If you are wondering how to use Binance, then you have decided to invest in cryptocurrencies. This step is a huge and smart one at that. In this stage of your journey towards trading in cryptocurrencies, you must have a lot of questions.
Everyone who has made it to this stage has some questions burning in their minds. You want to know how to buy and sell digital currencies, the most beneficial cryptocurrency exchange to use, and every other related question. This guide will teach you.
You will learn how to create an account, buy digital assets, sell cryptocurrencies, protect your account, and lots more on the Binance app. This guide is designed to teach you all you need to know about the Binance smart chain and how to use it easily. It is not like any other Binance tutorial with loads of jargon. It is straight to the point and helpful. You will also get some insight into other exchange platforms.
One of the first things you will learn is how Binance came about. Binance is a cryptocurrency exchange that has been around for a while and the digital asset is developing impressively. Binnacle was created in China by Yi He and Zhao, ex-workers at OKCoin exchange. After working at OKCoin exchange for a while, the two Binance spokespeople decided to have their own crypto exchange platform.
In 2017, Binance raised $15 million on Initial Coin Offering, (ICO). The ICO provides a platform for crypto-based businesses to generate funds for their businesses easily. With the ICO system, they do not have to deal with obstacles arising from regulations. Binance could soar without hindrance.
With the ICO system, Binance was able to raise $15 million in 20 days. Within this period, Binance was able to sell 100 million BNB tokens. BNB, which is Binance Coin, is Binance’s cryptocurrency. Given the success of their entire start-up, the creators were able to launch the Binance chain in July of that year.
By September, the Chinese atmosphere was no longer conducive for the Binance smart chain and the creators because the Chinese government banned cryptocurrency trading. Since the company left China, it has been based in Taiwan and Japan. Countries had a more favorable outlook at trading cryptocurrencies. Presently, Binance is situated in Malta.
What is Binance?
Now that you know the history of Binance, let’s discuss what exactly Binance is. Binance is a cryptocurrency exchange. It offers crypto-to-crypto exchange only. What this term means is that you can only trade cryptocurrencies on the exchange platform. The implication is that you will have to buy some cryptocurrency if you want to trade with Binance.
Well, being interested in the Binance smart chain means you already plan to own some crypto coin. Binance has a healthy reputation in the market. Those who use Binance hardly have any issues with it. CoinMarketCap listed Binance as the second biggest exchange the market can boast of at the moment.
On a daily basis, a huge amount of cryptocurrencies are being traded on the platform. It is also a very secure platform with its two factor authentication. The two factor authentication ensures that no one can gain access to your account.
Giving the mouthwatering offers Binance presents to people who trade on it, it is a smart move to learn about it and use Binance. Having known a bit about this exchange platform, you will need to know how to open an account and start trading cryptocurrency. These are the first steps for anyone learning Binance.
Opening an account
Opening an account on Binance is not a difficult task. Looking at it from the outside, you might think that anything crypto-related may require some extra work to understand, however, it is not so.
It is easy to use Binance. With a few instructions and steps, you have opened an account on Binance and started trading. Here is now to open an account on Binance:
Register an account
Like other platforms, the first step to trading on Binance is to register an account. Registering a Binance account is straightforward. You will go to the Binance homepage and click on the option to register.
Step by Step Registration Process
Clicking on this instruction will lead you to the page where you will have to register. Following the instruction, you will have to input your email address and create your password. While creating a password, you will have to input it twice to confirm it.
The third step is to prove that you are not a robot. You do this by completing a puzzle. The puzzle is pretty easy to complete since you are not a robot! When you complete the puzzle, you will receive an email. All you have to do is to click on “Verify Email” to finish up your registration.
Once you pull through with this, you now have a Binance account. You are welcome on board. You sure are excited at the prospect of being a Binance account holder.
However, there is still some work to own your crypto assets. You have to secure your account by setting up 2FA. The two factor authentication will help keep your crypto safe from scams and frauds.
• When setting up your Binance account, ensure to input an email address you have access to. Also, ensure that the email you choose is secure.
• Ensure that your password is strong. To make your password strong, ensure that you use upper case letters, lower case letters, numbers, and special characters.
• You might want to have a referral ID to enjoy some percentage of the commission
Funding an account
Funding your Binance account is not difficult. You can easily add funds from another cryptocurrency exchange. To make it very clear, this guide will use Coinbase and Ethereum to demonstrate how you can send digital currencies. For instance, you have some Ethereum on your Coinbase pro. You want to send the ETH from one exchange to another exchange, that` is Binance.
Coinbase and Ethereum are just examples to make you understand the process better. You can follow the same process to fund your Binance with any digital currency using any exchange.
How it works
Firstly, you will have to go to your Coinbase account. After logging in, you will navigate to Accounts. Then, you will click on the instruction to send where it reads ETH Wallet. With this simple step, you have initiated a transfer and the funding process is underway.
After clicking send, you will receive an instruction to provide a Recipient. The recipient is the address to which the Ethereum will be sent. Since you will be sending the currency to Binance, you will have to provide an Ethereum address from Binance.
What you have to do is to log in to your Binance account and click on Funds. Some options will be dropped down including withdrawals, balances, deposits, and others. You will click on deposit since that is the action you want to carry out at the moment. In case, you come up with login problems, you can access this page.
At this stage, you will have to enter the cryptocurrency you want to deposit. In this example, you will enter Ethereum. Binance will then create an address to which you can send the cryptocurrency. It will create an ETH Deposit Address to which you will send the funds. You will have to copy the address sent. Then, you will go back to your Coinbase account and paste the address in the Recipient box.
After this, you will enter the amount of Etheruem you wish to deposit on your Binance account. Once you enter the amount, you will click Send and it is done! The Etheruem network will process your transaction and deposit the fund in your Binance account.
With the few steps above, you can easily open an account on Binance and fund it within a short time. Having known this, you sure want to start trading on Binance. We are at the point where you have to learn how to trade on Binance.
It is not just knowing Binance. You can also use the Binance ecosystem to trade and make more crypto. Trading on Binance is quite easy if you know the right steps to take. Let’s get right into it!
Trading on Binance
Trading on Binance is by stages. There are two main settings in Binance trading: basic and advanced. As the names imply, beginners usually start trading in the basic setting and graduate to the advanced setting.
The Basic Setting
The basic setting is created to carry the beginner along so that they can trade comfortably without feeling overwhelmed. Although the charts may seem somewhat complicated, you will be able to trade easily with the right steps. The layout is pretty easy for you to grasp in no time.
As a beginner, it is expected that you will start with the basic setting. The first step is to log in to your account. It is easy and straightforward.
On the taskbar, you should select Exchange. From the options, you are given, select Basic. The next step is to select a trading pair. There are several trading pairs that Binance offers you. You can trade Bitcoin with as many as 143 coins. That means Bitcoin has up to 143 trading pairs.
If you are using the Binance website, you are open to up to 143 pairs, that is coins. If you are trading with the BNB coin, you can exchange it for a wide variety of coins.
The Advanced Setting
The advanced setting is meant for experts. Experts can access all the market data and price charts necessary for complex transactions and advanced trading. While trading, you have to decide the kind of trading you want to do.
While trading, you might decide the lowest amount you would want to sell your coins for and the highest amount you would want to buy coins for. This feature is called a limit order. While trading, you may also trade in market orders, that is the current price. This method is best suited for beginners because it is easy and fast to operate. You may also peg your transaction at a certain price; this is referred to as stop-limit orders.
As a beginner, you might not engage in this kind of sales quickly. Most of the time, it is experts who trade with this method. To trade on Binance, you have to click on the Market and input the amount of coin you wish to buy. If you are not okay with the current market price and you want to operate on market orders, you may hold on till the price gets to your desired cost.
However, if you are okay with the current market price, you have to enter the amount you are buying either in terms of percentage or amount. After deciding the amount and imputing it, you have to click the “buy coin” button.
Aside from basic and advanced, Binance has other settings including convert which provides investors and traders with a platform to make conversions. With this setting, you can easily convert your crypto assets from one currency to another one using the current market conversion rate.
If you need to make a conversion, this is the feature to use. Other settings include margin trading and P2P. While trading, you should note that there is a trading fee for every transaction you make. These trading fees are there for a reason.
Let’s look into why Binance takes some part of your crypto for trading fees.
Binance trading fees
In Binance, every transaction has a fee. Although you do not pay for a deposit as a user, you will pay for every trade including buying and selling. Not to worry about this trading fee though. Trading fees on Binance are cheap compared to some other cryptocurrency exchanges.
Binance charges 0.1% of every transaction you make both buying and selling. One interesting thing about Binance is that with every transaction made with Binance Coin (BNB), you will get a 50% discount on the trading fees.
Withdrawal from Binance
Now that you know Binance, you ought also to know how to withdraw from it. Perhaps you have started trading on the platform and your investment has increased in value and it is time for you to cash out. You can withdraw in several ways including with a credit card.
Perhaps you acquire a cold wallet and you need to make some transfers to it. A cold wallet is somewhat safer because the chances of internet hacking are not there and the possibility of someone getting access to your funds is slim. Whatever the reason, you should also know how to take your crypto from Binance. Withdrawing funds from your Binance account is quite easy.
Step by Step Withdrawal Process
Here are the simple steps to complete a withdrawal. To start with, go to “Wallet” on your dashboard and click on “Fiat and Spot”. This command will lead you to the page where you can see the assets you have. Then click on the currency, fiat or crypto, you want to withdraw. For Fiat, impute the required details and the amount and click on “Submit”.
If you are withdrawing crypto, you have to provide the address to the recipient’s wallet and submit it. While inputting the details, make sure that you do not make mistakes like inputting the wrong wallet address, the wrong amount, and incorrect details generally. Withdrawal costs some fees.
Binance Withdrawal Fee
On Binance, there are no fixed withdrawal fees, unlike the trading fee that is capped. Binance charges different amounts for each cryptocurrency. If you are withdrawing Ethereum, the exchange will charge you 0.01 ETH whereas, for Ripple, it is 0.25 XRP.
Why Binance is a Great Choice
Before making the commitment to trade with a platform, every investor and trader wants to know why that platform is the right choice amongst others. This question is even bigger than knowing Binance. There are several cryptocurrency exchanges but some stand out from the others.
Binance happens to be one of those exchanges that stand out. Binance and Coinbase have enjoyed a healthy reputation for being the top choices of cryptocurrency exchanges for any trader both new and experienced. This fact is not without reasons.
Binance is a great choice because of the following reasons;
Binance is secured
Binance is a cryptocurrency exchange that has impressive security features like a strong Know Your Customer (KYC) policy. Before you can make withdrawals, you have to submit your details such as name, gender, date of birth, gender, and so on. For US residents, they have to impute their social security number.
This step is the basic verification if you want to withdraw about $5,000 and below daily. However, for withdrawals up to $1 million, you have to do an advanced verification that requires the same details as the basic verification but with the addition of proof of your address, that is utility bill or an alternative, and your ID which can be a green card or an acceptable alternative. One way to ensure the security of your account is by setting up a Two factor Authentication (2FA).
Binance takes the initiative to ensure the security of your account. Once you create your account, they will prompt you to create a 2FA. The two factor authentication ensures that your account is safe even if your username and password are compromised. If Binance suspects fraudulent activities on your account, the 2FA will be necessary to keep your account safe. If you forget your password, the two factor authentication will come in handy in helping you access your account. You can use it to get back in.
The Types of Two Factor Authentication
There are four 2FAs on Binance. They include a security key, email address, SMS authenticator, and Google authenticator.
The Google authenticator, as well as the others, is easy to set up. First of all, you need to download the Google Authenticator app on your device. Then you just need to log in to your account and go to the dashboard where you will select “Security”. This will lead you to a page where you will see the 2FA section.
You will click on “On” to initiate the Google authentication procedure. If you do not have the Google Authentication app, you will be redirected to a tab where you can download the app and install it. Once you start the authentication, you will need to scan the QR code you will be given and note the key provided as well.
The key is your only access to your authenticator if anything should happen to your device. You will need to back up your key for safety reasons. After this, you will activate the authenticator by providing the 6-digit code you are given via mail or text depending on the method with which you have chosen to enable it on your account. After the activation, you will need to click on “Submit” to wrap up the whole process and your account has been successfully secured.
Binance has a wide array of supported coins
Binance is known to offer the largest number of supported coins and pairs unlike some other cryptocurrency exchanges. Binance boasts of supporting over 200 coins and a large number of pairs. Its US arm supports over 41 different coins. It is one of the reasons why Binance has an international reputation for commanding the market. Key
Terms in Binance Trading
Whatever level you are in crypto trading, there are chances you can make a profit and you lose out on a great scale. The thing is, you are open to succeeding and also open to failing. What keeps you positive is that you can make the right move if you are a guide. There are key terms to note when trading cryptocurrencies on Binance. Understanding these terms will keep you informed and guided.
Fear Of Missing Out (FOMO)
The fear of missing out is a state where investors panic that they might miss out on the opportunity of making a profit in the market. This FOMO drives them to buy assets to secure their place in the list of people who are making huge profits. These investors may even buy assets from different sellers just to ensure that they make much profit.
The FOMO can lead to a hike in price. The investors’ transactions with assets can lead to a bull market. FOMO arises out of strong emotions that can move the market. These situations can alter the usual trend and order of things in the market. If the crowd goes with the current movement, the market order has successfully changed.
Traders who try to counter-trade the trend might find it difficult to plant their feet on the ground. This is because the majority of people transacting on the platform also have FOMO because of the impact the investors with FOMO have made on the market and its trends.
HODL is a misspelled version of “hold”. HODLing means holding on to investment even if the price changes. Usually, if the price of an asset drops, some investors might be moved to sell-off. However, for some investors who find short-term trading not so appealing, keeping a hold on their investment is a great move for them.
One reason why some investors hold on to their assets is that they have reposed great confidence in crypto and hope that it will fetch them more profit in times to come. If their conviction in the performance of the crypto is high, they may hold on to it for a longer time. This strategy of HODLing onto investment is similar to the traditional buy and hold strategy. This is where investors source for assets that are not doing so well and hold on to them.
These investors intend to keep these underestimated assets in the hope for when their performance will improve and they will be in the center of attraction again. Investors have applied this HODLing strategy to Bitcoin a lot. People who bought BTC some years ago now value it several times more than the original price. If you decide to trade today, you might want to apply the same strategy where you think it will pay you off. An apt study of the market will convince you on what action to take while trading.
BUIDL is derived from HODL. It refers to investors who continue building on their investment regardless of the volatility of the cryptocurrency. These investors are not concerned about the fluctuations of prices and the possibility of the asset losing value.
What this implies is that there are some people who are rooting for the good and progress of digital assets and blockchain irrespective of the unstable nature of the prices. When blockchain and cryptos made their way to the market, some people were skeptical of these developments. However, there are investors who are optimistic about the market and the performance of crypto in the market despite whatever is the trend at any time.
BUIDL is a thing of the mind. BUIDLers are telling the world that trading cryptocurrencies and blockchain are not just speculations but technological solutions that are meant to benefit the masses greatly. These investors are building people’s faith in digital currencies. One motivation for BUIDLers is the notion that BUIDLing your investment over the years will yield great dividends in time to come. In the digital currency space, some people believe that investors who invest with the long term in mind are likely to do better eventually.
Fraud, Uncertainty, and Doubt (FUD)
FUD is not a marketing term but it is used in the financial market. It is a term that is used to deprive people of patronizing a particular company. These terms are used when people spread fake news about a company to discredit it to their advantage. If a company falls short in terms of sales and they are at a loss, some other company might capitalize on that to spread fearful rumors about them.
This is a strategy some people use to buy people’s hearts for their company at the expense of some other company. It is meant to spread fear and uncertainty in the minds of traders so that they doubt the credibility of this company. In the cryptocurrency world, FUD is common. Some investors might short sell an asset in hopes that its price will decline and they will buy it again to make a profit.
These investors might spread fearful information about a company to benefit from the resulting misfortune. The harmful information about the company might make people doubtful of their authority in the market and withdraw from them. People who short sell within this period will make a profit. Now that you are in the crypto space, you need to be properly guided when arguments arise.
Sometimes, the information on the company turns out to be false. They are schemes to pull the company down so that when there is a decline they will make gains from it. However, there are times when the information is true. This is why it is essential to do your homework before buying into any information. Also, do not take every information hook, line, and sinker.
Secure Asset Funds for Users (SAFU)
Secure Asset Funds for Users is a term that originated from a statement by Binance’s CEO Changpeng Zhao when there was unscheduled maintenance on the platform that got people worried. Changpeng Zhao made a reassuring statement saying that “funds are safe” to keep investors’ minds at rest. Bizonaci made a meme that had this statement in it. Within a short while, the video became viral, making it to every corner of the cryptocurrency world.
Perhaps you have heard of the statement “funds are safu”? This is how it came about. SAFU came up as a result of this statement. Binance established SAFU to cater to losses that might arise from extreme situations. This fund is a kind of insurance that is meant to provide emergency relief in cases of loss.
SAFU is kept in a separate wallet that is kept safe offline, that is, in a cold wallet. This wallet is safe from internet hacking. 10% of the trading fees goes into funding SAFU. If there is a loss, these funds can cover the loss. SAFU is a great step ahead in securing traders’ investments. If you are using Binance, this is an added advantage for you. It is one of the reasons why people chose to use Binance; it is safe.
Return On Investment (ROI)
Return on Investment is a way of calculating or measuring the benefits of an investment. You get to know how beneficial investment is if you can calculate the ROI. ROI calculates the return you get on an investment relative to the cost of the investment.
If you compare the amount your investment is worth after some time and the amount you spent acquiring it, you will arrive at your ROI. This calculation is only possible if you know how to calculate the ROI.
It is not difficult. What you are doing is simply to calculate with subtraction and division. You will put down the current worth of your investment. Then, you will subtract the amount of the investment cost you originally.
This calculation will give you a figure. You will then divide the resultant figure by the original cost of the investment. The formula is simple: ROI= Current Investment Value – Original Investment Cost / Original Investment Cost.
To foreground your understanding of this formula, take these figures as an example. You buy Bitcoin for $5,000. Then at the moment, Bitcoin costs $7,000 in the market. To calculate your ROI, you will have to subtract $5,000 from $7,000 to get $2,000. Then you will divide $2,000 with $5,000. That is, ROI = $7,000 – $5,000 / $5,000 ROI = 0.4 What this implies is that you have improved in your investment and it is worth more with 40%. This mathematics will tell you the amount of progress you have made and the speed with which you made this progress.
However, you will have to subtract the interest rate or trading fees before you can arrive at an accurate figure and percentage. One major advantage of ROI is that it gives you a platform for comparing Investments. Knowing the ROI for each Investment will tell you which one has paid more and which is slow in growth.
However, when comparing investments, you have to take note of the time, risks, and other factors that will influence the ROI. In other words, the ROI is not the only yardstick for measuring the performance of your investment, although it can give you a clear picture of the whole thing.
All-Time High (ATH)
The All-Time High is the highest price crypto has sold for up till the present moment. Cryptocurrency is volatile meaning that the price fluctuates. The price is not stable therefore it might hit high and as well hit low. The highest price a coin sells for at any time is its ATH.
On a particular market pair, you can decipher the highest price an asset has sold for up till the time of evaluation. If an asset stays for a long time on the best market, that is its price has been on the decline for a long time, people may want to exit it. When they get to the Break Even Point, (BEP), they may want to sell off rather than falling into losses. The case with a token attaining an ATH is the notion that every investor who buys the asset makes a profit.
There are situations where the crypto breaches the All-Time High. One factor that may contribute to this is when trading volume skyrockets. This increase in trading volume may be because someday traders may make market orders to gain profit very fast. That is, they will buy and sell cryptocurrency at a higher rate to make more profit. In this situation, the price goes up but it may get to a point where investors will come up with a limit order at some price levels. They usually intervene like this if records have it that All-Time High is breached consistently.
If prices skyrocket like this, it may end up with a sharp drop in price. This point is often because investors are eager to exit the market once they know that the upward movement may soon come to an end and the price will drop. The drop after some uptrend is usually sharp. The price drop may be devastating for some investors. To avoid getting hurt in cases like this, it is advisable to protect yourself with a stop loss. You should also know how to manage risk. Binance has all the tools to help you in these situations.
All-Time Low (ATL)
This term is the opposite of the All-Time High. The All-Time Low is the lowest price an asset has ever sold for. You can decipher the ATL of an asset on a particular market pair. While a breach in the ATH can lead to a sharp upward movement of the price, a breach in the ATL can lead to a sharp drop in price.
Investors can also initial stop orders to call the situation to order. When an asset hits an ATL and the ATL is breached, it is not advisable to buy the asset at this time. It is not a safe investment move because the price may keep going down. It is advisable to wait for an indicator of better prices before making an investment move. An indicator is meant to guide you in the right decision to take or the right move to make using present data as a guiding tool. If you buy an asset at the time when it hits an ATL, you might be trapped in a position where you have to hold on while the price drifts lower.
Anti-Money Laundering (AML)
In the cryptocurrency space, some people are out there as scammers. It is the reason why Binance has all those security features to protect you. Some people might be there to deceive people into believing that they earn so much by disguising their illegal money as legal. They may obtain money illegitimately and pretend to earn it legally. Having noticed this, some laws and procedures have been put in place to regulate the whole system so that people cannot hide their fraudulently gained money in the system.
Binance has also put these systems in place. The aim is to make it impossible for criminals to hide their sources of income in the legitimate system. Tracing the true source of funds in a particular account might be tedious and time-consuming because of the procedures in place. In the financial market, it is not easy to trace funds as such but this is not impossible.
These regulations and procedures may include requiring that banks monitor transactions in their customers’ accounts. That way, they will be able to take note of suspicious activities and take the necessary steps. This measure is meant to make it tedious for criminals to launder their criminally earned money.
Know your Customer/Client (KYC)
Know Your Customer (KYC) is a part of the Anti Money Laundering (AML) policy. KYC is a policy that ensures that financial institutions verify the identity of their customers. It is meant to reduce the possibility of money laundering. Every state and region might have regulations and procedures that are binding on trading platforms and financial institutions.
Due Diligence (DU)
Due Diligence is the assessment and investigation a business or an individual investor ought to make before going into an agreement with another business or individual investor. Making a thorough investigation and taking good care of your investment when entering into an agreement with another partner is necessary for safety. Before going into agreement with any company, it is essential to look out for any possible red flag and take care of it before striking a deal.
Every business venture might have a risk factor. But, cutting this down and tidying up every loose end is essential for having a smooth ride in the deal. Every business agreement might have potential business risks and expected benefits. If the risks are worth taking, and if the benefits are more than the risks, then you might want to carry on with the plans and have an agreement with the partner.
Before you invest in any crypto, you ought to be aware of the risks and benefits. If you can handle the risk, then you can invest in the asset. You have to take your time to study the market and the performance of the particular asset you want to invest in. With your homework properly done, you can fully own your decisions and not do anything out of guesswork or as an imitation of another investor.
Do Your Own Research (DYOR)
This term is self-explanatory. It is similar to Due Diligence (DU). It is a term that enjoins investors to do their own research. It advises you to do your homework rather than relying on other investors to make research for you. It also advises you to make your moves based on your own convictions rather than relying on someone else’s decisions to inform yours.
One phrase that is similar to it is “Don’t trust, verify”. To succeed in the financial market, you have to be able to make your own decisions based on your findings and observation. You have to study the market and the trend of prices and all and then use these reliable data to make your decisions. In other words, it is advisable for you to have a strategy with which you make your investment and trade.
Your strategy may differ from that of other investors. In fact, investors may have some differences that may lead to some arguments. This should not bother you, it is a part of trading. Different investors have different strategies with which they approach the market depending on what they think will work for them to what has worked for them over the years. While some investors have a bearish approach towards an asset, some other investors may be bullish.
While trading, your instincts may guide you towards making some decision that some other investor would not make. Another factor that determines your decision is your experience in the market so far. Although you will consider the present data, with experience, you might be able to tell the movements of an asset or price in the market.
Since your experiences and ways of evaluating a situation may be different, your decision may differ from that of another investor. This is okay. What matters and is safe is that you make your own decisions from the results of your investigations and assessments.
Tips on Trading on Binance
Now that you know how to open a Binance account, fund your account, and withdraw, you should know some tips on trading on the platform. There is more to knowing how to trade. It is not enough to know the trading procedures, you ought to be properly guided. Mistakes are expensive and we want to avoid them as much as possible.
Here are some tips on trading on Binance
Ensure that you are safe
Like everything else, there are some things to consider when trading on Binance. When it comes to financial issues, caution is essential and not negotiable. In the cryptocurrency space, there is a need for one to be careful whether you are buying or selling. While the exchange does its part in being careful, you the trader ought to be careful too when trading. Some criminals are crawling on the web seeking unsuspecting victims. Some people will try to get your details to use it against you.
If you are not careful, you will be an easy target for scammers. There are some steps you can take to keep yourself safe while trading. You have to be security-conscious when trading on Binance. To be secure when using the Binance platform, ensure that you observe the following steps:
First, always access your account via the official website. You can log in through Binance.com rather than other links. It is not safe to access the website through an ad as well. Also, ensure to bookmark the page for easy reference.
Second, you ought to have access to the authenticator app. Download it and use the 2-step verification. Another step to ensure security is to create a unique and strong password. Also, do not share your password with anyone else. It is not even advisable to share your password with the helpdesk.
Be motivated to trade
Of course, you are reading this post because you are motivated to go into the cryptocurrency world. However, you need some motivation to keep you going and trade often. There are chances of making a profit and losing out because the market is volatile. The crypto space is designed to pay one person while some other person might lose.
There are times when it is safe and wise to trade but sometimes, you just have to study the market and wait patiently for the perfect time. Some people are seen as whales in the crypto world playing. These suspects are usually targeting unsuspecting and new traders.
With a single wrong step, you could have jeopardized your investment. You ought to be careful of sellers and buyers who take advantage of innocent people. Not all trades are good for you. In fact, you might be better off not trading than securing great losses. This is where doing your homework comes in handy.
Use stop losses and profit targets
If there is one thing you have to know while trading, it is the time to pull out and the time to invest more. If the market price is moving to a point where it threatens your profit, you might want to take the necessary action to secure your gains. If you have a stop loss in place, you will be able to make the best of the situation.
Stop losses are essential in trading in assets because these assets are volatile. They fluctuate and it makes it difficult to predict the market trend and expect a 100% match with your predictions. So, you must do your homework and take the necessary actions.
A stop-loss is still essential to help you out of a market situation that you might not otherwise be able to get out of without suffering a great loss. When setting a stop loss, it is advisable to set it at least at the cost of your investment. If, for instance, you acquire your asset at $2,000, it is advisable to set that same amount as your stop loss.
If you wish, you might set your stop loss at a slightly higher value than your original cost of Investment. The intention here is to make at least your investment fund back if anything happens and you have to sell off. When you are setting your profit target, you might want to keep to the same strategy. You might want to set a minimum profit level and be true to it.
If the market threatens to become unprofitable, you have some profit to hold on to as your gains. Always keep your emotions in check. Anything that has to do with money is a reason for one to be careful. When trading, ensure that you are not led by your emotions. One reason why investors fail in the crypto world is the Fear Of Missing Out, FOMO. When you feel compelled to make some transactions, you might make some moves you will not appreciate later on.
Some people benefit from FOMO. They buy at low prices and sell to investors who are willing to get involved. And after the rush when the asset starts declining in value, a loss is already on the way. It is best to avoid FOMO and make your decision after careful consideration. You should trade for the right reasons rather than FOMO.
Be careful with ICOs
Initial Coin Offering (ICO) offers investors the opportunity to get tokens for a lesser price with the promise of them selling the assets at higher prices. Records have shown that investors have made more profits than the projected value as promised.
However, there are also instances where the ICO was actually a scam. While many investors have benefited from the system, others have lost millions to scammers as well. Before you commit yourself to any investment, it is advisable to look beyond the projected returns and focus on your safety first.
You should take into consideration all the necessary factors and look out for warning signs. It is essential to consider the ability of the team to deliver. Carry out a background check on the group initiating the project. Look out for their works and reputation. Also, check out the viability of their project and promises.
If you do your homework thoroughly, you will find a reason to continue or discontinue with the investment. You should be inquisitive and ask every necessary question. If you have any doubt, seek to find satisfactory answers for it. You may act depending on whether or not you are convinced to go ahead with the investment.
Be good at risk management
In the crypto space, you need to be good at managing your risks well. Risk management will help you avoid massive loss. When trading, you should not be carried away by small wins to make big commitments that will hurt you.
Going after great gains is not essentially the right way to go about this trading thing. It is safer to accumulate gains gradually rather than looking for a great leap to great wealth. This happens but be cautious.
One good way to manage your risk is to use stop losses and profit targets. Also, ensure to do your homework diligently. If you are entering into any transaction, ensure that you are satisfied with the terms and are sure that the benefits outweigh the risks involved.
The market condition is volatile There is no fixed price for any asset. Anyone who has been trading in cryptocurrencies for a while knows that the value of currencies may be high today and somewhat low tomorrow. The fluctuations are not strictly predictable. If the market is too volatile and you are not sure of any move, it is better not to trade at all. Not trading is better than trading and running at a loss.
Consider the market cap
When deciding to buy an asset, it is advisable to consider the market cap rather than its current price. If you chose to buy a particular asset because it is affordable at the moment, you might run into issues later on. It is advisable to go for a token with a high market price. The higher the market prices, the better and safer it is to invest in it.
Diversify your investment
The financial market is not predictable. An asset can do well today and crash tomorrow. It is that volatile. Several economic situations and regulations can impact them.
As such, you might lose everything you’ve profited within the space of a second. In cryptocurrency trading, the market is both ways, you can make huge profits and hit it really big. At the same, the possibility of you losing really big is also high.
The smart way to protect yourself and your investment is to diversify. You should diversify your investment to other kinds of assets aside from the leveraged token. This is because the performance of Bitcoin influences the performance of the other coins in the market. What this implies is that if Bitcoin increases or decreases in value against the Dollar, other cryptocurrencies follow suit.
Therefore, it is advisable for you to invest in other kinds of assets like stocks, real estate, mutual funds, and more. If one investment falls short of your expectations and performs poorly, you can fall back on the other ones.
Is Binance good for beginners?
Perhaps, you still want to know if Binance is great for beginners? Well, the short answer is yes. When you are new to financial trading, it is easy to slip into worry mode. You might be asking a lot of silent questions like will I make it on Binance? Will Binance be worth it? What if it is too difficult for me and lots more.
Do not worry, Binance is a smart choice for a beginner for a number of reasons including the fact that: Binance has a healthy reputation If you are new to financial trading, it is advisable to make inquiries and ask a lot of questions. It is better to go with what people who trade cryptocurrency speak well of if you are aspiring to trade cryptocurrency yourself.
This does not rule out the place of your personal homework but it gives you a kind of assurance that you are in the right place or that you are making the right choice. Giving the healthy reputation of Binance in the few years it has been in the crypto world, you are safe to trade on Binance. Binance is not the first cryptocurrency exchange platform. However, it has performed handsomely since its entrance into the market.
Binance is beginner friendly
For one thing, Binance is easy for beginners to use. Its basic setting is tailored to suit the pace and attend to the needs of beginners. If you are starting out newly, using Binance is advisable because it makes you trade perfectly without being overwhelmed. Although the basics are not so basic, with a guide like this, you are well off. If you have enough trading experience in the basic setting, moving on to advanced trading will be way easier.
Binance charges low fees
Compared to other exchanges, Binance charges low fees for trading on the platform. With a charge of 0.1% on your transactions, you have a fair deal. Also, trading with BNB earns you some impressive discounts. When it comes to digital assets, low fees are an advantage people cherish.
Binance’s P2Pplatform is great
Binance cryptocurrency exchange might not be the only platform with a P2P offer but it does make it unique. Binance has a P2P offer that allows users to trade among themselves using fiat. They can make the transaction offline and do the confirmation online.
How do you convert Binance to cash?
While it is a great venture to buy crypto, there are times when you need to sell crypto to have some cash. You may not wait till the set time to withdraw your Binance.
Buy Sell Crypto Page
Binance Cash Gateway has an easy, beginner-friendly and fast way for you to convert your Bitcoin to Euro, dollars and other fiat currencies. This platform offers you an opportunity to buy a token with your regular cash and as well sell it to get a fiat currency back. You can also acquire the BNB token here. Binance has an innovative platform that caters to your cash-crypto needs as well as your crypto-cash preferences.
Trade your bitcoin for fiat and withdraw from your account
Another way you can convert your Binance to cash is to trade your cryptocurrency for fiat by withdrawing it from your account. Binance dex is a world-leading exchange for several reasons including its interesting offers. On Binance, you can store fiat currencies like the Australian Dollar, Euro, British Pounds, and others. To convert your Bitcoin into any of the fiat currencies, you have to sell your Bitcoin in the trading pair that corresponds to it and withdraw the fiat currency that you made from the transaction.
Binance P2P Trading Platform
The Binance P2P platform offers you an option to trade with other Binance users easily. You can buy and sell Bitcoin to other users. Other traders and investors on the platform will have offers that might catch your attention.
The P2P platform is great for a number of reasons. For one thing, there are no transaction fees involved. Whatever fiat-crypto transaction you make on the platform, there are no charges involved. Also, whatever offer is posted on the platform does not attract a fee.
Another great side to the P2P option is the flexible payment method. You can decide how you would want to receive your payment. You have up to 150 payment methods to explore. You may decide to go with bank transfer, credit card, PayPal, multiple e-wallet, cash, or however else is suitable for you.
Also, with the P2P option, you can transact with any of the supported cryptocurrency at whatever price you like. You can make transactions from the offers on ground. If you want, you can also advertise your preferred prices.
The P2P platform is secure and private. It is created to maintain your privacy. Whatever transaction you make, whether as a buyer or a seller, the P2P exchange does not collect information about you. This factor is what makes it different from other transactions like bank transfer and those involving credit cards.
You can make crypto-fiat transactions without involving your online wallet or bank account. What this implies is that you can buy Bitcoin from other users with your cash without giving out your information
The Binance future looks very bright and you definitely want to be a part of it. This guide shows you every aspect of crypto trading including how to create an account, fund it, make withdrawals, and every other necessary step in trading. It also provides you with the necessary information on how to convert your cryptocurrency to cash easily.
Binance is a great trading platform for crypto but the Binance API can be confusing. It is why this guide has sections on the key terms to note while trading and the tips to do it right. You can’t go wrong with this guide.