Binance Trading: How to Trade on the Best Exchange!
Binance is definitely one of the leading altcoin exchanges. Your trading platform serves a cheap and safe place to buy and sell cryptos. With more than 300 different coins, many so-called day traders have made this place a go-to place.
The system, equipped with a simple user interface, is 100% beginner-friendly. The barrier to entry here is not as high as it is with other crypto exchanges. Chances are you will quickly develop confidence in your ability to trade on Binance after reading this article.
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Trading opportunities that Binance offers
One reason Binance is so beginner-friendly is because they don't offer as many trading options as other exchanges do. You can buy or sell and use basic features like stop losses, but there aren't any complicated trading features.
Binance Exchange in Basic vs. Advanced mode?
If you hover your mouse over the "Exchange" button, you will find two options in the drop-down menu: Basic and Advanced. Choosing both options doesn't change the way you see the trading interface. So what is the difference between these two options?
- Basic: This standard trading platform is equipped with basic graphics that allow you to get an overview of the technical data of the cryptocurrency on a speculative level. This option is selected by default.
- Advanced: This option is a trading platform with more detailed graphics that enables medium and long term technical analysis of each cryptocurrency.
The desktop version of Binance's trading platform sometimes has frustrating lag issues. This problem tends to occur with individual trade transactions, often when many orders are placed at once.
While this usually shouldn't happen, it means you could get lost quickly.
How to make a trade on Binance
You can trade with BTC (Bitcoin), ETH (Ethereum), USDT (Tether) or BNB (the Binance Coin). The fees vary depending on which coin you are using. Your own Binance Coin from the Binance exchange offers attractive trading advantages. Even so, tether is a very popular option for trading larger coins like Ethereum, Litecoin, and Ripple.
Since most cryptos are rated based on their Bitcoin or Fiat value, the chances are good that you will turn to trading BTC, the Binance Coin or USDT. BTC is likely to win because you want the greatest number of trading opportunities available to you.
Also, you can't deposit USDT so it would cost more to position yourself to trade this way. To combat this problem, you can always avoid more fees by selling for USDT when you liquidate your first position.
When trading the Bitcoin, be aware that the value of Bitcoin fluctuates and the value of your account balance depends on the market price of BTC.
Buying / selling cryptocurrencies at Binance
Let's take an example: You want to buy Substratum (SUB), maybe after hearing a recommendation somewhere. You can go to Binance's SUB / BTC trading option to place your order.
The options available are Limit (default), Market and Stop Limit.
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Limit orders
By default, the price is set to the last trade price. You can edit this number manually and enter the number you want, but it is not guaranteed that this will lead to a direct purchase or sale. The course is always fluctuating. Choosing a price well above the closest sell order in the order book will result in a "market buy" up to that price point (or as close as the amount you can afford by spending).
Binance also gives you a quick one-button option for placing limit orders. You can split your purchase amount into 25%, 50%, 75%, or 100% of your account balance (excluding balances currently held in an open trade). There are also arrows next to the order price that you can use to adjust your bid by one.
Creation of market orders on Binance
Placing a market order is easy. All you have to do is indicate the amount you want to spend and submit your order. You also have the option of splitting your buy-in here. Simply select 25%, 50%, 75% or 100% and place your order.
Stop limit orders
A stop limit order enables you to minimize losses. Useful if you are temporarily unable to be at the computer. The stop is the price at which your limit order becomes active in the order book. The limit is the price at which your position will be sold.
If the market breaks the stop and does not return to the limit price, the order will remain in the order books regardless of how far the price falls. However, if the price recovers sufficiently, the position will be liquidated at the limit price, regardless of how high the return is.
Trade with lower fees
One of the reasons why Binance is particularly popular is that it allows particularly low fees.
With the Binance Coin you only pay 0,1% for every trade you make!
Holding the Binance Coin (BNB) cuts these costs in half, which means you only pay 0,05% per trade.
Note: All you need to do is have BNB in your account for the discount to be applied automatically.
Tip: So always have enough BNB in your Binance portfolio to cover your trading fees.
Example: If you enter and leave positions 10 times a day, for example, that is € 1.000 in daily trades. Using BNB saves you 10.000% which means you would be paying € 0,1 less per day in trading fees. The more you trade, the greater the savings.
Be sure to keep an eye on your BNB balance so it doesn't suddenly drop to 0. Your account will automatically switch to the cryptocurrency that you have when the fee is collected, at a rate of 0,1% per trade. Simply buy BNB regularly and you are back at the reduced tariff.
Memory: This discount for the use of BNB will decrease annually and after five years this promotion will no longer be active. The discount is halved every year, which results in the rates as follows: 50% discount on year 1, 25% on year 2, 12,5% on year 3 and 6,75% on year 4.
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SIGN UP NOWYou have to activate the BNB discount manually
Move the mouse pointer over the person symbol in the right column of the top menu bar. Select "Account", which will take you to a sub-page with settings for your account. Under your e-mail and the last login time you will find the "Pay with BNB fees (50% discount)" option. Next to it a small circle with "ON" or "OFF". Make sure this is set to "ON" so that your BNB balance is set towards your trading fees and not towards your other account balances.
You will notice that the advertised fee changes to 0,05% once you have it activated. To be sure, just take a look at what is on the market for trading before placing your order. You should see the 0,10% struck through and faded. Next door should be 0,050% in normal font.
Binance: the place to be for altcoin day trading
A low-fee cryptocurrency exchange, Binance Altcoin gives day traders the ability to buy and sell crypto multiple times a day. This component is critical to your ability as a crypto Day Trader to generate positive profits. Many people achieve great success, but it takes a calculated approach. Luckily, Binance’s trading fee is so cheap (0,1% vs. 0,05% for BNB). Thus, even a novice trader can make bigger profits by focusing on price movements of 1-2%.
We encourage you to give Binance a try and give it a try, especially if you are trading cryptocurrencies. You can also cash out your coins, such as when buying on a CFD platform eToro not possible. The spread is absent because you are paying for actual market prices (although they are different from other exchanges). In addition, the cost of buying and selling (entering and exiting) a position is so low that you can avoid holding a losing position via closing costs.
Tip: Binance has introduced a function with which you can turn your coin leftovers into BNB. It allows you to take any coins you have in small amounts and convert them into Binance Coins. Value can add up over time, especially if you trade daily and open and close many positions daily.
We hope this article has helped you. The BC1 team has taken the trouble to explain the most important things you need to know about the large crypto exchange Binance free of charge. You are welcome to read further articles on our website in which we explain important knowledge for your crypto career.
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Image sources:
- Binance logo: https://upload.wikimedia.org/wikipedia/commons/d/d7/Binance.png
- Cryptocurrency coins: https://www.pexels.com/de-de/foto/altcoins-bitcoin-digitale-munze-ethere-1108318/
- Cryptocurrency Coins 2: https://www.maxpixel.net/Coins-Bitcoin-Crypto-currency-Internet-3d-Forward-2582593
- Cryptocurrency Coins 3: https://www.flickr.com/photos/quoteinspector/43567558425
- Binance Screenshots: Screenshots from website