If you want to buy or sell a cryptocurrency, there are few places to look better than one of the world’s biggest exchange of cryptocurrency by amount, the Binance.
Founded in 2017 by Changpeng Zhao, who has taken the number one spot, the company became popular during a historic crypto market bull-running in 2017, promoting a wide range of cryptocurrencies in what was perhaps one of the quickest and most successful trading platforms.
In reality, Binance has become so successful, so fast that both CZ and Binance have raised more than $1 billion in less than a year, making it officially one of the first companies in the cryptocurrency industry to reach “unicorn” status.
Yet it is not exactly easy for users without a conventional trading or investment experience to navigate their way despite their popularity as a hub for crypto traders.
In this section, we discuss step by step how Binance is used and how an exchange is carried out.
How to Open an Account
Follow the simple directions below and in no time will you be trading!
1) Register: The first thing you need to know about using Binance is how to register! Go to the homepage of Binance and press Register.
You’ll need to enter your email address and generate a password on the registration page.
Note: Use an email address you know is always secure and checked regularly. Use a mixture of numbers, icons, upper and lower case letters when constructing a password.
3) Prove that you’re not a robot, prove that you are not a robot. A puzzle you should find easy to complete, except … you are a robot!
You will now receive an email. To complete your registration, click on Verify Email.
Congratulations. Welcome! You’re a manager of a Binance wallet. Next, I’ll teach you how to use Binance, but first of all …
4) Secure your account: when you first log in, you are asked to set up 2FA. You want to create 2FA, it’s very important! When you pick Skip, you’re going to regret it later for now!
Note: 2FA is authentication with two factors. This is a security feature that gives users an alternative password type. Users enter a normal password and a second code, which can be sent via SMS to a mobile device or created by the Google Authenticator app when using 2FA.
You will be ready to finance your account after you have set up 2FA. This means the money is put into it. This can be achieved by sending cryptocurrency from a cryptocurrency bag or another exchange–such as Coinbase–to your Binance account. This is how it works…
After your account is enabled, you will need to add funds to your account before exploring the rest of the exchange, if you want to buy or sell any cryptocurrencies.
Pay with credit card
Binance can purchase such cryptocurrencies directly using its Visa or Mastercard credit card. If you are an eligible applicant, click “Purchase With Credit Card” and search the “Funds” page.
You will then have to enter the purchasing price of the desired cryptocurrency and whether you pay with the US dollar or euro. Credit card transactions of cryptocurrencies are currently limited to BTC, ETH, and LTC.
There is a minimum $10 or 3.5% processing fee–whichever is more expensive. You will need to confirm your accounting records, email address, and identification once you have completed this phase.
To confirm your identity, a valid government Identification form must be submitted.
Upon completion of all the necessary steps, the newly acquired cryptocurrency will enter your Binance wallet within 10-30 minutes.
Deposit from wallet
You can also deposit money from a different cryptocurrency wallet into your account.
To do this, go back to the ‘ Funds ‘ tab and click on ‘ Balances. ‘
On this tab, you can find all available cryptocurrencies for Binance trading. To insert the corresponding crypto, simply press the “Deposit” button next to your chosen crypto asset.
Next, search your cryptocurrency wallet for the QR code or paste it in the address and send it back.
Once this is over, wait until the transaction is completed and you’re ready for trade.
How to Trade on Binance
Two trading settings are available: Basic and Advanced. Beginners can begin with Basic trading.
The Basic trade setting has a simple, easy to understand layout. Also, important information is shown for the development of trade. You must note that Binance is a commercial professional network, so even the basic trade setting may seem too complex for some newbies to use. But it’s not going to take you long to understand it!
The Advance trade setting provides experienced traders with access to all price tables and market data they need for complex businesses. Since this is a Binance guide for beginners, I will only show you how to buy Binance in Basic. For another day, I’m going to save the tricky stuff!
So let’s learn how to use Basic Trades Binance…
How to use Binance for Basic Trades
1) Sign in to your account. Pretty easy
2) On the Taskbar, press Exchange and click Basic
3) Basic isn’t very basic, as you can see!
4) Choose a trading pair. Binance lists hundreds of pairs of trading. These are pairs of coins for which Binance offers a currency. For instance, Bitcoin may be exchanged with 143 different coins so we’re saying that Bitcoin has 143 different Binance trading pairs. In this example, we fund our account with Ethereum so that we can only trade with Ethereum. Select ETH in the top right corner to find out which cryptocurrencies are offered for trading with Ethereum. You can now see that Ethereum has 140 different Binance trading pairs. Choose the coin for which you want Ethereum to trade. For instance, you can select Ripple (XRP).
5) Choose the kind of trade you want to do. Binance provides three types of trade:
- Limit orders allow users to set the maximum price they are willing to pay for or sell for coins. Then traders will wait for a buyer or seller to approve their offer.
- Market orders enable users to exchange coins at their current prices on the market. This type of business is the cheapest and the easiest.
- Stop-limit permits traders to buy or sell a coin after a certain price has been achieved. This form of order is often used by traders. Today I will teach you only how to buy with market orders on Binance. They are quick, easy and ideal for beginners.
Choose the amount you want to deliver. Tap on the market if you are satisfied with the current market price and enter the quantity of Ripple you want to buy (or your coin). You can enter this in your account in a sum or as a percentage of Ethereum.
Now, the quick part! Tap on Buy XRP and that’s it. You’re a crypto trader now.
I have to tell you about Binance trading fees … So now you know how to use Binance to exchange.
Trading rates are some of the lowest in the industry. Binance does not charge deposit customers. This is because the exchange is only for cryptocurrency purposes. This removes the heavy charges for exchanges offering fiat trading.
Finance charges for various cryptocurrencies different withdrawal costs, but they are all quite small. For instance, removing Ethereum will charge 0.01 ETH and charge 0.25 XRP if you remove Ripple.
Bond trading costs are limited to 0.1% of each customer buying or selling. This fee is decreased by 50% if traders pay Binance Coin. So this is a final charge of only 0.05%!
You just need to test their competitors ‘ trading fees to see why Binance is one of the most successful trading companies on the market. Bittrex and Bitstamp are renowned for their low fees and both charge 0.25% for each business. Five times as much as Binance!
As you can see, financial trading fees are one of the best features of the exchange. First, I want to tell you another feature–security.
The Binance Launchpad is an exclusive Binance token launch platform for new projects.
Financial handpicks are built based on various factors such as project maturity, scalability, and readiness for implementation, team efficiency and the ability of the project to support the wider crypto-monetary ecosystem.
To ensure that the sales are carried out according to regulatory regimes worldwide, each user has to check his / her Binance account.
Full token sales and those scheduled for a future date can be seen on the Binance Launchpad home page. It should be remembered that token sales operate based on “first-come, first-serve” and usually sell only in minutes, so be sure you do your due care.
If you participate successfully in a Launchpad token sale, the tokes will be credited to your Binance account automatically.
Two-factor authentication (2FA) is available on Binance, as are most modern cryptocurrency swaps, and it is highly recommended that you set up to add a layer in your account security.
To do so, navigate through the User Avatar on the top right of the home page to your account list.
When your account page is guided, a prompt will probably appear to activate 2FA, which occurs automatically when a new user is accessing that page.
Binance enables two 2FA methods, via SMS or Google Authenticator.
Simply type in your mobile phone number and the verification code sent to the corresponding phone with the SMS version and you’ll be finished.
If Google Authenticator is your 2FA option, please download the mobile app, open it and scan the Binance QR code. Then, a 16-word recovery sentence will be requested to be used as a backup if you lose access to this Google authentication.
Finally, you’ll be prompted to enter your Google Authenticator mobile app’s login password and authenticator code. The 2FA authentication form will be completed until finished.
Pros and Cons
- If you’re always on the go, the mobile application of Binance may be great for you. It is compatible with iOS, Android, and Mac and PC operating systems, which allows practically anyone to position trade or track their accounts.
- Binance offers a wide range of corporate crypto-monetary markets. As of 1 May 2019, the exchange serves 467 different markets.
- Binance has its own BNB coin, which can be used to increase the total liquidity of Binance and supplement the trade fees.
- Binance was a pioneer in initial bids and Launchpad facilitates sales once a month for people interested in being early holders of new tokens.
- Lower rate of trade than most other markets.
- If you must obey government rules like the USA, you may want to check out exchanges like Coinbase or Gemini, because Binance is still an unregulated exchange at this stage.
- Most markets in Binance, in particular, those of the least known altcoins, have low liquidity that can make it difficult to trade major altcoin positions.
- The rather complex user interface can be difficult to adapt to new traders and investors.