Bitcoin Forum

I am using binance as a result of delays on Coinbase and other exchanges in getting verified. Is this the reason Binance is so successful?
What is actually the main reason?
It seems that Binance was founded in 2017 and by 2018 it became the most successful exchange. Coinbase was founded in 2012 and Kraken in 2011 yet they failed to achieve what Binance has achieved.
From a business point of view, what is the reason Binance achieved so much?

They have a secure exchange, low (comparably) fees, a well working and efficient exchange and little difficulties with load issues. A lot of people transitioned towards the end of 2017 when the bigger exchanges of that time such as bittrex were having lots of difficulties handling the increased load so there was a lot of down time and bugs etc.

I agree on that but was it just a bandwagon effect? Like, did people start talking about how Binance solves their problem with efficiency? Honestly, I have never seen any marketing ads from Binance! They are just fantastic in my opinion. It still stays a mystery for me

It is not just because of a bandwagon effect.
They do their customer service as fast as possible.
Tried it already with a problem of google authenticity because of changing phones.
They will just need more information about you for securiry purposes.
I guess that is one also, security. They make sure it is the real you to avoid being hacked.

Plus, they list tokens which have better future instead of just listing anyone who submits it. They research also.

Aside that it's is a successful Exchanger the platform alone a Newbies can understood everything and is very cool to use the app is another number one thing that adds to the success of binance the security is pretty awesome. I recommend BINANCE EXCHANGER for Newbies who came into trading newly.

Binance really started to get traction when Poloniex & Binance started crumbling down due to them forcing KYC on their customers. 1+1 = 2.

You don't need to verify your documents on Binance to start trading, which is probably the main reason that it blew up so much as it did. Ofcourse there's a lot of factors coming in to play here but i feel like this is probably the biggest one.

Also Kraken & Coinbase aren't really comparable to Binance, since they're primarily for USD -> BTC.
Binance/Poloniex et al are all BTC -> ALTS.

Binance also had a lot of troubles regarding server load etc, they even suspended/limited sign up for months.

Ever since I started trading on Bincance, I have never looked the other way. I just hope they will remain they way they are now (or better). KYC is not needed for basic trading, which is I huge plus IMO (and this alone may have contributed to their popularity). My volume is low enough not to need their second tier verification, which is great.

Another point. They have a Tradingview (sort of) chart, which many other exchanges I've been using in the past lack. A huge plus if you ask me.

And, yes, volume. If an exchange doesn't have a decent volume on its pairs, you cannot trade like you are supposed to. The volume on Binance is fantastic. You just have to check the XRP/BTC pair to see what a good volume is. I have no idea how they managed to get there, but I wouldn't switch to any other exchange now.

Binance also seems to have great developers. I'm looking forward to their newly announced DEX platform.

The reason could be that a lot of big exchanges like Bittrex, Bitfnex, Bitstamp were requiring KYC from users and taking too long time to verify them by making them wait for several months. Also, some big exchanges have closed registration for new users. The same time Binance exchange came up with good support & low fees as compared to others and offered withdrawal up to 2 BTC per day without KYC.

The answer is they manage well their exchange they focusing improve it more so many people use in easy way also to more secure their platform. I think in a business if you want to succeed you need to love what you doing and not stopping to learn more so your business will be grow.

I can't deny that binance as time goes by are getting more improved, than any exchange. It is also surpassed many exchange that has been established here for so many years, like poloniex, bittrex, yobit, coinexchange, kraken, bitfinex and others. Meaning, Binance strategy was very effective that's why many traders in the market shifted or transferred to their platform exchange. Which means, Binance platform was a very secured exchange if you use it now to make some trade in it.

I think Binance understand what the market wants and provides it:- fast exchange, low fees, multiple trading pairs and the like. It has also up its game in platform security, which is a key ingredient in the mind of every user.

I truly agree, I am amazed to see how binance been recommended by a lot of traders expert, one thing that make me like binance is, you don't need kyc to start using it, the customer support is excellent, transaction volume also getting bigger and bigger makes the transaction become easier, never heard of hacking in binance and only very small portion of people conplained about binance, so overall binance is one of the best exchanges for now, I will definitely recommended binance to other trader

binance has many advantages over other exchanges and the most important thing for me is the huge trading volume there so that it keeps a magnet for traders to trade. other than that binance has a cheap fee with an incredible transaction speed
  they also have a pretty good interface with two choices, namely basic for beginner traders who have a simple interface and the next one advande with the advantages of a very complete interface as a professional trader

yes, because everyone wants a small fee. safer, and also does not often maintain maintance for too long. because traders want to be active there every day, even every hour.

As far as I know, binance is easy to understand even for new people who are new in trading, and they have good customer service, binance can secure their site, a lot of pair for bitcoin, eth, usdt, and their coin (BNB). Besides that, sometimes they make some competition for every trader with big prizes to the winner, and it attracts many traders to trade in their site. In the short time, they can compete with poloniex and bittrex which online before binance and they can increase the volume in short. Right now, binance still recommended for every people to start trading even for the small amount and I see that sometimes pump is come to that site and give a big bonus to the traders to make a profit.

Binance is no doubt is one of the best exchange today, they served their customers well. No other exchanges achieved what Binance achieved, their customer support is amazing and the user interface is simply awesome and basic even new traders will like it. Also their CEO is a hardworking man giving updates daily thru social media and mostly present in different blockchain events.

I do agree with this and Binance doesn't have anything to do with like verifying your identity while when I was in Bittrex I got a lot of trouble by just verifying my ID just to withdraw my funds.

there's a few factors.

for one thing, they were in the right place at the right time. poloniex and bittrex were previously the market leaders. both exchanges became plagued by overcapacity and mounting support complaints, and both implemented KYC, which drove some customers away.

which gets into the next factor: you can still trade without KYC and withdraw as much as 2BTC daily. that's became increasingly rare in this market. many traders don't want to give up their identities to exchanges.

they also have a superior trading engine, which is quite important for day traders. coinbase and kraken have both lagged behind considerably in this respect. CZ was the mastermind behind okcoin's trading engine when they rose to success in 2015 and 2016. he brought that expertise to binance.

finally, they also incentivize traders to stay there by offering lower trading commissions with the BNB token.

the ease that is in binance and satisfying service services is certainly a separate point in binance success. of course the members will judge for themselves, and it does not become a strange thing if binance becomes big as it is today

Binance launched at a terrible time, when China blocked the exchange. Asian big market switched on Binance.
Binance the design is comfortable and reliable.It is unlikely that he is losing popularity in the near future.

I remember years ago when I first knew about crypto trading my first trading platform I used is Poloniex and next is Bittrex then as time pass by more problems occur with this exchangers, delays, support, missing deposits and many other problems then Binance enter at the right time new, fast, great UI and of course the referral is awesome they launch some great marketing stuff that make it more popular among many traders and they also launch a trading app that bittrex and poloniex has none of this. 

There are a lot of reasons why Binance is successful. Number one is that it is a very much anticipated secured exchange. All hacking attempts that happened inside it were given much thought on planning on how to solve it. The CEO is very hands-on on what to do about different things and they follow Chinese regulations. They do not let them be affected by any other things that are against the law. And number two for me is that they have less fees than any other exchanges out there.

The main reason for their success is the affiliate program. It's so attractive to affiliate marketers and they shilled it everywhere. Therefore, Binance team didn't need extra effort for marketing to attract the potential traders.
The other reason is 2BTC daily withdrawal capability without submitting KYC. However, I think this would be a problem for Binance later as we already see that SEC is going after the exchanges who are accepting USA clients without their approval/license.

Thanks everyone for the kind replies. I have a better idea of why Binance is so successful now! I just found it difficult for a company out of nowhere to become a 'standard' in the industry. It definitely makes me think business from a different point of view.

I also found other reasons why Binance is great. The founder seems to have worked in the financial industry when programming certain brokerage services. He definitely knew what he was doing before founding Binance. Furthermore, I guess that his networking in the brokerage services allowed him to bring a base of customers to the business.

Respect Binance for being able to offer high customer service  :)

The latter part of your of post is my fear for Binance in the long run. They're definitely in the bad books of the SEC for accepting US residents without the requisite license from them. Read the report from the Office of the Attorney General and it sure isn't looking for them

I think no matter what we say the biggest success of them comes from the amount of they left for the customers itself. We decide which coin should be invested with voting system they have than they put up that coin there because we wanted it. They put up affiliate system which means we kinda own some sort of the website itself at least for the people we invited.

They managed to create a website where people (customers) feel like they are part of the system and they listen to feedbacks as well, the owner constantly tweets stuff and whenever they tried to get hacked they managed to defend themselves as well.

One important factor of their success is focus on Asian markets. They managed to grow rapidly thanks to untapped Asian retail crypto market. There is still a challenge in customer experience. Crypto exchanges including Binance tend to be quite bad in dealing with customers (rapid growth brings understaffing issues and unstable internal processes).