Binance Business Model: How Does Binance Make Money?

You might be aware of the Binance platform.

Don’t you?

Well, Binance is one of the leading financial technology businesses that have successfully marked its presence in more than 180 countries across the globe. Apart from this, it offers its users the leverage to exchange more than 600 different currencies.

Now you might start wondering about the Binance business model. Your mind will be flooded with questions like how Binance works, how Binance makes money and what are some of the apps like Binance that are performing exceptionally well.

Well, this blog will raise the curtain to all the questions arising within your mind and will educate you on the Binance business model in detail.

So let’s begin the journey to explore Binance Business Model without any delay.

What is Binance: A Leading Digital Asset Trading Platform

In terms of trading volume, Binance is the biggest digital asset trading platform in the world. This platfrom was created especially for safely purchasing, disposing of, or exchanging a variety of crypto assets.

Being a centralized cryptocurrency exchange platform, Binance places a great emphasis on trading between fiat currencies and other cryptocurrencies. The native coin of Binance is known as BNB in the international market, and the company has its own blockchain dubbed BNB chain. 

BNB was initially released as a utility token in 2017, but it is now one of the top cryptocurrencies according to CoinMarketCap. And right now, it provides both holders and traders with a wealth of advantages. When a user exchanges tokens on the BNB chain in the DeFi exchange, such as Pancakeswap, Bakeryswap, etc., BNB coins can be utilized as a gas fee.

Because it offers a wide range of cryptocurrency services in one location, Binance is a hybrid exchange. A simple P2P trading option, an order book system, an OTC desk, staking, learn-to-earn, flexible earnings, Binance Launchpad, Binance DEX, and other such features makes Binance one of the top crypto trading platforms.

A Brief History of Binance

Binance was established in 2017 by Changpeng Zhao (often known as “CZ”) in China, and it has since risen to the top of the cryptocurrency industry.

Changpeng Zhao has experience creating high-frequency trading algorithms for stockbrokers before he entered the nascent cryptocurrency industry and rose to prominence.

Binance began operating in 2017 and eventually moved its offices around to other nations in an effort to evade regulation and legal action. The business would eventually relocate to the Cayman Islands, with a subsidiary, Binance.US, situated in the United States.

Even the largest cryptocurrency exchange in the world by January 2018 with daily trading volume in the billions of dollars was Binance. The business outperformed all rivals in 2021, reaching a peak 24-hour volume of approximately $76 billion.

In addition, BNB, a crypto-token launched by Binance, quickly overtook Bitcoin and Ethereum as the third most traded tokens in the world after its launch. At the moment, Binance is at the center of a global scandal. However, by a wide margin, it continues to hold the top rank as the cryptocurrency exchange with the biggest volume worldwide.

To get a clear idea of how it earned its reputation, let’s go through how Binance has transformed itself through the years.

2017: Changpeng Zhao, the current CEO of Binance, started the company in 2017. It was initially established in China, but by September 2017, when the Chinese government started to strictly regulate the cryptocurrency sector, it had shifted its servers to Japan. The business introduced its own token, BNB, in June. Later, it rose to become the third-most traded token globally.

2018: With a market valuation of more than $1.3 billion by 2018, Binance had already surpassed all other cryptocurrency exchanges to become the biggest in the world. As Japan started implementing harsher cryptocurrency rules in March, the company made an attempt to relocate its headquarters there.

Additionally, the business would file the necessary papers with Malta and Bermuda to create a platform for trading securities. In the same year, the business unveiled Binance Jersey, a separate organization from Binance that is based in Jersey, an island nation close to the French coast. Binance Jersey would enable Binance to provide fiat-to-crypto exchanges utilizing the Euro and the British Pound.

2019: To enable cryptocurrency purchases with a debit or credit card, Binance teamed up with Simplex in January 2019. The corporation was the target of an attack in which $40 million was taken, it was revealed in May. The business started providing perpetual futures contracts in September, allowing for a 125x leverage on the transactions.

2020: According to documents leaked by Forbes staff in October 2020, Changpeng Zhao had built a framework intended to fool US regulators and make money from investors there. The business introduced the blockchain ecosystem known as BSC, or Binance Smart Chain, in September.

2021: The IRS and the US Department of Justice began looking into Binance in May 2021 for possible money laundering and tax evasion. These inquiries would go on and are already in progress.

2022: Binance acquired a sizable $200 million holding in Forbes in February 2022, the business that had just published paperwork. In sharp contrast to the rest of the world, the corporation also declared it wouldn’t stop operating in Russia that year. Later, when they started banning Russians with more than 10,000 Euros from trading on the platform, their position would alter.

2023 – Marked a watershed moment for Binance and its founder Changpeng “CZ” Zhao. The company admitted guilt in U.S. federal cases tied to anti-money laundering and sanctions violations. A historic settlement of $4.3 billion was reached, one of the largest in financial history. Binance agreed to overhaul its compliance structure, while CZ stepped down as CEO. This was the year Binance shifted from rapid growth to global regulatory scrutiny.

2024 – Brought a new era for Binance under CEO Richard Teng, who replaced CZ after his resignation. Teng emphasized transparency, risk management, and cooperation with regulators worldwide. In April, U.S. courts sentenced CZ to four months in prison for compliance failures. Despite this, Binance remained the largest crypto exchange by trading volume. The company actively worked on repairing trust and repositioning itself as a regulated global crypto leader.

2025 – Strategic Investment and Legal Closure

2025 reinforced Binance’s dominance in the cryptocurrency market. Abu Dhabi’s MGX invested $2 billion in Binance, boosting liquidity and expanding ties with the Middle East. The U.S. Securities and Exchange Commission also dropped its civil lawsuit against Binance and CZ, closing a long legal battle. These developments restored confidence among traders and institutional investors. Binance entered 2025 stronger, with a focus on compliance, partnerships, and long-term global expansion.

Binance Business Model: How Does Binance Work?

You might be curious to know what value proposition Binance offers to its customers and how its business model has acted as a helping hand behind its huge success.

Well, let’s go through the business model of Binance to understand how it is making money.

1. Customer Segmentation

Customers of Binance can be split into two categories:

Traders: The ones who were looking for a safe and quick platform to trade or swap their digital assets.

Innovators: Innovators in the cryptocurrency space who are constantly eager to publish their concepts.

2. Binance Channels

Being a well-known cryptocurrency platform, Binance features a website as well as apps for iOS and Android.

3. Key Operations

On the Internet, questions and searches about Binance’s main operations and activities are more frequent. Well, it contains

• Trading
• SaaS (software as a service)
• Swap Farming

4. Value Proposition

Among Binance’s value propositions are

Traders: Access to a secure cryptocurrency trading platform with high liquidity and low transaction fees.

Crypto Innovators: In order to support innovative pre-ICO ventures, Binance Labs – a technology incubator, and LaunchPad – a hosting platform for new apps & API interfaces, are made available which is a plus point.

5. Cost Structure of Binance

Binance undoubtedly generates income in a variety of ways, but its cost structure includes,

• I.T. operations salaries,
• (Online/Offline) marketing
• Maintenance of its apps and website
  

6. Binance’s Customer Relationships

In addition to its operations, Binance is also known for the customer support it offers through a variety of channels, including

• Email
• Social Media Sites
• Telephones
• Community and Academy of Binance

Also Read: How To Create a Cryptocurrency in 2025

How Does Binance Make Money: Binance Revenue Model

Binance is often described as the world’s biggest cryptocurrency exchange by trading volume. Its success comes from a carefully designed Binance business model that earns revenue through many channels. If you trade on binance market today or explore binance com market, you will see how these streams work in real time. Below is the full walkthrough of how Binance makes money.

• Trading Fees (Spot, Futures, Derivatives)

Every time someone executes a trade – buying or selling crypto on the Binance spot market; they pay a fee. For regular users, this is typically 0.1% per trade (maker and taker). If you use BNB (Binance’s native token), you can get a 25% discount on those fees. Fees drop further if you trade large volume over 30 days or have higher VIP status. Futures and derivatives carry their own fee schedules. 

• Margin Trading and Loan Interest

Binance lets users borrow funds to trade with more leverage. When you do margin trading, you pay both the standard trading fee and interest on the borrowed amount. Interest rates vary by asset, loan period, and risk. Those fees and interest contribute a meaningful slice of revenue. 

• Fiat & Crypto Deposit/Withdrawal Fees

Binance does not charge fees for most crypto deposits. Crypto withdrawal fees are dynamic; they depend on the blockchain network, congestion, and asset type. For fiat deposits and withdrawals, fees depend on region and payment method. Some regional banking or card-based fiat systems carry small charges. 

• Cloud, Broker and Institutional Programs

Binance offers its technology via cloud offerings. Partners can launch exchanges under their brand using Binance’s infrastructure. Binance earns fees from these partnerships – both subscription-based and a share of trading revenue. Its broker program also brings in commission when other exchanges or platforms route trades via Binance. Institutional / VIP services also generate revenue through higher fees, custody, and dedicated infrastructure services. 

• Staking, Yield, NFT Market, and Launchpad

You may have seen binance nft market and bsc nft market trending. Binance earns from NFT trading and marketplace fees (sellers pay a cut). It also runs staking and yield-earning products, where users lock assets and Binance takes a portion of rewards as fees. Its Launchpad helps new token projects raise funds; Binance may receive listing fees or a share of future volume. 

• Transaction, Card & Interchange Fees

Using Binance’s crypto card (if available in your region) to make purchases or withdraw via ATM generates revenue. Binance charges transaction or interchange-type fees. Also, fiat payment methods (cards, wires) sometimes carry spreads or fees. Those fees add up, especially among active users globally. 

• Other Revenue Areas: Listing, Mining Pools, Investment Returns

Projects want to get listed on Binance; some pay listing fees. Binance also operates mining pools, charging pool fees for Bitcoin, Ethereum, etc., for miners who participate. Furthermore, Binance invests in its ecosystem, holds BNB, keeps reserves, and may generate returns from those holdings. 

Revenue Breakdown Snapshot

• Trading fees (spot, futures, derivatives) make up the majority of revenue. 
• Margin-loan interest adds a meaningful portion (estimates around 10-15% in some reports). 
• Fees from withdrawals, card/transaction, and institutional or broker programs fill out the rest.

Why This Model Works in Binance Market & Binance For Business

This multi-stream revenue model makes Binance resilient. The company doesn’t rely on just trading volume in the binance future market or just one product. If one revenue channel slows (e.g. futures), others like staking, NFTs, or cloud services can compensate. From a binance business perspective, that gives stability. For users and institutional clients, that means Binance continues expanding services; so you get more use-cases, tools, and trust.

Also Read: A Comprehensive Guide to Create a Custom Payment Gateway

Why Hire Apptunix To Build Apps Like Binance?

After going through the business model of Binance, you must have gained some valuable insights into how Binance works. Well, here we come to the next step where you can have your own platform like Binance.

Yes, you heard it right. You can have your own app like Binance. All you need is a crypto exchange development service provider like Apptunix.

At Apptunix, you can get a completely customizable white-label NFT marketplace platform that supports several blockchains. Trade your NFTs to give the purchasers a smooth bidding and purchasing experience. Why keep waiting? Building and launching a custom NFT platform can help you boost your online visibility, especially in the world of cryptocurrency trading. Create, list, and sell your favorite works of art using the centralized white-label NFT market. 

As a top developer of all-encompassing blockchain solutions, Apptunix focuses on creating NFT marketplaces and specialized cryptocurrency trading platforms. Apptunix provides feature-rich NFT marketplace development services for industries including art, digital collectibles, gaming, and asset tokenization. It has vast experience in blockchain development and stands out due to its dedication to excellence and meticulousness.

In addition to this, Apptunix’s Bitcoin exchange development services meet a variety of purposes by providing strong security features and a variety of payment options for increased convenience and security. To learn more, get in touch with Apptunix right away.

Bonus Read: Top Blockchain Development Companies in 2025