Binance is one of the most popular cryptocurrency trading exchanges in the world. It provides a platform for its users to buy and sell their cryptocurrency. More so, Binance has a robust set of features and unique tools that are technically designed to make trading easier.
However, you need to understand the functionality of each tool and feature to make the most out of this platform. From signing up to trading, this article will show you how to use Binance. Good knowledge of the platform will enable you to explore its potentials so that you can trade profitably.
Table of Contents
What is Binance?
Changpeng and Yi founded Binance, which is an online cryptocurrency exchange. Before then, they both worked with a platform for spot trading between fiat and digital assets called OKCoin. They worked at OKCoin for less than a year, then left and built their own platform in 2017.
China was the base of the company, but around September 2017, the Chinese government placed a ban on the use of cryptocurrency. This caused the company to shift its base to Japan and is now based in Malta.
Binance experienced rapid growth and became the world’s largest crypto exchange in January 2018, with a market capitalization of $1.3 billion. And, as of April 2021, Binance had retained this title despite many competitors rising in recent years.
Binance has launched two cryptocurrencies since its existence. The first and most popular is the Binance Coin (BNB) which was launched in June 2017, and later in September 2020, Binance Smart Chain. Binance Coin (BNB) is currently third highest market capitalization cryptocurrency at the writing of this article, with a trading volume of $72,980,217,47.
How to Use Binance; Easy Steps
#1. Open a Binance Account
To use binance, you need to have a binance account. So, here’s how to open a binance account.
Register on the Platform
This is nothing complicated, you must go to Binance’s homepage and click on register. The platform will redirect you to the registration page, then enter your email address and create a password. Your password, for tighter security, should comprise numbers, symbols, upper and lower cases of the alphabet.
When you have done this, the next thing to do is to click on the register. But, before you do that, you have to review and agree to Binance’s Terms of Use.
Complete Registration
For this stage, the first step is to confirm that you are not a robot, and this is by completing a puzzle. They will send you an email through which you will complete your registration. Once you click on the “Verify Email”, your registration is completed, and you now hold a Binance account.
Secure Your Account
This step is very important. For whatever you are doing on the cloud, you need a strong security system, cybercrime is increasingly becoming rampant. Log in to your account and set up the 2FA. 2FA stands for two-factor authentication.
In setting up your 2FA, the security provides an opportunity for you to create an extra password. To do your 2FA, enter your normal password, and a code will be sent to your mobile device through SMS.
Then enter the code in the space provided to complete the authentication process. Alternatively, you can set up the 2FA through the Google Authenticator app.
#2. Fund Your Account
This is the next step after setting up your 2FA; fund your Binance account. There are two ways to do this:
Deposit Crypto From Your Wallet to Your Binance Account
This step is applicable when you already have a crypto wallet with some coins stored in it. We shall use dogecoin (a cryptocurrency) to explain this process.
- Login to your Binance account, click on buy crypto, and then click on deposit. Select the cryptocurrency – dogecoin, and Binance will create a dogecoin address for you.
- Copy the address from your Binance account. Go to your dogecoin wallet and paste it. On the wallet, fill in the necessary information such as how many dogecoins you want to send.
- Do your security verification by clicking on identity verification. It will require you to fill in certain personal information, after which you will be verified.
You will receive the dogecoin in your finance account once it is sent.
Buy Crypto Using Your Credit Card
This option is simpler but more expensive than the former. Here Binance acts as a broker.
- On the buy crypto option, click on credit/debit card.
- Select dogecoin and the fiat currency you want to pay with and the amount (eg. $100). The exchange will show you the number of dogecoins that $100 can buy.
- Confirm payment, do your security check, put in your card details, and pay. The coins will be sent to your Binance account.
Note that funding your account through this means attracts a fee. Also, an alternative to buying crypto using your credit card is buying crypto using the peer-to-peer (P2P) method. This implies buying from other crypto traders.
All you need to do is, go to your Binance account, click on your wallet, click P2P, then click buy. Choose the coin you want to buy, and the offer of different sellers will appear, check the sellers’ limits to know which one suits you.
Select the sellers you want to buy from, input the worth of the coin you wish to buy, the exchange shows you how many coins your money can buy, click buy. The seller’s information will appear, pay the money to their account and inform them about the transaction, then they will send the coins to your wallet.
#3. Trading - How to Trade on Binance
The funds you have deposited will be dormant if you do not trade with them. Trading on Binance is not rocket science, it’s simply buying and selling your cryptocurrency on Binance. And, if you understand the rules, you’ll have fewer losses.
The Binance trading interface comprises a wide range of powerful tools and options to lend you a helping hand in your trading analysis. They include:
- Depth charts
- Time intervals
- Candlestick charts
- Drawing tools
- Technical indicators
But basically, the first thing you need to do when you want to trade is to go to the Binance homepage and click on the market. You’ll see options like basic and advanced. Since you are new to the system, you should go for the basics, especially for newbies.
Click on basic, it will lead you to the crypto spot market where you will see a lot of market pairs, then select a trading pair (eg BTC/USDT). This means you are trading Bitcoin against a stablecoin called US Dollar Tether (like a “cryptocurrency dollar” that is always at $1). Depending on the cryptocurrency to have, search for the cryptocurrencies that offer to trade with it, then choose from the many options.
There are 3 different kinds of trade on Binance, so, you have to choose the one want. These trades include:
- Market Orders: This kind of trade is not complicated at all, and quite fast. It allows you to trade at the current market prices.
- Stop-Limit Orders: This works with a specific price, so you can only buy or sell a coin whenever it gets to that specific price.
- Limit Orders: Here you set a price at which you are willing to sell or buy at, so you can only sell or buy when a buyer or seller agrees with your price.
You can choose to start with the market orders since they are simple and fast, you might not have many difficulties using them. That being said, you should decide on and enter the amount you want to trade with, check the market, and be sure you are comfortable with the current price.
Enter the amount of coin you wish to buy – as a percentage or amount of the coin you have and click on the buy option. Now you just traded and so you can be called a trader.
Advantages of Trading on Binance
- Lower trading fees
- Higher liquidity
- Strong security
- Supports a wide range of cryptocurrencies
- Accessibility: you can use it on your mobile device
- Ease of use
- Offers protection against physical damage
- You can set it up in no much time
How to Read Binance Charts
To become successful with trading on Binance, you need to know how to read and understand the Binance Chart. In this section, we will go through the most important things you should know before trading.
Binance Candlestick Chart
There are different types of crypto charts, but the Candlestick Chart is one of the most used. It makes it easier for traders to do their technical analysis and forecast price movement. The candlestick chart consists of green and red “candlesticks”, which reflect open/close price, highs & lows for the time they represent.
Also, the colored part of the candle (the body) indicates the amount that was traded and the open and close prices at the time of the trade and within a given time signature. The lines at the top and bottom of the candlesticks, normally called “wicks” represent the lowest and highest prices during that time frame.
The color of the candle body is what tells you which price was higher or lower. If the closing price was higher than the opening price, it is represented by a green bar, and if in the reverse, it is represented by a red bar. The upper part of the green bar may be an indication that the price was on the rise (Bullish). The down part of the red bar indicates a downturn (Bearish).
Binance Crypto Chart Interface
With the tools available in Binance you can work around the chart and understand the current position of things. If you place your cursor at the very top, you can know the last Price, 24hr low & high, 24hr Change and the 24hr volume; the number of trades. The space at the bottom left shows the progress of your order, that is if you placed an order.
Use the arrow to see your “Trading Pair” tab. There are favorite trading pairs; BTC, BNB, ALTS, and USDC/USDT. Whichever trading pair you choose, the chart changes to that pair. Also, very vital to note is the “Time Signature”. Any change on it changes the amount of time that each candlestick represents. Time Signature helps you analyze trade with respect to time, which is very crucial, they can give you an inkling of what might happen.
“1D” represents 1 day, and the implication is that every candlestick resembles 1 day of trading. There is also 1 Week and 1 Month. The small represents minute, while the “h” represents an hour. If you further click on either of them, it breaks down the analysis to a specific number of minutes and hours.
The “Order Book” is a list of all the recent Buy & Sell orders that are yet to be filled. The normal practice in trading is, when you want to buy or sell your coins, you will place an order, with a price. With these users can see which sell order (according to price) matches their buy order so that they can exchange. The orders have two colors; green to show buy orders and red, sell.
The order book will guide you in setting your price, the benchmark to work with. At the right side of the order book, you’ll see orders that have lately been filled.
The “Volume Bars” are the vertical green and red bars at the tail of the chart, and play a crucial role in technical analysis. In conjunction with the time signature specified on the chart, they show you the details of the trading within that amount of time. With that, you can know the amount of which asset has been traded in that amount of time, and this is a strong indicator for which asset to sell or buy.
The “Order Box” is useful for placing your order. Your order indicates which coin you want to buy or sell and at which price. So when you want to sell or buy coins, you move straight to the order box and place your order. Binance offers 3 different ways to buy or sell; which Limit, Market, and Stop-Limit (discussed above), so place your order accordingly.
A thorough understanding of the Binance chart is of utmost relevance to your success in trading with the platform. It will help you avoid and reduce losses. To know how you can make the most of this chart, you may need detailed and practical teaching on how to read a Binance chart. A Binance tutorial will help you.
Trading Fees
Binance’s low trading fees are among the features that make it stand out. Binance’s trading fees are low when compared to most of its competitors. They do not charge users for making deposits, and the withdrawal fees are also comparatively low. Binance’s trading fees are capped at 0.1% of every sale or purchase and can be lowered by 50% when you use Binance Coin (BNB) for payment.
Other renowned and low-fee exchanges such as Bitstamp and Bittrex charge 0.25% for every trade, that’s five times the fee you have to pay on Binance.
Ways to Keep Your Binance Account Secure
- Ignore any kind of request that relates to Binance, coming from individuals: Binance will never contact you directly to ask for any information. Ignore any request for your 2FA codes or passwords.
Also, all transactions are within the exchange, they won’t ask you to send coins elsewhere.
- Only utilize the official website of Binance: Do not use links from social platforms or other advertising mediums to register on Binance or conduct any transaction.
Always use the official Binance URL of Binance. For complaints, visit Binance support.
- Two-factor authentication: This is very vital, for tough security to ensure it.
- Use anti-virus software: Ensure that any device you are using to access and operate your Binance account is free from viruses and bugs.
Final Thoughts
Knowing how to use the Binance exchange is more important than just having the app on your device. If you master the rules and tricks of trading on Binance then you can almost be sure of big, consistent wins. So now that you’ve known exactly what to do, you can start by signing up on Binance, and know more about how to use Binance with the Binance guide.
