Binance Trading: How to trade on the best exchange!
Binance is definitely one of the leading Altcoin exchanges. Its trading platform serves as a cheap and secure place to buy and sell cryptos. With more than 300 different coins, many so-called day traders have made this place their go-to place.
The system is equipped with a simple user interface and is 100% beginner friendly. The entry barrier here is not as high as with other crypto exchanges. You will probably quickly develop confidence in your ability to trade on Binance after reading this article.
Trading opportunities offered by Binance
One reason why Binance is so beginner-friendly is because they do not offer countless trading options like other exchanges. You can buy or sell and use basic functions such as stop losses, but there are no complicated trading functions.
Binance Exchange in Basic vs. Advanced mode?
When you hover your mouse over the Exchange button, you will find two options in the drop-down menu: Basic and Advanced. Selecting both options does not 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 crypto currency on a speculative level. This option is selected by default.
- Advanced: This option is a trading platform with more detailed graphs that allows medium and long term technical analysis of each crypto currency.
The desktop version of the Binance trading platform sometimes has frustrating delay problems. This problem tends to occur with individual trade executions, often when many orders are placed at once.
Although this should not happen as a rule, it means that you could quickly lose track.
How to make a trade on Binance
You can trade with BTC (Bitcoin), ETH (Ethereum), USDT (Tether) or BNB (the Binance Coin). Fees vary depending on which coin you use. Your own Binance Coin from the Binance Exchange offers attractive trading advantages. Nevertheless, Tether is a very popular option for trading larger coins such as Ethereum, Litecoin and Ripple.
Since most cryptos are rated by their Bitcoin or Fiat value, chances are that you will turn to trading BTC, Binance Coin or USDT. BTC is likely to win, as you want the largest possible number of trading opportunities to be available to you.
Also, you cannot deposit USDT, so it would cost more to position yourself to trade in this way. To combat this problem, you can avoid more and more fees by selling for USDT when you liquidate your first position.
When you trade the Bitcoin, please note that the value of the Bitcoin varies and the value of your account balance depends on the market price of BTC.
Buying/selling crypto currencies with Binance
Let us give you an example: You want to buy Substrate (SUB), perhaps after you have heard a recommendation somewhere. You can go to the SUB / BTC Trading Option of Binance to place your order.
The available options are Limit (default), Market and Stop-Limit.
The price is set by default to the last trading price. You can edit this number manually and thus enter the number you want, but it is not guaranteed that this will result in a direct purchase or sale. The price is always fluctuating. Choosing a price far above the nearest sell order in the order book will result in a "market buy" up to that price point (or as close as you can afford to spend).
Binance also offers 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 (except for balances currently held in an open trade). There are also arrows next to the order price that allow you to adjust your bid by one.
Create market orders on Binance
Placing a market order is simple. All you have to do is enter the amount you want to spend and send your order. You also have the option to split your buy-in here. Simply select 25%, 50%, 75% or 100% and place your order.
Stop limit orders
A stop limit order allows you to minimize losses. Useful if you are temporarily unable to be at your 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 is 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 the return.
Trade with lower fees
One of the reasons why Binance is particularly popular is that it allows for particularly low fees.
With Binance Coin you pay only 0.1% for each trade you make!
By holding the Binance Coin (BNB), these costs are halved, which means that you only pay 0.05% per trade.
Note: You only need to have NBB in your account for the discount to be applied automatically.
Tip: So always have enough NBB in your Binance portfolio to cover your trading fees.
Example: For example, if you enter and leave positions 10 times 1,000 € a day, this would be 10,000 € in daily trades. Using NBB saves you 0.1%, which means that you would pay €5 less per day in trading fees. The more you trade, the greater the saving.
Make sure that you keep an eye on your NBB balance so that it does not suddenly drop to 0. This is because your account will automatically switch to the crypto-currency that you hold when the fee is charged, at a rate of 0.1% per trade. Just buy NBB on a regular basis and you're back at the reduced rate.
Reminder: this discount for the use of NBB will decrease every year and after five years this promotion will no longer be active. The discount is halved each year, resulting in the following rates: 50% discount on year 1, 25% on year 2, 12.5% on year 3 and 6.75% on year 4.
You must activate the NBB discount manually
Move the mouse pointer over the person symbol in the right column of the upper menu bar. Select "Account", which will take you to a page with settings for your account. Under your e-mail and last login time you will find "Pay with NBB fees (50% discount)" option. Next to it a small circle with "ON" or "OFF". Make sure this is set to "ON" so that your NBB balance is set towards your trading fees and not towards your other account balances.
You will notice that the indicated fee changes to 0.05% if you have activated it. To be sure, just look at what the stock market has to say before you place your order. You should see the 0.10% crossed out and faded. Next to it you should see 0.050% in normal font.
Binance: The place for Altcoin Day-Trading
As a low-cost crypto currency exchange, Binance Altcoin gives day traders the ability to buy and sell cryptos several times a day. This component is critical to your ability to make positive profits as a Crypto Day Trader. Many people make big profits, but it takes a calculated approach. Fortunately, the trading fee from Binance is so cheap (0.1% or 0.05% for NBB). So even an inexperienced trader can make bigger profits by focusing on price movements of 1-2%.
We recommend that you give Binance a try and give it a try, especially if you trade crypto currencies. You can also cash out your coins, which is not possible when buying on a CFD platform like eToro. There's no spread because you're paying for the actual market prices (although they're 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 lost position above the closing cost.
Tip: Binance has introduced a function that allows you to convert your coin remains into NBB. It allows you to take all coins you have in small amounts and convert them into Binance Coins. The value can accumulate over time, especially if you trade daily and open and close many positions every day.
We hope that this article was helpful to you. The team of BC1 has taken the trouble to explain the most important things you need to know about the big 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.
- Binance logo: https://upload.wikimedia.org/wikipedia/commons/d/d7/Binance.png
- Cryptocurrencies Coins: https://www.pexels.com/de-de/foto/altcoins-bitcoin-digitale-munze-ethere-1108318/
- Crypto Currency Coins 2: https://www.maxpixel.net/Coins-Bitcoin-Crypto-currency-Internet-3d-Forward-2582593
- Crypto Currency Coins 3: https://www.flickr.com/photos/quoteinspector/43567558425
- Binance screenshots: Screenshots of website