Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. Since 2018 it has the largest exchange by trading volume. Lets Know what is Binance Exchange and how to use it, in depth!
It was founded by Changpeng Zhao, a developer who had previously created high-frequency trading software and initially was based in China but later moved out of China due to China’s increasing regulation of cryptocurrency.
- Brief History of Binance
- Referral Program
- Binance BNB Token
- How to register
- Deposit funds
- Binance Dashboard / Fiat and Spot
- Spot Trading on Binance (Basic)
- Is Binance Legit & Safe?
Brief History of Binance
CEO Changpeng Zhao had previously founded Fusion Systems in 2005 in Shanghai and then in 2013, he joined Blockchain.info as the third member of the cryptocurrency wallet’s team. Then he worked at OKCoin as CTO for less than a year.
Binance was founded in China but later moved its servers and headquarters to Japan following the advances of the Chinese government ban on cryptocurrency trading in September 2017.
Since January 2018 it was the largest cryptocurrency exchange with a market capitalization of US$1.3 billion. In March 2018, Binance announced that will move its headquarters to Malta, following stricter regulations in Japan.
In August 2018, Binance along with three other big exchanges raised $32 million for a stable coin project. Shortly after the BNB token was released.
In September 2019, the exchange began offering perpetual futures contracts, allowing leverage as high as 125 times the value of the contracts.
Currently is one of the biggest exchanges, having a huge volume, being amongst the largest and best in the market.
Binance has a huge amount of Cryptocurrencies they allow to trade and offer many options to trade, such as trading futures, the possibility of leverage trading, and now, they added tokenized stock trading, being the first from Tesla.
It is one of the exchanges with the lowest rates on the market for internal exchanges. Also, withdrawals are usually more expensive, but these fees can be reduced using their own token (BNB) as well as the trading fees.
It also has many reward programs for those who transact a lot. It also has a referral program.
Much of Binance’s profits are used in advertising techniques and to some extent go to users. This ensured a huge increase in users so fast and an increase in the volume of trades.
In the Binance referral program, all users have a code to make available to others. The program rewards very well, 20% of the fees you pay go to the user who gave you the code.
Instead of Binance retaining 100% of Profit, it is only 80%.
Apart from the referral program, many sweepstakes and the like can be seen on the Exchange home page.
Binance BNB Token
As the adoption of the currency makes Binance profit, they end up lowering the rates even more when using their own token.
The cryptocurrency is an ERC-20 Token from Ethereum. 200 thousand coins were created, where 100 thousand will be bought gradually by Binance with part of its profit and then will be burned, making the value of the remaining 100 thousand appreciate a lot.
To use the BNB discounts, you must purchase it and activate the option to use it. This option can be found on your profile page.
We recommend that you buy at least one unit if you are going to use Binance as your primary Exchange and plan to make daily trades. This will be very advantageous, as you will spend less and avoid small broken values that cannot be withdrawn.
Depending on how much you want to trade, it may not be advantageous, do the calculations and decide.
How to register in Binance
The process shown here will be the purchase of Chiliz / CHZ Fan Tokens, but the process is the same for any other Cryptocurrency, such as Bitcoin, Ethereum, USDT, and others.
Just select the desired currency in the correct steps as shown below.
If you are going to move a lot of money and make daily trades, I recommend that you buy at least 1 unit of BNB to spend less on fees. Explanations on this have been given above.
So, how to register?! Check out below step by step:
Go to www.binance.com and click “Register” at the top right as shown in the PrintScreen:
Fill in your email and your chosen Password. Don’t forget to tick the box to accept Terms and Conditions, otherwise, you cannot go forward with your registration process.
After clicking “Create Account”, you will receive an email to confirm your registration, if you can’t find it, look for it in the spam folder.
After clicking on the link in the email to confirm your account you will be directed to the login page, fill in the data previously used, and click on login.
When you log in for the first time, you will be directed to a page asking you to add the 2FA function to your account, which will ensure greater security.
To do this, download the Authy application on your smartphone or computer, or the google authenticator application on your smartphone.
Scan the QR code (With Authy or Google Authenticator) and proceed with the 3 steps that will appear, they will be self-explanatory. Don’t forget to save your backup key. This is very important, in case you lose your credentials. You will need this backup key to recover your account in case this happens.
After completing the addition of 2FA, you will be redirected to your account dashboard (main page).
From here you can deposit and withdraw your funds as you see fit.
Deposit funds in Binance
For you to deposit Fiat funds or even buy crypto directly on Binance without trading, with SEPA or Credit Card, you just need to click on the “Deposit” button.
After, you will see these options:
On this screen, let us deposit some cash.
On this page, you should choose the way you want to deposit your funds in Binance, through Bank Transfer (SEPA), or Credit Card (VISA or Mastercard) then enter the amount you want to buy, check the fees if applicable, and the continue.
On the next screen, you need to confirm your address and other data and submit. Your funds will be available immediately if paid with VISA or in 24/48h if paid with SEPA.
Many currencies accept bitcoin and eth pair, while others accept only BNB pair and some accept only USDT pair.
Binance Dashboard / Fiat and Spot
Where it says Balance Details, after Deposit / Withdraw, click on the arrow, and then you go to the following page:
On this page, search the coin you want, click on deposit and send your Bitcoins to the address shown. If you use another currency to make the desired purchase, just do the same, looking for what you are looking for.
Some exchanges accept Ethereum, check beforehand and just click on trade next to the coin and see the options available.
Spot Trading on Binance (Basic)
After the funds are recognized in the account, look for CHZ (or the other currency you bought) on the same page as before.
This time, instead of “deposit”, click on trade and then on CHZ / BTC (if you want to trade CHZ token for BTC, or in BNB, if you want to trade Chiliz for BNB, or other pair… it is up to you and your choice), as seen on the image below:
The next screen is where the fun begins!
Now we will start trading and make the magic happens (or not).
Now, we will NOT teach you how to do day trading, as this requires a lot of study and comprehension, this guide is just to get you started with Binance, and this section is just for you to start to understand a little of trading, so you can buy the coins you need and or want.
Again, we are not teaching you how to do day trading.
The values that matter is on the left.
The green bars are people buying CHZ, and the red bars are people selling, which is what interests us to buy.
The closer to the middle, the lower the value and consequently the better for you to buy.
Then, below, on the left, you have the order book. Here is where you see all the open orders or you can see the history of all of the orders you’ve issued.
You have the trades of all the orders that are happening live related to the coin you chose on the right of the order book. Here it shows the Price bought or sold (in this case the pair is BTC but can also be in ETH or USDT or BNB or even other pairs – fiat included).
The big bar on the right is where you will place your orders.
As you can see above there is the option to limit the price of the asset bought or sold.
In this case, you:
– specify the price you want to pay or receive for each unit of the coin you have
– specify the number of units of coins you want to buy or sell
And then it will show the total amount you will have to pay or you will receive for the buy or sell order.
OR you can buy or sell the coins according to the Market value, in this case, the order will be instant and you can receive more or less depending on the sentiment of the market and the value at that precise moment.
Stop Limit Orders
Stop-Limit orders work by setting both a stop price and a limit price. The stop price determines when the limit order will be placed. Once the price of the asset reaches the stop price, the limit order will be placed at the limit price.
As this article is just a basic guide for Binance we will not explain market orders further.
Finally, you have in the middle the graphic where you can see the sentiment of the Market.
On this page, you can withdraw Crypto or Fiat money (SEPA).
In case you want to withdraw in Crypto (Above LEFT), you need to:
- Choose the coin you want to withdraw, as seen above on the left;
- Insert you wallet address on the right aswell the amount you want to withdraw;
- Choose the correct coin protocol you will be using;
- Click submit.
Note: Choosing the correct protocol is very important! If you chose wrong, you will lose your coins!
Check with your wallet provider which protocol your wallet uses/supports before withdrawing!
If you want to withdraw Fiat money (Above RIGHT), you need to:
- Chose the withdrawal method;
- Insert the value you will withdraw;
- Click continue and you just need to wait for the funds to reach your bank account!
Note: It will take 24/48 hrs for the funds to reach your account
Is Binance Legit & Safe?
Absolutely no exchange even comes close to Binance in terms of security, volume, and community initiatives.
Even during the crypto mad rush in December 2017 when exchanges like Bittrex and Bitfinex closed their doors, Binance was the last exchange that stopped taking new registrations, and here it remains.
So, yes, it is Legit and Safe. It is an Exchange you can safely use!
On top of spot trading in Binance, there are so much more you can do in this Exchange, such as:
- Margin and Future trading
- Lending (where you can earn interest on your crypto holdings);
- Crypto staking;
- Crypto Sub-account (manage account for your friends, family or clients);
- Corporate account ( to trade or use Binance exchange under a legal entity (Corporation, LLP, Pvt. limited) or any other)
- Buy crypto assets using fiat currencies
- Binance Pay ( payment gateway and P2P payments)
- Tokenized Stocks (added in 2021, you can now get exposure to the traditional asset class directly on the Binance platform)
While all these resources are beneficial for users, purchasing and trading cryptocurrencies is still the principal focus for most of Binance’s users.
Have you ever used Binance to trade or even just buy crypto? How was your experience with this Exchange?
Let us know in the comments below.
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