What is Binance?
Binance is the China origin project - one of the largest cryptocurrency exchange platforms. As far as crypto business is illegal in China since 2017, the company can not be considered Chinese anymore. It has moved its headquarters to Malta and has applied for licenses in many countries. This is rather important as far as solidity and stability are important when money is concerned. But Binance as a European company should comply with European legislation and European political decisions.
Binance provides also different facilities for users. For instance, Binance can issue a card which can be used to pay for goods and services - with automatic change of crypto in fiat currency, of course. Binance also provides loans to its users from the moment of their registration. It supports more than 100 currencies and has advanced user support. Binance ecosystem includes Binance’s Open Platform, Binance Launchpad, Binance Labs, Binance DEX, Binance X, JEX, Trust Wallet, and fiat gateways. So, if you want to start trading Bitcoin with Binance, it is a good way to dive into the world of investments in crypto.
What is Binance Coin?
Binance coin is one of the crypto coins, using which one can pay Binance commissions and get a discount. The discount is more or less substantial - 25% of the normal rate. It is not a popular coin, but Binance promotes it among its users.
What are the initial steps to start trading on Binance?
To start trade on Binance is not so difficult. Still, you have to go through the verification process. You need to have both a telephone number and e-mail. You should provide both a copy of the passport and make your photo. It is recommended to follow the requirements which Binance delivers to its clients. Binance provides 2-level protection of the users' accounts as far as the platform demand 2 codes one time - one sent to e-mail, another to the phone. Keep in mind, that client's verification takes several days, so in you have in mind to use the current ups or downs of cryptocurrency, you will surely have to wait for another chance.
Binance requires you to prove you are not a robot. They have a nice puzzle to complete - actually not so irritating as choosing all boats, mountains and etc.
The more essential thing is binance fees. Binance charges Maker/Taker fee 0,01-0,04% (for non-VIP customers) - this is not high in comparison to other cryptocurrency exchanges. So one should always bear in mind this commission when trying arbitration strategies.
How inflow funds in Binance?
So you are through with the preliminary steps and now you should inflow money into your Binance account. You may send it from your crypto wallets (if you have them) directly to your account in Binance. So if you have Bitcoins, Binance will generate the related address to send you crypto. As far as the Bitcoin network processes the crypto transfer the amount will appear on the Binance account. So when you start trading on Binance you will have several subaccounts with the current balance.
The more common situation is when the beginner has no understanding of how to trade in Binance as far as he has not bought crypto before. So in this case you can send fiat money directly from a bank card account/account in some payment institution.
How to trade coins on Binance?
Now you are ready to start trading. One should choose a trading pair. It is a matter of your trading strategy which pair to choose. Trading on Binance can bring substantial profits even to beginners as far as the cryptocurrency market is extremely volatile. On the contrary, Binance develops rapidly and adds new pairs - such as ALICE/BNB, ATOM/TRY and so on.
Binance offers 2 versions for traders: Binance Lite for beginners and Binance Professional for sophisticated users. Actually, the difference between them is that Binance Lite is more suitable for those who want to know how to exchange on Binance and start a simple trade, and Binance Professional offers additional tools for the trade, such as futures and options. Once you have neither knowledge nor time to trade you may consider copy trading. There is a minimum sum to be traded on Binance, and it depends on the currency.
Withdrawal of money
The question of withdrawal is even more interesting than the question of sending money to Binance. That is a serious issue and it should be considered beforehand. Not any bank is ready to accept money from Binance though it is a reputable group of companies. There are many reasons for this: compliance, taxes, and vague legislation on crypto, but this matters nothing to the end-user. It is well-known that UK banks are very reluctant to accept Binance inflows. So one should find another option and try to send a small sum first. If it is accepted, you can continue withdrawing money from your account in this bank. Bear in mind the tax question - Binance is just an exchange platform, it does not do any deductions in favour of tax bodies, so one should take care of tax matters.
Some advice on how to trade crypto on Binance
There is some good advice that a beginner should follow:
- Spend some time on research
Everyone knows Bitcoin, but there are more currencies to be considered a good instrument. One should take time to study its history, minimums and maximums, and the technology they are based on. It is a good thing to find out some details about the people who launched the project.
- Test various strategies
There are different strategies to raise money, and all of them are efficient. But not all of them suits concrete investor. Patience, resistance to panic, laziness - all these features of character can cancel the advantages of one strategy and disadvantages of another. Besides, the first wrong steps may lead to a person's reluctance to invest. So a person should consider many strategies and choose the best in his case. If it absorbs too much time, it is better to consider crypto automation with the Bitcoin trading bot. A crypto bot may make deals automatically and release traders' time.
- Start trading with "famous" coins
When you still do not know how to trade crypto on Binance without losing assets, take "traditional" pairs for a start, such as BTC/USDT or BTC/ETH. ICOs (initial coins offering) might bring substantial profits but usually to experienced investors who have gathered reliable information about the project. It was announced that more than 800 coins went down after ICO and can be considered disappeared from the market. So those who bought these coins can say good buy to their money.
- Diversify your portfolio
This is quite simple and well-known advice which is not always followed. When a person believes in one project he is tempted to invest as much as he can to get higher profits. Even experienced investors do not run such risk, and beginners should not do it either. To keep everything in one token or coin - is the worst idea possible. In October 2021 Bitcoin was at its maximum - $63 000, now it is two times cheaper. The same happens to the other coins, so one should mitigate risks when possible.
Instruments on Binance
What instruments does Binance have to help users? Binance is a very well elaborated crypto exchange. To facilitate your trades you may place an order for "total" or "amount". You use "amount" when you want to buy/sell the exact amount of crypto. When you want to buy coins on the exact sum, better use "Total". You can place a limit order which will be fulfilled is the price comes to the stated limit.
Binance has the possibility to see open borders and the history of orders in the relevant folders.
One more option one should know when starting trade on Binance is staking. This is a perfect instrument for those who got tired of trade or need a break-out. Binance gives the users to profit from staking. Staking means the support of the particular coin by locking it so it can be randomly selected by the protocol at specific intervals to create a block for a reward. It looks like placing a deposit in a bank.
Binance tutorials for beginners
Binance is easy to trade on - but it has so many options, that it seems difficult to understand. So Binance has decided to start Binance academy. This is a set of articles for users on blocks of questions. They are grouped by the level of expertise in trading - for beginners, intermediate level users and for advanced traders. Many of them are dedicated to different coins and tokens - that is what might be very important to beginners, who do not know how to use Binance exchange.
There are some of them:
- What are Binance Fun Tokens?
- How to build a well-balanced crypto portfolio?
- How to Invest in Bitcoin and cryptocurrencies?
- Binance Beginner's guide.
- What is a trading journal and how to use it?
- What is Layer 1 in Blockchain?
- What is ColScan and how to use it?
- How to use Avalanche Wallet?
- How to use Ronin Wallet?
Binance tutorials may do a lot of good to beginners, but they are not the only source of knowledge. YouTube offers a number of videos with detailed explanations of everything which concerns how to trade coins on Binance.