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How to trade cryptocurrencies on Binance Exchange

Oren Rofman

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After a year-long downturn, cryptocurrencies are having a resurgent 2019, increasing in popularity, usability, and value.

Binance

As CoinDesk reported in early June, Bitcoin’s 2019 increases are predicated on actual transaction growth, and, collectively, cryptocurrencies surged nearly 150% this year as institutional and individual investors come together to push their prices higher.

In 2019, the crypto rally is outperforming many traditional investment vehicles, including stocks, bonds, gold, and oil.

In many ways, it’s representative of crypto’s first decade, offering both volatility and high rewards for willing investors.

The renewed interest in cryptocurrencies is bringing a surge of new users to prominent crypto exchanges like Binance, which boasts the biggest crypto exchange activity by volume, and it’s one that offers more than a hundred digital currencies on its platform.

Comprised of an incubation lab, research programs, charity projects, and its popular cryptocurrency exchange, Binance is helping lead the charge for higher levels of crypto adoption.

That’s becoming increasingly apparent this year.

In a May 22nd tweet, Binance CEO Changpeng Zhao, CZ, noted the exchange’s increased trading volumes, explaining, “We are seeing much higher order volumes (number of orders) than Dec 2017/Janu 2018 (the peak).”

Consequently, now is the time to take a look at Binance and to understand the functionality that makes it so popular.

Understanding Binance exchange

Initially founded by CZ in Hong Kong in 2017, Binance has quickly become one of the most lauded and well-recognized exchanges by crypto community members.

Binance is known for its competitive rates and expansive token offerings, and it’s often the go-to platform for both new and experienced crypto traders alike.

The exchange charges a flat fee of 0.1%, and users receive a discount when they use Binance’s native BNB token to make purchases on the exchange. Originally, the BNB token was an ERC-20 token hosted on Ethereum. However, with the launch of Binance Chain, the token is available and exchangeable directly with the platform.

Crypto traders can engage with several markets including BNB, BTC, ETH, and Stablecoins, which are presented in an aesthetically-appealing and easy-to-understand format.

In July, Binance introduced margin trading, a risky trading strategy that allows users to invest borrowed funds in crypto assets. Before users can engage in these trades, Binance provides a risk reminder, ensuring that investors are well-versed in this functionality before participating.

How to use Binance

Binance is defined by a combination of simplicity, and the startup process is incredibly simple and secure. It’s one reason that the amateur and experienced traders prioritize it over other exchanges.

Step #1: Create an account

Binance requires users to create an account, and it offers different verification levels with corresponding features for each level.

For example, level 1 does not require account verification, but it limits withdraws to 2 BTC a day. For users looking for higher withdraw levels, they can complete a level 2 verification, which includes an uploaded photo ID that is approved by the platform. Level 2 users can withdraw as many as 100 BTC per day.

Users will need to schedule a verification meeting, so anyone looking for immediate level 2 access will need to plan ahead when creating an account.

Binance

With an emphasis on security, Binance encourages users to enable two-factor authentication to protect their digital assets.

Step #2: Deposit / Buy

After creating an account, users can transfer cryptocurrencies into their accounts.

To fund an account, click “Funds” > “Deposits / Withdraws” > “Deposit.” After choosing “Deposit,” users are provided with a Binance wallet address where they send the tokens.

Once funds are deposited, users can begin trading on Binance, although some tokens take longer than others to settle.

For those looking to purchase crypto assets with a credit card, Binance announced a partnership with Simplex that allows users to do just that.

Binance

Step #3: Trade

Once an account is funded, Binance users can immediately begin trading. The platform offers a basic and advanced trading screen. First time traders will benefit from the ease-of-use of the basic format while more experienced investors will find value in the more meticulous metrics provided in the advanced screen.

Choose a trading pair by selecting digital tokens on the right side of the screen. Clicking on a digital token provides charts and metrics on the left side of the screen. When you’re ready to place an order, you can choose between timing the market with a “Limit” order, order buying immediately via a Market order. When you choose one of the options, click on the “Buy” or “Sell” buttons at the bottom of the screen to execute a trade.

Users can choose to buy a unique portion of a token, to spend a specific amount on a token, or they can allocate a percentage of their buying power to buy a token.

Binance

Conclusion

As cryptocurrencies continue to grow in popularity and value, new users are presented with a deluge of exchange options that can often be as complicated as the platforms themselves.

In contrast, Binance offers a simple value proposition as it combines powerful investing tools with a secure interface that can allow anyone to participate in this burgeoning ecosystem. By balancing this dichotomy, Binance stands out as a platform that isn’t just indelibly popular but as one that is undoubtedly capable of bringing crypto to the masses.

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