The buying and selling of cryptocurrency is no walk in the park if you do not have an idea of what you are doing. As such, it is essential to go for an exchange platform you can trust, where you would not really mind trading with one eye closed. What is also important is finding an exchange that meets your needs - it is not that complicated to do so.
Trust me; there is nothing more discouraging than opening an account on an exchange only to realize that you do not know even a snowball about how it works. Call it the most popular or the most trusted, but the crypto exchange platform known as Binance is one of the few that would pop up on your radar when you are looking to trade crypto coins.
Story To Glory
Binance’s birthplace is China, where it was founded by Changpeng Zhao and Yi He in 2017. The duo both worked at the OKCoin exchange, after which they decided to cook up a platform of their own to enable people to exchange with and for crypto. In September 2017, factors were not kind enough for Binance in China, so they had to look for greener pastures. Apparently, the Chinese government placed an embargo on crypto trading, which led the startup opening offices in Japan and Taiwan.
Binance, whose headquarters is in Malta, has its own crypto asset known as Binance Coin (BNB). With an Initial Coin Offering (ICO) of BNB, the exchange was about to raise funding to the tune of USD 15 million in July 2017. According to coinmarketcap, Binance is the second-largest exchange in the crypto world. If you are a trader who uses BNB to pay trading fees, you stand a chance of getting discounts. The bottom line is: How to use Binance. Well, more like how to trade crypto on Binace.
Who It’s For
Binance is a crypto-to-crypto kind of platform, which means that you can only use the exchange to trade cryptocurrency. If you do not have some digital coins in a mobile wallet somewhere, then you will need to buy some to begin trading some sunshine on Binance. With your fiat currency, you can buy some Bitcoin or Ethereum from exchanges such as Coinmama, CEX.IO, and Coinbase, among others. Once you have some form of crypto, you can use it to trade with over 200 coins and tokens available on Binance.
Designed to appeal to as many users as possible, Binance is simple enough for many to understand and use. The exchange offers just about enough coins to keep traders happy. However, first-time traders may run into some challenges on the platform. It could be because they do not have any crypto or are alien to the basics of coin trading. If this shoe fits, you should enter Coinbase with your fiat currency and make simple transactions. After this, you will be prepped to use Binance.
Binance trading will take you from newbie to experts via its Basic and Advanced settings. To start, make simple market trades and move on to the more complex limit and stop-limit order trades. The Basic trade setting comes with a simple layout that is downright easy to wrap your head around. The only information displayed is the ones for making trades. Bear in mind that Binance is a professional platform, so even the Basic trade setting may look complicated for new users. But it will not take forever for you to understand it. Here's a comprehensive guide on how to trade on Binance.
Then, there is the Advanced trade setting. It gives expert traders access to all the price charts and market data they require to do complex transactions. But that’s not something you should be concerned about now. The next important thing is trading pairs. They are pairs of coins that Binance offers an exchange rate for. Bitcoin, for instance, can be traded with 143 different coins. So, Bitcoin has 143 trading pairs on Binance. If your account is funded with Ethereum, you need to find out which crypto coins are offered for trading with Ethereum.
One of the reasons Binance is so popular is its low fees. The platform does not charge you for making deposits because it is a crypto-only exchange. Binance is one of the few exchanges on the market that does away with the high fees that which fiat-trading platform have to charge. Even though there are different withdrawal fees for different crypto, they are all on the considerably low side.
Case in point, if you withdraw Ethereum, you will be charged 0.01 ETH. For Ripple, it’s 0.25 XRP. Binance trading fees are capped at 0.1 percent of each purchase or sale users make. The charge is reduced by 50 percent if traders use BNB to pay them, making it a final of just 0.05 percent. If you check the trading fees of competitors, you would understand why Binance’s are one of the lowest on the market. Bitstamp and Bittrex have low fees, but they charge five times more than Binance, at 0.25 percent.
Unlike using bank-provides services, trading on a crypto exchange does not have 24-hours helpings or offices you can storm into to complain. You are responsible for the security of your account, so newbies need to play as safe as possible. Binance users a two-factor authentication system, but you need to be wary of your sensitive data.
No one from the exchange will ask you for passwords or 2FA codes. Use only the official website and a powerful antivirus software. When you are opening an account, Binance will guide you through the process, all of which you need to be meticulous and about and attentive too. You can then deposit, transact, and withdraw safely anytime and anywhere.
Need an expert advice on how to trade cryptocurrency? Check out our cryptocurrency trading service.