Binance Tutorial For Beginners
If you are reading this blog, then you already know what Binance is.
Binance is the world’s leading cryptocurrency exchange platform. After reading this blog you will get a strong understanding of how to trade on Binance.
Application Overview
This is the screen that you will see after logging in. To use all the binance features we switch from binance lite to Binance Pro. Click on the profile icon and click on the Binance Lite toggle button.
This is the home screen of the binance Pro. First, we see different banners which show all the active events going on , clicking on them will direct you to a different screen that shows more detail about the event.
Binance provides many other features beyond trading. Below the banners, we see different icons, like deposit, referral, grid trading, etc.
Below these icons, we see P2P trading options and a credit/debit card button. P2P trading means directly buying/selling from/to another person and the credit/debit card option allows you to buy using your cards. Refer to https://p2p.binance.com/en to know more about p2p trading.
Then, we see the prices of the top three cryptocurrencies along with their price fluctuation displayed in percentage(%). Below this, we see a list of top gainers, top losers, and trending cryptocurrencies.
Basic terminologies
- The green color indicates a rise in the price, Red Color indicates a decrease in the price.
- Each cryptocurrency has a symbol name.For example symbol name of Cardano is ADA, Bitcoin is BTC, Ethereum is ETH.
- While buying and selling we will see different pairs of currencies separated by a “/”. For example, BTC/USDT while buying means that you want to exchange your USDT with BTC( USDT equivalent BTC), and BTC/USDT while selling means that you want to exchange your BTC with USDT( BTC equivalent BTC). Trade BTC with the pair USDT. It is recommended that you trade with a stable cryptocurrency like UDST, BUSD , USDC, etc. though binance supports trading with ETH, BTC, BNB, stable coins, etc.
Understanding the candles in the graph.
In the graph, we see red and green candles. It is really important to understand the candles in the graph.
In the above image, we can see the high price, closing price, opening price, and low price of a single candle. Binance provides you to set the time duration of the candles right from 1 minute to one 1month. Below is an example of 15-minute candle graph.
This is the graph of the Polka dot(DOT) cryptocurrency with a candle duration of 15 minutes. In the graph, you can see an intersection point of two light white lines which shows the candle I tapped on, and on the left side, we see a small table showing some information. The table shows, that on 2021/09/14 from 18:00 to 18:15, the opening price was 35.79$, the closing price was 36.71$ and the highest price was 36.97$ and the lowest price was 35.77 $.
Before buying, you should ensure that you have enough balance of the cryptocurrency with which you will be exchanging.
While buying and selling you will see 4 options
- Limit
- market
- Stop limit
- Oco
All of these options have different functionalities and are important to understand so that we enjoy all the features provided by binance.
- Limit
Limit means, do the desired operation (buy/sell) after the price crosses the limit set by the user. Once the user sets a limit order, then the order will be executed automatically without the user intervention. Hence the user doesn’t need to constantly check the price.
2. market
If you want to buy/sell at the current market price then select the Market option. This order will get placed instantly because the prices are the real-time current prices.
3. Stop limit
You put a stop limit when you want to minimize your losses. When you select the stop limit option, you need to enter two values one for the stop and next for the limit. For example, if I bought a cryptocurrency at 10$ and I can’t bear a loss greater than 20% then in the stop field ill enter the value 9$, and in the limit field I’ll enter the value 8$. So whenever the price goes below 8$ then the order will be executed automatically, but if the price goes below 9$ and starts rising after touching 8.5$ then the order will not be executed.
4. OCO
Let's consider a scenario in which you are not confident that the market will pump or dump. , but you want to be safe. In this case, we can put a stop limit(mentioned in point 3)and one sell limit(mentioned in point 1), but unfortunately, we can’t put two orders separately. So here comes in picture Oco, it stands for One Cancels the other. In oco you can put the stop limit and the limit order together but if one order gets executed the other will get canceled, that means that if the stop-limit order gets executed then the limit order will get canceled, and vice-versa.
You can also find your order history by clicking on the orders icon.
If you haven’t registered in binance yet, you could use my referral code 116882399.
Thanks for reading!
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