Binance is one of the newest, yet most popular digital exchanges and it was launched in 2017.
Most cryptocurrency traders and enthusiasts praise it for low trading fees, professional attitude, and a huge number of coins that it supports.
In this step by step guide, we’ll help familiarize the platform for you and give as much detail as necessary.
Here’s all you need to get started; a Binance account, some BTC or ETH under your name and a few minutes to spare.
The information provided here is for informational purposes only and should not be seen as investing advice. Our opinions on this site are only that, if you are considering an investment into cryptocurrency or anything we speak about on this site, please advise a trusted financial professional first, before doing so.
Creating An Account on Binance
Like with any other exchange, no one starts trading without creating an account first. To register an account on Binance, access their website and click on the “register” tab on the top right side.
Fill out your email address and a PIN.
Once you’ve followed the prompts you’ll immediately receive an email confirmation message.
Open your email and click on it to complete the registration process.
Stay Safe - Two Factor Authentication
There’s no denying that the Binance exchange is one of the most secure exchanges around.
One of the measures they’ve put in place to secure your account is the 2 Factor Authentication feature that links your account to your cell phone number.
In the event you lose access to your account, you can recover it using a code that Binance will send to your mobile number.
To activate this feature, simply tap on it and you’re good to go.
At a time when hackers wreak havoc on exchanges and steal coins worth millions of dollars, most exchanges care opting to comply with the KYC rules, just like in the banking sector.
Binance seems keen on conforming to the KYC requirements.
They need users to fill out a KYC form to verify their accounts. The platform has divided its users into two; level one and level two.
Withdrawals for level one users are capped at 2 BTC per day, while level two users can withdraw up to 100 BTC on a daily basis. Level one users do not need to verify their accounts but level two users need to upload a Photo ID to verify theirs.
They also need to wait for approval after they submit their verification requests, a process that can take days or weeks.
If you would prefer to transact and withdraw huge amounts of BTC per day, it’s recommended that you plan early to complete the process before you start trading.
For the ordinary beginner who is not into heavy BTC withdrawals, a level 1 account is more than ideal.
Deposit BTC or ETH (Crypto Transaction to Binance)
With your Binance account up and running, it’s now time to load it with your desired currency.
One thing to note is that Binance only supports cryptocurrencies. No fiat.
In case you only have fiat currencies like USD, you’ll need to first acquire BTC or ETH before you start the process of funding your account.
Easiest ways to purchase BTC or ETH with fiat currencies
There are many ways of buying Bitcoins or Ethereum but nothing beats the simplicity of buying these coins using fiat currencies like USD and EUR.
Fortunately, some services offer fiat linked cryptocurrency accounts.
Most of these provide an inbuilt BTC wallet where they deposit your BTC.
Let’s look at the different platforms that specialize in being a fiat to cryptocurrency onramp service.
Coinmama is a platform that lets you buy BTC or ETH using fiat currencies. It supports all Visa and MasterCard credit and debit cards and boasts of a fast tracked verification process that takes an hour or less to be completed.
Coinmama sends you BTC immediately after they verify your payment and wallet addresses.
A popular exchange that was launched in 2012, Coinbase serves more than 32 countries. It supports four main cryptocurrencies, including BTC.
At Coinbase, you can buy BTC using fiat currencies like USD, GBP and EUR at a flat fee of 1.5%.
Launched in 2013, CEX.io cannot be ignored when it comes to fiat-cryptocurrency exchanges. It’s based in London, UK and supports major cryptocurrencies like ETH, BTC, BTG, ZCash, XLM, BCH and XRP.
It’s available in most countries with the exception of just a few, and accepts USD, EUR and RUB.
To get hold of some BTC on the CEX.io platform, simply create an account, fill out KYC form and link your account. After the prompts, you’ll be having your BTC in your account in a matter of minutes.
With some BTC of your own lying in an exchange, it’s now time to fund your Binance account. Remember, Binance only allows you to deposit cryptocurrencies, not fiat currencies.
Hover on “Funds” and access the “Deposits/Withdrawals” link underneath it. Be sure to select the amount of BTC you wish to deposit and Click on “Deposits”.
This generates a wallet address for you.
Head over to the other exchange that’s holding your BTC and send the BTC to the new wallet address. On the Binance platform, click on “Confirm” to complete the process.
Normally, the funds take a few minutes before they show on your Binance account, although this depends on the type of cryptocurrency you use.
Generally, ETH transactions will be faster than those of BTC.
Be sure to keep tabs on your balances by clicking on ‘Deposits/Withdrawal > Transactions history”.
Buying The Currency?
With BTC safely sitting in your Binance account, you are now free to exchange it for any other altcoin that’s traded on the platform.
There are hundreds of coins and ICOs that are available on the platform.
Let’s say you’re interested in investing in IOTA. Locate the “Exchange “tab on the top left of the Binance website and click on it.
Click on “Basic”.
This will take you to page full of charts.
The beauty of Binance is that their charts are easy to read if you’re interested in interpreting them.
However, if you’re only looking to buy and hold, you can bypass the charts for now and go straight to the list of cryptocurrency pairings provided.
Select the IOTA/BTC combination.
Alternatively, key in the coin’s ticker, “IOTA” on the box provided.
You’ll notice that Binance makes it super easy for anyone to trade on the platform, regardless of their level of cryptocurrency knowledge.
For instance, they have an inbuilt automated tool that helps you select the percentage of coins you wish to spend on the new coin.
The tool is labeled,”25%, 50%, 75% and 100%.”
Let’s assume you want to spend three quarters of your BTC to buy IOTA. You simply tap on 75% and you’ll receive an IOTA amount equal to three-quarters of the BTC in your account.
How easy can it get?
Optional: Set Limit
The platform allows you to either buy altcoins at prevailing market prices or to set your own “bid” price, simply put, the price at which you’d like to buy Iota.
Once you select the altcoin you intend to buy, a dialogue box will pop up.
It will have three options labeled: Limit, Market and Stop-Limit.
To buy altcoins at current market prices, click on the “market” tab. Within seconds, you’ll have bought Iota at the current rates.
What if you want to buy IOTA at lower prices? You can set a limit order for that.
Let’s say you want to buy IOTA when its prices come down. If the current price of a unit of IOTA is $2, your limit order should be anything less than that, say $1.
Click on the Limit tab to set up your order.
In case there’s a willing seller who matches the $1 price, the order is executed and IOTA is deposited into your Binance account.
The platform also safeguards you from making huge losses in the event the prices of altcoins come tumbling down.
As is the case with cryptocurrencies, volatility is the order of the day, and it’s not unusual to see an altcoin shedding huge percentages of its price in a matter of hours.
What would you do to protect yourself?
A Stop Loss order is the solution.
By clicking on “Stop Limit” you’ll be able to set up your stop-loss order.
For demonstration purposes, we’ll assume that a unit of Iota is retailing at $10.
Your stop-loss order should essentially be less than that.
When the price of IOTA starts reducing, your stop order will activate once the price hits the $9 mark, saving you the ignominy of making huge losses in case the price continues on a downfall.
Keep in mind that the Limit and Stop loss orders are optional.
Safely Storing Your Cryptocurrency
You’ve finally made your first transaction on Binance, congratulations.
You’re wondering whether to leave your IOTA in the Binance account?
History has proved that coins stored in an exchange can be lost in cases of a hack attack, like in the case of MtGox a few years ago.
That said, you'll need a safe place to store your cryptocurrency.
You’re in luck because there are many cryptocurrency wallets that can secure your new coins.
These include hardware, software and online wallets.
These are physical devices that resemble a USB flash disk that store cryptocurrency wallet addresses offline, hiding them from the prying eyes of hackers.
Most of these devices come with an inbuilt screen to help you navigate through. The private keys are stored inside the devices and cannot be shared in a computer without the device owner’s consent in form of a PIN code.
The fact that the private key is not online at any point makes these devices the most secure methods of storing cryptocurrencies. They are so hardy that they can be sued on computers infected with malware.
Examples include the Ledger Nano S, Trezor and KeepKey.
We are absolutely bonkers about the developments from Ledger, so give our walkthrough a look here.
These are software applications that are downloaded on PCs or mobile phones to secure your cryptocurrency wallet addresses.
Once installed, they store the private keys in the application. Some come equipped with PINs and pass-phrases to give you an extra security layer.
They are convenient because they can be accessed from anywhere. Unlike hardware wallets, these are susceptible to malware attacks and are not as secure as hardware wallets.
Gatehub, and Toast are some of the popular names in the software wallets industry.
These are web-based wallets that store your private keys in the servers owned by websites or in the cloud.
While they offer the convenience of software wallets, they are vulnerable to malware attacks as third parties store the precious private keys.
In a nutshell, all cryptocurrency wallets have their pros and cons. It’s recommended that you do your due diligence before settling on one.
The above step by step guide shows you how easy it is to buy any cryptocurrency on the Binance platform.
From creating an account to depositing funds in it, to making your first ever transaction, it’s a process that anyone can ace regardless of their level of cryptocurrency knowledge.
With more practice, you’ll be on your way to not only understanding how the industry works, but to becoming a successful cryptocurrency trader and investor.
We recommend that you continue trading to discover more features within Binance that will help you make the best out of your cryptocurrency trading.