Binance for Beginners
Our comprehensive Binance beginners’ guide covers all aspects of trading cryptocurrency on one of the biggest exchanges, from account setup to withdrawals.
Takeaways: • Because of it’s basic and advanced trading platforms, Binance is the go-to trading platform for both beginners and advanced traders • Binance can be used to buy and sell cryptocurrencies in both a browser based version and an app. • There are multiple ways to trade cryptocurrencies on the Binance exchange, which also enables you to cash out crypto assets or use fiat currencies to purchase new digital assets.
Binance is comfortably the world’s most popular cryptocurrency exchange. According to our Binance exchange page, its daily trading volumes now surpass $30bn worth of transactions. The name Binance is a fusion of the words ‘finance’ and ‘binary’. The exchange was originally unveiled in China, founded by Changpeng Zhao and Yi He – the latter of which is one of the most successful female blockchain entrepreneurs on the planet.
Since its launch in 2017, Binance has developed a reputation as to the go-to exchange for both beginner and experienced cryptocurrency traders. That’s thanks largely to its basic and advanced trading platforms built for newbie and seasoned crypto investors alike. If you’re thinking of trading cryptocurrency with a Binance account, read on for our detailed Binance beginners guide to get you started.
What is Binance?
Binance is a world leading cryptocurrency exchange whose origins lie in China. However, when the government of the People’s Republic of China opted to outlaw cryptocurrency trading, Binance sought to move its premises, with headquarters in Taiwan, Japan and latterly Malta. Since moving out of China, Binance has developed a truly global user base, with crypto traders in more than 180 nations opening accounts here.
During its infancy, Binance was an exclusively crypto-to-crypto exchange. This meant its users could only sell a cryptocurrency in exchange for another cryptocurrency. More recently Binance unveiled its ‘Fiat Gateway’, permitting fiat-to-crypto transactions in 15 different currencies through its partnership with Etana Custody.
With a Binance account, cryptocurrency traders have access to an almost limitless selection of trading pairs, all of which offer maximum liquidity. Although the majority of crypto-to-crypto trading pairs are traded against the value of Bitcoin, Binance also offers trading pairs against other popular altcoins. This includes Ethereum, Ripple XRP and the USDT Tether stablecoin pegged to the US dollar. The ‘Fiat Gateway’ has also enabled a select cluster of fiat-to-crypto trading pairs too.
How to use Binance
There are multiple ways to use the Binance exchange to buy and sell cryptocurrencies. You can choose the browser-based version to trade cryptocurrencies using your preferred web browser on your desktop or laptop. Binance also offers downloadable software for Windows and Mac computers. Alternatively, you can download the native Binance app for iOS and Android mobile devices and trade cryptos on the go.
Many suggest steering clear of the browser-based version of Binance due to the lag incurred during periods of particularly high liquidity.
Can you trade cryptocurrency with Binance in the US?
Historically, Binance has been off-limits to US-based cryptocurrency investors. Binance opted to reject US-based users in 2019. Subsequently Binance took the decision to launch Binance.US – a US-exclusive version of the Binance platform. The Binance.US platform is available in all parts of the US except the following states – Hawaii, Idaho, Connecticut, New York, Texas, Louisiana and Vermont.
Binance.US does support the trading of Bitcoin, as well as 50+ altcoins. Crypto trading pairs are available, while Binance.US users can earn staking rewards for certain crypto assets. Margin or futures crypto trading is still not permitted.
How to create and verify a new Binance account
If you are interested in creating a Binance account for the first time, follow these simple instructions to open and verify your account so that you can begin trading cryptocurrencies on the world’s biggest exchange:
How to fund your Binance account
First and foremost, it’s now possible to deposit fiat currencies into your Binance account. The platform now supports up to 50 fiat currencies, with users permitted to deposit using direct bank transfer, debit card or credit card. The majority of fiat deposit methods are free and users are generally able to trade cryptocurrencies with their fiat deposits within 24 hours of their initial transaction.
It’s rather more complex for those wishing to deposit existing crypto assets into their Binance account. All Binance users can create a Binance Chain Wallet that links crypto assets directly from Binance.com accounts.
Let’s say that you wanted to deposit Bitcoin from an existing cryptocurrency wallet to your new Binance wallet, ready for trading on the Binance exchange. You would need to locate your Binance wallet address first. Think of this like your wallet’s bank account and sort code details rolled into one private key. If you are moving your Bitcoin from a wallet like Coinbase, you would need to carefully copy and paste your Binance Chain Wallet address into Coinbase, set the amount of Bitcoin you wish to deposit, choose the correct protocol for validating the transaction and complete the transaction. Be sure to set the right protocol as failure to do so could lead to you losing your crypto assets.
Crypto trading on Binance for beginners
If you are looking to trade the price of cryptocurrencies on the Binance exchange, there are multiple ways to do so. When you hover over the ‘Trade’ button on the navigation menu, you’ll see five different options:
• Convert The most rudimentary way to trade a cryptocurrency pair, with the ability to select assets to exchange in a simple drop-down menu.
• Classic The most popular form of cryptocurrency trading, containing an intuitive trading interface with common candlestick trading charts and the ability to monitor the order book of any crypto pair.
• Advanced Designed for those most experienced and familiar with cryptocurrency trading, Binance’s Advanced trading platform offers a full array of trading tools akin to an advanced forex trading platform.
• Margin Binance also offers leveraged trading on certain cryptocurrency pairs. For example, the BTC/USDT pair offers up to 10x leverage. Leverage means you can maximise your profits ten-fold whilst only investing 10% of the total value of the trade upfront. The risks with margin trading are that leverage also magnifies losses ten-fold as well as profitable positions.
• P2P Peer-to-Peer exchange of cryptocurrencies can be made through Binance’s P2P portal, with the ability to trade crypto assets with others on your terms.
The ‘Convert’ option is best for complete novices to crypto trading. All you need to do is pick the cryptocurrency pair you wish to trade from a drop-down menu. Fiat currencies are also included on the menu if you wish to cash out a crypto asset or purchase new crypto assets with fiat currency.
Choose the coin you wish to exchange in the top field and set the amount you wish to sell. In the field below, select the coin or fiat currency you wish to buy. Complete the transaction and the trade will be completed at the available market price, with all trading fees incorporated in the cost of the transaction.
How to buy and sell cryptocurrency with fiat currency
It’s possible to buy cryptocurrencies with fiat currency and convert any cryptocurrency profits back into fiat currency with Binance.
To purchase cryptocurrency with fiat currency, you must link your bank card to your Binance wallet or opt to make a bank transfer directly. The Binance P2P platform is the easiest way to pay for crypto assets directly with fiat. The platform displays suitable crypto sellers based on the asset you want and your desired fiat currency method.
To sell cryptocurrency and cash in on any profits into fiat currency, you can convert it and keep it directly in a Binance fiat wallet if you don’t wish to withdraw it directly to a bank account or card. Alternatively, you can use the Binance P2P platform and hit the ‘Sell’ button in the top navigation menu to enter a cryptocurrency order for another user to take at your desired fiat price.
How to withdraw cryptocurrency and fiat currency from Binance
If you wish to withdraw crypto assets or fiat currency from your Binance wallet to another wallet, log in to your Binance account, click the ‘Wallet’ tab and tap on the ‘Withdraw’ button.
Choose the asset within your Binance wallet you wish to withdraw. Select the correct network protocol for issuing, carefully enter the new wallet address for your assets and tap ‘Submit’. On the receiving wallet, you’ll need to verify the transaction by clicking a ‘Receive’ button when prompted.
All you need to know about Binance fees
Users spot trading on the Binance exchange will incur trading fees regardless of whether they are the ‘maker’ or ‘taker’. A maker sets a price it is willing to buy or sell and a taker takes a price provided by a maker. Maker and taker fees are 0.1% apiece for those with monthly trading volumes worth less than 50 BTC. Maker and taker fees can be cut to as low as 0.02% for those with monthly trading volumes of more than 150,000 BTC.
In terms of Binance transaction fees, users are only charged for withdrawals, not deposits. Fees for cryptocurrency withdrawals from Binance will also differ depending on how congested the network is at the time of the transaction. The more congested the network, the higher the fee required to validate the withdrawal. You can see how much you are likely to pay by visiting Binance’s cryptocurrency fee chart.
It’s also worth noting that users can slash their withdrawal fees by as much as 25% by withdrawing in the exchange’s native Binance Coin.
Binance Coin (BNB) explained
Binance Coin (BNB) is the native cryptocurrency that powers the Binance ecosystem. It currently ranks fifth on the list of all cryptocurrencies in terms of market capitalisation. That’s BNB has become an important utility token for users of the Binance exchange. It was originally created to generate discounts on trading fees for trading cryptos against BNB.
The use cases for BNB have evolved in recent times. It can now be used to cover the cost of transaction fees when interacting with the Binance Smart Chain. It can also be utilised as a payment method for goods and services. BNB is also accepted within the Binance Launchpad, whereby crypto enthusiasts can invest in potentially game-changing blockchain projects.
Is Binance a cryptocurrency exchange you can trust?
The reputation of the Binance exchange took a hit in 2019 when it sustained a significant cyber-attack. Over $40m worth of Bitcoin was pinched from the exchange by cyber-criminals, leaving many users out of pocket. Fortunately, Binance has since tightened its security. It’s also launched an ‘insurance fund’, providing peace of mind to users that any losses incurred from a cyber-attack will be protected and recovered. The use of 2FA for individuals’ accounts makes it harder for cyber-criminals to crack random Binance accounts too.
Despite its bumps in the road in recent years, Binance remains the world’s number-one cryptocurrency exchange in terms of liquidity. Trading volume is important to ensure you get a fair price and minimise the risks of volatility that exist within most cryptocurrency trading pairs.