Cryptocurrency is receiving a lot of attention from people and investors recently and people want to know as much as they can about the investment phenomenon. As a result, there are many questions on various cryptocurrency exchange topics and concepts. Among these questions is what exactly is the Binance Exchange.
Stocks and currencies are traded through various brokers and there are many of them. Binance Exchange is a specific broker focused on cryptocurrency exchange. Coinbase Exchange is another example of a broker focussed specifically on cryptocurrency exchange.
Just like there are various brokers available for stocks and currency trading, there are various brokers that are available for cryptocurrency trading. For traditional stocks there is Ameritrade, E-Trade, Trade Station, and Ally Invest just to name a few. Binance Exchange and Coinbase Exchange are merely two specific brokers who specialize in trading cryptocurrency.
Brokers want traders to trade with them because they take a small change in exchange for the service of providing the trade known as the margin. The same is true for regular stock exchange and currency exchange.
So when you see any type of broker advertising for you to use their program, know that they want you to trade with them so they can make a small fee for every trade you make.
People trade with the broker they feel is most reliable. Some brokers offer discounts on trading fees and can save traders money in this regard. Other brokers offer systems that make trading easier.
It depends on the particular structure of the broker that determines their utility for the trader and the trader makes the decision on which broker to use based on their specific needs. Binance Exchange is merely one of those types of brokers focusing specifically on cryptocurrency.