Trading cryptocurrency can be overwhelming and leave you exhausted, hence it is important to choose a reliable crypto exchange that is worth your time and money. One thing you must take note of as you’re about to kick-start a trading career in cryptocurrencies is to stick with an exchange that is not complicated to use. The last thing you would wish your enemy is to create a trading account on an exchange and then later realize the exchange is too complicated to use.
If you are looking to start buying and selling cryptocurrencies on the Binance exchange, then read on. This guide will explain everything you need to know about trading on Binance. You will learn how to open a trading account, how to make your first deposit, and how to trade cryptocurrencies. You will also learn about the fees you would have to pay while trading on Binance.
When you are done reading this guide, we can assure you that you will know so much about Binance and how to trade your favorite coin pair to make a profit. Before we go too deep into the guide, let’s start with a brief introduction of how Binance came to be.
A Brief History Of Binance
Binance is one of the leading and biggest exchanges in the world at the moment. It was founded in 2017 by two Chinese cryptocurrency and blockchain enthusiasts by the name Zhao and Yi He. These two experts had previously worked with OKCoin before leaving to pursue their dream of creating the biggest exchange in the world.
In September 2017, the Chinese government promulgated laws that were not favorable to Binance. The laws were an outright ban of cryptocurrency in China. This forced the company to exit China and set up its headquarters in Malta. Binance also has offices in Taiwan and Japan. What’s more? Binance has a native token called Binance Coin (BNB). This token can be used to pay for goods or services on the Binance exchange. You can also use the BNB token to pay for transaction fees when you open or close a trade.
Now that you know about Binance, let’s proceed to show you how to open a trading account on Binance.
How to Open an Account
Opening an account on Binance exchange is simple and straightforward. It doesn’t take more than 5 minutes to get started, except your internet connection is not stable. All you need to do is to visit the official Binance website.
Once you are on the Binance website, here is a step-by-step guide on how to open an account.
● Navigate to the registration tab on the upper right-hand side of the webpage and click on “register.” Follow the instructions to complete the registration form. Enter your email address and a strong password where required. For the password, use a mix of symbols, numbers, upper and lower case letters.
● Read through Binance’s terms of service and check the box to proceed further. Then click “Register” to create the account.
● The next step is to verify that you are not a robot. Binance will present you with a simple puzzle to show.
● A link would be sent to your email for email verification. Simply click on the link and your email address would be verified.
● Congratulations. You now own a trading account on Binance. However, before you start using your account to trade, it is important to enable advanced security.
● Set up 2FA (2 Factor Authentication) for extra security. You can do that through email or SMS authentication.
Once you are done creating an account, the next thing is to deposit funds into your trading account to start trading cryptocurrencies. Depending on the jurisdiction, Binance supports a wide range of fiat currencies. For instance, if you live in Australia, you can fund your account directly with the Australian Dollar (AUD). You can also fund your account with cryptocurrencies sent from another exchange or a crypto wallet.
How to Fund an Account On Binance
● Login to your Binance account. You would be directed to your dashboard where you can access the deposit feature tab.
● If you want to fund your account with, say Bitcoin, navigate to your wallet and click on deposit, select BTC from the list of coins, copy the BTC address you see on the screen, and paste it on any exchange or wallet you intend to send the coin from. It may take a few minutes for the BTC to arrive in your Binance wallet.
● If you want to deposit fiat currency, say AUD. From your wallet, click on the deposit tab and select a payment method. Binance supports bank transfers, credit/debit cards, and eWallets.
● Once you make the payment, you will see it appear on your balance in your spot wallet.
● You are now set to start trading cryptocurrencies
How To Trade Cryptocurrencies On Binance
On the Binance exchange, users have two trading settings to choose from – the basic trade and advanced trade settings. Obviously, the basic trade setting is for beginners like you. If you do not have any prior trading experience, don’t attempt to use the advanced trade settings.
The basic trade setting comes with a clean and simple interface that beginners will easily understand. On the other hand, the advanced trade setting is specifically for expert traders who understand how the market works. It consists of market data and price charts for traders to leverage when making complex trades.
Let’s show you how to trade with the basic trade setting, assuming you have BTC in your wallet.
How To Trade Cryptos With Binance Basic Trade
● Login to your Binance dashboard
● Navigate to the “Exchange” and click on “Basic.” You’d be directed to the basic trade interface.
● Choose a trading pair of your choice. Remember that Binance supports a long list of cryptocurrency trading pairs. So, feel free to try out different trading pairs. Let’s choose BTC/ETH. This means you want to buy ETH with your BTC.
● After selecting your trading pair, choose which type of trade you want to execute. Binance has 3 types of trades – market orders, limit orders, and stop-limit orders. Out of these three types of trades, a market order is the most basic for beginners. Using market order means you are buying/selling at the prevailing market rate. You simply cannot choose a price to buy or sell a coin.
● Therefore choose market order and enter the amount of ETH you want to buy.
● Click the “buy” button and the trade will execute immediately because you are buying at the price.
● If you check your spot wallet, you will see the ETH reflecting in your balance.
Binance is one of the cryptocurrency exchanges that charge the least trading fee. The trading fees are pegged at 0.1% for each transaction. But if you make use of BNB to pay the fee, Binance will give you a 50% discount. This means, in essence, the fee is 0.05%.
The global exchange market is highly saturated. As such, any crypto exchange that wants to stand out must offer features that even newbies can relate with. And Binance does that perfectly.
With this guide, you can now hit the crypto market to start making money! If you need any help, don’t hesitate to ask us.