There are several cryptocurrency exchanges in the market and many of them are recognized platforms that allow users to exchange cryptocurrencies for fiat or other cryptos.
One of the largest and most popular platforms to start trading and exchanging cryptocurrencies is Binance.
In this article, we will explain why Binance is one of the best platforms to trade and handle cryptocurrencies, which are the main features of the exchange and how it protects users’ funds.
The CEO of the platform is Changpeng Zhao (CZ). He has also been working for other companies in the past, including Blockchain.info and OKCoin.
First of all, Binance is one of the leading cryptocurrency exchanges in the market due to different reasons.
After being released in 2017 before the massive bull run that Bitcoin experienced in December. Since that moment, the platform started to offer services to users that wanted to trade digital assets in different jurisdictions.
One of the main characteristics of this cryptocurrency exchange is the fact that it offers 573 different markets as of November 2019 and it has one of the highest volumes in the market with $1.44 billion in the last 24 hours.
At the same time, Binance as a company has been expanding offering other services as well.
They are now working as a launching platform for Initial Exchange Offerings (IEOs) that want to sell their tokens to the market, as a blockchain network for different projects and as a decentralized exchange (DEX), among other things.
Binance has recently launched margin trading solutions for experienced traders and new features could be added in the future as well. This shows the team behind Binance is working on a daily basis to offer new products and services.
At the moment, there are several Binance platforms in the market that apply to different jurisdictions. Some of them include Binance.US for American users, Binance Jersey for individuals that want to trade using EUR and GBP, and Binance Uganda for traders that want to use the local currency, the Ugandan Shilling.
Another thing to mention about Binance is the fact that the company has a fund that they would use in case they are affected by a hack.
Until not, the platform was affected only once by a security issue in which they lost 7,000 BTC worth around $40,000,000. The exchange took responsibility and it covered all the losses.
Exchanges are taking different measures to fight against hacks and attacks. Most of the funds they hold on behalf of the users should be stored on hardware wallets and offline.
Creating an account on the Binance exchange is a very straightforward process for most of the users and there shouldn’t be any inconvenience when doing so.
Go to the official Binance site and confirm the page is legit and secure to use. There are several hackers that try stealing users funds by creating similar pages to exchanges and perform phishing scams.
Once you open the correct website, you can select the “Create Account” option and start the registration process.
In this step, you will have to provide your email and create a password for the platform. It is always recommended to use 2FA in order to protect the account and avoid being hacked or losing the funds.
After registering the email and a new password, you will have to confirm your email by logging in into it and following the verification link that the platform will send to you. In this way, you will be ready to start using the Binance platform.
If you are a beginner trader and you will not be using a lot of funds on the platform, the best thing you can do is to avoid this step.
Verifying your account would allow you to have a larger withdrawal limit per day, considering Binance allows users to extract 2 BTC worth of funds every single day.
Larger and experienced traders will have the possibility to withdraw up to 100 Bitcoins in just 24 hours if they decide to verify their profile.
Users will have to provide private information to be compliant with Binance KYC procedures. There are different jurisdictions around the world that are currently requesting cryptocurrency exchanges to provide information about the users trading on their platforms.
After performing all these previously mentioned steps you will be able to easily buy and sell cryptocurrencies using the Binance platform.
The next thing you need to do if you want to buy or sell cryptocurrencies is to add funds to your account.
In this case, the international Binance platform would allow you to buy and sell cryptocurrencies using other digital assets. These digital assets can be stablecoins or traditional cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) or Litecoin (LTC).
The most liquid stablecoin available in the market is Tether (USDT) that allows users to hedge against fluctuations in the cryptocurrency market.
You can send Bitcoin, Ethereum, Litecoin or USDT, among other digital assets to Binance in order to start trading.
For you to do so, you will have to go to Wallet, Exchange Wallet (Deposit and Withdrawals) and select the cryptocurrency that you want to deposit to the exchange.
Depending on the digital currency that you deposit, you will have to pay a small fee for the transaction.
Binance is a cryptocurrency exchange that offers crypto-to-crypto solutions, meaning there are no fiat currencies supported on this international platform.
However, if you are located in a jurisdiction in which Binance has fiat gateways you will be able to send fiat currencies to your account.
In addition to it, Binance is allowing users to purchase digital assets using a credit card. In order to do so, Binance partnered with Simplex, a recognized payment processor that provides crypto purchases with credit cards.
Changpeng Zhao, the CEO of Binance, considers that this is a very important milestone for the exchange considering that most of the world uses fiat currencies rather than cryptocurrencies.
Despite having this solution implemented, users have to pay a small fee for the transaction of around 2.5%.
You can acquire different cryptocurrencies through this method, which are going to be deposited on your account in a short period of time.
This is perhaps the easiest way to fund your account if you do not have previous experience in handling cryptocurrencies. By using a credit card, the cryptocurrencies purchased will be in your account without having to be worried about it.
Once you have the funds deposited, you will be able to purchase other cryptocurrencies and tokens.
Once you have the funds in your account it’s time to start trading. If you reached this step is because you wanted to trade cryptocurrencies using the Binance exchange, that provides different services and solutions to cryptocurrency users.
Binance is now offering two trading interfaces, one for professional traders and another one for beginners.
You can have access to the market by clicking on the ‘Exchange’ tab and selecting the interface you want to use, whether it is the basic exchange or the advanced one.
There is also the possibility to select the ‘margin’ exchange, but this will be an entire section later in the article where you will learn about how to trade with margin on Binance.
The basic Binance exchange offers a very simple interface in which users will be able to see in the middle the price of a specific trading pair.
On the left side of the screen, individuals will have the order book that will show the open selling and buying orders placed by other traders.
Finally, on the right side of the screen, users will see the trade history in the specific market they are using and the possibility to search for new trading pairs.
Also in the middle, users will have the most important part of the screen that would allow them to trade cryptocurrencies.
In this section, they will have information about the price of the specific trading pair for both sellers and buyers. Traders will be able to decide which amount of cryptocurrencies they want to sell or purchase according to the funds they have.
You can purchase and sell cryptocurrencies with a limit order or a market order. The limit order allows users to select a specific price at which they want to sell or buy a specific cryptocurrency.
In the aforementioned example, it is possible to see that the price in USD Coin (USDC) for each Bitcoin is equal to $7,245. If a user decides to buy Bitcoin for that price, once you press the sell or buy button, the order will be registered in the order book until is filled by a trader.
It may take some time before the order is filled considering the price of the cryptocurrency could be below or above the price selected by the trader.
If you instead use a market order, once you selected the amount to sell or buy and pressed the buy and sell button, the order will be immediately filled at the market price. In general, market orders have higher fees than limit orders considering you are taking the liquidity of the market.
The Binance advanced exchange has been designed in order for professional traders to enjoy trading with more detailed tools and an improved interface.
As you can see in the image above, the trading screen is in the middle of the screen and it uses most of the space on it.
You can see the price evolution and performance of a specific trading pair and you can also have more advanced trading tools such as the MACD indicator.
Below the price chart, you will have the open orders you have. This would help you keep track of all the trades you have opened. This would help you better visualize which are your entry points to the market and when you are planning to exit a trade.
On the right side of the screen, you will see the trading history and the order book with all the orders placed by traders in the market.
In addition to it, users will have the possibility to open a trade with a limit or market order. At the moment, the fees for limit and market orders are the same for users without large trading volume (more than 50 BTC in traded volume in 30 days).
The advanced Binance exchange aims at making it easier for professional traders to buy and sell cryptocurrencies. With the interface described, the goal is to help traders improve their trading strategies, be focused on the things they do and have a clear platform to buy and sell crypto assets.
Although there are several professional trading platforms in the market, Binance has large liquidity in different trading pairs, which makes it even easier for them to conduct their trading strategies.
If you consider that you need to use the Advanced platform for trading cryptocurrencies on Binance, then go ahead and enjoy this interface and the new trading tools offered by the exchange.
Margin trading is an advanced method for trading cryptocurrencies and other assets in which the trader has the possibility to trade with cryptocurrencies provided by other traders or users.
This would allow the individual to have higher returns while trading. However, trading with margin is very risky and could eventually affect the solvency of the user, that’s why it is always important to trade with the funds that a user can afford to lose.
With margin trading, it is possible for users to select a portion of his funds as margin and trade with leverage that can be variable, between 2:1 and 100:1 in most of the crypto margin trading providers.
Binance has recently added this function to the exchange in order for more advanced traders to join the platform and start trading with it.
Users can open long and short positions in the market according to where they think the market is headed. A long position means that the trader believes the specific asset will surge, while a short position means the contrary, that it will fall.
If the trade is executed properly, it could bring large gains for users. Nevertheless, if the trade is executed wrongly, it could increase the losses for the trader.
The interface looks very similar to the basic exchange and before you register to Margin trading, it adds a reminder that although users can have higher rewards, they can also be subject to higher losses.
It is very easy to make a withdrawal from the Binance exchange. It is just necessary for the user to go to the ‘Wallet’ tab and select ‘Deposit & Withdraw.’ After it, you will be able to select the cryptocurrency you want to withdraw, and how many coins you want to send to your wallet.
At the same time, you need to send the cryptocurrencies to an address linked to this digital asset. You cannot send Bitcoin to Ethereum addresses or withdraw Litecoin in an XRP address.
Keep in mind that each withdrawal has a small fee added by Binance.
The fees are generally different for each of the assets traded in the platform. That’s why it would be sometimes cheaper to send larger amounts than sending small funds to wallets. Moreover, it may be also cheaper to withdraw other digital currencies rather than Bitcoin.
Binance has been working on its cryptocurrency called Binance Coin (BNB) and how it can be used to improve users’ trading experience on the platform.
Users that have purchased BNB coins will have the possibility to reduce their trading fees if they exceed a certain volume. In this way, you can pay for fees using this cryptocurrency and make more efficient your trading experience.
At the same time, this cryptocurrency can be used to participate in the different Initial Exchange Offerings (IEOs) that would be launched on the Binance Launchpad.
Binance has also been working in order to expand BNB’s use cases in the market. There are several companies and firms that are already accepting BNB as a means of payment, including the travel site Travala.
At the moment of writing this article, Binance Coin is the 8th largest cryptocurrency in the market with a valuation of $2.5 billion and a price per coin of $16.06. The highest price ever reached by the digital asset was $39 earlier this year.
In the future, the Binance Coin could have more functionalities and allow users to have more benefits and solutions.
Binance has also been performing quarterly burnings of the BNB cryptocurrency. The main goal is to reduce the total supply of this cryptocurrency from 1 billion BNB to 2 billion.
Furthermore, the virtual currency was used as a reward for the team members behind the Binance exchange. However, they have decided to give up their coins and burn them so the quarterly burning could be accelerated.
The Binance Launchpad was created by Binance in order to offer crypto and blockchain-related companies, the possibility to offer investors tokens of their projects. The goal was to provide the market with curated crypto companies rather than launching simply Initial Coin Offerings (ICOs), which were usually linked to scams and shady firms.
Many users and investors were very interested in this platform. Some of the first projects launched through the Binance Launchpad were very successful in terms of the number of tokens sold. Considering the interest for digital assets has been falling in the last few months, the interest in users to purchase tokens from Initial Exchange Offerings (IEOs) remained low as well.
This is also part of one of the many projects created by Binance that is not strictly related to exchange services. However, these cryptocurrencies launched through the platform get immediately listed on the Binance exchange, allowing them to get exposure to traders.
This could be very profitable for users that are currently following AltSignals crypto trading signals for Binance. Users can simply follow these trading signals to trade profitably different digital assets using Binance.
Binance has also launched its blockchain network in order to offer solutions to crypto-related projects and also to handle large loads of transactions.
Users will be able to issue new tokens on this blockchain, send, receive, burn, mint, freeze or unfreeze, among other things.
The Binance Decentralized Exchange is currently running on top of this network and it is allowing it to perform all of its operations without hurdles or issues.
Although the Binance Chain has just a few validators, the intention is to expand and decentralized the whole network even more in the future.
Binance has a business strategy in which they start with centralized services and solutions and then they slowly start decentralizing them. In general, this is a very good strategy in order to attract a larger number of users and gather the attention of different individuals.
Decentralized solutions are sometimes less efficient and user-friendly than centralized platforms that are developed by different firms.
Block times are estimated at 10 minutes, compared to 20 seconds for the Ethereum blockchain. This is expected to have a positive impact on Decentralized Exchanges like the one that Binance recently launched.
At the moment there are several blockchain platforms that have integrated the Binance Chain and that work with it.
In this guide, we have covered how it is possible to trade using the Binance exchange and how to properly handle this platform. We’ve discussed how the Basic exchange works, which are the differences with the advanced exchange and how it is possible to trade using leverage.
The platform is very useful for multifaceted traders that want to trade using a wide range of tools. Binance offers not only trading pairs of the most popular and largest cryptocurrencies but also several altcoin markets with larger liquidity than competitors.
Furthermore, Binance has been working in order to create not only an exchange but also an entire ecosystem for the cryptocurrency space and for enthusiasts. In the future, new products, services and tools can be released to the market by this crypto company.