Choosing the right exchange or trading platform can be vital, regardless if you’re an experienced trader or a beginner.
Binance is a popular Chinese cryptocurrency exchange, which is popular for its crypto to crypto exchange services. The company is based in Hong Kong, and it gained a lot of popularity over the last few years.
Due to its impressive number of Initial Coin Offering listings, and low trading fees, the exchange has managed to surpass a stunning number of 8 million active and registered users.
In this article, we will outline everything that you need to know about this exchange, including how it works, how to register, how to trade,the digital currencies that you can exchange, trading fees/limits and security aspects.
When you first visit Binance, you will notice that under the exchange tab the site offers two sections, Basic and Advanced, though it’s safe to say that none of them are completely easy to use if you’re a beginner in the world of digital trading.
The main difference between the basic and the advanced version is that the advanced one offers more-in-depth technical analysis of digital currency value over time.
Once you open the exchange tab it will look like this:
The Basic view uses a white theme and has all the information you need to make a trade and is nicely designed and well laid out, the prices are on the left, graphs in the center along with the buy and sell boxes and the trade history is presented on the right so you can quickly see what the latest trade prices were.
And this is what the advanced view looks like:
The advanced view uses a dark theme, the trading charts are larger and the latest trade prices are displayed on the right with the buy sell boxes underneath.
Apart from the basic and advanced exchanges, there are a couple of terms that you must get familiar with:
Search bar: you can type the name of any digital currency and it will show up.
Last Price: It Shows the Last Trade Price.
24h Change: It shows the change in the last 24 hours. It shows the change in Satoshis as well as in percentage.
24h High: Shows the Highest price for the last 24 hours.
24h Low: Shows the lowest price of the last 24 hours.
Order Book: Shows the Buy and Sell orders along with the quantity and the price. The Red part shows Sell orders, while the green color shows buy orders.
Graph: Shows a Candlestick graph of the price.
Buy Coin Option: Shows 3 Ways to Place a buy order for the coin. (Limit, Market, Stop-Limit)
Sell Coin: Shows 3 Ways to place a sell order for the coin.
How To Register And Login On Binance:
Before you can use the exchange, you first need to create an account. The process is simple and straightforward, and you don’t have to verify your account for level 1 which is a 2BTC daily withdrawal limit. For level 2 (which allows up to 100BTC per day) you need to upload a photo ID and wait until you are approved.
Time for the verification can vary depending on how busy the customer support is at the moment, but it usually takes up to an hour.
Enabling 2-Factor Authentication (2FA)
When you log in for the first time, a pop-up will show up and ask you to enable the 2FA which will help in increasing your account security. If you are new to 2FA, you’ll need to download Google Authenticator app and then scan the QR (or enter the secret key) in order to get a 1-minute changing code. This step is highly recommended.
After completing these two steps, you are done with setting up your account and security measures.
- How To Deposit And Start Trading.
- How To Deposit
Now that you have created your account, it’s time to make your first deposit and begin trading.
It is important to know that you cannot directly buy cryptocurrencies with FIAT (Real cash money) on Binance. You have to deposit from an already existing address which has one of the supported coins on the exchange.
Binance lets you choose from large amount of digital currencies, but it recommends that you stick to BTC (Bitcoin) and/or ETH (Ethereum) because you can trade them for any other coin on the exchange.
To fund your account, visit the “Funds” > “Deposits / Withdrawals” link at the top of the site and find the currency you wish to send, then click deposit.
You will need to provide your address. Depending on which currency you deposit, receiving times may vary, as this is reliant on the chosen currencies blockchain (or tangle if you’re depositing or withdrawing coins such as IOTA).
For example Bitcoin takes longer to deposit than Ethereum.
After you receive your funds, the next step is to make your first trade on the exchange.
Binance is an exchange that supports all major digital currencies, numerous ICO listings and their respective tokens, which offers you plenty of choice on the digital currency pairs you wish to invest in.
- How To Trade
The options for trading pairs on Binance are in BTC, ETH, BNB and USDT
Once you have your funds, select “Exchange” > “Basic” or “Advanced” to load the trading screen.
For this guide, we will be using the basic view mentioned above in this article.
On the right hand side of the screen, select the currency that you will be trading in. (As marked in the photo below)
Then, in the search bar below, select the currency that you wish to trade for.
Once you have selected the currencies pair that you want to trade, on the left hand column in the top half, in red you can see the prices that people are willing to sell for, and in the green bottom half the prices that people are willing to buy for. And the number in the middle shows the last sale price.
In the center box underneath the graph you will see a green “BUY” box.
You can manually enter a price that you wish to purchase your coin at, or you can simply click a number on the left hand column.
You can enter the amount of currency that you wish to buy for that price or click the percentage buttons which will fill it with an amount based on how much of the buying currency you have(In this case we are buying with Bitcoin).
Once you have placed your order, it will be shown under the “Open Orders” section until it is filled. After this your new currency will be available in the “Deposits / Withdrawals” menu, where you can withdraw it to the wallet of your choice or simply store it on the exchange and continue to trade it whenever you want.
- Currencies That You Can Exchange
What’s great about Binance is that it supports a wide variety of coins. (At this moment Binance supports 375 coins and they are keen on adding new coins and tokens in the near future).
As mentioned above, Binance only offer trading pairs in BTC, ETH, BNB and USDT.
- Binance Fees And Limits
Binance charges an average fee of 0,1% from each trade that you make. There is an option if you pay with Binance token (BNB) there is a 50% reduction on the trading fees. Withdrawal fees vary for each digital currency. Bitcoin withdrawals charge 0.0005 while Ethereum withdrawals charge 0.005.
On the link below you can see examples of the fees you will be paying in withdrawals.
https://www.binance.com/fees.html ( a link to the binance site fees section)
On Binance there is no limit to the number of coins that you can deposit.
Users are only limited in terms on how much they can withdrawal ONLY if they are not verified (as mentioned above in the registering section). Upon verification you will become a level 2 user, you will be granted more limitation freedom when using the exchange.
- Binance Security
Since Binance is one of the most popular exchanges available on the market, with its high number of users registered, it attracts a high level of attention. Users are not provided with enough information on how their funds are being secured and transferred, although Binance promises that security and their customers safety is their top priority. Enabling two factor authentication (2FA) is a must (As mentioned above in the registering section), and it’s known that the exchange offers a multi-tier security system architecture. The best way to protect yourself is to avoid phishing sites and always check the URL when visiting Binance, I recommend you bookmark the site and only use that to access it. Never click links from e-mails or social media and remember that Binance customer support will never ask for your password and sensitive information.