Investor interest in cryptocurrencies has skyrocketed, with top crypto Bitcoin surging to all-time highs early in 2021. As an increasing number of individuals, institutional investors, and companies see cryptocurrencies as a valuable prospect, new investors may be looking to buy and sell cryptos for the first time. Binance is one of the most popular cryptocurrency exchanges globally and is a great place to start your cryptocurrency investments. Here, we’ll walk you through how to use Binance with a step-by-step guide.
Overview for Fast Readers
- Binance is among the largest and most popular cryptocurrency exchanges in the world, processing more than 1.4 million transactions every second.
- Binance offers robust trading for dozens of cryptos as well as specialized research, app development, token launching, and other services through its Binance Ecosystem.
- The Binance Coin (BNB) is the platform’s native crypto token, used to pay for transaction fees and in-store payments.
- In order to create an account and take full advantage of Binance’s services, users must complete rigorous identity verification procedures.
What is Binance?
When people refer to Binance, they typically talk about the cryptocurrency exchange of that name. Binance Exchange is among the fastest exchanges in the world and processes about 1.4 million transactions per second. With this much trading volume, it’s perhaps no surprise that Binance is a leading exchange. Binance also can refer to a number of other entities and services that the company provides, including Binance Academy, an open-access learning hub; Binance Launchpad, a crypto token launch platform; and Trust Wallet, the official crypto wallet of Binance.
Who is the Founder of Binance?
The founder of Binance is Changpeng Zhao, known as “CZ.” CZ began his career in the financial sector as a computer scientist and software developer. Prior to launching Binance, he worked for multiple cryptocurrency projects, including as chief technology officer of the crypto exchange OKCoin.
When Was Binance Launched?
Binance was launched in July of 2017, following an initial coin offering that raised a reported $15 million. Binance.US, the branch of the Binance exchange available to investors in the U.S., was launched in September of 2019. In this guide, we will use Binance.US as our model, although the general Binance exchange functions similarly.
How Much Money Does Binance Make?
Binance generates profit from transaction fees. Although each individual fee is small, multiplied over billions of transactions they add to up significant profit. Based on an April 2021 burn, or the permanent and periodic removal of native coins from its ecosystem based on trading volumes, analysts have calculated that Binance may have generated $750 million or more in profit for Q1 2021.
What is Binance Coin (BNB)?
Binance Coin, known as BNB, is the native coin to the Binance ecosystem. It is a cryptocurrency that is primarily used to facilitate and power transactions taking place across the Binance exchange. Binance users can also pay for transaction fees and make in-store payments with BNB. Keep an eye out for an in-depth article on BNB and its many uses at Thebitcamp soon!
Trading on Binance
Binance allows multiple types of cryptocurrency transactions. Users new to crypto investments will likely by their first tokens using fiat currency. The platform also allows for trades between certain cryptocurrency pairs as well. Look to Thebitcamp’s detailed explanation of trading on Binance for more information.
How to Create a Binance Account
If you’ve decided that Binance is the cryptocurrency exchange for you, the first thing that you’ll need to do is create a Binance account. Binance makes this process streamlined and straightforward, so you can go from the beginning to the end of the process quickly. There are steps throughout the process which require you to wait for external verification of materials you submit, however. Below, we’ll take a closer look at creating a Binance account with our step-by-step guide.
Step-by-Step Tutorial for Creating a Binance Account
- Visit the Binance website
If you’re a customer located in the U.S., the first step is to navigate to the binance.us website. There, you’ll see a homepage that looks like this:
If you have any remaining questions about Binance or just wish to explore the site, look to the menu at the top of the screen and click on the “Trade,” “Resources,” or “About” tabs for additional options. Otherwise, if you’re ready to create your account, click on the yellow “Get Started” button in the center of the page or the top right corner.
- Input basic information
Next, a pop-up window will prompt you to input some basic information to get started creating your account. You’ll start by entering an email address and a password for the account:
It’s crucial that you have ready access to the email address you include here, as you’ll need to check it for a verification email very soon in the account creation process. So be careful to make sure you input this information correctly!
- Complete security verification
Next, an image like the one below will pop up in the center of the screen:
This part of the process is to ensure that the account is not being created as part of an automated process. Click on the tab at the bottom of the image and drag it over so that the puzzle piece lines up with the outline in the image.
- Verify your email
You’ll now be prompted to verify your email. Binance will send an automated email to the account you provided in step 2 above. Wait for that email to arrive, open it, and follow the instructions to complete the verification process. The email will include a code that you’ll need to enter onto the account page in order to verify the address. Note that you may need to adjust your spam settings in order to allow the email to be delivered properly, and that you have 10 minutes from the time the email verification window opens to complete the process. If you exceed that time limit, you’ll need to resend a new verification email.
- Enable two-factor authentication
To ensure that your Binance account remains secure, the site will now prompt you to enable two-factor authentication (2FA). 2FA requires that you verify your identity through a separate device or source each time you log in. You’ll see this window prompting you to set up 2FA at this point, although you can click “Skip for now” if you’d like to move on without doing so:
If you do decide to enable 2FA now, you’ll have the option to choose from either Google Authenticator or SMS authenticator. Google Authenticator requires the download of a specialized app, while SMS authenticator makes use of your phone’s text message service. Follow the instructions on either of the screens below to complete the setup:
- Complete identity verification
Congratulations, you should now have access to your Binance dashboard, which will look something like this:
In order to transact using your Binance account, though, you’ll need to complete additional Know Your Customer (KYC) protocols. To have full access to all of Binance’s services, you’ll have to verify your identity in a few different ways.
Begin by locating the Identity Verification page, accessible from the main dashboard:
Binance’s identity verification process is divided into steps. The first step is basic verification, which provides access to account functions including depositing and withdrawing crypto, making withdrawals of up to $5,000 per day, and trading crypto pairs. Click “Verify” to access the basic verification page:
You’ll be prompted to input some basic identifying information including your name, gender, date of birth, and address. After completing this stage of the verification process, you can move on to advanced verification. This allows you to withdraw up to $1 million per day from your account balance. To complete advanced verification, upload a picture of a qualifying identity document such as a driver’s license or passport, and follow the prompts to have your photo taken for matching purposes:
The final stage of verification, which allows you full access to buying and selling crypto on Binance’s platform, is to submit proof of residence. Completing this step allows you to link a fiat account with your Binance account. Valid proof of residence documents include bank statements and utility bills, either of which can be uploaded through Binance’s platform:
How to Use Binance
If you’ve completed the steps above, you’re ready to get started buying and selling cryptos using fiat currency on Binance. Note that the above verification steps can sometimes take a substantial amount of time due to high levels of interest in Binance. This author waited over one month for advanced verification, for example. Still, once your account is fully verified, the process of buying and selling cryptos is quick and straightforward. Read on for our step-by-step guide.
Step-by-Step Guide to Buying Cryptos
- Verify cash account
Before you can begin to buy and sell cryptos, you’ll need to link a cash account to your Binance account for funding purposes. To do so, you’ll need to input basic information about the funding account and complete a questionnaire:
- Set up deposit
Click on the “Deposit” button on the main dashboard page to initiate a deposit of funds to your Binance account. The first page you’ll see is the main deposit page:
Link an external account in order to make a deposit by clicking “Add a New Account” on the payment method page:
Then, you’ll be able to determine which type of payment method you prefer. Binance offers payments via ACH, debit card, and domestic wire. Each of these options has advantages and disadvantages, which the platform explains as you prepare to add a payment method:
- Select payment method and make deposit
Once you select your payment method, you’ll input information which will depend on your choice. Be prepared to include bank account info, debit card details, or other information necessary to link your payment method. You can also set how much fiat currency you would like to deposit into your account. Once you complete this process, you’ll see a confirmation message indicating that your deposit is in process:
It will take time for your deposit to reach your account. The amount of time varies according to the payment method, among other factors.
- Initiate a buy order
When your account is funded by adding money, you are now ready to initiate a buy order for cryptos. Follow any of the links throughout the Binance dashboard and site which prompt you to buy or sell cryptos to arrive at this order page:
- Specify purchase, token, and payment method
On this page, you’ll input the details of your purchase. Make sure that “Buy” at the top of the menu is highlighted if you are intending to purchase cryptos. Then, you can input the quantity of your purchase (either in crypto tokens or fiat currency), specify whether it is a one-time or recurring purchase, set the token you wish to purchase, and confirm the payment method. Be sure to double check that everything is accurate before submitting your order.
- Confirm your purchase
When the details are all set, confirm your purchase on this menu. You’ll see a confirmation page and a link to return to your account wallet:
That’s it! You’ll receive notification when your purchase has completed.
Step-by-Step Guide to Selling Cryptos
Selling cryptos on Binance is just as easy as buying them. In fact, the steps for selling cryptos look virtually identical to steps 4-6 in the buying cryptos section above. The key difference is that you should click on “Sell” on the main order menu in order to make sure that your order is to sell cryptos. After that, the process of specifying order amount, which token to sell, and so on is very similar.
FAQs About Binance
What is the Binance Ecosystem?
Binance is much more than just a cryptocurrency trading platform. The entire Binance ecosystem includes not only the crypto asset exchange, but a variety of other services and projects such as Labs, an incubator for blockchain projects, Launchpad, a token launching platform, Academy, a library of educational materials about blockchain and cryptocurrencies, and many other offerings. Binance also offers a dual chain system which allows users to create smart contracts and decentralized apps on the platform. Binance users making use of just the crypto exchange part of Binance are missing out on many valuable tools up for grabs through the entire Binance ecosystem.
Is Crypto Safe on Binance?
While no cryptocurrency exchange is completely safe, Binance takes numerous steps to ensure that your crypto and fiat assets held on the platform remain secure. For the user, this begins with intensive identity verification and account security measures as detailed above. Binance also utilizes address whitelisting and provides cold storage solutions for additional security.
Which Coins Does Binance Support?
Binance supports dozens of cryptocurrencies. The list of supported cryptos can be found in the buy and sell order page or elsewhere on the Binance site and includes major tokens like Bitcoin, Ethereum, and Tether. The platform also supports a range of lesser-known altcoins such as VeChain, Dogecoin, and Uniswap.
Can Binance be Hacked?
As mentioned above, no cryptocurrency exchange is entirely safe from cyber attack. This is true for Binance as well. The exchange suffered an attack in 2019 which resulted in the theft of more than $40 million of Bitcoin. Users should keep this in mind and be sure to conduct research into security practices before beginning to trade on any platform, including Binance.
Binance is one of the world’s largest and most popular crypto exchanges. While the account creation process involves many steps and the identity verification procedures can be significantly delayed, the ease with which users can buy, sell, and trade cryptos on the Binance platform may make up for these shortcomings. Further, Binance offers a host of additional services and materials, including platforms for launching tokens, an incubator service, and much more. The native Binance coin, BNB, powers transactions on the exchange and enjoys a robust position in the crypto market as well. All of these things come together with a wide assortment of supported tokens and strong liquidity to make the platform one of the exchanges of choice for crypto investors. Crypto traders looking for an exchange to compare against Binance may also wish to look to newcomers such as DXOne, which may offer a different set of tools and benefits.