How to trade on Binance – A brief guide
Have you ever wondered how to trade on Binance? Are you eager to learn the little secrets of the great masters most effectively and straightforwardly possible, following all the necessary steps? Before we embark on this adventure, it is of great importance that you understand what Binance means.
Binance refers to a cryptocurrency exchange, which is, at the moment, the largest exchange on the planet when it comes to cryptocurrency’s daily trading volume. It was founded in 2017 by a developer who’d previously developed high-frequency trading software, Changpeng Zhao. It’s registered in the Cayman Islands.
The term “Binance” represents the combination of two well-known words, “Bitcoin” and “finance”. In short, Binance claims high standards of security and safety, with multi-clustered and multi-tier architecture. It delivers high processing throughput. Therefore, Binance claims the capacity to process approximately 1.4 million orders in just one second.
How to get started with Binance?
For those interested in trading on Binance, we’ve prepared you a Binance guide that will be more than valuable to you as a beginner trader. Let’s begin with essential steps before knowing how to trade on Binance, shall we?
#1 Register your account and complete verification
The first step you must take when thinking about how to use Binance is to register your account using Binance App, website, or Desktop App, using your mobile phone and email address. When you do so, it’s time to complete identity verification on your Binance account to unlock withdrawal limits and the fiat deposit.
This particular process typically lasts a few minutes to complete. It includes the following steps:
- Verifying your basic account information
- Providing ID documentation
- Uploading your portrait picture or selfie
Make sure to keep your Binance account secured. You can do so by checking Binance’s Security Tips that will provide you with more helpful information.
#2 Deposit and buy crypto
For instance, if you already have crypto in another wallet, you can deposit them in your Binance Wallet. Keep in mind that you mustn’t share the password of your Binance wallet or app, 2FA codes or private keys with anyone. It’s a matter of your security, and Binance won’t ask you to disclose sensitive information.
Once you do so, depending on the country you are from, it’s possible to deposit up to 50+ fiat currencies such as AUD, BRL, EUR to your Binance account using bank cards and bank transfers. Right after you’ve made the deposit, you are able to use them to buy crypto directly.
You can buy crypto in several ways: using your debit, credit card, and P2P (peer-to-peer) methods.
#3 Spot trading – Explore Binance products
It’s important to understand that, after getting your first crypto, you are able to explore numerous trading products. For example, in the Spot market, you may start trading hundreds of cryptocurrencies, including BNB.
For those who aren’t familiar with it, BNB is responsible for empowering the Binance ecosystem. It’s also known as the native coin of the Binance Smart Chain and the Binance chain. In addition to that, it’s clear that BNB includes use cases such as paying for goods and services in-store and online and paying for trading fees on the Binance DEX and Binance Exchange.
Remember that you can expect a special discount if your preferred payment method is BNB on the Binance Exchange. And now that you’ve got all the essential beginner information about how to get started, it’s time to understand how to trade on Binance like a real professional!
Learn how to trade on Binance in the most effective way
Now that you’ve started using it with the Binance guide, it’s time to learn how to trade on Binance. What happens to be the most significant advantage of Binance trading is the incredible ease and speed with which traders can trade cryptocurrencies in real-time. Depending on how experienced you are, the exchange cleverly offers different types of trading interfaces.
For now, Binance is recommending its new users use the convert feature. It breaks everything down with a smooth interface. If you are up to exchanging one currency for another, on the top field, you will be required to enter the cryptocurrency you wish to exchange and then input the exact amount you’re willing to trade.
On the other hand, the bottom field represents the place of the desired fiat or coin. Once the trade gets executed, expect the trading fees to be deducted as well. The easiest way to make a trade is by executing spot trades at real-time prices. How is that possible?
Binance is offering a few different types of spot trading options like stop-limit, market, and OCO.
The most common phrases explained
- A market order allows traders to purchase or sell instantly at the current market price.
- Limit order enables traders to set a trade order at a price of their choice. For instance, you’re able to place a buy order for Bitcoin (at the time worth $40,000) in case the price drops to $35.535.
- Stop-limit order combines limit order and stops loss. It protects traders against huge market moves. It allows them to set buy or sell orders below or above the current price.
- OCO order allows traders to set a sell or buy order at lower and higher current prices of a crypto asset. For example, if the price of a Bitcoin is $40,000, and a trader wants to trade on autopilot. He can set a sell order at both $44,000 for a 10% profit or $38,000 for a 5& loss, depending on the trader’s trading preference.
Remember that during a period of significant volatility, traders’ orders are most likely to be skipped over once the price of a cryptocurrency moves too quickly.
What can also influence crypto prices?
To truly understand how to trade on Binance, it is essential to be aware of all the factors influencing crypto prices. In this case, whales, which are investors with large amounts of crypto, can affect crypto prices, especially in markets with extremely low liquidity.
They can do so by placing massive sell and buy orders with the purpose to either spike or crash the price, with liquidating margin orders, or dropping straight back again, and hitting trader’s stop loss. Since these situations usually end up in a bear or a bull trap, traders need to research before getting engaged in these different types of orders. Also, it’s advisable not to put all their eggs in one order basket.