WHAT IS BINANCE SMART CHAIN?
"The DeFi Binance"
We will see on this page how to use the BSC blockchain and its DeFi part.
It is important to understand the difference between investing on a centralized exchange platform (CEX), and direct investing on a blockchain.
Presentation of the BNB token
1) The Wallet
2) The Deposit
Diversify your assets on the BSC
Presentation of the Binance Coin (BNB) token
Launched in July 2017, Binance is none other than the largest cryptocurrency exchange globally based on daily trading volume. Binance's goal is to bring cryptocurrency exchanges to the forefront of financial activity globally. The idea behind the Binance name is to show this new paradigm in global finance - binary finance, or Binance .
In addition to being the world's largest cryptocurrency exchange, Binance has launched a whole ecosystem of features for its users. The Binance Network includes Binance Chain , Binance Smart Chain , Binance Academy , Trust Wallet and Research Projects, which use all the powers of blockchain technology to bring finance to a new age to the world.
Changpeng Zhao (CZ) is the founder and CEO of Binance. Since 2013, he has been actively involved in blockchain technology and cryptocurrencies. In 2017, Zhao officially launched Binance, partnering with He Yi, co-founder of OKCoin, which was the largest fiat-to-crypto exchange in China at the time.
One of Binance's biggest competitive advantages is its willingness to grow. According to the company's website, its mission is to become THE provider of infrastructure services for the entire blockchain ecosystem.
Since its launch, Binance Coin has attracted increased interest from investors. BNB, ranked 3ᵉ in terms of marketcap, just behind BTC and ETH. It has recently experienced a significant increase in its price at the start of 2020, in particular thanks to the development to the general public of its decentralized blockchain, the Binance Smart Chain , which has once again placed it in the spotlight. .
The advantage of the Binance Smart Chain is considerable compared to Ethereum, the current leader in decentralized finance. Indeed, the fees are only a few tens of cents per transaction, while the fees on Ethereum can reach around ten euros. The Binance Smart Chain is therefore a major element in the emergence of DeFi, particularly through its incredibly low costs.
The fees are minimal, a transaction costs less than $ 15ct in Gas.
1) The Wallet
How to access Binance Smart Chain services?
Using a 3.0 wallet with the BSC
Before you can use Binance's smart blockchain, you will need to own a web 3.0 wallet. You can use a wallet like MetaMask or Trust Wallet.
MetaMask allows you to store tokens on blockchains.
2) The Deposit
How to deposit funds on the BSC?
Deposit from a Centralized Exchange (CEX)
On centralized exchanges like Binance or FTX, the button to move funds to another network address is often indicated by "Withdraw" or Withdraw ".
Once this button is found, click and double-check the information for the future withdrawal. If the information is correct, validate the transaction and in a few minutes the funds will be in your 3.0 wallet.
⚠️Be careful, however, any address error could result in the loss of funds.
⚠️Some exchanges charge high fees when withdrawing and exiting assets from your account to an external wallet.
✅ Withdrawals from Binance and FTX to BSC are free.
The operations performed below are on the Blockchain. You will need to have
governance token, to use it as Gas and carry out transactions.
Bridging funds from another blockchain to the BSC
What is a Bridge Crosschain?
The Bridge allows funds to be transferred from one Blockchain to another. For example if you have USDC on Ethereum , you can send your funds in USDC to Binance Smart Chain. This operation will waste you a few tens of seconds.
The principle is based on liquidity pools that guarantee the currency on each side of the network.
I recommend the E vo-defi bridge allowing the movement of funds on blockchains (ETH, BSC, Polygon, Phantom, HECO, HSC) for 0.5% fee. One of the cheapest in the industry.
3) The DEX
The biggest decentralized exchanges of the BSC
Swap from a Decentralized Exchange (DEX)
Sooner or later you will have to use a cryptocurrency swap service, it will be the best alternative to transfer your funds to another currency, with no transaction fees. The biggest swap service on the Binance Smart Chain is PancakeSwap. Initially, it is an AMM, a protocol allowing users to deposit crypto into liquidity pools and be paid for it.