the buying and selling price even though a fee isn’t charged for buying and selling of tokens.
Interchange Fees
In July 2020, Binance in partnership with Visa launched a Visa debit card. Users need to transfer funds from their cryptocurrency wallet to the spot wallet. Binance charges an Interchange fee when the debit card is used for making a purchase. The fee is paid by the merchant and is less than 1 per cent. Binance also charges a fee for ATM withdrawals and payments up to 0.9 per cent.
Interest On Loans
Binance allows its users to take cryptocurrency loans for a period of 7-180 days by pledging their crypto holdings as collateral. Binance earns by way of Interest on these loans and the interest is calculated based on the amount taken as loan, the time period and the collateral.
Cloud Offerings
Binance Cloud platform allows users to launch digital asset exchanges using their software-as-a-service capabilities. Binance offers other services apart from spot trading like peer-to-peer fiat exchange, etc. Binance charges an annual fee on their cloud products and splits the trading commission with the investors.
Cryptocurrencies are gaining popularity in the present and have become a popular form of investment among many due to their changing value and the transactions being secure while paying using cryptocurrencies online are some of the many factors for the popularity of cryptocurrencies.
Changpeng Zhao has utilised his existing knowledge of cryptocurrency and has made Binance a major player in the cryptocurrency exchange platforms with its unique features and effortless trading.
FAQ
What is Binance?
Binance is the largest online cryptocurrency exchange trading platform founded in 2017. The company was initially based in China and is currently headquartered in Malta due to the increasing regulation of cryptocurrency in China.
Who is the founder and owner of the Binance?
The cryptocurrency exchange platform Binance was founded by Changpeng Zhao in 2017. Previously, he had founded a company in Shanghai that built a high-frequency trading system for stockbrokers, Fusion Systems in 2005.
How much profit has Binance made as of 2020?
Binance is expected earn profit of $800 million to $1 billion in 2020. In 2019, Binance earned a profit of $570 million.
On a cryptography mailing list in 2008, a person named Satoshi Nakamoto published a white paper outlining a digital currency that would allow for secure peer-to-peer transactions. That’s how Bitcoin, the world’s first cryptocurrency, came to be. Since then, a lot of different types of cryptocurrencies have emerged, like Ethereum, Litecoin, Ripple, among many others.
Celsius is a fee-free Blockchain-based platform that gives users access to tailored financial services that aren’t offered by traditional financial institutions. It is easily accessible through a smartphone and easy to use. You can acquire financial services and terms via the Celsius Network that you wouldn’t get from a typical bank.
Celsius (CEL) was launched in June 2018 by Alex Mashinsky. It is a cryptocurrency token that provides a one-stop shop for banking and money transfers. It is intended to make wallet-style payments, loans, and award prizes for investing in cryptos. The users get paid out on a monthly basis and earn interest on their investments.
Anyone with a smartphone can use the Celsius Network. Unlike a bank, CEL simplifies the payment and investing processes for users while challenging traditional banking practices. Users receive 80% of the profits as an incentive, while the remaining 20% is used to fund other projects. The Celsius Token does not require a minimum amount to earn interest, and this policy puts traditional banking services to the test. The Celsius Network provides a completely distinct cost structure in the way you operate and maintain your assets, with less constraints and greater rewards.
CEL Rewards
How to Invest In Celsius Token?
Sign in to celsius
One can easily buy CEL through its mobile app and become a member. ETH, BTC, XRP, BCH, LTC, XLM, and SGA are among the top cryptocurrencies accessible for purchase using the Celsius app. You can also create an account by the website but it is heavily reliant on apps and to work on their web-app you have to clear KYC and AML on the app.
Is Celsius a Good Investment?
As cryptocurrencies like Bitcoin, Dogecoin and Ethereum are gaining popularity, and promise a decentralized future for investments and asset transfers, it is tempting to invest in cryptos and earn large profits. Celsius can be a good investment as it offers a big chunk of profit as a reward and eases the money transfer and loan procedures. It can lend money while paying extremely good interest rates and using their cryptocurrency as collateral. The biggest benefit of Celsius Token (CEL) is there are no minimum investments, so you can earn money right away by putting in anything you wish. The service gives you the option of receiving or paying your money in either crypto (any cryptocurrency you put) or CEL tokens.
It is a great service, but, like every other thing on this planet, it has its cons too. Most Celsius tokens are not saved in a cold wallet, and so are not as secure as you might believe, because it’s the equivalent of giving the company your passwords. CEL may not be able to give loan insurance right away. By committing to utilize its balance sheet to reimburse users’ losses in the event of a hacker, the company is seeking to earn the same level of trust as most financial institutions, although it cannot assure fixed-term contracts. The last decision is always going to be yours, so choose wisely what you want to do with your money and how much you are willing to invest and can afford to lose.
Celsius Future Value
As the digital money is getting bigger and bigger and physical money is decreasing, this is the right time to invest in some cryptocurrencies. Currency is an important part of our life and investing in crypto is always going to be a smart investment. And with the increasing popularity of CEL, its value is also increasing. According to Wallet Investor, If you have CEL worth $100, they can become $696.69 in 2026. You can invest in CEL, as it has been predicted to be immensely valuable in the future. Currently, Celsius has over $730 million in tokens and has about 101,000 members all over the world. The network has totaled $12 million in interest and it also helps to originate loans worth almost $5.5 billion.
Conclusion
Celsius can be a great opportunity to earn money by investing in the CEL Token, but you have to do your research and keep track of the value in your country and the benefits you can get. It has an easy-to-use app and anyone can invest and buy crypto conveniently through their smartphone. But one should be careful and beware of all the risks that come with investing in these tokens. But with its increasing popularity, it’s been predicted to have a valuable future.
FAQs
Does Celsius have a web app?
Celsius has a web app and can be used by vising to app.celsius.network.
Is Celsius network a US company?
The headquarters of Celsius Network Inc. are in New York, New York, USA.
Does Celsius require KYC?
KYC, or Know-Your-Customer, requires the user to validate their information, and is mandatory for making a Celsius account.
How long does it take to get verified on Celsius?
Account approval takes around 2-3 minutes but sometimes it can take up to 24 hours.
Damini Bhandary
