Are you new to trading on the Binance exchange? Don’t worry, it is easier than you might think!
With this blog post, we will provide you with a step-by-step guide on how to use Binance for basic trades. We will break down the login process to your account, select a trading pair, and start trading. On top of that, we will provide some useful tips and tricks so that you can start trading with confidence.
So, if you are ready to take the plunge into the world of cryptocurrency trading, let’s get started!
What is Binance?
Binance was founded by Changpeng Zhao and Yi He in China in 2017. It is now one of the world’s largest crypto-to-crypto exchange platforms. Currently, it supports more than 500 cryptocurrencies and virtual tokens, including Litecoin, Ether, Dogecoin, and Bitcoin.
Binance is constantly adding more trading pairs, making it a great platform for experienced traders and novices alike. With a sleek and intuitive user interface, Binance is the go-to platform for the crypto-savvy!
Additionally, Binance supports several fiat currencies. The platform offers different order types and advanced tools for those who want to delve deeper into trading. Moreover, Binance has its native token, Binance Coin (BNB), which is used as a form of payment on the platform and can be used to receive discounts on fees.
Key Takeaways –
- Binance is an online exchange for trading cryptocurrencies that supports hundreds of the most commonly traded currencies.
- Binance provides a crypto wallet for traders to store their funds, allowing users to earn interest or transact using cryptocurrencies.
- Binance offers programs for miners and helps traders make investment decisions.
- Binance has a global presence but is limited to some countries (such as Italy, Singapore, Malaysia, Japan, Germany, and the UK) due to regulations.
How to make a basic trade in Binance
Binance offers several services for trading, listing, fundraising, de-listing, and withdrawing cryptocurrencies. Before you can start trading, you must first complete the KYC requirements. This includes submitting documents and verifying your identity.
Once you have set up your account and are ready to make a trade, Binance offers four main types of orders:
- Limit
- Market
- Stop-limit
- One-Cancels-the-Other (OCO)
In addition, Binance offers seven types of orders for crypto derivatives, specifically futures contracts. These are –
- Limit order
- Market order
- Stop-limit order
- Stop market order
- Trailing stop order
- Post only order
- Strategy order (Limit TP/SL)
Okay! Now that you know some orders and requirements of Binance exchange, you can follow these steps to make a basic trade –
- Log into your Binance account and click on Exchange.
- Select Basic from the taskbar.
- Choose the desired trading pair from the list of available options.
- Enter the amount of the asset you want to buy or sell in the Buy or Sell boxes respectively.
- Double-check all details before confirming your trade.
- Click Buy or Sell after confirming the trade details and that’s it! Your order is placed and waiting to be executed.
Perhaps, you should give a quick look at the following video, especially if everything seems new to you –
Beginner’s guide to trading on Binance Spot
When it comes to fees, Binance does not charge any fee for cryptocurrency or fund deposits. However, all withdrawals come with a transaction fee that is based on the currency being withdrawn.
Fast Fact –
As of February 2023, Binance does not allow U.S. dollar deposits by global users. However, deposits using 27 other fiat currencies are permitted, including the British pound, euro, Chinese yuan, and Japanese yen.
Trading Fees of Binance
Binance offers some of the most competitive trading fees in the industry. They charge a flat rate of 0.1% for all trades, regardless of whether you are buying or selling. This applies to all coins, including Bitcoin and Ethereum.
They also offer discounted fees for users who pay with their Binance Coin (BNB). These users will receive a 25% discount on their trading fees. Additionally, those who provide liquidity to the market by adding orders to the order book are called makers. They will receive a rebate of 0.075%.
There are additional fees that you need to be aware of when trading on Binance. These include withdrawal fees for each cryptocurrency and deposit fees for certain cryptocurrencies. For example, withdrawing Bitcoin (BTC) will cost you 0.0005 BTC, while depositing Ethereum (ETH) will cost you 0.01 ETH. So, keep these fees in mind when trading on Binance, as they can have a significant impact on your profits.
How to find the right trading pair in Binance?
One of the most important aspects of trading on Binance is finding the right trading pair. With a wide range of markets available, it can be difficult to decide which pairs to focus on. Here are a few tips that can help you find the best trading pair on Binance.
- Understand Your Goals: Before looking for a trading pair, try to understand your goals. Are you looking for short-term gains or long-term profits? Are you looking to diversify your portfolio or make quick trades? By having a clear understanding of your goals, it will be much easier to narrow down your options and select the best trading pair.
- Consider Trading Fees: Another factor to consider when selecting a trading pair is the trading fees associated with each asset. Binance offers different fee tiers based on the asset being traded and the account type of the user. It is essential to understand these fees and choose the asset that offers the lowest fee structure.
- Analyze Market Volume: When selecting a trading pair, you need to analyze the market volume of the asset. Generally speaking, the higher the volume, the more liquid the market is. Additionally, higher volumes may lead to more volatility, which can provide an opportunity for greater profits.
- Use Technical Analysis: Lastly, it can be beneficial to use technical analysis tools when searching for a trading pair. Technical analysis tools can help traders identify trends in the market. Ultimately, this can make more informed decisions about which assets to trade.
The benefits of trading on Binance
Of course, Binance comes with some unique benefits. Otherwise, it won’t become so popular in such a short period of time. These benefits include –
- Low trading fees: Binance offers some of the lowest fees in the industry, charging just 0.1% per trade. It gives discounts for those who use Binance Coin (BNB) to pay the trading fees. This makes it an attractive platform for those looking to save money on trading fees.
- Variety of coins: Binance offers a wide range of trading pairs, including many cryptocurrencies that are not available on other exchanges. This makes it easy to diversify your portfolio and trade a variety of coins.
- User-friendly interface: The Binance trading interface is designed to be intuitive and user-friendly, making it easy for even novice traders to make trades.
- Security: Binance takes security seriously, It offers advanced security measures such as two-factor authentication and secure hardware wallets for storing funds.
- High liquidity: Binance is one of the largest exchanges in the world. It provides high liquidity for traders which makes it easy to trade coins quickly and efficiently.
- Professional trading tools: Binance provides professional traders with advanced features such as margin trading and other tools to help them make more informed trading decisions.
Other services offered by Binance
Aside from just trading cryptocurrencies, Binance offers various services that make it a popular and reliable platform. Here are the other Binance services for endless opportunities –
- Binance Earn: This is a platform for stacking or earning interest by depositing stablecoins with the exchange. Users can also earn rewards in select digital assets from campaigns and activities.
- Binance Card: This is a Visa credit card that allows users to convert their cryptocurrency into fiat currency. It lets users pay for their purchases worldwide with the help of their Binance account balance.
- Binance Crypto Loans: It lets users borrow for spot, future, and margin trading. These loans come with low fees and flexible repayment options, making them an attractive option for traders.
- Binance Smart Pool: It enables miners to switch between different cryptocurrencies for mining. This ensures they don’t have to miss out on potential profits from mining other currencies.
- Binance Pay: It allows users to use cryptocurrency to pay for purchases worldwide with zero fees. The service supports several popular cryptocurrencies including Bitcoin, Ethereum, Ripple, and more.
- Binance Labs: This is a blockchain technology incubator that focuses on nurturing promising pre-ICO stage projects. Through this platform, the company has invested in numerous projects including Zilliqa, Celer Network, Contentos, and more.
- LaunchPad: This is a site for hosting new and emerging blockchain projects and API interfaces. It features some of the world’s most innovative projects such as Matic Network, Celer Network, BitTorrent Token (BTT), Harmony, and more.
A brief about Binance Coin (BNB)
Binance Coin (BNB) is a cryptocurrency created by the popular crypto exchange Binance. BNB has grown in popularity since its launch in 2017. It is currently one of the most traded coins on the market. It has many uses, from reducing trading fees on the Binance exchange to being used as a payment method for various goods and services.
BNB was created to help offset transaction fees that occur when trading or using the Binance exchange. By holding BNB, users can receive discounts on trading fees when they use it to pay for trades. These discounts range from 25% to 50%, depending on the amount of BNB held by the user.
This is live BNB data from when this article was written –
The coin is also used as a payment method in various applications and services, such as travel booking sites and gift cards. To top it off, BNB is used to pay for access to high-end VIP services on the Binance platform.
FAQ
Is Binance secure?
Ans: Binance is used by millions of users and is generally considered to be secure. However, it has been the target of hackers, who stole more than $570 million worth of BNB in 2020.
Can U.S. citizens use Binance?
Ans: U.S. citizens can use Binance.US, which is run by a separate entity from the main Binance site. It is subject to U.S. laws and regulations. Accessing the main Binance (global) website from the U.S. or other restricted countries is not allowed according to Binance’s Terms of Use.
How is Binance different from Coinbase?
Ans: Coinbase is slightly more beginner-friendly than Binance, as the interface is easier to use and the trading process is more straightforward. On the other hand, Binance has more cryptocurrency options available and offers a wider range of services. Ultimately, it comes down to personal preference when choosing between Coinbase and Binance.
Bottom Line
Binance is one of the most popular and easy-to-use cryptocurrency exchanges in the world. It provides an efficient platform to buy, sell, and trade digital assets. With its wide selection of trading pairs, low fees, and intuitive interface, it has become a great choice for beginners and experienced traders alike.