In the rapidly evolving world of cryptocurrency, Binance has emerged as one of the largest and most reputable exchanges globally.
Founded in 2017, it offers a wide array of trading options, including spot trading, futures, and other financial instruments.
For both beginners and seasoned traders, understanding how to navigate and utilize Binance is crucial for successful trading.
This article will guide you through the essential steps to trade effectively on Binance, covering everything from account setup to strategy implementation.
How to Trade on the Binance Platform Basic Method
Before one starts a crypto business online, trading is always top of the list so as to know when and how precise he should trade.
But there are fees that Binance give depending on the amount of money you have funded and on the amount of cash you want to trade.
Getting to the trading specifically, learn below how you can trade on Binance Using Basic Settings
How to Trade on Binance
There are two Binance trading settings: Basic and Advanced. If your a beginner with Binance, I'll advice you to go for the Basic method. The Basic trade setting has a simple layout that’s easy to understand. Only important information for making trades is displayed.
You must remember that Binance is a professional trading platform, so even the Basic trade setting might seem too complicated for some newbies to use. However, it won’t take you long to grasp it!
The Advanced trade setting gives expert traders access to all the price charts and market data that they need to make complex trades. As this is a beginner’s Binance tutorial, I’ll only be showing you how to buy on Binance in Basic.
So, let’s learn how to use Binance for Basic trades.
How to use Binance for Basic Trades
Step 1. Login to your Binance account. Nice and easy!
Step 2. Click on Exchange on the taskbar and select Basic. But you will realize that the Basic is not that as Basic as it says.
Step 3. Choose a trading pair. Binance lists hundreds of trading pairs. These are pairs of coins that Binance offers an exchange rate for.
For example, Bitcoin can be traded with 143 different coins, so we say that Bitcoin has 143 trading pairs on Binance. In this example, our account is funded with Bitcoin, so we are only able to trade with Bitcoin.
To find out which cryptocurrencies are offered for trading with Bitcoin, select BTC in the top right corner. You’ll now be able to see that Bitcoin has 140 different trading pairs on Binance. Select the coin that you want to exchange Bitcoin for. For example, you could choose Ripple (XRP).
Step 4. Choose which type of trade you want to make. Binance offers three kinds of trades:
- Limit orders allow users to set the maximum price they are willing to pay for coins or the minimum price they are willing to sell them for. Traders then have to wait until a buyer or seller accepts their price.
- Market orders allow users to trade coins at their current market price. This kind of trade is the fastest and most simple.
- Stop-limit orders allow traders to buy or sell a coin once it has reached a certain price. This kind of order is often used by pro-traders.
I’m only going to show you how to buy on Binance with market orders. They are quick, simple, and perfect for beginners.
Step 5. Choose the amount you want to trade. Click on the Market if you are happy with the current market price and enter the amount of Ripple (or your chosen coin) you want to buy. You can enter this as an amount or as a percentage of the Bitcoin in your account.
Now, the easy bit! Click on Buy XRP, and that’s it.
Now that you know how to use Binance to make trades, I need to tell you about Binance trading fees.
Trading Fees on Binance
Binance trading fees are some of the lowest on the market. Binance doesn’t charge users for making deposits. This is because the exchange is cryptocurrency-only. It avoids the high fees that exchanges that offer fiat trading have to charge.
Binance charges different withdrawal fees for different cryptocurrencies, but they are all quite low. For example, if you withdraw Ethereum, you’ll be charged 0.01ETH, and if you withdraw Ripple, you’ll be charged 0.25 XRP.
Binance trading fees are capped at 0.1% of each purchase or sale users make. This fee is reduced by 50% if traders use Binance Coin to pay them. So, that’s a final fee of just 0.05%!
How to use Binance fees for trading
You only need to check the trading fees of its competitors to understand why Binance is one of the most popular exchanges on the market. Bittrex and Bitstamp are well-known for having low fees, and they both charge 0.25% for each trade. That’s five times more than Binance!
As you can see, Binance trading fees are one of the exchange’s best features. Next, I want to tell you about another one of its features: security.
A Short Note on Binance Security
There are several ways Binance users can protect themselves against thieves and hackers:
1. How to use Binance: phishing.
Nobody from the Binance team will ever ask for your passwords or your 2FA codes. They will also never ask you to send coins to a “safe account” or anywhere else! So you have to avoid reading messages from people claiming to be Binance.
2. How to use the Binance official website.
Don’t click on links to Binance in emails/pop-ups. Check the official Binance URL and bookmark it! If you need to contact the Binance team, use the contact information found on the homepage of your app.
3. Anti-virus software.
Your Binance account is only as safe as the device you’re accessing it from. Make sure all the devices you use to access your Binance account are free from bugs and viruses. And for that, avoid viruses with very efficient and strong Anti-Viruses
Using a crypto exchange isn’t like using the services provided by your bank.
Read more: What to know about Binance: Pros and cons
There are no 24-hour helplines to call or buildings you can visit to complain! You’re responsible for the security of your account, so be safe!
Conclusion on How to Trade on Binance
Trading on Binance can be a rewarding experience if approached with the right knowledge and strategies.
By setting up your account, depositing funds, understanding trading pairs, and utilizing the platform's tools, you can enhance your trading capabilities.
Remember to implement effective risk management strategies and stay informed about market conditions.
As you gain experience, you can refine your trading approach and potentially achieve your financial goals in the dynamic world of cryptocurrency trading.