Binance is an online exchange where all users are given the opportunity to start engaging in the process of trading cryptocurrencies.
The best part about it and one of the main reasons why it’s so popular is due to the fact that you get the widest variety of commonly traded cryptocurrency and cryptocurrency pairs, and it has some exclusive, built-in tools that the most advanced traders take advantage of.
Today, we’ll be taking a deeper dive into the world of Binance trading, and teach you everything you need to know.
Quick Summary for Fast Readers
- To start trading on Binance you will need to open an account, fund your account and start trading.
- There are multiple types of cryptocurrency trading strategies, from day trading, to swing trading, position trading, and HODLing.
- Some of the most common orders to trade on Binance include limit order, stop-limit order, market order, stop market order, and trailing stop order.
Trading Tutorial on the Binance Platform
Trading on Binance involves the process of taking one type of cryptocurrency and, as the name implies, trading it for another one. So, if you have Bitcoin (BTC), and want to trade it for Ethereum (ETH), you can do so on an exchange, and take advantage of the various features found on the Ethereum blockchain. The exchange even has its own token, the Binance Coin (BNB) that offers its own various benefits. Furthermore, you can also trade BTC/USD as well as other cryptocurrency to FIAT pairs.
Remember that the cryptocurrency market is very volatile and you should be careful when starting Trading as a beginner.
Start Trading Today
In order to start trading, there are a few things you need to do first, such as opening an account, funding it with FIAT money or a cryptocurrency, and trading your first cryptocurrency.
Open An Account
Please note that you need to complete additional KYC requirements.
Fund your Account
Go to Binance and log into your account. Click on “Funds” followed by “Deposits” in the Taskbar.
If you want to use FIAT currencies, search for the wallet and click on “Fiat & Spot”, and choose the deposit option, after which you can deposit through bank transfer or through a card, so enter your Mastercard or Visa number if you want to use that method.
Trade Your First Cryptocurrency
There are two trading settings on Binance, Advanced and Basic. If you are a beginner, use the Basic setting. On the top bar, you’ll see “Trade”, click on it, then click on “Convert”.
Here you can simply select the currency you’d like to trade from, and to which one you’d like to trade.
Understanding Binance Cryptocurrency Trading
Since Binance is a cryptocurrency trading platform, you need to be aware of some of the strategies implemented by most traders before you jump into trading. This is essentially just a plan that you follow when you execute trades, and there is no single correct approach.
Day Trading is a strategy that involves entering and exiting positions within the span of the same day. Cryptocurrency markets don’t really have opening or closing times, and you can trade anytime 24/7, but day trading refers to a style of trading where you enter and exit positions within the span of just 24 hours.
Swing Trading is a method used by traders that want to make a profit off market trends, where the time horizon is longer, and the positions are held from a few days to a few months. The goal here is to identify an asset that looks undervalued and is likely to increase in value. You are estimating its swing upwards in value.
Position trading is a long-term strategy where the trader purchases assets and holds onto them for a prolonged period of time, typically for a few months or even years, with the goal of making a profit through selling them when they go up in value significantly at some point in the future.
This Is a strategy that involves buying and holding an asset and is a long-term passive method of investing where you purchase an asset and leave it, regardless of the conditions of the market. You do not actively trade, just let it sit in the wallet for potentially decades.
- H – buy or accept Crypto
- O – Control your private keys
- D – do not sell and keep your crypto in cold storage
- L – it’s not about short-term gains, but long-term gains.
Margin Trading is a method of trading where the trader is trading funds provided by a third party. These accounts essentially allow the traders to get greater sums of capital, and allow them to leverage their positions.
Trading Fees on Binance
|Level||30d Trade Volume (BTC)&/or BNB Balance||Maker / Taker||Maker / Taker BNB 25% off||Maker / Taker BNB x Referral 25% off x Kickback 20%|
|VIP 0||< 50 BTC or ≥ 0 BNB||0.1000% / 0.1000%||0.0750% / 0.0750%||0.0600% /0.0600%|
|VIP 1||≥ 50 BTC & ≥ 50 BNB||0.0900% / 0.1000%||0.0675% / 0.0750%||0.0540% /0.0600%|
|VIP 2||≥ 500 BTC & ≥ 200 BNB||0.0800% / 0.1000%||0.0600% / 0.0750%||0.0480% /0.0600%|
|VIP 3||≥ 1500 BTC & ≥ 500 BNB||0.0700% / 0.1000%||0.0525% / 0.0750%||0.0420% /0.0600%|
|VIP 4||≥ 4500 BTC & ≥ 1000 BNB||0.0700% / 0.0900%||0.0525% / 0.0675%||0.0420% /0.0540%|
|VIP 5||≥ 10000 BTC & ≥ 2000 BNB||0.0600% / 0.0800%||0.0450% / 0.0600%||0.0360% /0.0480%|
|VIP 6||≥ 20000 BTC & ≥ 3500 BNB||0.0500% / 0.0700%||0.0375% / 0.0525%||0.0300% /0.0420%|
|VIP 7||≥ 40000 BTC & ≥ 6000 BNB||0.0400% / 0.0600%||0.0300% / 0.0450%||0.0240% /0.0360%|
|VIP 8||≥ 80000 BTC & ≥ 9000 BNB||0.0300% / 0.0500%||0.0225% / 0.0375%||0.0180% /0.0300%|
|VIP 9||≥ 150000 BTC & ≥ 11000 BNB||0.0200% / 0.0400%||0.0150% / 0.0300%||0.0120% /0.0240%|
Orders to Trade on Binance
There are different types of orders that you can trade on Binance, and the key to being a successful trader is to be aware of what they mean. The most common are Limit Order, Stop-Limit Order, Market Order, Stop Market Order, and Trailing Stop Order.
A Limit Order is one that allows you to place an order at a specific or better price.
A Stop-Limit Order is a conditional order over a set timeframe that is executed at a specified price after its given stop price has been reached.
A market order is matched immediately at the best available price.
Stop Market Order
This is an order which uses a stop price in order to trigger the trade, and when the stop price is reached, it triggers a market order instead.
Trailing Stop Order
This is an order which allows traders to place pre-set orders at a specific percentage away from the market price when the market swings.
Binance is an excellent option for both newcomers and advanced traders, but keep in mind that it is far from the only one.
If you don’t feel like Binance is the perfect cryptocurrency exchange for you, try DXOne as well, as it has some additional features that might prove to be your cup of tea. You can also look into our rank list of the best crypto exchanges.
That being said, Binance has millions of users across the globe, which have found it an appealing exchange due to its simplistic introduction, a wide variety of trading features, and a consistent push to add new cryptocurrency tokens or trading pairs on a regular basis.