Today, I’m going to teach you how to use Binance. Buying and selling cryptocurrency can be stressful, so it’s important to choose an exchange that you can trust. It’s also important to find an exchange that meets your needs, and isn’t too complicated to use. There’s nothing worse than opening an account on an exchange and then realizing you don’t know how it works!
If you’re thinking about opening an account with Binance, then read on.
In this Binance tutorial, I’ll teach you everything you need to know about how to use Binance. I’ll show you how to sign up, how to trade on Binance, and what Binance trading fees you’ll have to pay. I’ll also tell you how safe the exchange is to use, and even what kind of users it’s designed for. After all, unless you plan to use a decentralized exchange to buy crypto anonymously, learning how to use Binance will be very beneficial!
By the time you finish reading, you’ll know all about one of the biggest exchanges in crypto and, more importantly, you’ll know how to use Binance!
I’ll begin with a short introduction to the exchange.
Michele Nati
Director of Research and Innovation Projects at WSense SRL
Should governments and regulatory bodies have access to certain transaction data on public blockchains for the purpose of law enforcement?
I believe that blockchain technologies and Web3 are very powerful and can help people to regain control of their data and sovereignty over how they are used. However, there could be situations in which someone would want to profit from such power as well as some anonymity that Web3 identities could give. These are expected to affect the "less" institutional use cases. Since we are still in the infancy of these technologies and users still lack education on how to control them, I believe that some control is still needed.
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Table of Contents
- 1. Binance – One of the Leading Crypto Exchanges
- 1.1. How Binance Works?
- 2. How to Use Binance?
- 2.1. How to Open an Account on Binance?
- 2.2. How to Fund an Account on Binance?
- 2.3. How to Withdraw Funds from Binance?
- 3. How to Trade on Binance?
- 3.1. How to use Binance for Classic Trades
- 4. Trading Fees
- 5. A Short Note on Binance Security
- 6. Who is Binance Best For?
- 7. Conclusions
Binance – One of the Leading Crypto Exchanges
Binance was founded in China in 2017 by Changpeng Zhao and Yi He. Both men worked at the OKCoin exchange before deciding to build an exchange of their own.
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The company was forced to leave China in September 2017, after the Chinese government banned cryptocurrency trading. It has since had offices in Japan, Taiwan, and Malta. Currently, Binance is based in the Cayman Islands.
In 2019, Binance was banned in the United States due to the strict US regulations regarding cryptocurrencies. However, it then opened a subsidiary company - Binance.US - to provide US-based traders with an exchange that complies with all regulations.
Moving further, note that Binance has its own cryptocurrency, called Binance Coin (BNB). The exchange used an initial coin offering of Binance Coin (BNB) to raise $15 million worth of funding in July 2017. Discounts are offered to traders who use BNB to pay trading fees (which I will explain in detail a little later!)
Note: An initial coin offering (ICO) is an easy way for crypto businesses to raise money without using more complicated methods like bonds or stocks.
Binance is often hailed as the biggest crypto exchange on the market. At certain points in time, it's not uncommon for more than $1.4 billion worth of cryptocurrency to be traded on it.
Binance allows users to trade both crypto-crypto, as well as crypto-fiat. This means that users can trade cryptocurrencies and fiat money, interchangeably. If you don’t already own some cryptocurrency, then you’ll need to buy some with fiat money, first, before you can start trading.
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BTC ETH LTC XRP + 600 more |
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Table: Some general stats of the Binance cryptocrrency exchange
Note: Fiat currencies are the official currencies of governments around the world. Examples include the Japanese Yen (JPY), the US Dollar (USD), and the British Pound (GBP).
Once you have cryptocurrency, you can use it to trade with around 750 fiat + coin and token pairs on Binance. Now you know what it is, and you’re ready to learn how to use Binance!
However, before jumping into a step-by-step guide of opening an account, let's also discuss how Binance works.
How Binance Works?
Binance is a centralized crypto exchange that offers all services that every top-notch crypto exchange should. This includes crypto-crypto trading, purchasing crypto using fiat, derivatives trading, various earning tools, and so much more.
In terms of purchasing crypto using fiat, Binance supports all the biggest fiat currencies (EUR, USD, GBP, and much more) as well as various payment methods (bank deposits, credit / debit card, Apple and Google Pay, etc.). As for trading, in addition to the traditional spot trading option, Binance also provides users with margin trading, P2P trading, futures trading, OTC trading, and so on.
Now, if you're wondering how Binance works from the technical side, it utilizes an order book to keep all orders that happen on the exchange intact. An order book is simply a price-level-organized electronic list of purchase and sell orders for a certain asset. In essence, order books represent the interests of buyers and sellers.
Since the Binance order book is regularly updated throughout the day, it only reflects the most recent information as well as the real-time intent of buyers and sellers.
Speaking of order types, there are different options traders can choose from. The most common order types on the Binance spot market include market orders, limit orders, stop-limit orders, one-cancels-the-other (OCO) orders, and trailing stop orders.
As for futures trading, in addition to limit, market, trailing stop, and stop-limit orders, Binance also allows traders to make stop market orders, post only orders, and limit TP/SL orders.
Now, it's also important to mention that Binance has a high processing throughput of roughly 1.4 million orders per second. This means that all transactions that take place on Binance happen very fast.
Talking about other services offered by Binance, for one, it has the Binance Earn program, which allows users to earn passive income using their crypto assets. The program features investment solutions, reward programs, liquidity farming and staking options, and so much more.
Additionally, Binance has a LaunchPad for new crypto initiatives; the Binance Card and Binance Pay program for those who want to use crypto as a regular payment method; and it even provides crypto loans.
While this huge variety of services might seem a bit overwhelming to you, worry not, because Binance simplifies all these processes with its user-friendly interface. Besides, it even has a learning platform called Binance Academy to help you understand how everything works.
That being said, let's move on to the "How to use Binance" part.
How to Use Binance?
Now that you know how Binance works, it's time to talk about how to actually use it. Let's start with the basics – opening an account on Binance.
How to Open an Account on Binance?
Follow the simple instructions below and you’ll be able to start trading on Binance in no time at all!
Step 1: The first thing you need to know about how to use Binance is how to get registered! Go to the Binance homepage and click on Register.
Step 2: You’ll be redirected to the registration page where you’ll need to enter your email address and create a password.
Note: Always use an email address that you know is secure and that you check regularly. When creating a password, use a mix of numbers, symbols, upper and lower-case letters.
Step 3: An email will now be sent to you. Click on Verify Email to complete your registration.
Congratulations! You’re a Binance account holder. Next, I’ll show you how to use Binance but first, you need to secure your account.
Step 4: When your log in for the first time, you’ll be asked if you want to set up two-factor authentication. You DO want to set up 2FA, it’s very important!
Note: 2FA is two-factor authentication. It’s a security feature that gives users an extra form of password. When using 2FA, users enter their normal password and a second code which can be sent to a mobile device by SMS or created by the Google Authenticator app.
After you’ve set up 2FA, you’ll be ready to fund your account. This means moving cryptocurrency into it. You can do this by sending cryptocurrency from a crypto wallet (like MetaMask) or another exchange - to your Binance account. Here’s how it works.
How to Fund an Account on Binance?
For this Binance tutorial, I will use MetaMask as an example of one way that you can fund your Binance account. A similar process will apply to almost any other wallet or exchange you are sending the funds from. I will use Ethereum (ETH) as an example of a cryptocurrency you can use to fund your Binance account.
Step 1: Log in to your MetaMask wallet and click on Ethereum. Next, click on Send where it says ETH Wallet.
You’ll be asked to enter a recipient address. This is where the Ethereum will be sent. You’re sending it to Binance, so you need to get an Ethereum address from your Binance account.
Step 2: Log into your Binance account. Navigate to Wallet, and then click Funding Wallet.
Step 3: Now, you need to pick the cryptocurrency that you'll be depositing. In our case, it's ETH - so, simply find the crypto on the list, and click Deposit.
Step 4: After you choose the proper network via which you'd like to receive your ETH coins, a wallet address will be generated. This is your receiving address - make sure that, when you copy and past it, it's correct!
Step 5: All you need to do now is decide how much Ethereum you want to send to your Binance account and click Send, on MetaMask. The funds will appear in your Binance account as soon as they are processed by the Ethereum network.
Now you know how to use Binance to open and fund an account. However, you also should know how to withdraw funds from your Binance account?
How to Withdraw Funds from Binance?
Here are the simple steps you should follow to withdraw crypto from your Binance account.
Step 1: If you're not logged in yet, log into your Binance account. Once you're logged in, hover your mouse over Wallet and then click Overview. In the wallet overview window click Withdraw.
Step 2: You'll be taken to a fiat withdrawal page where you should click Withdraw Crypto.
Step 3: A withdrawal window will pop up. In the window, choose the crypto asset you want to withdraw and select the network to which you want to withdraw your asset. Make sure it matches the address of the exchange/platform you plan to withdraw your funds to (you will be asked to confirm it).
Step 4: Now, paste the address of the recipient, enter the amount you plan to withdraw, and click Withdraw. Once you do that, you'll have to confirm the network address again.
Step 5: Lastly, a withdrawal details window will pop up. Make sure that all the details are correct. If everything is correct, click Continue and confirm your transaction with your Two-Factor Authentication. That's it!
So, you know all the basics of setting up an account on Binance, funding it, and withdrawing funds from it. Now, let's talk about trading on Binance!
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How to Trade on Binance?
There are two Binance trading settings: Classic and Advanced. Beginners should start by trading in Classic.
The Classic trade setting has a simple layout that’s easy to understand. Only important information for making trades is displayed. You must remember that Binance is a professional trading platform, so even the Classic trade setting might seem too complicated for some newbies to use. However, it won’t take you long to grasp it!
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The Advanced trade setting gives expert traders access to all the price charts and market data that they need to make complex trades. As this is a beginner’s Binance tutorial, I’ll only be showing you how to buy on Binance in Classic. I’ll save the tricky stuff for another day!
So, let’s learn how to use Binance for Classic trades.
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How to use Binance for Classic Trades
Step 1: Login to your Binance account. Nice and easy!
Step 2: Click on Trade on the taskbar, and select Spot.
Step 3: As you can see, the Classic interface isn’t all that basic!
Step 4: Binance lists hundreds of trading pairs. These are pairs of coins that Binance offers an exchange rate for. For example, Bitcoin can be traded with over 143 different coins, so we say that Bitcoin has over 143 trading pairs on Binance. In this example, our account is funded with Ethereum, so we are only able to trade with Ethereum.
To find out which cryptocurrencies are offered for trading with Ethereum, select ETH in the top right corner. You’ll now be able to see that Ethereum has over 140 different trading pairs on Binance. Select the coin that you want to exchange Ethereum for. For example, you could choose Ripple (XRP).
Step 5: Now you need to choose which type of trade you want to make. Binance offers three kinds of trades:
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- Limit orders allow users to set the maximum price they are willing to pay for coins or the minimum price they are willing to sell them for. Traders then have to wait until a buyer or seller accepts their price.
- Market orders allow users to trade coins at their current market price. This kind of trade is the fastest and most simple.
- Stop-limit orders allow traders to buy or sell a coin once it has reached a certain price. This kind of order is often used by pro-traders.
- Limit orders allow users to set the maximum price they are willing to pay for coins or the minimum price they are willing to sell them for. Traders then have to wait until a buyer or seller accepts their price.
Today, I’m only going to show you how to buy on Binance with market orders. They are quick, simple, and perfect for beginners.
Step 6: Choose the amount you want to trade. Click on the Market if you are happy with the current market price and enter the amount of XRP (or your chosen coin) you want to trade. You can enter this as an amount or as a percentage of the Ethereum in your account.
Now, the easy bit! Click on Buy XRP and that’s it. You’re now a Binance crypto trader!
Now you know how to use Binance to make trades, I need to tell you about Binance trading fees.
Trading Fees
Binance trading fees are some of the lowest on the market. Binance doesn’t charge users for making deposits. Following that, Binance charges different withdrawal fees for different cryptocurrencies, but they are all quite low. For example, if you withdraw Ethereum, you’ll be charged 0.01 ETH and if you withdraw Ripple you’ll be charged 0.25 XRP.
Binance trading fees are capped at 0.1% of each purchase or sale users make. This fee is reduced by 25% if traders use Binance Coin (BNB) to pay them. So, that’s a final fee of just 0.075%!
You only need to check the trading fees of its competitors to understand why Binance is one of the most popular exchanges on the market. Bittrex and Bitstamp are well-known for having low fees and they both charge 0.25% for each trade. That’s three times more than Binance!
As you can see, Binance trading fees are one of the exchange’s best features. Next, I want to tell you about another one of its features - security.
A Short Note on Binance Security
If you learn nothing else today, you'll at least learn how to use Binance safely!
There are several ways Binance users can protect themselves against thieves and hackers:
Using a crypto exchange isn’t like using the services provided by your bank. There are no 24-hour helplines to call or buildings you can visit to complain! You’re responsible for the security of your account - don't forget that!
So far, I’ve told you how to use Binance to open an account and make basic trades. I’ve also taught you about Binance trading fees and security. Before you head over to Binance and start trading, I want to take a quick look at what kind of user Binance is designed for.
Who is Binance Best For?
Binance is designed to appeal to as many users as possible. The exchange is simple enough for newbies to use, and offers enough coins and features to keep expert traders happy, as well. I would recommend Binance to crypto traders of almost every level of experience.
The only users who might struggle to use Binance are first-time traders. These users probably won’t own any cryptocurrency and may not understand the basics of crypto trading. If this sounds like you, then I suggest signing up to an exchange like Kraken. With Kraken, you’ll be able to purchase your first cryptocurrency with fiat money, and perform some simple trades. Then, you’ll be ready to try Binance.
Trading with Binance will take you from beginner to expert through its Classic and Advanced settings. You can start by making simple market trades and move on to the more complex limit and stop-limit order trades.
Binance offers its users a great selection of coins and the kind of market information you won’t find on most other exchanges. On top of that, on June 28, 2018, Team Binance announced that it had launched its first fiat trading exchange in...Uganda!
Binance Uganda would allow traders to use Binance to buy cryptocurrencies with fiat money for the first time. Since fiat trading became available across all of the main Binance’s platforms, it's interesting ot look back where it all started.
So, I’ve talked about how to buy on Binance, who can use Binance and how much it costs to trade with Binance. All that’s left to do is share a few more words of wisdom with you before I go.
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Conclusions
The cryptocurrency exchange market is very crowded. The exchanges that succeed will be the ones that offer features that every trader can use and enjoy. In this Binance tutorial, I think I’ve shown you an exchange that does exactly that!
Binance calculates trading volumes in billions for a good reason - it works!
Binance has millions of happy customers all around the world. They use Binance because it’s simple and it has great trading features. If you don’t believe me, then you know what to do! I’ve shown you how to use Binance. Now, go and try it for yourself! When you’ve made a few trades, let me know. I’d love to hear what you think!
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