The purpose of this article is to provide a brief introduction to how to use Binance.
Binance is one of the most popular cryptocurrency exchanges in the world and is known for its low trading fees (0.1%). This guide will help you with registering an account, depositing funds, buying cryptocurrencies, and executing trades.
If you are new to cryptocurrency or want some tips before diving into trading yourself, here are some important points to keep in mind:
- Make sure your computer has no malware installed
- Always have backups for your data
- Never invest more than what you can afford to lose
- Be open-minded about which coins might be profitable
- Invest only what you are willing to lose
- Don’t gamble, only invest what you can afford to lose.
Cryptocurrencies have been causing a lot of buzzes lately and 2017 has been the year for it with Bitcoin skyrocketing from $1 000 at the beginning of this year to over $16 000 as I am writing this article (and was as high as $19 300 on some exchanges).
As with any investment, never risk more than you can afford to lose and only invest what you are willing to lose. With a volatile market like cryptocurrencies, it is important not to panic sell when the price drops or panic-buy when the price rises. Keep your head cool and always pay attention to how it behaves as this is the best indicator for your next move.
Now that those points are out of the way let’s get to the good stuff-trading cryptocurrencies on Binance!
How to Use Binance [Nine Steps]
Here’s everything you need to know about how to get started with trading cryptocurrencies on the popular Binance exchange. Follow these steps and learn how to buy, sell or trade Bitcoin, Ethereum, Litecoin, and over 100 other cryptocurrency assets at any time.
1) Register for Binance
You first need to register an account on Binance if you haven’t already done so. Make sure to use a strong password and enable 2FA for extra security (this will be important in the future). Moreover, read more about the Best Cryptocurrency Wallets to go deep in this industry!
2) Deposit Money
Now you need to deposit some money into your account. To do so, go to “Funds” and then “Deposits”. At the bottom of this section is where you can deposit your fiat currencies (Euro, USD, etc).
3) Buying First Cryptocurrency
Once your funds have been added, it’s time to get some cryptocurrencies on your account. The best way is to buy directly from Binance, but if you are looking to buy other cryptocurrencies, here are some examples of other exchanges where you can purchase them:
Now let’s say you want to trade Bitcoin. You have two options you can either look at the “Market” or the “Limit” tab.
The “Market” option allows you to buy the cryptocurrency at the current market price (i.e. buy when everyone is selling) and requires no additional fees or waiting periods. The “Limit” tab lets you set your own price for which you are willing to buy the coin-but it has a premium attached to it (in this case 0.1% will be added).
For the purpose of this article we will focus on using Binance’s exchange features, but if you like to invest in other cryptocurrencies and make use of their wallets, here is a list: https://support.binance.com/hc/en-us/articles/115005219911
4) Analyzing Prices Trend
Once you have your cryptocurrencies on your account, the next step is to wait for a strong swing in price-either up or down. For instance, if Bitcoin goes from $7 000 to $10 000, use the market option and buy as much as you can at this new lower price. But if it goes from $10 000 to $7 000, use the limit option and set your price at this new higher rate. If you timed it right and purchased Bitcoin when it dropped in value, this is where you will start seeing a profit.
5) Checking Balance
Once your trade has been executed (it might take some time for it to get filled depending on the order you place), you can check your balance by going to “Funds” and then “Balance”-it should be at 0.00000000 BTC (or whatever cryptocurrency you bought).
Congratulations! You now own some digital currency and are ready to trade it for other cryptocurrencies or hold on to it. Just go up to the top menu, click the “Exchange” tab, enter what you want to buy or sell and wait for your trade to be filled. If you are selling, make sure the amount is less than what you have already bought in order to not lose money on transaction fees.
7) Tips to Avoid Loss
As always, make sure to set stop losses on all of your trades to avoid heavy losses if the market crashes. There are several ways to do this on Binance. You can read here on How to Avoid Loss in Cryptocurrency Trading.
8) Check Withdrawal Limits
Once you have bought or sold your cryptocurrency, withdraw it either back into your wallet or into another exchange where you can trade it for another. Every exchange has it’s own withdrawal limits, so make sure to check that your wallet or the coins you want to sell are not over this limit before you withdraw them. Otherwise, they might be stuck in limbo until you send enough funds for them to go through.
9) All Done!
And there you have it! Congratulations on successfully buying and selling cryptocurrencies using Binance.
As you can see, using Binance is easy and straightforward. Once you get the hang of it, you will be able to do this in your sleep! It’s okay to make mistakes that’s how we learn after all-but don’t forget to always set stop losses on your trades! Good luck 🙂
Background information [to not be copied verbatim but for referencing] *
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