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Binance is the biggest cryptocurrency exchange that offers a simple and smooth interface with a variety of features to users. From the verification procedure to trading methods, this guide has covered it all for beginners!
The growing adoption of crypto technology and new fields like DeFi and NFTs have led to a plethora of exchanges springing up to meet the surge in demand. Crypto exchanges are platforms that allow users to buy, sell, and trade different cryptocurrencies. By far the biggest crypto exchange in the world at present is Binance, first founded in 2017.
Before jumping to the features that this exchange offers, let’s discuss some basics!
Binance is the leading cryptocurrency exchange by volume in the world and its user base is widespread across over 180 countries. It has several features which are perfect for beginners and it is very easy to use. You can also take advantage of its excellent Binance Academy learning section to boost your crypto knowledge.
Binance offers a plethora of services that cater to anyone, from a complete crypto beginner to a “DeFi degen.” Due to the increase in regulatory pressure in certain countries, Binance has increased its regulatory compliance by implementing a reliable user verification method and removing (or limiting) certain controversial services, like security tokens and high leveraged trading.
Binance offers its services on multiple platforms, including iOS and Android (in the form of its mobile application), browser-based websites, as well as a desktop application for Mac and Windows. If you’re a more advanced user requiring quick updates with minimal lag, it is recommended to use its mobile app or desktop version, as the browser-based experience can cause lag when the exchange experiences very high transaction volumes.
To use Binance in the US, you will have to comply with different requirements due to strict financial regulations. First of all, Binance operates as a separate business entity in the United States, called Binance.US. Moreover, Binance.US is available in 43 states, excluding New York, Texas, Vermont, Hawaii, Idaho, Connecticut, and Louisiana.
First, you’ll need to download the Binance app or head to their website on a desktop and create an account by providing your email address and phone number. Then, you will need to verify your account before you can deposit fiat or cryptocurrency into your Binance wallet.
Since Binance is a centralized exchange, identity verification is very important. It must meet national and global anti-money laundering (AML) and combating-terrorism-financing (CFT) regulations. It is also required to meet comprehensive Know-Your-Customer (KYC) requirements. The good news is that the ID verification process enables you to increase your Binance fiat deposit and withdrawal limits.
The verification process is quite easy and straightforward. If complications arise, Binance has a large customer support team. To complete this verification, simply login to your account, click on "get verified" and complete the basic, intermediate, and advanced verification levels with each of them having their respective fiat limits.
You’ll also need to fill in your nationality, first name, last name, date of birth, street address, postal code, and city. To upgrade to the intermediary level for a higher limit, you will have to take and upload pictures of your government-issued ID.
You can use an ID, a passport, or a driver's license, depending on the country. After this, you'll be required to take a selfie or upload a picture to complete face verification. Advanced verification will require you to upload proof of address either from your bank statement or a recent utility bill.
Binance supports fiat deposits in up to 50 different currencies.
You can deposit fiat through a bank transfer or via debit or credit card payments. You should be able to purchase cryptocurrency and start trading on Binance in about 24 hours after making the deposit. Most deposit options are free, easy, and very convenient.
Depositing crypto on Binance can be more complex than fiat if you’re new to this, but the following steps will make it easy. You can deposit crypto into your Binance wallet from another cryptocurrency wallet. For example, you are trying to transfer BTC from Coinbase to Binance, you must follow these steps:
1. Copy your Binance wallet address and paste it into the platform (in this case, Coinbase) you're withdrawing from to deposit it into Binance.
2. Select the exact cryptocurrency (in this case BTC) that you want to deposit.
3. Select the protocol (BTC, ERC20, TRC20, BEP2, BEP20, etc.) on the platform from which you are withdrawing your crypto. The protocol must be valid for your Binance wallet address.
4. Hit the withdrawal button and complete the withdrawal verification process (if any).
Care should be taken as selecting the wrong protocol may result in you losing your crypto. It takes a little while for your request to be confirmed due to traffic on the blockchain. You can check your transaction history to monitor your deposits.
A major draw for Binance users is the ease and speed with which you can trade cryptocurrencies in real-time. The exchange cleverly offers different types of trading interfaces depending on how experienced you are.
Binance recommends the use of the convert feature for newbies, which breaks everything down with a simple interface.
On the top field, you are to enter the cryptocurrency which you are exchanging and then input the amount you want to trade. The bottom field is for the desired coin or fiat. Once the trade is executed, the trading fees will be deducted as well.
The easiest way to trade is by executing spot trades at real-time prices. Binance offers a few different types of spot trading options, such as market, limit, stop-limit, and OCO.
1. A market order allows you to buy or sell instantly at the current price (note that you’ll either buy a slightly higher price or sell at a slightly lower price. This is because there is a gap between selling and buying order prices, and you are, in effect, jumping the queue and trading at the best immediate offer)
2. A limit order enables you to set a trade order at a price of your choice (higher than the current price for selling and lower for buying). For example, you can set a buy order for Bitcoin (say at that time worth $40,000) if the price drops to $35,535.
3. A stop-limit order combines a stop loss and limit order and protects you against big market moves, by allowing you to set buy or sell orders at either above or below the current price. Example: Say Bitcoin’s at $50,000 and you are feeling bullish, you can set a stop-limit sell order at $55,000. Think Bitcoin’s going to go down? Then you have the option to set a stop-loss order at $46,000. If the price crosses these thresholds, your orders execute automatically, helping you maximize your profits or minimize your losses. The only problem with stop-limit orders is that they force you to pick a direction. If you are wrong, you may be in trouble. That’s why Binance took things a step further in 2019 by introducing OCO orders.
4. An OCO order combines the best of both worlds, allowing you to set a sell or buy order at both higher and lower the current price of a crypto asset.
For example, if Bitcoin’s price is $40,000 and you need to go to sleep but want to trade on autopilot, you can set a sell order at both $38,000 (for a 5% loss) and $44,000 (for a 10% profit), depending on your trading preference.
Please note that in times of great volatility (cough* “Elon”), your orders can get skipped over when the price of a cryptocurrency moves too quickly.
Also be aware that whales can influence crypto prices, especially in markets with low liquidity, by placing huge buy and sell orders intended to either crash or spike the price, thereby hitting your stop loss or liquidating margin orders and bouncing or dropping straight back again. These situations usually result in either a bull trap or a bear trap. Therefore, do your research before engaging in these different types of orders, and don’t put all your eggs in one order basket.
You can buy crypto on Binance with fiat currency by linking your bank card to your wallet or by making a direct bank transfer. If you’re feeling social, purchase crypto directly from other users through Binance P2P.
This method allows you to look through a list of thousands of merchants on Binance and select your preferred vendor with the most suitable payment option.
Binance P2P (peer-to-peer) system automatically shows the selected sellers based on the amount of crypto you want to buy and your desired payment option. When the buyer confirms your payment, your crypto will be released to your account. You may check out our guide on Binance P2P trading for more information.
Please note that buying crypto on Binance with fiat currency is not supported or allowed in some countries. Please make sure you follow your country’s laws when interacting with Binance.
Bought the dip and cashing in your profits? Selling your crypto on Binance is straightforward. Simply withdraw your profit to your account or convert it and keep it in your Binance fiat wallet. In order to sell your crypto, head to the cash balance section on Binance, click on “sell crypto”, select the cryptocurrency you want to sell, enter the amount, select the FIAT currency of your choice, and hit the Sell button!
The total amount you will receive will be displayed in the top left corner. A confirmation message will appear for you to confirm your request, after which your transaction will be processed and your money will be transferred to your fiat wallet.
Another way to sell your crypto is through P2P trading. First, you will have to transfer the crypto you want to sell to your P2P wallet before proceeding to P2P trading. Click “Sell” on the top menu and enter the number of coins/tokens you want to sell.
Select the payment method and execute. The transaction will show "pending payment" till the buyer makes payment and it indicates that receipt is confirmed. After you've received the money, tap “Confirm” to release the crypto to the buyer.
Binance only charges fees for withdrawals, not deposits. Fees in certain transactions like crypto withdrawals will fluctuate based on network congestion.
If you trade and pay in the native token, Binance Coin (BNB), the fees will be reduced by 25%. On withdrawals, each coin has its varying withdrawal fees. Binance owes much of its popularity to its low rates & fees and discounted trading with BNB.
Binance Coin (BNB) is the cryptocurrency that powers the Binance ecosystem. At the time of writing, it ranks third in the list of top cryptocurrencies according to market capitalization. Back in 2017, Binance Coin (BNB) was created as a utility token to offer discounts on trading fees on the exchange. Within a short span of time, its uses have expanded. The coin can now be used on Binance Launchpad to avail free tokens of new projects. It can also be used as a payment method for travel bookings, entertainment services, and financial services. It is also used to pay the transaction fees on Binance Smart Chain.
Just like any other cryptocurrency, BNB can be bought on a number of exchanges, including Binance, KuCoin, FTX, Gate.io, Bithumb, and Poloniex, among others.
Binance is a generally secure exchange, although it suffered a major hack in 2019 that resulted in 7,000 Bitcoins worth $40 million being stolen from the exchange. Binance has since strengthened its security and has promised that all losses will be recovered through its insurance fund. Binance uses two-factor authentication (2FA) to help secure user accounts.
A well-known expression used by Binance CEO, Changpeng Zhao (CZ), to assure users is “SAFU”, implying that Binance’s funds are safe. While it initially only meant that funds are secure (here’s how), it now stands for “Secure Asset Fund for Users”, an emergency “rainy day” insurance fund.
Binance has also previously worked with authorities to freeze hacked assets or criminals’ accounts, although it doesn’t roll back hacks on its proprietary blockchain Binance Smart Chain (BSC).
Withdrawing crypto from Binance to another wallet is an easy process but may be delayed due to network congestion and verification by the receiving blockchain. To withdraw any crypto or fiat currency, log in to Binance and click on "Wallet" then "Withdraw".
Next, select the crypto you would like to withdraw. Some crypto can be issued on multiple networks so you need to select the exact network. After this, you will need to copy the exact wallet address and click "Submit". Tap the coin in the receiving wallet and click "Receive".
Binance supports a wide range of fiat currencies. To withdraw, log into your account, then click on "Wallet" and "fiat and spot". Click "Withdraw" then select "Fiat". Choose the currency you'll like to withdraw, then proceed to select the payment method.
This process varies depending on countries and regions. Enter the withdrawal amount and confirm. Most of the time, funds should be received within 30 minutes. You'll be charged withdrawal fees. Before every withdrawal is complete, you must complete the 2-step authentication process.
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