Introduction To Binance
Learn how to trade on leading crypto-crypto/fiat exchange in 2019
I just want to take you through a quick introduction to Binance.
Binance is one of the most popular crypto exchanges in the world, and they make it possible to access just a huge number of different tokens that you can’t find on other exchanges like Coinbase.
So let’s dive right in. The website is pretty straightforward. On the landing page, you can click the “Create Account” button here or Register in the top right.
Now, I’m not going to walk you through the entire account creation process. I will say that at the moment, Binance does not require to Know Your Customer (KYC), which would involve submitting a bunch of personal documents including your ID and possibly utility bill to verify your identity. They will be implementing that soon. As of right now, you don’t have to do that unless you elect to.
All right, so after you’ve created your account, you’ll return to the homepage, and here you can just click the “Log In” button in the top right. And that will take you to a screen that looks like this where you enter your email and password.
On the next screen, it will ask you to enter your Google Authentication (code). If you set up two-factor authentication, which I highly encourage you to do, you’ll be asked to download an app on your phone which is the Google Authenticator app. You can use a competitor. I use Authy sometimes. But what that will do is when you log in you type in your username and password, then you go to your phone, you open the app, you click on Binance, and it will give you a six-digit code that you type into this box.
It’s a super secure way to access Binance, and it ensures that if a hacker were able to get a hold of your username and password, he would still need your phone in order to complete the final step in the log-in. So after you enter that information, you’ll get taken to a dashboard. Your email address will be shown at the top of the site and your IP address. I’ve obviously deleted those in the screenshot here, but I wanted you to know that info could change.
From here, what I usually do is go to Funds, Deposits, which you can see that in the top right.
When you click that screen or that link you’ll be taken to (the deposit) screen, and you can choose from a typeable menu which token you would like to deposit.
Most commonly, people would choose bitcoin, so you type in BTC and click on it in the dropdown. Then Binance will generate a deposit address for you. It’s this long public key right here.
You can click the copy button to copy it, and then you’re good to go. You can then take that address over to Coinbase or your hardware wallet or wherever you’re storing your bitcoin and send money from that account to this address. And once you do that, you’ll be ready to trade on Binance.
I’ll also show you what it looks like when you’re doing withdrawals. It’s almost identical, click Funds in the top right and Withdrawals.
And there you’ll just type in the token that you want to withdraw. It’ll pop up a field where you can type in the address where you want to send those funds.
All right, now that we’ve got some cash in our Binance account, we can go to Exchange, Basic.
That will take you straight to a landing page where you could start trading bitcoin for, in this case, USDT or Tether, which is dollar-pegged crypto. In theory, one USDT should always be worth one dollar.
Just to give you a quick overview of this screen, you can see here on the left all of the open buy orders and sell orders. And right here in the middle that’s the price of the last sale that occurred. So you can see that the dollar amount actually gets bigger as you’re going up, so this is the price that people were asking for their bitcoin.
You can (also) see that at the time I’m taking a screenshot, the last sale went for 3,850 Tether per bitcoin. And you can see someone’s asking 3,851.76 and they’re offering up 1.137 bitcoin.
On the other end of that sale, you’ve got people that are offering to buy bitcoin for 3,851.75, so that’s a pretty narrow spread there. Binance is super liquid. It’s probably one of the best markets in the world.
On this screen, you’ve also got a chart in the center where you can choose different timespans to look at how bitcoin has been performing. When we switch over to the advanced trading view, you’ll see a lot more functionality around these charts. I actually prefer this simplified view. I’m not a super technical trader so this really does get the basics done.
On the right, you can see all of the other tokens that are available for trading. You can see the trade history (meaning actual trades that have gone through on Binance), and if you click the “yours” button, you would be able to see all the trades that you’ve done.
So in this case, if you want to select a different trading pair — say you’ve got Bitcoin and you want to buy ADA — you would click ADA in the top right, and it would bring you to the screen where you’re ready to start trading. You can either scroll through this sidebar here to find the currency you want to trade or you can type it into the search bar there.
For this example, I typed in POLY, which is the ticker for Polymath. Then, I could simply click on that pair, and it would pull up the Polymath dashboard where I could trade my bitcoin for POLY.
As far as actually trading this, one thing I like to do is if I do want to do a limit order, I can just click on one of these offer prices here, and it will automatically populate the price.
Then, I could select the quantity of POLY that I want to purchase and it would show me the total cost in bitcoin. Then, I would just click the “Buy POLY” button.
The reverse is true for selling it. You put in the price that you want for your POLY and the number of POLY you want to sell, and it will calculate for you how much bitcoin you would receive for that sale.
Keep in mind, this is a limit order. There are tabs here for market and stop-limit orders. And this is what the market tab looks like.
If you just wanted to sell and you aren’t worried about setting a limit order, you could just put in here the number of POLY that you want to sell or number of POLY that you want to purchase. It will automatically take the highest sell (or buy) offer and execute on that.
Ninety-nine percent of the time, unless you’re trading one of the big pairs like Ethereum or Bitcoin against something like Tether, you’re going to want to set a limit order. A limit order ensures that you don’t just gobble up all of the existing sell orders and end up overpaying for POLY if you’re buying it (or selling it too cheaply if you’re selling it).
Generally, I recommend avoiding this market tab. Now the stop-limit tab is a little trickier. I switched this over to the Bitcoin/Tether market here so it’s easier to illustrate.
Here you can see that the last bitcoin sold for 3,847. So if I wanted to put in a stop-limit order, what I would do is say, “If bitcoin’s price falls to 3,500, close my position in bitcoin.” So I type in 3,500, but I can also put a second limit there saying, “If bitcoin keeps falling further and further and my original stop hasn’t cleared, don’t sell it for any cheaper than say 3,400.”
Now, that’s a huge range. If I set a stop at 3,500, odds are that sale would go through and finalize before bitcoin ever fell to 3,400 but in the case of some of the smaller cryptos, that’s not necessarily true. The markets could be very illiquid, which could require you to use this tab.
All right, now let’s take a look at the advanced trading dashboard. If you go up to the top left, click Exchange, Advanced, and that’s where you’ll get this really chart-centric view.
It’s the same information here for the most part but the screen is obviously dominated by the chart. And you can see some really interesting tools here, trendline, percent line, support/pressure lines. To activate those just click the Technical Ind link and select which tool you’d like to lay on top of the chart.
It’s the same thing for indicators if you click that, you can see your Bollinger Bands here. You can see volume, moving averages, and a lot of these other technical indicators.
Hopefully, this gives you a nice introduction to Binance and best of luck in your trading.
Exchange Guide
Binance: Offers mobile app and probably the fastest growing exchange. If you need to pick only one, this is the best and #1 in 2019.
Kucoin: One of the strongest exchange that also offers a mobile app (Android and iOS). They have been constantly updating their mobile app to make it one of the best in the industry.
Huobi: Huobi is a digital currency exchange that allows its users to trade more than 244 cryptocurrency pairs. They also have mobile apps for both Android and iOS.
Gate.io: One of the best exchange for low cap coins. They also have mobile apps for both Android and iOS.
Bittrex: Another high-quality exchange with a lot of coins. Bittrex is a US-based cryptocurrency exchange that provides you the option to trade more than 190 cryptocurrencies at a time.
Thanks for reading! Feel free to check out some of my similar Cryptocurrency related post below.
- How to Earn Crypto Income From Komodo (KMD)
- “Lock” Your BIX Tokens Today to Continue Receiving Your BIX Incentive Reward
- How to Earn ONG From Ontology (ONT)
- Zilliqa : Progress and Update, June 2019
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