Binance Exchange: A Complete Beginner’s Guide

The cryptocurrency industry is one of the fastest growing industries in the world today. And as more cryptocurrencies enter the markets, more crypto exchange platforms are being set up for trading these cryptos. As a beginner in the crypto space, it can be confusing to decide which exchange to use.

Every exchange serves a specific group of investors. While some are designed for beginner traders, others are created for experts. For this reason, it’s important to understand the purpose of an exchange when deciding on the one to use.  

In this article, we will give you a complete overview of one of the largest exchanges in the world – Binance. Reading this Binance exchange review and guide will help you decide if you can use Binance for your cryptocurrency trading activities.

What is Binance Exchange?

Binance is a Malta-based cryptocurrency exchange that was established in 2017. Binance actually started its operation in China but had to relocate due to the strict crypto regulations in the country. At the time of writing, Binance is the world’s second largest cryptocurrency exchange. The exchange gained a lot of popularity in the crypto space within one year because of many reasons which include low trading fees, support for many new coins, multiple languages among others.

Pros

  • Over 100 cryptocurrencies available for trading
  • Multiple languages
  • Low trading fees compared to other exchanges
  • Easy verification system
  • A relatively active Support team
  • Safe and secure

Cons

  • No fiat deposit, withdrawal or trading

How to Open a Binance Trading Account

Creating a Binance account is quite easy and takes just a few minutes. Follow these steps to open your Binance trading account.

Step 1. Visit the Binance official website

Click here to go Binance official website in order to create your account. This will take you to a new window where you can start the account creation process so that you can still go through this guide. Remember to bookmark the Binance website to avoid falling victim to a phishing attack. Always double check and triple check the URL for the SSL certificate before you proceed at any time. The official website is www.binance.com

When you get to the website, click on create account or register.

Step 2. Complete the form

Enter your email address and password. A confirmation email will be sent to your email address. Verify your email, then log in to move to the next step.

Step 3. Risk Notice

Once you log in, a risk notice containing some security tips will pop up on your screen. Tick them and continue to the next step.

Step 4. Enable 2-Factor Authentication (2FA) For Your Account

Another pop up will display on your screen asking you to enable the 2FA for your account. This is an extra security feature to keep your account safe. You can skip this step, but we strongly encourage you to complete it before proceeding. You can either use Google Authenticator or SMS Authentication.  If you decide to use Google Authenticator, then you have to install the Google Authenticator app to be able to scan the QR or preferably enter the secret key. After that, you will receive a google code which changes every minute.

But if you want an SMS Authentication, then enter your mobile number to receive the authentication code.

Once you complete this step, your account has been successfully created and ready for use.

How to Deposit and Withdraw on Binance Exchange

Before you can start trading at Binance, you need to deposit some funds. Note that Binance exchange does not support fiat deposit and withdrawal. The exchange deals strictly on cryptocurrencies. Use the fund menu to make a deposit, withdrawal, or to check balances and transaction history.

For deposit, you have to enter a keyword of coin or token you will like to deposit on the search box.

In our example, we want to deposit Ethereum (ETH). A wallet address will be generated automatically. This is the address you will send your ETH to or whatever cryptocurrency you selected. Any cryptocurrency that is sent to this address will appear on your Binance account.

For withdrawal, enter the coin/token you want to withdraw on the search box.  Enter the wallet address you want to use to receive the withdrawal.

Tip – Use copy and paste, and always double check and triple check the receiving wallet address.

How to Trade on Binance Exchange

You can start trading on Binance exchange after you have successfully deposited funds into your account. Next is to select an interface. Under “Exchange” click on “Basic” or “Advance.” We will use the Basic view for this guide.

Remember we deposited ETH and now we want to trade it for Monero (XMR). Select the cryptocurrency you deposited from the list of where you see BTC, ETH, BNB, and USDT. Then select the XMR/ETH pair from the options available at the right side of the screen.  You can use the search box to search for the currency code. See the image below.

Just below the graph you will see the order book (the green Buy XMR and red Sell XMR section)

To trade, there are three options available on Binance exchange – “Limit, Market, and Stop Limit.” The limit option allows you to enter an exact buying price (recommended for experienced, short-term traders) while the Market option gives you the best current price in the market. The Stop Limit is for more advanced traders, and it allows to set a “stop loss,” or a “stop buy order.”

We are going to use the Market option. So input the amount of cryptocurrency you would like to purchase. In our example, we entered 25 XMR. You can also use a percentage of Binance balance if you want. For instance, if you initially funded your Binance account with 0.05 ETH; you can decide to use 25%, 75% or 100% of this balance to purchase the XRM.

After you have entered the amount or percentage, click on the green Buy XRM icon to proceed with your order, and it will be processed within a few seconds.

You can now decide to withdraw your newly purchased cryptocurrency to an external wallet.

Binance Coin (BNB)

There is another exciting thing about Binance exchange – its native cryptocurrency called the Binance Coin (BNB). Binance created the BNB as part of its plans for building a decentralized exchange in the future, but for now, the BNB serve as an optional method of paying for trading fees.

BNB also serve as an investment tool (Binance Launchpad). It is used to invest in ICO projects on the Binance platform. These ICOs will be listed on Binance after their ICO period.

Using the Binance coins attract some discounts. In the first year of using Binance, you will receive a 50% discount, a 25% discount in the second year, a 12.5% discount for the third year, and a 6.25% discount in the fourth year.

Final Thoughts

That’s it! Trading with Binance exchange is reasonably straightforward and quick too. Although the exchange is still new in the industry, its services are very satisfactory to many users out there. With a full list of different cryptocurrencies, you can buy and sell your favorite cryptos.

Binance’s security strength, ease of use, active support team, and low trading fees are some of the many reasons why most traders love using the exchange for trading activities.

Happy trading on Binance!

 

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