How to Use Binance

In this article, we will explore how to use the Binance exchange and what makes this exchange appealing and unique to cryptocurrency investors so you can best understand how to use Binance in your own investment strategies.

Binance is a cryptocoin abbreviated BNB that trades like any other digital currency. At present, the value of BNB is about $5 USD, and, like many other cryptocurrencies, BNB has a relatively volatile history. However, Binance is not just a digital currency. It is also the world's second-largest cryptocurrency exchange. In fact, about $6 billion in assets are traded on the Binance exchange every single week, which is likely one of the reasons BNB has a market cap over $654 million dollars.

The Binance exchange functions much like any other cryptocurrency exchange. The purpose of these exchanges is, essentially, threefold:

There are many cryptocurrency exchanges out there, but Binance functions uniquely to create a competitive edge for the exchange and the investors who use it.

Binance was designed by two expert cryptocurrency exchange programmers and developers. One of the biggest advantages to traders using Binance is that these two men had very clear concepts of where cryptocurrency becomes difficult and ideas about how to resolve these issues. As a result, as you learn how to use Binance, you will soon see there are many benefits to using Binance.

If you are ready to learn how to use Binance, you must start by purchasing some cryptocurrency with which to invest. Many investors learning how to use Binance do not realize they cannot simply use their native, fiat currency to purchase cryptocurrency on the Binance platform. In fact, the designers of the platform gave it the name Binance to indicate “Binary Finance” is their interest. Essentially, they only wish to deal in digital assets.

Before you begin learning how to use Binance itself, you must purchase digital currency and place it in a digital wallet. You can use these platforms to achieve this:

Make sure you purchase cryptocurrencies that are trading on the Binance exchange. You may wish to invest at least part of your capital in BNB since Binance reduces user fees for investors paying in BNB and, furthermore, it tends to be relatively affordable compared to more common cryptocurrencies like Bitcoin.

Opening Your Binance Account

Once you own some cryptocurrency, it is time to register on the Binance platform and establish an account for trading. Register by providing an email address and password and agreeing to Binance's terms of use. As with any digital platform, we recommend you actually read the terms of use so you know what rights you have as a user.

Binance also requires new users to complete an easy puzzle to prove they are a human investor and not a robot. Once you are done, you will receive an email confirming your account and asking you to verify that you actually set it up. Once you click that email, you are now the owner of a Binance account and ready to take the next step in learning how to use Binance.

Increase Your Security Immediately

One of the most important things you can do when learning how to use Binance is to establish a habit of maintaining solid security in your account early on. After you verify your account, the platform will offer you the option to set up a “2FA,” or two-factor authentication for your account. Essentially, it is an extra password on your account that sends a code to your mobile phone each time you log in.

While it will add extra time to your log-in process, cryptocurrency investors cannot be too careful. If your digital wallet or trading accounts are hacked, you will have very little recourse and even less if you have not taken all security measures possible on your side to keep your investment safe.

Funding Your Binance Account

Once you have a Binance account, you are ready to move on to the trading side of the process. Fund your account with the cryptocurrency you purchased prior to learning how to use Binance. In most cases, you can simply log into the platform where you purchased the currency and access the wallet associated with that account. You will have two main options:

Upon selecting “send cryptocurrency,” the platform will ask you to specify a recipient. The recipient is your Binance account, so open your Binance account and click on the taskbar to select first “funds” and then “deposits.” This will provide you with the information you need to send the specific cryptocurrency you are using to fund your account to your Binance account.

For example, if you are sending Ethereum to your Binance account, you will need a special Ethereum address for the deposit. Sending the deposit to the wrong address will likely result in the loss of your funds, so be sure to get the address right. Binance will offer you the option of using a “Copy Address” button to make sure you have copied it correctly.

Making Trades Using the Binance Platform

Now that you have funds to work with, it is time to start trading on Binance. After all, that is why you wanted to learn how to use Binance in the first place. Beginning traders can use “basic” trade settings, while more experienced traders can use the “advanced” options. Essentially, you will review the 143 different coins and tokens listed on the Binance platform and determine which of those coins and tokens may be traded for your coins or tokens.

If we stick with the Ethereum example from our funding example, you would look at the trading pairs for options to trade Ethereum with other traders. In that case, you would find that nearly all (140) coin options on Binance will trade for Ethereum, so you simply need to identify what strategy you will use in your trading.

For example, you might:

Market trades, which are transactions that occur in real time at current market prices, are simply entered as purchases for matching options and then the purchase is made.

Paying Your Trading Fees

Traders and investors learning how to use Binance love discovering how low the platform's trading fees are compared to other exchanges. Binance does not charge at all when users make deposits and only charges withdrawal fees. These withdrawal fees are highly competitive and considered very low. Traders pay trading fees of 0.1 percent on each purchase, but that charge can be reduced if you pay the fees in BNB. Other low-fee platforms charge as much as five times the fees Binance charges.

As a new investor learning how to use Binance, you will be particularly attractive as a target for hackers and scammers.

There are three things you must do to keep your account and your capital safe:

Remember, Binance is one of the most popular cryptocurrency exchanges in the world, but it still is a cryptocurrency exchange. Unlike your local bank, Binance does not have a helpline or much recourse for you if someone steals your funds. This is one of the prices cryptocurrency investors pay to be on the cutting edge of forex trading and to preserve their anonymity online. With the proper precautions, however, your experience learning how to use Binance and trading on this platform can be a highly rewarding one.

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