Binance is one of the most liquid and highest volume cryptocurrency exchanges worldwide, with tight spreads and robust security to keep your cryptocurrencies safe.
Binance Exchange is part of a larger ecosystem of products that Binance offers, from research, incubation labs to academy and non-custodial wallets.
Why trade on Binance?
Compared to other exchanges, Binance is one of the largest cryptocurrency exchanges with great liquidity.
Liquidity is important so that large trades can execute with tighter spreads. Big traders go to where liquidity is largest, and that attracts even more funds and flows.
According to Coinmarketcap, Binance is ranked highest among leading exchanges and has a 24h volume of US$22B, more than 3x higher than its closest competitor.
Other than liquidity, Binance supports a large range of cryptocurrencies and fiat currencies. You can see a full list of exchange markets here.
Signing up for a new account on Binance
To sign up, head over to this registration page to get started.
Complete the security verification and account verification by entering the 6-digit code sent to your email address.
Once done, you will be shown several ways to fund your account to get started.
Funding with cash or fiat
Funding with cash is straightforward and depending on your region and currency, there might be several ways to do so.
For example, if you’re based in Europe and you would like to fund your account in EUR, then you can fund it via SEPA fund transfer or use a credit card (a fee applies).
You’d need to verify your identity to allow a higher limit. Click on verify now if you plan to trade beyond the initial limits.
You’ll be asked to provide basic information about yourself and verify your identitity.
Funding with cryptocurrencies
Alternatively you can fund your account with cryptocurrencies by choosing Crypto on the deposit tab and selecting which crypto to fund your account with.
You can deposit a range of incoming cryptocurrencies from BTC and ETH from other platforms if you already have them.
On the right, you’ll be given a deposit address for the chosen cryptocurrency. You can fund your account with that address.
Binance also supports peer-to-peer transfers of cryptocurrencies. Simply choose your fiat and you’ll be presented with a range of peers you can purchase crypto from.
P2P trade means that you directly deal with the counterparty, exchanging the fiat asset offline and confirming the transaction online.
Once the offline fiat asset exchange is confirmed by both parties, the digital asset is released to the buyer.
Binance would serve as a facilitator of the trade and ensure that both parties transact properly before releasing funds.
Alright, regardless of which method you choose, once you have your funds in, you can begin trading.
Buying and Selling on Binance Exchange
On the top, you can see the various tabs to navigate around Binance. For starters let’s look at the Markets tab to see what’s going on in the markets.
This is an overview of various cryptocurrency pairs traded on Binance. For example, you can filter by Spot markets, Favouite pairs, Futures markets etc.
You can also change the view to show Top Movers and recent activities.
Now, let’s say we want to buy Bitcoin, where do we go? Let’s head to the Trade tab.
Convert functions like a converter. It trades one crypto to another at market price. It doesn’t have any buy, sell buttons or limit/market order configuration. It simply converts your crypto from one to another.
Since Convert is so dead simple, to convert from USDT to BTC, just enter the amount of USDT to convert and you’re done. Note that Convert executes a Market order and trades are settled directly to your account’s spot wallet immediately after you convert.
The minimum amount to convert is 10 USDT.
Classic is the most commonly used way to trade cryptocurrencies.
In the Classic interface, you will see several sections.
On the left, you’ll be presented with an order book. This shows the orders currently queued on the exchange for execution.
For example, to switch to view only buy orders, click on the middle icon.
You can also change the level of precision.
In the middle, you’ll find the chart plotting BTC against USDT or any other pair you’ve selected.
You can draw, chart technicals or change the timeframe in view.
On the top right, you can change the trading pair. Currently, we are viewing a BTC/USDT pair. If you want to find a BTC/ETH pair for example, you’d look for it here.
On the bottom right, you’ll see the market trades that were executed on that pair. It streams in real time so expect plenty of action.
Finally, at the bottom, you’ll see the order placement screen where you can select how much to buy.
If you want to buy 0.25 BTC, then enter the amount of BTC to buy in Amount, the price you’d like to pay (or click anywhere on the order book to select that price), then click Buy to place your order.
The above method of filling an order at your price (or better) is known as a limit order. If you’d like to just buy at the current market price, change the order type to Market instead.
To sell, use the sell order form instead.
Trading on margin
Binance also offers margin trading for sophisicated traders. This means you can leverage your initial investment for much higher gains (and losses).
We won’t do a full overview for margin trading here but you’d need to first fund your margin wallet before you can place a trade.
The margin interface should be similar to the spot one with additional details such as margin data.
Binance charges a very low trading fee of 0.1% at the base level, although you can easily reduce this fee by owning BNB or being a VIP member.
Storing crypto on Binance
After placing a trade, your cryptocurrencies are stored in your Spot Wallet in Binance. You can find them under the Wallet tab.
While you can store them on Binance, it might not always be the best option since exchanges are prone to hacks and you might lose all your cryptocurrencies.
If you have a hardware wallet, you can consider moving your funds out and store them offline.
Using a Ledger or Trezor wallet is recommended for large amounts of crypto but if you have just a small amount, it might not be worthwhile.
Withdrawing Crypto from Binance
Withdrawing from Binance is also very straightforward.
At the Wallet tab, where you can see a list of your cryptocurrencies in your account, find the crypto to withdraw and then click Withdraw on the right.
You’ll be directed to the Withdraw screen. Choose the cryptocurrency to withdraw on the left, enter the recipient address, and input the withdrawal amount.
Note that for some cryptocurrencies, there are different transfer networks to choose from. You must make sure you are selecting the right network (e.g. BTC network for BTC addresses).
You can click MAX to withdraw everything you have for that selected cryptocurrency.
Finally, hit submit, perform several verification (email, SMS etc) and then it will be sent for withdrawal within minutes.
You can track the status of the withdrawal on the blockchain.
Withdrawal fees vary depending on many factors, including cryptocurrency selected, network, and network congestion.
You can view the fee schedule here.
Most deposits are free, while withdrawals might cost anything from a few cents to several dollars.
Binance exchange on desktop, mobile or web
The Binance exchange is also accessible on mobile, desktop, or web. You can download the app and trade seamlessly on-the-go.
Since crypto markets don’t sleep and they operate 24/7, always be careful of market fluctuations.
Alright, in this article, we’ve just shown you one product that Binance has, which is the exchange.
In my opinion, Binance is the best place for trading because it offers one of the lowest fees for trading and has the best liquidity on the market for centralized exchanges.
They have also a good customer service team that can help you if you need any help. In future articles, we will explore what else you can do on the Binance ecosystem so stay tuned!
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