Buying and selling cryptocurrency can be a difficult undertaking. You have to properly understand what you’re doing, not to mention you have to pick a platform that you trust. If you’re not too careful, you will wind up using a platform that confuses you and makes the process all the more troublesome.
This is where the topic of this article comes in. If you want to start buying or selling a cryptocurrency, arguably the best place to look into is Binance. It is one of the largest cryptocurrency exchanges by trade volume in the world. It offers to trade with over 45 virtual coins, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Binance Coin (BNB).
Since its 2017 establishment, Binance has been garnering widespread attention. Its true rise to prominence was during the 2017 historic crypto market-wide bull run. It backed a variety of cryptocurrencies in what was – and still is – one of the most efficient trading platforms. In fact, its popularity has grown so quickly that Changpeng Zhao, CEO of the company, and Binance’s worth went over $1 billion in less than a year. This effectively makes it one of the first companies to obtain a “unicorn” status in the cryptocurrency industry. This status is given to privately held startup companies with values that are over $1 billion.
To put simply, Binance is one of the leading destinations for crypto traders. Yet, despite this high-caliber status, it is just as difficult to use as many other exchanges that exist. This is especially the case for users who don’t have a background in traditional trading or investment.
This article will serve as a comprehensive tutorial on how to properly use Binance.
Step 1 – Signing up
First and foremost, you will have to create an account on the platform.
Furthermore, the terms also state that the minimum age requirement is 18 years. Binance has the right to cancel or freeze any account if there is an infringement on the terms. If the restrictions are not relevant to you, then you can proceed with the registration.
You sign up by simply going to the homepage and then clicking “Register.” You will be sent to the registration page where you have to enter an essential amount of personal information. This includes your email address and a referral ID if you have one. Moreover, you will have to create a password. You will then receive 50% of your referrals trading fees, as per the Binance referral system.
Step 2 – Depositing funds
At this point, your account has been activated and is all set to go. While this might be the case, you can’t go exploring the exchange quite yet. First, you will need to add funds to your account before you start buying or selling cryptocurrencies. There are two ways you can do this. You can either…
- A) …pay with a credit card, or
- B) …pay a deposit from a wallet.
There is a feature on Binance that permits users to directly purchase certain cryptocurrencies with their Visa or Mastercard. If you are a capable candidate, go to the “Funds” tab and select the “Buy With Credit Card” option.
You will have to enter the purchase amount of the cryptocurrency you want. In addition, you need to mention as to whether you will be paying with the US dollar or Euro. Cryptocurrency purchases through a credit card are restricted to BTC, ETH, and LTC at this point in time. There is a minimum processing fee of $10 or 3.5% of the total order; whichever is more costly.
After this step, you will need to confirm the following things: your billing information, your email address, and your identity. In the case of the latter, you need an authentic government-issued form of ID that will confirm your identity.
Once you complete these crucial steps, the cryptocurrency should go into your Binance wallet within a 10-30 minute time frame.
You’re able to make a deposit by way of sending funds from a cryptocurrency wallet straight to your Binance account. To do this, you will have to once again go to the “Funds” tab before then clicking “Balances.” Here, you will see all of the cryptocurrencies that are available for trading on the Binance platform.
To deposit the correlative crypto into any of these, you click the “Deposit” button beside the crypto asset you want. The next step is either scanning your cryptocurrency wallet’s QR code or pasting in the address before sending.
As soon as that is complete, wait for the transaction to process and then you’ll be ready to start trading.
Step 3 – Arrange a trade
For this portion of the tutorial, we have to go back to the homepage. It’s here that you will again see all the cryptocurrencies that are tradable on Binance, as well as their respective markets.
Let’s assume, hypothetically, that you previously made a BTC deposit into your account and want to trade it for NEO. First, you will need to track down the suitable NEO market. Seeing as how you want to spend BTC to obtain NEO, click the “BTC Markets” tab.
After this, type NEO into the search bar. Select the row featuring the cryptocurrency you’re searching and then the page where trading occurs will open.
The trading module page
Going by the page’s appearance, it looks incredibly stressful and intimidating. In spite of this, you can catch onto the mechanics of it rather easily. It’s important to note that a majority of cryptocurrency exchanges have a similar trading interface. With that in mind, anything you learn and remember from here will likely be relevant elsewhere.
On the left side of the screen, there exists an ‘order book’. With this, you will be able to view all of the operative buy and sell limit orders. A limit order is an order whose placement will only be at a price that the user desires. This is in correlation with the fact that there are buyers and/or sellers that show interest at that level. The primary thing you need to know about this is that the top section is where limit sell orders wait for filling. The bottom section, on the other hand, is where the limit buy orders wait for filling.
To counteract the complexity of the left side of the page, the right side is comparatively more straightforward. The above section presents the other cryptocurrencies that are available for trading. The lower section shows the public trade history of the market that you are viewing at the moment.
The center of the page
The center of the trading module page is where the principal trading stuff happens. Here, there resides a chart feature that presents real-time price action, as well as indicators for technical analysis. If you look below the chart, you will find the location where you will carry out the trade. For the sake of explaining this section, let’s take an element from the previous example and say that you’re purchasing NEO.
Do you prioritize the certainty of the execution above everything else? If so, then you should select ‘market order’. Do you have an interest in only purchasing at a specific price level? Then you should select either ‘limit’ or ‘stop-limit order’.
For this example, let’s say we are placing a market order, which will immediately be placed at ongoing market prices. The first thing you have to do is enter the amount of BTC you want to spend. Moreover, exactly how much NEO you wish to buy. Binance has a handy shortcut for when you’re entering the purchase amount. It draws heavily from a percentage of your Bitcoin balance (alternatively any trading pair that’s applicable).
From here, we are going to spend half of the BTC balance so that there’s some leftover. It’s conceivable that this could be useful for another trade.
The final step of this procedure is to click the big green button that says “Buy NEO.” Because this is a market order, the completion of the trade for 0.58 NEO should be instantaneous. However, that is in all likelihood not the case if you decide to select limit or stop-limit order.
If you want to check your order’s status, navigate the “Open Order” option. This can be found close to the bottom of the page. If the execution of your order hasn’t happened yet – or in other words, it’s still “open” – then it will appear in this box. It will remain there until it either experiences a cancellation or a filling. Upon being filled, it will appear in the lower box that highlights your order history of the past 24-hours.
If you want to sell, you basically follow this same process. However, you instead carry out a market or limit sell order.
Step 4 – Withdrawing the funds
Binance is working on a decentralized exchange, but the current platform is centralized. This means that it is vulnerable to various hacks, not unlike most other websites. With that said, the exchange only holds the recommended funds for as long as necessary.
To withdraw, you have to go back to the “Balances” page. If you want to only see the cryptocurrencies you have a significant balance in, then check the “Hide” box. Here, you can select the withdrawal button in the NEO row. Doing so will make your destination address or QR code readily available. From here, you will paste the address before selecting the exact amount that you want to withdraw.
The final step to this procedure is to click “Submit” and then wait for the official completion of the transaction.
The security of the exchange
Binance users take great measures to ensure that their accounts are secure from hackers and thieves. Here are some of the notable methods:
- Install a two-factor authentication (2FA) system. This is a security protocol that a majority of other cryptocurrency exchange platforms use. Many recommend that you set up this system as it will apply an extra layer of protection to your account.
- Ignore requests from individuals who are claiming to be from Binance. There isn’t a single person from the Binance team who will inquire about your passwords or your 2FA codes. Furthermore, they will never request that you send coins to a “safe account” or anywhere else.
- The official Binance website is what you should always use. Do not click on any links to Binance that reside in emails or pop-ups. Be sure to check the official Binance URL and bookmark it so that you have it at your disposal. If you need to contact the Binance team, then use the contact information that is present on the secure homepage.
- Employ strong anti-virus software. The safety of the device you use to access your Binance account is as crucial as the safety of the account itself. Be sure that the devices you use to access your account are free from bugs and viruses.
Who can benefit from Binance?
To an extent, Binance doesn’t have a singular demographic that they are aiming to appeal to. Rather, the platform’s design intends on appealing to as many users as they are able to. Working with the exchange is simple enough for newbies to use. On top of that, it provides enough coins and features that will keep expert traders happy.
Admittedly, the only group of people who might struggle with using Binance is first-time traders. These particular types of users probably won’t have any cryptocurrency in their possession. Moreover, they might not fully understand the basics of crypto trading; at least not yet.
Regardless, with the right amount of knowledge, anyone can use and benefit from Binance. Hopefully, this guide will have helped you in further grasping the mechanics of this platform.