How To Trade & Buy Cryptocurrency On Binance Exchange

How To Trade & Buy Cryptocurrency On Binance Exchange

in Cryptocurrency, Investments, Newbie
Binance is a China-based cryptocurrency exchange that has been gaining momentum over the past few months. The platform gives users access to a robust set of trading tools, charts, and security features. The exchange was created by experienced professionals in the cryptocurrency space, and the most recognizable name behind this project is that of Changpeng Zhao, former CTO at OKCoin. Binance was created after attracting funds via an ICO (Initial Coin Offering – creating a new digital asset, backed by the project), and it began live trading in July 2017. Binance is known for its fast transaction processing as well as its low trading fees (0.1%). The Binance technology is capable of processing 1.4 million orders each second. This makes the platform a world leader in potential exchange volume.

Trading conditions

  • Trading instruments (cryptocurrencies)

Binance offers a substantial number of coins, which are traded mostly against Bitcoin and Ethereum. On the other side, the two major coins are also paired with USDT (US Dollar Tether a digital asset, backed by US dollars, which aims to keep a 1:1 price ratio). The list of coins available at Bitnancie includes, but is not limited to (especially since new ones are added frequently): BTC, ETH, LTC, BCC, OMG, IOTA, ICN, MCO, SALT, KNC, CTRm SNLS, FUN, BQX, XVG, ZRX, and BQX.
  • Minimum initial deposit

Binance does not provide information on the minimum deposit amount. As we cover mostly forex brokers, we are used to companies stating this information openly. The need for a minimum deposit level is associated with the legal costs of opening an account, which may exceed the potential commissions you will make with a broker if you are trading too small. That being said several companies don’t have a required minimum, like the FCA-regulated industry leaders at IG.
  • Leverage

Margin trading is not available at Binance. For those of you who are not familiar with the trading world – this is a system which allows you to trade with more money than you actually have in your account. Your balance is then used as a guarantee to maintain your position open. As an example, forex brokers require very little in collateral, in order to maintain massive positions. The so-called leverage ratios can go as high as 1:500 or more. For instance, XM offers 1:888 in leverage. That being said the cryptocurrency space is a lot more volatile, hence the need for lower ratios. Exchanges and forex brokers alike, rarely offer more than 1:20 in leverage.
  • Fees

The fee structure at Binance is simple to understand, but more importantly very competitive in the current environment. There is a flat 0.10% fee on all trading. Other exchanges often separate clients based on their trading volume and the way they enter/exit a transaction (traders who provide liquidity to the exchange usually get some benefits). On the other hand, forex brokers incorporate the costs of trading in the spread. While comparing them is a bit like comparing apples to oranges, we have made a side-by-side review of both services here.  

How to start trading

Step 1:

Head over to Binance, Register or Log in, Deposit money.

Step 2:

Enter to transaction page by clicking the cryptocurrency pair you are going to trade (for example, BNB/BTC, LTC/BTC etc.)
crypto money

Step 3:

You will see the display of the transaction of Binance.
how cryptocurrency works
  1. Sell Wall: This section shows the current offers for BNB. Sales are always marked in the RED. In trading, we also call a sale a “short” (i.e. shortening your position). You can click on any price in the “Sell Wall” to populate the Selling price in “6 Buy/Sell”
  2. Buy Wall: Similar to the “1 Sell Wall“, it shows the current requests for BNB. Buys are marked in GREEN. In trading, we also call a buy, a “long”.
  3. Coins: You can favorite the coins you are interested in here.
  4. Trading History: This shows you the recently executed orders.
  5. Open Orders: Your open orders.
  6. Buy / Sell: The forms to trade your coins. A market-trade will buy/sell at the current market price. A limit-trade will only fill your order if the price is met.

Step 4:

Exchange! Here you can easily sell or buy the coins you want. Put in the number of coins you want, or click the percentage based on what is in your wallet.
cryptocoin

Conclusion

The myriad of coins and low and competitive trading fees found on Binance are unmatched. The exchange is also known for its fast processing speeds and is capable of processing 1.4 million transactions per second. The platform has started to gain popularity in the blockchain community and currently sits at the number 17 spot in terms of 24-hour trading volume.  

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