A Dummy’s Guide to Trading in Binance Exchange Review
February 27, 2018
Exchange | Reviews
Today we’re going to review one of the biggest and fastest growing cryptocurrency exchanges to date, Binance. In fact, it’s been able to reach the 2nd place rank out of all exchanges with regard to trading volume in just under 8 months. With crypto trading becoming more and more popular, Binance was able to ride out this trend. They currently offer an excellent user experience for traders who want to enter the market for the first time.
So Why Binance?
Sure, there are so many other cryptocurrency exchanges out there, however why does Binance seem to have almost a cult like following? At the rate it’s currently moving, Binance may even reach the number 1 spot as the top cryptocurrency exchange in the world by the end of 2018.
This popular exchange offers a wide range of altcoin trading aside from the typical Bitcoin and Ethereum pairs. In fact, Binance is already in the same league as some of the biggest exchanges like Bittrex and Poloniex who have been active in this space for well over 4 years.
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They’ve managed to outdo the competition in many different ways including…
Marketing, marketing, and more marketing (they have a great team and a great referral program)
Fees – fees are as low as 0.001% if you use their BNB coin.
Their trading platform is easy to use for beginners. They offer both a basic platform as well as an advanced chart for more experienced traders.
Their support is top-notch.
How Do I Start Trading on Binance?
To start trading on Binance, you simply have to open an account, fund it, configure a few settings. After that, you’re off to the races. Check out the step-by-step guide below.
1. Register for an Account
Easy right? Not exactly.Go to Binance , click the Register button and fill all the necessary information you’re used to filling out on these cumbersome applications. Don’t worry it only takes a few minutes.
Once you’ve filled out everything, submit your form and wait for a confirmation. Follow the steps within the email, click the confirmation link, and you’ll redirected to your very own Binance dashboard.
2. Set Up a 2 Factor Authentication
This is one of the most important steps in the registration process. It’ll give you that extra padding of security you’ll need so that no one can easily access your account. Once logged in, you’ll receive a message prompting you to set up your 2 Factor Authentication. You’ll be instructed to download the Google Authenticator app on your smartphone. Once that’s done, you’re ready to login. Just follow the instructions given in the message prompt and you’re good to go. Top-notch security at your fingertips!
With a basic Binance account the withdrawal limit is 2 bitcoin every 24 hours. With a verified account, you’ll need to scan your photo ID. Once approved, you can withdraw 100 bitcoin every 24 hours. Quite the difference right?
If you’re planning to be the next crypto millionaire, then you just might want to verify your account. Either way….it’s good get it done.
While you’re waiting for your photo verification to be approved, you can still trade, so let’s get to it. Go to your dashboard and on the top right hand side you’ll see a funds option above the menu bar. Hover over that and a drop down should appear. Click on the Deposits/Withdrawals option. It will bring you to the page where you can deposit your funds.
4. Choose Your Coin
You have the choice to deposit various types of coins, which you’ll use to trade later. Choose which one you’ll want trade with and then press the deposit button. Upon doing that, you’ll be appointed a code for your dedicated wallet (it’s a mix of numbers and letters). This is the address that you’ll use to deposit your funds into your Binance account.
Take note that the wallet address differs per coin, so it’s better to stick to one wallet which can be used as your main deposit wallet. Once that’s done, transfer your coins from your other wallet (via Coinbase, LocalBitcoin, Gemini, etc. Take a look at our exchange page for options) to this new coin address.
5. Finally…Day is Upon Us! Begin Your Crypto Trading Journey on Binance.
Once you’re done with all the verifying, form filling, and wallet transfers, you can finally start trading like the big boys! Take your first step and hover over the Exchange option on the top left menu and click the Basic Exchange option. From there, you’ll see a list of coin pairs that you can trade.
Take note that you’ll be trading coin pairs, much like how you would in Forex (e.g. Bitcoin against Ethereum is ETH/BTC). If you know the coin pair that you would like to trade, you can search for it using the Binance search bar so you can instantly view your cryptocurrency of choice.
PRO TIP: I highly advise you check out our technical analysis section of the site to discover the basics of fundamental trading, unless you just want to roll the dice and invest in what your friend told you last week.
6. Tips On Trading Execution
So, let’s use the example of Bitcoin and Ethereum. In the exchange, click on the ETH/BTC pair to buy/sell it. When you click on the pair, you’ll be brought to the order book where you can see details on the pair such as volume, last price, high 24 price, low 24 hour price, and a trading chart.
When you’re ready to trade, there are a few features you’ll need to take note of.. The buy or sell limit feature allows you to choose at what price you want to purchase the coin for. Once your particular coin reaches your limit price, the exchange will open your trade.
Say you’re trading the BTC/ETH pair. Once you set a buy limit order for 0.02 ETH for 0.01 BTC and your order is filled, you’ll have 0.02 ETH at the buy price of 0.01 BTC. This may be hard to grasp at first, but once you do it a few times, you’ll won’t ever forget it.
For more detailed information about this process, check out this video
Also take note of the Stop Loss feature which is a function that allows you to close a trade once the pair hits a certain price (usually below your buy in price). This lets you control how much of a loss you’ll incur in the event that your trade doesn’t go too well. This is a significant feature in trading due to the fact that it allows you to manage your funds wisely. It’ll ensure you never lose more than a given percentage in case your trade goes south.
What is the Binance Coin?
The Binance coin, also known as the BNB, is Binance’s own token which was specifically created by the exchange. This coin is the preferred method of paying for fees incurred while trading on the platform. The fees include buying and selling, as well as withdrawal fees in case you decide to move your currency to another exchange.
One of the great things about using the BNB coin is that you will get a 50% discount for your transactions in the first year of trading withinthe exchange.
This is to entice more people to use the coin and participate in the exchange more often. On the second year, you’ll receive a 25% discount, 12.5% discount in the third year, and a 6.25% discount in the fourth.
Another great feature of BNB is that it’s used alongside the Binance Launchpad to allow you the opportunity to directly invest in ICO’s through Binance. If there’s is a particular ICO you’ve been researching, Binance will allow you to have first dibs on the ICO using their BNB token. Pretty cool right?
Start trading on this extremely well-designed crypto trading platform today. Remember, only trade with money you can afford to lose to ensure you have a great and potentially profitable experience. Good luck and happy trading!
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