As one of the largest cryptocurrency trading platform, Binance supports the trading of over 1000 coins and tokens, in this article you going to learn how trade cryptocurrency using Binance.
Unlike other popular cryptocurrency trading exchanges which offer few coins and tokens, Binance support many tokens and coins, hence its popularity. Due this popularity, a lot of crypto newbies have signed up to the platform but most have always complained about the complexities of trading on Binance.
How To Trade Cryptocurrency Using Binance
Get Familiar With Binance
Binance is a cryptocurrency exchange regarded as the largest crypto exchange based on it’s high daily trading volume. It was founded in 2017 by Changpeng Zhao (CZ), a Chinese national who has been forced to move it’s operations to Cayman Islands due to the increasing stringent regulations imposed by the Chinese government on cryptocurrencies.
The cryptocurrency exchange comes with a bunch of intriguing features that gives it a complex look at first glance. Almost every crypto trader had once complained about this complexities until they got familiar with Binance. Binance updates its features on a daily basis. It has recently just added a feature for NFTs.
Some Features of Binance
Before some features of Binance are explained, it is important to mention that Binance in itself has 2 native coins and a Stablecoin, namely- Bnb, Binance Smartchain and BUSD. These native coins are regarded as utility coins used to purchase numerous crypto tokens built on the Binance blockchain. It provides smart contracts for such tokens.
Binance has a lot of fantastic features which has separated it from the remaining cryptocurrency exchanges. Such features include:
1. The availability of over 1000 coins and tokens.
Imagine a crypto trader who utilizes coinmarketcap to monitor what coins or tokens have the potential to generate a huge return on investment (ROI), and suddenly sees one but cannot find it on the exchange he/she uses because most common platforms support only popular coins like Bitcoin, Ethereum, XRP and USDT. There are many crypto exchange platforms with less than 10 coins and tokens. This can be frustrating as such trader will miss out on such opportunity. This is where Binance comes in. The availability of over 1000 coins and tokens singles it out from the rest.
2. The availability of a Peer to Peer system of trading.
By peer to peer, we simply mean a system of trading that eliminates the bank as a third party. Trading is strictly done between 2 people with the supervision of Binance as the 3rd party for the sake of scam avoidance. Peer to peer is one of the best crypto trading exercise as it as proven this in situations whereby certain governments have clamped down on cryptocurrency. Peer to peer trading cannot be traced by banks since bank cards are not used or banks are not needed for the transaction to take place. Payments are made to bank accounts but no traces of crypto related transactions.
3. Card Deposits
For countries that support cryptocurrency, Binance provides a feature where credit and debit cards could be used to purchase and trade cryptocurrencies.
How To Trade Cryptocurrency Using Binance
These portion of the article provides the steps on how to trade cryptocurrency using Binance.
But first, before trading can commence, these steps should be followed:
1. Download a Binance Application.
2. Sign up with an email address you use regularly.
3. Use a password you can easily remember with the combinations of letters and symbols.
4. Set up a 2-Factor Authentication System to ensure the maximum security of your Binance account.
5. Follow the verification process that involves submitting a government issued identity card. Although one could commence trading before being verified but this as certain limitations as it becomes impossible for you to withdraw or transfer your digital assets until a proper verification is approved.
After you have logged into the Binance app, you can commence trading by clicking on the Trade Icon. This brings you to a page with Convert, Spot, Margin ,Fiat and P2P icons. It is best to always have Stablecoins handy. This is because they are a sure bet against the brutal inflation of Bitcoins and other cryptocurrencies.
Once you have your Stablecoin ready, say USDT, BUSD or USDC, toggle the convert icon. This will display an interface where you can convert your Stablecoin to whatever token or coin your are willing to have provided it is available on Binance.
Bingo! There you go. You now have your desired coin or token. It is left for you to HODL on to this coin or token or trade them.
Whichever way, trading on Binance involves both if you would like to make good returns on coins or tokens purchased. Note the value of when your exchanged your coin or token because this plays an important role in making profit.
For example, you convert USDT to Cardano (ADA) when it was $2.0 USD, hodling your Cardano until it surpasses the the 2 dollar mark is what will bring you profit. Once it passes 2 dollars, and you are comfortable with taking profits, you convert back to a Stablecoin to safeguard your profit.
On Binance, this can be done by toggling the Spot icon and inputing the amount you would like to sell.
Under the spot interface, there are certain features that makes it easy for trading.
For example, you could set a limit to buy and sell. This enables you to trade without looking at your phone or computer. Even when you sleep, trade an be done automatically.
In conclusion, asking questions and playing around the Binance app; and also consulting videos on YouTube will familiarize you with how to trade cryptocurrency using Binance.
Read Also: How to Make Money with StableCoins