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How To Use Binance Like A Pro

Mon 15 Feb 2021 ▪ 19 min of reading ▪ by CryptoKing

In terms of transaction volume and the number of users, Binance is a big player in the crypto exchange space. Beginner and experienced investors alike are just as interested in mastering the platform’s tools so they can perfect their trading performance. So, how can you invest in AND trade on Binance? This guide will cover EVERYTHING you need to know about this exchange platform.

Useful info on Binance

You should also do your due diligence and obtain as much information as possible before investing your hard-earned cash on any platform. Choosing the best exchange may depend on factors such as its: security record, trading fees, payment methods and range of cryptocurrencies.  Bearing that all in mind, let’s start right at the beginning – way back in 2017 at the beginning of Binance’s journey.

Binance’s journey so far

The cryptocurrency exchange was founded in early 2017 by Changpeng Zhao (often shortened to ‘CZ’ by the industry), a Chinese immigrant from Canada. CZ was a computer scientist interested both in international finance and cryptocurrency projects, which began to emerge from 2010 (Bitcoin was launched on 3rd January 2009). Therefore, by combining his two passions, he anticipated the promising future blockchain technology (a chain of validated transaction blocks) could have on international trading.

A $15 (£11.5) million funding round

Changpeng Zhao went on to propose a funding round, known as an ICO (Initial Coin Offering) in crypto-world which was, and still is, a very popular way to raise money at the seeding phase of a project. Investors in the project receive digital assets in return for their cash, which can then be stored or exchanged for other virtual currencies.

Levée de fonds

Binance’s ICO in July 2017 meant they raised $15 million, which brought a lot of hype around the project. CZ was then able to attract more experienced collaborators, who he deployed to promote the Binance ecosystem. In just a few months, Binance had propelled itself to the top, becoming the largest cryptocurrency exchange globally in terms of trading volume.

Immediate success

Binance’s numerical progress in just five months was clear:

  • Exceptional performance: reached the top three exchanges with a daily transaction volume of $2.1 billion (£1.6 billion)
  • International reach: From the beginning had a large community of American investors (who already have a lot of other options), but also Asian (the most keen on cryptocurrencies) and even European investors (generally more cautious). The community votes and enters contests monthly.
  • Wide range of interest from whole crypto ecosystem: an ICO organised by the platform had been fully funded in less than two minutes, they accepted 22 cryptocurrencies and offered 190 trading pairs (today over 500)

Launching binance coin (BNB)

Binance also launched its own cryptocurrency, which is used exclusively on its exchange. The launch of BNB capitalised on the popularity of the platform, so more capital could be raised by the Binance ecosystem.

Le Binance Coin (BNB), un élément important du succès de Binance

CZ promoted BNB by revealing that percentage discounts could be obtained on transaction fees when using the coin. Reductions of 25% could be obtained from 0.1% to 0.075% when using BNB, with an additional saving when using the Binance Futures partner programme (requiring a 500 BNB stake).

Another advantage of BNB is that it can convert ‘coin/token dust’ (extremely small cryptocurrency units). This is useful as these residual amounts leftover from transactions can’t be withdrawn because they do not cover withdrawal fees. The success of BNB can be easily measured by its meteoric rise into the top 10 cryptocurrency by market cap (value).

Buying crypto on Binance

How can I buy crypto on Binance? This is a really relevant question, especially when you realise there is no consistency among exchanges. The exchange platform allows you to buy cryptocurrencies by using other cryptocurrencies, by credit card or bank transfer.

Using a credit card or bank transfer

"le paiement par carte bancaire est possible sur la plateforme crypto Binance"

In order to make life easier for investors, Binance widened its range of fiat funding methods by allowing credit cards and bank transfers.

Simplex

Page principale de Simplex, permettant des paiement sur Binance

The Israeli company, whose service has been compatible with Binance since January 2019, initially only allowed purchases of BTC, LTC, XRP or ETH by credit card (Visa, MasterCard) and bank transfer. Today, there are tens of cryptocurrencies and the fees charged by credit card are around 5% but there is a minimum fixed fee too. Users are capped at the equivalent of $20,000 (around £15,000) a day and $50,000 (around £38,000) a month.

TrustToken

Page d'accueil de TrustToken, partenaire de Binance

In June 2019, Binance partnered with the TrustToken platform to offer a range of stablecoins (cryptocurrencies whose values are pegged to another cryptocurrency, fiat currency or a publicly traded stock).

TrustToken has various stablecoins, one of which is called TrueUSD, backed entirely by the US dollar. It is offered on Binance and is used to transfer money quickly and easily between cryptocurrencies and the user’s bank account.

Koinal

Koinal, partenaire de Binance

London-based Koinal has been a Binance partner since September 2019. This company, which specialises in the payment processing sector, allows investors to acquire five digital currencies BTC, ETH, XRP, BCH, LTC, ALGO, IOTA, TRON by credit card (Visa, Mastercard or UnionPay). There will be a bank transfer option added in the future. Fees with credit card are around 2.5%.

Paxful

Logo de Paxful, partenaire de Binance

The collaboration between Binance and Paxful was announced in December 2019. Paxful is a Bitcoin peer-to-peer buying and selling platform. As a result of this partnership, Binance integrated their Virtual Bitcoin Kiosk, which offers users the opportunity to instantly compare the offering based on the criteria that matches their exchange need (payment method, currency etc). With this service it became possible to buy BTC on Binance with lesser known fiat currencies such as the Nigerian Naira, Vietnamese Dong, Mexican Peso or Indonesian Rupiah to name but a few.

Exchanging your cryptocurrency for another

Il est possible d'échanges des cryptomonnaies entre elles sur Binance

Binance allows you to use cryptocurrency to buy other virtual currencies. For example, you can buy BTC by exchanging them for ETH. In short, in order to exchange cryptocurrencies this way you must first deposit cryptocurrency into your Binance account and then make sure it is available to trade with. Thanks to the numerous partnerships mentioned above, you can directly buy cryptocurrencies using different fiat-to-crypto combinations and then store them with the official and secure wallet from the Trust Wallet exchange. It is also possible to withdraw them back into ‘normal’ currency through Binance Jersey.

Before this feature existed, users had to use Binance in conjunction with another platform that allowed you to trade crypto back into fiat (and vice-versa), like Coinbase, Kraken or Bitstamp. This method of transferring from one exchange to another is still very popular, as Binance Jersey has low volumes of cash compared to the other offering cited above.

Some of the most traded cryptocurrencies on Binance by volume are: BTC, ETH, LINK, YFI, BCH, ATOM, BNB, USDT, BUSD, XRP and ADA.

The new fiat to crypto exchange

In January 2019, Binance launched a new cryptocurrency exchange located on the UK island of Jersey, which allows users to trade BTC and ETC for or £. This helps solve the issue of having to open accounts on two separate platforms, therefore allowing it to compete with companies like Kraken, Coinbase and Paymium.

Good to know: the fee for a faster payments deposit is £1.95, regardless of the amount. There is also a £2 withdrawal fee

It is important to know that Binance Jersey complies with European standards, respecting the Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

The Binance ecosystem

A platform that allows the buying, selling and exchanging of cryptocurrencies has the advantage of being able to present a full range of services to support crypto aficionados (people bullish on crypto – thinking its price will rise). Such an ecosystem can be broken down into nine complementary branches:

  • Binance Chain: the blockchain software system running Binance
  • Binance Academy: open access learning centre for developers
  • Binance Charity: Binance’s charitable foundation
  • Binance Info: information compiled on cryptocurrencies forming an online encyclopedia
  • Binance Labs: an incubator dedicated to project leaders working on the blockchain
  • Binance LauchPad: a platform for launching tokens
  • Binance Research: a channel for information and analysis of trading activity
  • Trust Wallet: the official wallet to store cryptocurrencies
  • Binance Exchange: the name of the exchange platform

Did you know? The name Binance comes from the merging of words binary and finance.

Registering and creating an account on Binance

Do you want to start trading on Binance but you have a lot of questions about how it works? How can you invest in Binance? How can you trade on Binance? How can buy coins on Binance? Don’t fret, we have a tutorial explaining the steps you need to take to choose the right account based on your preferences, along with how you can register and how you can make your first deposit.

Choosing the right account

Binance offers two versions of its platform, each corresponding to a certain type of investor. The basic mode is most suitable for traders who are just starting out (those who do not trade on a regular basis, perhaps are just holding long term), while the advanced mode is designed for experienced investors (buying altcoins and cryptocurrency pairs on a speculative and regular basis). To better understand the world of trading, we recommend that you read this article.

The interface for advanced traders offers interactive charts and multiple tools, which help establish your investment strategy.

It is possible to see your order history, order options and market values for the various cryptocurrencies. Since Binance’s acquisition of CoinMarketCap, the world’s most popular cryptocurrency news and reference site, in early April 2020, this information has become even more useful. A seasoned investor also has access to technical analysis tools (linear tools, indicators), which can be adapted as and when needed (graphs, data projection etc).

Registering with Binance

In order to register, you must obviously visit the website and start by selecting the language in which you wish to proceed.

Step 1: signing up to an account

These are steps to sign up:

  1. Enter a valid email address
  2. Create a password, which must consist of at least eight characters (including capital letters and numbers)
  3. Enter, if applicable, your referral ID (optional, but recommended)
  4. Confirm that you are over 18 years of age
  5. Confirm that you will abide Binance’s terms of use
  6. Complete a verification puzzle (confirming you’re not a robot)
  7. Click on the “create an account” button.

Step 2: validating your email address

These are the steps to validate your email address:

  1. Check your the inbox of the email that you entered when registering
  2. Wait a few moments to receive your confirmation email from Binance
  3. Click on the link, which will activate your account

Step 3: Logging onto your Binance account

These are the steps to logging into your account:

  1. Go to the Binance home page
  2. Get access to your account by clicking the ‘login’ button
  3. Read the message which appears in red
  4. Activate two-factor authentication (2FA) which will make sure your account is more secure. If you don’t want to add 2FA right away click on ‘Skip for now’
  5. Activate 2FA by using the Google Authenticator app

Good to know: while it may be cumbersome to add 2FA, we highly recommend doing it, as it is one of the easiest ways to secure your account. We also recommend you choose 2FA via Google Authenticator rather than text. And hey, as an added bonus 2FA gives you a higher withdrawal limit.

Making your first deposit

If you want to buy crypto on Binance you will need to first make a deposit, there are few ways you can do this.

Option 1: deposit cryptocurrency

In order to do this you must have:

  • A virtual currency you are willing to deposit
  • An large enough amount to deposit (so the fees are worth it)
  • Access to the wallet where your tokens are stored
  • The Binance address of where to send the tokens

Option 2: purchase cryptocurrency with a credit card

As mentioned above, since January 2019 you have been able to buy cryptocurrencies on Binance with a credit card. The range of cryptocurrencies is limited but there are over 20. To do this, you need to:

  • Click on the ‘Buy now’ tab
  • Select the cryptocurrency and the amount you wish to buy
  • Confirm the purchase by accepting the terms and conditions

You are then redirected to the secure page of the payment provider in order to finalise the transaction.

Buying and exchanging cryptocurrency

If you want cryptocurrency on your Binance account, follow the steps below.

Where and how to buy cryptocurrency?

You need to use dedicated platforms if you want to buy cryptocurrency. Even though you can buy a lot of different cryptocurrency on Binance, there are many more altcoins out there. Some altcoins need to bought on other platforms like Bidesk, Uniswap and Kucoin. However, for most beginners the likes of SwissBorg, Binance and Crypto.com offers enough coins. 

How can you buy cryptocurrency on these platforms? First of all it’s important to know that not all offer the same way to purchase cryptocurrency. You need to select the one that best suits your needs. Don’t forget you are not just limited to credit cards and bank transfers, you can also buy prepaid cards, use online payment solutions or even cash.

How to exchange cryptocurrencies on your Binance account?

If you want to exchange your cryptocurrency on Binance, you need to:

  1. Go to the top of the screen and click on where it says ‘trade’
  2. Choose the trading pair you want to make your exchange with
  3. Look at all the trading information (market trends, trading volume, number of cryptocurrencies purchased and so on)
  4. Confirm the transaction after deciding how much you want to exchange

How to withdraw from your Binance account?

To withdraw, you need to click on the ‘Withdrawal’ button and follow the instructions. There will be withdrawal fees which will depend on the value of tokens withdrawn.

You should be aware that there are limits on withdrawals depending on your account level:

  • Level one: maximum withdrawal is two BTC every 24 hours
  • Level two: maximum withdrawal of up to 100 BTC every 24 hours

A level two account requires you to comply with KYC/AML account identification regulations. The exchange, which is located in Hong Kong, asks you if you live in China or not, before going on to other personal information, such as your last name, first name, sex and country of residence.

KYC requires a phone number and a photo of both sides of a valid ID, as well as your photo, which you can take from the device you are registering from (of course it should match your ID photo).

How safe is Binance?

La sécurité de Binance

Cryptocurrency exchange platforms are prime targets for hackers, so in that sense, it is highly recommended that you store your private keys (which allow access to your funds) on an external cold wallet solution. Cold storage means your private keys are on an offline wallet, unlike hot wallets. We recommend the classic cold wallets, such as the ones made by Ledger or Trezor.

How to create a wallet on Binance?

Once your identity has been verified, you can store your purchased tokens on an internal Binance wallet. The steps are as follows:

  1. Go on your profile
  2. Click on the “deposit” button
  3. Generate an address by clicking on “generate new address”

Good to know: although it is possible to trade with a single address, it is recommended to create several, in order to prevent another user from accessing your information, which they could do by associating the link between the given address and the volume of cryptocurrency held.

Binance and Trust Wallet

Since August 2018, Binance has offered to store cryptocurrencies on Trust Wallet, an open source wallet (open source meaning free access for all), which campaigns for decentralised transactions and anonymity. Coming in the form of a mobile application, Trust Wallet allows you to manage tokens while keeping control of your private keys.

This universal wallet allows, for example, Binance DEX users to benefit from secure trading services. The wallet notably incorporates Ethereum as well as ERC-20, ERC-223 and ERC-721 tokens.

Binance’s security features

The exchange’s security can be found in many different forms:

  • Two-factor authentication (2FA), which verifies the user’s identity
  • Captcha puzzles to counter automatic connections made by robots
  • Password changes
  • Email notifications every time a connection, deposit or withdrawal is executed
  • Possibility to withdraw tokens to cold wallets
  • Account security on Binance using 2FA
  • SAFU insurance on all funds

This Binance tutorial has hopefully clarified a number of points to help understand how to buy tokens on Binance. With its impressive catalog of cryptocurrencies and its future developments, in particular with regards to payment facilitation, the exchange remains a big player in the world of cryptocurrency trading. As long as you understand how to manage your risk, it will be a very fun ride. However, with ever more innovative new features, who knows how far the Binance platform will continue to leave its mark on the world of cryptocurrency.

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CryptoKing avatar
CryptoKing

Just your average global millennial embracing, and interested in, the future of money and finance. Excited by blockchain tech as well as fintech but have a special passion for DeFi and Yield Farming, what will this technological disruption bring next?

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.