Cryptocurrencies have taken the world by storm. From the early days of Bitcoin, these decentralized, digital currencies have grown in adoption and value. In 2018, the market capitalization of cryptocurrencies exceeded $700 billion. As of this writing, there are hundreds of different cryptocurrencies available, each with their own unique features and uses. Many investors have jumped on the cryptocurrency bandwagon, hoping to cash in on the growing market. However, as with any investment, trading cryptocurrencies requires risk. If you’re considering trading cryptocurrencies, you need to understand the risks involved as well as the potential rewards. There are a number of different trading platforms available. In this guide, we’ll focus on Binance, a popular exchange for trading cryptocurrencies.
What is Binance?
Binance is an open source cryptocurrency exchange based in China. Launched in 2017, Binance is one of the largest exchanges in the world, and it has an overall trading volume of $8.5 billion. The exchange has been particularly popular among cryptocurrency investors who are looking to profit from the growing exchange volume.
Binance provides a wide range of functions, including a trading platform, an ecosystem for developers, and a blockchain explorer. The exchange offers trading pairs for Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and a wide range of other cryptocurrencies.
Pros of Binance
Low 0.1% Trading Fee: One of the most attractive features of Binance is its low trading fee structure. The fee is charged only when a trade occurs, which is less than other exchanges that charge a percentage of the traded currency.
This means you can take advantage of the low-cost funding option available through Binance to increase your investment portfolio.
Advanced Security Measures: One of the biggest concerns of cryptocurrency investors is security. With hackers testing their skills daily on major exchanges, advanced security features are a must-have.
Binance has taken this to the next level, implementing a number of advanced security measures to protect its users’ funds. This includes a new blockchain explorer that provides real-time data on trades, contracts, and the state of the blockchain.
Cons of Binance
In addition to the pros listed above, here are a few cons of Binance:
Requires Intermediate to Advance Level of Crypto Knowledge: Though Binance makes investing in and trading cryptocurrencies easy, the framework requires some knowledge of how decentralized blockchain works. If you’re a complete beginner, you may want to look elsewhere.
Only Available in English: Given Binance’s wide range of functions, it’s a shame that the platform is only available in English. A global cryptocurrency exchange should be available in as many languages as possible to serve its global customer base.
How to sign up for Binance
The first step to signing up for Binance is to create an account with a cryptocurrency exchange. If you already have an account with another cryptocurrency exchange, you can easily transfer your trading volume and funds to Binance with a simple transfer.
Here are the steps to get started:
Go to signup.binance.com and create a new account. Follow the onscreen instructions to complete the signup process.
How to deposit funds into Binance
If you’re using a exchange that supports Binance’s low trading fee structure, you can fund your account using the funding method that is most beneficial to you.
Depending on the exchange you’re using, you may have the option of depositing fiat funds using a bank account, credit card, or debit card.
Binance offers two different funding methods. You can fund your account using a cryptocurrency or using a token.
Using a Token: If you use the Binance token (BNB), you’ll incur a fee of 0.1%. Though this fee may seem high, it’s lower than the trading fee charged by other exchanges.
Using Crypto: If you fund your account using cryptocurrency, you won’t incur any additional fees. Note that you will be responsible for the security of your account and should store the majority of your cryptocurrency holdings in a secure wallet.
How to trade cryptocurrencies on Binance
After you have funded your account, you’re ready to start trading cryptocurrencies. Here’s how to trade on Binance:
Navigate to the trading page and select the appropriate trading pair(s) to trade. For example, if you want to trade Ethereum (ETH) for Bitcoin (BTC), select ETH/BTC on the trading page. Enter the amount of Ethereum or Bitcoin you want to trade and the price you want to sell or buy at. If you’re trading altcoins, follow the same trading steps as above, but use the altcoin trading pair(s) you want. Click “buy” or “sell” to place your order. Your order will only be filled when your buying or selling order is matched with another trader. If your order is filled, the price you specified will be automatically withdrawn from your account.
In this guide to trading cryptocurrencies on Binance, we’ve provided an overview of the cryptocurrency exchange, as well as step-by-step instructions for creating an account and depositing funds, as well as placing orders to trade cryptocurrencies. We’ve also provided a list of pros and cons for working with Binance.
As cryptocurrencies continue to grow in popularity and value, it’s important for investors to have access to a variety of different exchanges. Binance offers a great platform for trading a variety of different cryptocurrencies. With low fees, an advanced security system, and easy navigation, investors should have no trouble making profitable trades on Binance.