If you’re new to the world of cryptocurrency, finding your footing in the process can feel overwhelming. In fact, a lack of understanding and confidence is what keeps many people away from trading.
But a little bit of time is all it takes to get comfortable. There are few better places to learn about and get started than Binance, one of the world’s biggest cryptocurrency exchanges. It’s widely known by traders as the fastest and most reliable trading platform out there for cryptocurrency. Also, if you were unaware of Binance, make sure to check out our blog about the history of Binance we posted a couple of days ago.
Trading on Binance
That shouldn’t keep you away, however. Read on, and we’ll walk you through how to use Binance like a pro.
You’re ready and eager to get started, but first, you’ll need to get the logistical stuff out of the way. That means creating an account and getting yourself set up on the platform.
Binance does not restrict anyone from creating an account, the platform is open for everyone. You will need to check off an acknowledgment that you are not on any trade and economic sanctions list, and you will need to confirm that you are at least 18 years of age.
Outside of those two small restrictions, you should be good go with Binance, though the platform does reserve the right to freeze or cancel any accounts as they see fit.
Registering will require a few small bits of personal information, such as your email address, your password, and a referral ID if someone has helped you join up with the platform. If you do use an ID, you will receive 50 percent of your referrals trading fees after signing up.
You will then be asked to enter a minimal amount of personal information such as your email address, password, and a referral ID if you have one.
After this basic information is put in, you’ll hit confirm, and voila: your Binance account is now live. You’ll get a registration email sent to you and after clicking through the confirmation link you’ll be up and ready to go.
Once you have an account open, it’ll be time to put some money into it. You can’t trade cryptocurrencies without funding, of course, so this is a necessary step to getting started.
Binance offers multiple different ways to add funds to your account. The process for each of these methods varies slightly.
Using Your Credit Card
The easiest way to get funds into your account is to purchase cryptocurrencies with your credit card. You can do this directly with the card you currently have sitting in your wallet, as long as it’s a Visa or MasterCard. There should be a tap at the top of your screen that says ‘Funds,’ and you should find an option for credit cards there.
Once you’ve opened that menu, you will be prompted to enter how much and what kind of cryptocurrency you want to purchase. You can enter all of your credit card information and then will need to agree to either a processing fee of $10 or of 3.5%, depending on the amount you’ve requested.
We said Binance was fast, and we weren’t lying: once you submit your request, you should find your purchased cryptocurrency in your wallet in within about half an hour’s time.
Depositing From Other Platforms
If you’re already more involved in the cryptocurrency world, you might have cryptocurrencies living on a different platform that you’ll want to bring over to Binance.
Luckily, the platform makes this kind of transfer very easy for the user.
Under that same ‘Funds’ tab, you’ll find an option for balances. On this new page, you’ll see a list of all the different kinds of cryptocurrencies that Binance accepts on their platform. Each option will have a deposit button that you can select.
Upon selection, you’ll be prompted for the QR code or address of your cryptocurrency wallet from the other platform. Enter that, and the transaction process will begin. Within a few minutes time, you’ll be ready to start trading.
Trading On Binance
With all of that set up out of the way, you’re ready to dive in what you really came here to get a handle on trading on the platform. On the home page of Binance, you’ll see all the cryptocurrencies available and their markets.
Let’s go back to the home page now that your funds are ready to be used.
Here, you will again see all the cryptocurrencies that are tradable on Binance and their respective markets. What you do next depends on what you’re interested in doing. Want to trade the currency currently in your account for something new?
First, you’ll need to locate that new market. Click on the market tap for the kind of cryptocurrency you currently have in your wallet. Once there, type the name of the currency you’re interested in in the search bar. Once you’ve located the right currency, you can open the trading module.
This is where people really start to get confused. But take your time and look through it, and you’ll realize it’s not all as scary as it looks. If this is your first time trading cryptocurrency, this will be good practice. Other platforms trading modules might look slightly different, but they all work in a similar fashion.
If you look over the page you’ll realize it’s divided neatly into two sections. The left side of the screen is referred to as an order book, and the right side of the screen contains more general market information. This includes public trade history of the market that is currently being considered.
Let’s hone in on the order book. Here, you’ll see info on the limit orders currently set in place. These orders are set at the user’s desired place and won’t change, as long as there are buyers out there who are interested.
The red portion of the order book is where the limit sell order wait to be filled and the bottom section in green is where the buy orders are located.
Executing A Trade
Now that you know your way around, you can begin to make a trade. In the center of the page, there should be a chart that shows the real-time price action of the market. Underneath that, they’ll be two options for your trade.
You can select market order if securing funds at any cost is your main priority. But if you’re interested in buying only at specific price levels, select the option for limit or stop-limit order.
The center of the page is where the real magic happens.
Here lays a chart feature that shows real-time price action and technical analysis indicators. Just below the chart is where you will actually execute the trade, so let’s buy some NEO.
If certainty of acquisition is your priority, select market order. If you are interested in only buying at a specific price level, select either limit or stop-limit order.
If you select market order, you’ll be prompted for how much of your current currency you want to spend. You’ll then be told how much of the opposing currency that is at the current market price.
Binance also allows you to enter a certain percentage from your wallet instead of an actual number. For example, you could select to trade 50% of your current NEO balance without having to do the math on exactly what that number would be.
Market orders trade near-instantly, but trades with the limit or stop-limit function might take a bit longer to process. If you want to check in on the progress of an order in process, you can check the ‘open order’ tab located at the very bottom of your screen. If an order hasn’t yet been completed, it will appear here.
Selling works exactly the same way as buying does. So once you can manage the above, you should be set to use the Binance platform like a pro. You can then withdraw funds from your account as you see fit by returning to the ‘balances’ tab.
I highly recommending taking advantage of a trading bots if you use Binance since it will automate your trading while you sleep. Even if you just want to HODL log term vs. actively trade, this article about crypto trading bots has helpful tips and tricks to get started.
How To Use Binance To Trade Cryptocurrency
Many people and would-be traders could benefit greatly from the fast and efficient platform that Binance has put together. With the above information, you should now know how to use Binance comfortably and confidently.
Need more advice on kickstarting your crypto career? Check out our advanced investment guide for more essential help.
[…] How to Use Binance: A Helpful Tutorial for Trading Cryptocurrencies […]
Hey Ryan! Great post.
I used coinbase to buy crypto – and now they are saying they are locking up my funds for 11 days! i had serious trading plans within those 11 days. Does Binance hold your funds when you first begin as well?
Thanks for the info.
Coinbase is far more finicky than Binance. What type of funds – was it cash or a coin?
I would like to pay someone in Bitcoin every month. When I withdrawal Bitcoin from my Binance.US to his wallet address there was a $27 fee. Is there a better way?
Binance.us has some big withdrawal fees for BTC.
If you wanted to buy BTC and then withdraw it every month to pay someone, I would use Gemini since you get 10 withdrawals for free per month. When you buy with them, just make sure to use their Active Trader mode to keep your fees low.