An Introduction to Binance Crypto Exchange
Binance is one of the world’s leading crypto exchanges that began its operations in 2017 in China. The founder and CEO of the exchange is Changpeng Zhao, known in the crypto circles as CZ. Binance is known for its huge cryptocurrency offer. Besides the popular ETH to BTC Binance trading pair, they have over 400 different cryptocurrency pairs that users can trade with. Among the various markets on Binance, Chainlink seems to be one of the most active ones.
The proprietary coin of the exchange is called Binance Coin (BNB). Trading on Binance is performed based on a standard maker-taker model. Each trade carries a fee between 0.02% – 0.1%. Using BNB to pay for transaction fees, users can save an additional 25% on fees. The fee structure changes every year.
The Binance minimum trade value depends on the market and trading pair. The Binance Bitcoin to Ripple pair, for example, requires a minimum of 1 XRP trade amount. All other estimates can be reviewed in their trading rules.
For security purposes, Binance holds most of its funds in cold storage, off the exchange. Only a small part of their assets is found in hot wallets. They have a very professional security department and have been known to address security issues and problems with downtime in a timely fashion. Is Binance down? Users can always check if Binance is down by using a service such as Downdetector.
Besides the online platform, Binance has also developed mobile apps for Android and iOS users. Android exchange software is also available. The Binance iOS download page allows iPhone users to download the trading app.
Binance is more than just an exchange platform. They have the Binance Academy, where users can learn the basics of cryptocurrencies and blockchain technology. The Binance Launchpad allows projects to jumpstart their ICO and IEO campaigns.
They often reward their users through lucrative Binance giveaways. A great example of this is the BTT airdrop Binance organized for Tron holders on the exchange. The Binance giveaway for Tron was not the first nor is it the last giveaway that was held by this exchange. The BTT Binance partnership begun in 2019 when BitTorrent held its token sale on the Binance Launchpad.
How Does Binance Work?
Before commencing with trading, a user needs to register a new account to gain access to his new Binance wallet. Identity verification is not needed for Level 1 which has a 2 BTC withdrawal limit. To be upgraded to Level 2, a KYC verification process is required. Level 2 allows withdrawals up to 100 BTC/day.
Users from the UK now have the liberty to use a subsidiary of Binance called Binance Jersey, where they can finance their accounts with British Pounds. This is the official URL of the Binance login UK that customers can use for that purpose.
Binance.US is intended for US-based investors. The site accepts deposits in USD. Unfortunately, Binance sell to USD is not possible on the exchange. Stablecoin options are available though. Here is an easy to follow video that explains the Binance how to buy USDT process, just in case you are stuck and don’t know what to do.
Once the registration process has been completed, users can now fund their accounts and begin trading. To do that, click on the “Funds” > “Deposits/Withdrawals” button on the top of the page and find the currency you want to deposit in. If you want to deposit Bitcoin, your Bitcoin wallet Binance address will be displayed after you click on the “Deposit” button. That is the address you need to send your coins to so you can begin trading.
Different currencies take different times to show up in your account. It’s mostly related to the used transaction fees and the number of needed confirmations by the exchange. After your deposit has gone through, you are ready to do some trading. Binance provides a vast array of different trading pairs so choose wisely and good luck.
The site offers two trading modes: Basic and Advanced. The basic one should be enough for most users, but the more experienced investors can benefit from the Advanced mode. The advanced mode shows a more detailed technical analysis. For example, here is a look at the advanced Binance IOTA chart.
We notice the big chart in the center position. The buy and sell orders are located on the right side next to the corresponding trading history. The buy and sell boxes are directly underneath.
How to Buy and Sell on Binance
Clicking on Basic or Advanced Exchange will bring you to the general trading window. For the sake of simplicity, I will explain how to perform a trade using the Basic mode. The main trading pairs on Binance are Bitcoin, Ethereum, Binance Coin, and Tether. On the top right side of the screen select the currency you previously deposited and which you want to trade, and type in the symbol of the coin you wish to buy.
You might ask: Can I buy Ripple from Binance? Of course, you can. If you want to buy XRP with BTC Binance, simply enter “XRP” in the search area. Click on the correct pair and you will be shown the selected data. The figures in red on the top left are the sell orders, and the ones in green beneath them, are the prices that investors are willing to buy for. The big number in the middle marks the last sale price. On the Binance exchange Bitcoin for Ripple is a marketable pair.
To exchange Bitcoin for Ripple on Binance, you need to place a buy order for XRP. You do that by entering the price you are willing to pay in the green Buy Box, just below the main chart. You can enter the price manually but it is advisable to click on a suitable number from the sell orders on the left.
Next, please enter the correct amount of XRP you wish to purchase. You can also click on the 25%, 50%, 75%, or 100% buttons which will automatically display how much you can buy based on the amount of Bitcoin you have available.
When you are ready, click on the green buy button to place your order. Your buy order will now be visible in the “Open Orders” area until it is filled. After the order is settled your new coin will be visible in your account.
The sales process is the same but the trader needs to fill out the red Sell Box instead.
Binance supports a long list of coins. The Binance Mithril partnership began after MITH was listed on the exchange, just 2 days following the end of their ICO. A lot of daily traffic originates from the Binance Chainlink bond. The Chainlink Binance trading has been on offer since 2017. Another interesting headline was the DENT crypto Binance listing. DENT is a global distributor of Mobile data.
What to do With Cryptocurrencies on Binance After Trades
It is not recommended to store cryptocurrencies on exchanges for long periods. After finalizing trades, users can choose to do one of two things:
- Withdraw their coins
- Stake their coins
Withdrawing coins to a private wallet is the most frequent choice. To do that, simply click on “Funds > Deposits/Withdrawals” and click on the withdraw button next to the coin you wish to withdraw. Enter the receiving address of your wallet and click on withdraw. If you encounter an error message saying “Binance address verification failed”, make sure to doublecheck your receiving address for possible mistakes (double entries, missing characters, etc.).
Withdrawing funds in Dogecoin has become a popular option to save on withdrawal fees. Dogecoin has one of the lowest transaction fees in the industry. More information about the DGB coin Binance is available on Binance Info.
Staking is another option available to Binance users. By keeping coins locked in their Binance wallets, users can earn yearly staking rewards just by supporting the network. Amongst many others, the platform supports LISK and Tezos staking options. In March 2020, Binance register EOS Tokens staking option.
Binance is one of the fastest and most regularly used crypto exchanges in the world. It’s available in multiple languages and for all devices and platforms. They have one of the widest selection of coins and trading pairs and have shown exemplary behavior when it comes to security and safety of user funds.
Binance continues to evolve and improve with time. Their native currency, the BNB Coin, offers traders additional benefits. Binance is using part of its profits to buy back Binance Coins from the market. This raises the value of the coin which has received a great response and adoption by the userbase. Binance will undoubtedly find new ways to surprise us and keep its place at the top.