How to Trade on Binance for Beginners
How to trade on Binance for beginners and make massive profit – it is not called the largest crypto exchange platform for nothing.
One of the worst things that can happen to you as a crypto trader is to open an account on an exchange and then discover that you don’t know how to use it. Or maybe that it doesn’t work the way you think it does. That is why today, I want to teach you how to trade on Binance for beginners which is one of the biggest crypto exchange platforms in the world.
Why is this important?
I will explain!
If you are here, chances are you want to join the league of multimillionaires through cryptocurrency trading. Yes, all over the world young people are becoming multimillionaires thanks to the wonders of cryptocurrency. Just like its sister blockchain innovation –NFT, crypto have given even those in third world countries the opportunity to share equally in the global wealth. But let no one deceive you. Trading crypto is not a walk in the park. Anyone you see making serious money from crypto has put in some serious work too, even if it doesn’t appear so.
Introduction to How to Trade on Binance for Beginners
Trading cryptocurrency can be very stressful to say the least. 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 that is user friendly. There’s nothing worse than opening an account on an exchange and then realizing you don’t know how it works!
If you truly want to join the league of crypto millionaires and particularly want to learn how to trade on Binance for beginners then go ahead with the article.
In this Binance tutorial, I’ll teach you everything you need to know about how to trade on Binance. It shall include how to sign up, how to trade on Binance for beginners, and what Binance trading fees you’ll have to pay. I’ll also tell you how safe the exchange is to use. And finally, you will understand even what kind of users Binance exchange suits.
By the time you finish reading, you’ll know all about one of the biggest exchanges in crypto. But most importantly, you’ll learn how to trade on Binance!
What Is Binance?
Just in case you don’t know: Fiat currencies are the official currencies of nations around the world. Examples include the US Dollar (USD), the British Pound (GBP), the Chinese yaun (CN¥) and the Nigeria Naira (NGN)
A Brief History of Binance Exchange
Binance was founded by Changpeng Zhao and Yi He in China in 2017. As at the time both were working at the OKCoin exchange. But later they came up with the idea of building their own exchange platform.
The company was forced to leave China in September 2017, after the Chinese government banned cryptocurrency trading. From there it went on to open offices Japan, Taiwan, and Malta. And currently, Binance is based in the Cayman Islands of British Overseas.
Binance Coin
Binance has its own token too, known as Binance Coin (BNB). In July 2017 the exchange had an initial coin offering (ICO) of the Binance coin through which it was able to raise a total of $15 million. As further incentives for users to trade with BNB, discounts are available to traders who use BNB to pay their trading fees.
Initial Coin Offering (ICO) has become a popular means of raising money for most exchanges to raise money easily without the use of stocks or bonds.
Important Stats on Binance
Binance is not called the largest crypto paltform on earth for nothing. Take a look at what the number is saying about Binance and you will agree with them.
Number of cryptocurrencies on Binance – 600+
Registered users on Binance – 90 million
24h trading volume on Binance exchange – $76 billion
Lowest Transaction Fees – Less than 0.10%
How to Open an Account on Binance
So now you understand what Binance is and how to acquire binance coin you should be set to go over to how to trade on Binance. Yes, but just before we jump into that, let me first explain that you need to open an account. And how do you open an account in order to start trading on Binance exchange? Fortunately, just like the case of opening an account on ByBit exchange it is very simple.
Here are the steps below:
Step 1: Register
Step 2: Enter Your Email Address and Create Password
And Step 3: Email Verification
It is important that you secure your account using 2 factor authentication (2FA) on your first login to guide against the risk of your account been hacked.
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.
How to Fund Your Account on Binance
Don’t forget where we are headed on this path – how to trade on Binance. But before we move over to tat and start trading, you need to have some coins in the account you just opened. So how do you open an account on Binance?
I will show you to simple steps to do that.
Step 1: Log into your CoinBase account
Log into your Coinbase account and click on Accounts. Next, click on Send where it says ETH Wallet.
You’ll be asked to enter a Recipient. 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
Log into your Binance account. Navigate to Wallet, and then click Funding Wallet.
Step 3: Select the crypto coin to deposit
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: Choose Your Receiving Address
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:Send the required amount
All you need to do now is decide how much Ethereum you want to send to your Binance account and click Send, on Coinbase. 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. Next, you can learn how to trade on Binance!
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How to Trade on Binance for Beginners
I guess this is the stage you has been waiting for – how to trade on Binance for beginners. So let’s start trading because all is now set for that. But let me first emphasis that there are two types of trading setting on Binance exchange. The first is called Classic Trade. And the second one is Advanced Trade. Though you can choose to start with anyone of your choice. But if you are a beginner my advice is that you start with Classic. The reason is that the Classic trade setting has a simple layout that’s easy to understand. It displays only the important information for making trades.
On the other hand, 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. Hopefully by the time you return to this site with the aim of upgrading your rading skill I will be ready with the post on how to trade on Binance using the Advanced Trade setting.
So How Does Classic Trades Work on Binance?
Step 1: Login to your Binance account. The first thing you have to do in order to start trading is to login to your Binance account.
Step 2: Click on Trade and select Spot. Once you login on the top right hand corner, you will see trade. From there 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:
Limit Orders
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
Market orders allow users to trade coins at their current market price. This kind of trade is the fastest and most simple.M
Stop Limit Orders
Stop-limit orders allow traders to buy or sell a coin once it has reached a certain price. This is the kind of orders that pro-traders use.
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, the charge will be 0.01 ETH. In a similar vein if you withdraw Ripple the charge will be 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 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.
Advantages of Trading Binance
Trading Binance comes with many benefits, such as:
- It has a touchscreen interface that looks very nice.
- It is very safe and secure.
- Supports 1,500 cryptocurrencies
- The set up can be very easy and fast too
- It is mobile friendly
- Has a lot of protection against physical damage
- It has one of the lowest transaction fees
- It offers spot trading to users
How to Trade Spot on the Binance Website
There are many exchanges that does not offer spot trading . In fact, let’s reverse the statement. You will have to think hard to find out other exchanges that offer spot trading. But it is one of the features that makes Binance stand shoulder above others.
So the question is, how do one trade spot on Binance? It is a simple process and I will explain it in 4 steps.
By the way Spot Trading in crypto is the process of buying and selling cryptocurrencies at real-time prices for immediate settlement. Spot traders sell at what is known as the spot price with the aim of generating instant profit.
Step 1: Go to the Binance website. At the upper right corner of the page, tap on [Login] so you can log in to your account in Binance.
Step 2: On the homepage, tap on any cryptocurrency and directly go to the corresponding page in spot trading.
Here is how your trading interface would appear:
Below is the label of what each of those numbers represent:
-
Binance Announcement
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The trading volume of trading pairs within 24 hours
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Sell order book
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Buy order book
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Market Depth and Candlesticks
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Trade Type: Isolated Margin/Cross Margin/Spot
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Order Type: Stop-limit/Limit/OCO(One-Cancels-the-Other)/Market
-
Buy Cryptocurrency
-
Sell Cryptocurrency
-
Markets and Other Trading Pairs.
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Recently completed transactions
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Market Activity: High volatility/activity in the trading market
-
Orders are open
-
Your 24-hour order history
-
Binance Customer Support
As an example
As a way of practice you can try to buy BNB. Simply tap on [Trade] at the top of the Binance homepage. Then, select from [Advanced] or [Classic]. Go to the page buy BNB and then have the amount and price entered for your order. After that, complete the transaction by pressing [Buy BNB].
If you want to sell BNB, you may have the same steps followed:
-
Limit Order is the default type of order. However, whenever you want to place an order immediately, you can have it switched to the [Market] Order. With the use of Market Orders, investors are capable of directly trading at the current market price.
-
The BTC/BNB may have a market price that is 0.002. You may want to have it purchased at a specific price like 0.001, have an Order [Limit] placed. If the market price gets to your order price, they will have your order executed.
-
You can use the percentage number underneath the BNB Amount box to indicate the amount of BTC that you want to purchase with BNB. Have the amount entered, and then buy the cryptocurrency.
Who is Binance For?
The design of Binance is such that it appeals 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 Coinbase. With Coinbase, 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 trade on Binance, who can trade Binance and how much it costs to trade with Binance. However, permit me to give a quick summary of how to trade on Binance.
How to Use Binance for Any Basic Trade
Here is the summary of how to use Binance for any basic trade:
- Log into your Binance account.
- Click on Exchange and pick Basic on the taskbar.
- Pick a trading pair, as there is a lot to choose from. If you only see Ethereum in the funds, then Ethereum is the only one you can deal with.
- Choose the type of trade you want to make, like Limit Orders, Stop-Limit orders, or Market Orders.
- Choose the amount you want to trade.
Conclusion on How to Trade on Binance for Beginners
As you can see how to trade on Binance is quite easy even for beginners. The process of registering or opening an account is equally easy for anyone. You must also have observed that Binance don’t do transactions worth billions of dollars daily for nothing. People trust Binance enough to trade with them for a good reason.
In fact, trading on Binance can be a wonderful experience. But that is only when you know how to use the platform.
I encourage you to follow the steps as outlined and you will not have any problem making profits from your trade.