Are you a crypto trader? Choosing the right exchange for your trading activities is possibly the most important aspect of setting up your trading account.
Trading with the right brokerage or crypto exchange ensures you get the best liquidity and unmanipulated price action. This post will unpack the offering from one of the most popular crypto exchanges in the world – Binance.
What Is Binance, And Why Should I Trade on the Platform?
Binance is the world’s leading spot crypto exchange, with more than $8-billion in daily trading volume. Legendary crypto investor and serial entrepreneur, Changpeng Zhao, who goes by the moniker of “CZ,” founded the company in 2017.
Currently, Binance operates in 782 markets, with its offices registered in Malta. Binance is one of the most popular exchanges for new ICO listings, but they only accept new ICOs based on a thorough vetting process.
It’s always better to trade with exchanges offering higher volume. More volume means better liquidity for your trades. The last thing you want is to find yourself stuck in a trade as it starts falling, and you can’t find a buyer. We all know crypto is a volatile asset class, and price action can be tricky and erratic at times.
With Binance, you get the best liquidity available, with 782 active markets. The only other spot exchange competing with Binance is Huobi global, and with daily volumes just under $2-billion, they are a minnow compared to Binance.
What Is an Unregulated Cryptocurrency Exchange?
Binance is an unregulated trading platform – What does that mean exactly? Cryptocurrency remains a decentralized asset. In other words, no government, central bank, or issuing authority has control over any cryptocurrency.
Since no government worldwide accepts crypto for payment of taxes, they have no interest in controlling this money supply. As a result of its decentralized nature, cryptocurrency remains outside of the traditional fiat system. Therefore, crypto exchanges don’t need to comply with international financial regulations.
However, it’s important to note that you can’t withdraw in USD from Binance. This situation presents a double-edged sword. One the one hand, it’s annoying that you can’t cash out profits in USD. However, because the platform doesn’t work with USD, you don’t need to register for KYC (Know Your Customer) protocols.
In short, you don’t have to verify your identity to trade on the platform and withdraw funds in crypto. That’s beneficial for anyone wanting to remain anonymous online. The US or EU financial and tax authorities have no claim on your trading profits because you aren’t holding any money in fiat.
However, if you want to cash out for USD or EUR, you’ll have to send your profits to another broker platform that deals in USD, such as Coinbase. These exchanges or brokers will require you to verify your identity and complete KYC before processing your withdrawal.
How Do I Open a Binance Account?
So you’re frothing to open a Binance account, let’s help you start your journey. Follow this step-by-step guide to opening and funding your trading account on Binance.
- Visit the Binance Website
- Bookmark the page and set up your account. Complete the information and accept the terms and conditions.
- It’s important to note that there are plenty of phishing scams involving Binance accounts. Make sure you always go in through your bookmark and check for the SSL certificate in the URL.
- Install and Activate 2-Factor Authentication (2FA)
- To make sure you don’t experience a hack of your account and your Binance wallet, enable 2FA to secure your account.
How Do I Deposit into My Binance Trading Account?
Now that your trading account is open, you’ll need to deposit funds to participate in the action. Follow these steps to making your first deposit with Binance.
- Visit the Deposits Page
- Click “Deposit/Withdrawals” under the “Funds” tab.
- Select the Digital Asset You Wish to Deposit
- Find the asset you want to deposit and click on the “Deposit” button.
- Complete your Transfer to the Nominated Wallet Address
- Binance generates a wallet address, and you make your payment.
- View Your Transaction History for Conformation
- You’ll find your proof of deposit under the “Funds”> “Deposits/Withdrawals.”
A Step-By-Step Guide to Placing Your First Trade at Binance
After setting up and funding your account, follow this step-by-step guide to placing your first trade on the platform.
- Navigate to the Binance website.
- Click on “Classic” in the Spot tab. On the dashboard, you’ll find the following information:
- Coins – abbreviations, price data, and volume.
- Charts – Displaying the nominated pair you want to trade.
- Sell orders – All sell orders awaiting execution in the order book.
- Buy orders – All buy orders pending execution in the order book.
- Buy a coin.
- Sell a coin.
- Transaction history.
- Switches for order types and margin trading.
- Find the ticker symbol of the coin you want to trade, e.g., Bitcoin = BTC.
- Choose your option to buy the currency
- Buy at market price with instant execution on your order.
- Use a limit order. Your trade executes at a predetermined price set by yourself. Most scalpers and professional traders use limit orders to avoid slippage.
- Click “Buy” to execute the order
- After reaching your price target, sell your holding using the “Sell” widget.
Binance Fees – Are They Affordable?
Binance offers the best fee structure of any exchange. Buying or selling comes with a 0.1% transaction fee, and you can pay in BNB or with any crypto.
What Is the Binance BNB Platform Token? What Can I Use It for On Binance?
Binance operates a digital currency for use specifically on its platform. Binance Coin (BNB) allows you to get discounts on paying for the following transactions on the site.
- Trading Fees (fees for buying and selling crypto)
- Withdrawal Fees
- Listing Fees
When using BNB to pay for these fees, you get a 50% discount on your outstanding amount. That’s a great way to reduce your trading costs and increase your profits. You also have the option of using BNB to invest in ICOs on the Binance platform.
Binance runs a “burn” on its tokens, aiming to reduce the currency’s overall supply by 20% over the next few years. They hope this deflationary effect will spur demand and increase the coin price on the crypto markets.
Binance is a credible, reputable, and legal cryptocurrency exchange. With the highest trading volumes globally and excellent liquidity, the platform is an excellent, user-friendly choice for your trading activities.