Tips for trading on binance
Today, I’m going to teach you how to use Binance. Buying and selling cryptocurrency can be really stressful so it’s important to choose an exchange that you can trust. It’s also important to find an exchange that meets your needs and isn’t too complicated to use. There’s nothing worse than opening an account on an exchange and then realizing you don’t know how it works!
If you’re thinking about opening an account with Binance, then read on…
In this Binance tutorial, I’ll teach you everything you need to know about how to use Binance. I’ll show you how to sign up, how to trade on Binance and what Binance trading fees you’ll have to pay. I’ll also tell you how safe the exchange is to use and even what kind of users it’s designed for.
By the time you finish reading, you’ll know all about one of the biggest exchanges in crypto and, more importantly, you’ll know how to use Binance!
I’ll begin with a short introduction to the exchange…
What is Binance?
Binance was founded in China in 2017 by Changpeng Zhao and Yi He. He and Zhao both worked at the OKCoin exchange before deciding to build their own crypto exchange.
The company was forced to leave China in September 2017 after the Chinese government banned cryptocurrency trading. It has since had offices in Japan and Taiwan. It’s currently based in Malta.
binance has its own cryptocurrency called Binance Coin (BNB). The exchange used an initial coin offering of Binance Coin to raise 15 million USD worth of funding in July 2017. Discounts are offered to traders who use BNB to pay trading fees (which I will explain in detail a little later!)
Note: An initial coin offering (ICO) is an easy way for crypto businesses to raise money without using more complicated methods like bonds or stocks.
CoinMarketCap lists Binance as the second biggest crypto exchange on the market. In the last 24 hours, more than 1.4 billion US Dollars worth of cryptocurrency has been traded on it.
Binance is a crypto-to-crypto exchange. This means that users can only use it to trade cryptocurrencies. If you don’t already own some cryptocurrency, then you’ll need to buy some before you can start trading with Binance. I suggest using an exchange that offers fiat currency trading like Coinmama, CEX.IO or Coinbase.
Note: Fiat currencies are the official currencies of nations. Examples include: the Japanese Yen (JPY), the US Dollar (USD) and the British Pound (GBP).
Once you have cryptocurrency, you can use it to trade with more than 200 coins and tokens on binance. Now you know what it is, you’re ready to learn how to use Binance!
Before I can show you how to use Binance, I need to show you how to open an account…
How to Open an Account
Follow the simple instructions below and you’ll be trading in no time at all!
- Get registered: The first thing you need to know about how to use Binance is how to get registered! Go to the Binance homepage and click on Register.
You’ll be redirected to the registration page where you’ll need to enter your email address and create a password.
Note: Always use an email address which you know is secure and that you check regularly. When creating a password, use a mix of numbers, symbols, upper and lower-case letters.
- Prove that you’re not a robot. You’ll be asked to complete a puzzle which you should find easy unless…you’re a robot!
An email will now be sent to you. Click on Verify Email to complete your registration.
Congratulations! You’re a Binance account holder. Next, I’ll show you how to use Binance but first you need to secure your account…
- Secure your account: When your login for the first time, you’ll be asked if you want to set up 2FA. You DO want to set up 2FA, it’s very important! If you choose Skip for now you’ll regret it later!
Note: 2FA is two-factor authentication. It’s a security feature which gives users an extra form of password. When using 2FA, users enter their normal password and a second code which can be sent to a mobile device by SMS or created by the Google Authenticator app.
After you’ve set up 2FA, you’ll be ready to fund your account. This means moving cryptocurrency into it. You can do this by sending cryptocurrency from a crypto wallet or another exchange – like Coinbase – to your Binance account. Here’s how it works…
How to Fund an Account
For this Binance tutorial, I will use Coinbase as an example of one way that you can fund your Binance account. A similar process will apply to almost any other exchange you are sending the funds from. I will use Ethereum (ETH) as an example of a cryptocurrency you can use to fund your Binance account.
- Go to Coinbase: Login to your Coinbase account and click on Accounts. Next, click on Send where it says ETH Wallet.
You’ll be asked to enter a Recipient. This is where the Ethereum will be sent. You’re sending it to binance so you need to get an Ethereum address from your Binance account.
- Login to your Binance account. On the taskbar, click on Funds then Deposits.
Now enter the cryptocurrency you need an address for. In this example, I’m using Ethereum. Binance will create an Ethereum address for you to send funds to.
The ETH Deposit Address is where you will be sending your Ethereum funds so copy and paste it into the Recipient box in your Coinbase account.
All you need to do now is decide how much Ethereum you want to send to your Binance account and click Send. The funds will appear in your Binance account as soon as they are processed by the Ethereum network.
Now you know how to use Binance to open and fund an account. Next, you can learn how to trade on Binance!
How to Trade on Binance
There are two Binance trading settings: Basic and Advanced. Beginners should start by trading in Basic.
The Basic trade setting has a simple layout that’s easy to understand. Only important information for making trades is displayed. You must remember that Binance is a professional trading platform, so even the Basic trade setting might seem too complicated for some newbies to use. However, it won’t take you long to grasp it!
The Advanced trade setting gives expert traders access to all the price charts and market data that they need to make complex trades. As this is a beginner’s Binance tutorial, I’ll only be showing you how to buy on binance in Basic. I’ll save the tricky stuff for another day!
So, let’s learn how to use Binance for Basic trades…
How to use Binance for Basic Trades
- Login to your Binance account. Nice and easy!
- Click on Exchange on the taskbar and select Basic.
- As you can see, Basic isn’t actually very basic!
- Choose a trading pair. Binance lists hundreds of trading pairs. These are pairs of coins that Binance offers an exchange rate for. For example, Bitcoin can be traded with 143 different coins so we say that Bitcoin has 143 trading pairs on Binance. In this example, our account is funded with Ethereum, so we are only able to trade with Ethereum. To find out which cryptocurrencies are offered for trading with Ethereum, select ETH in the top right corner. You’ll now be able to see that Ethereum has 140 different trading pairs on binance. Select the coin that you want to exchange Ethereum for. For example, you could choose Ripple (XRP).
- Choose which type of trade you want to make. Binance offers three kinds of trade:
- Limit orders allow users to set the maximum price they are willing to pay for coins or the minimum price they are willing to sell them for. Traders then have to wait until a buyer or seller accepts their price.
- Market orders allow users to trade coins at their current market price. This kind of trade is the fastest and most simple.
- Stop-limit orders allow traders to buy or sell a coin once it has reached a certain price. This kind of order is often used by pro-traders. Today, I’m only going to show you how to buy on binance with market orders. They are quick, simple and perfect for beginners.
- Choose the amount you want to trade. Click on Market if you are happy with the current market price and enter the amount of Ripple (or your chosen coin) you want to buy. You can enter this as an amount or as a percentage of the Ethereum in your account.
Now, the easy bit! Click on Buy XRP and that’s it. You’re now a Binance crypto trader!
Now you know how to use Binance to make trades, I need to tell you about Binance trading fees…