Cryptocurrencies

How to use Binance like a pro? – Cryptocurrencies

Binance is an essential exchange for the volume of transactions generated and the number of users. Beginners as well as experienced investors have every interest in mastering the functioning of the platform to perfect their trading strategy. How to invest in Binance? How to trade on Binance? So many questions behind this tutorial on Binance.

Learn about Binance

Before buying your cryptocurrencies by registering on Binance, it is always recommended to learn as much as possible on the exchange platform. Several elements make it possible to choose the best exchange such as the reassuring aspect, the amount of trading fees, the payment methods and the range of possible transactions. So let’s come back to all of these points, starting with the start of the Binance adventure in 2017.

Binance’s story

The cryptocurrency exchange platform was created in 2017 by Changpeng Zhao (often abbreviated “CZ“In the industry), a Chinese emigrant to Canada. This computer scientist is interested in both international finance and cryptocurrency projects that emerged at the turn of the 2010s (Bitcoin was launched on January 3, 2009). He therefore couples his two centers of interest, anticipating the contributions that blockchain technology (all of the validated transactions) could have for international trading.

$ 15 million fundraiser

Changpeng Zhao offers a fundraiser, a ICO (Initial Coin Offering), a very popular mechanism for collecting money during the seed phase of the project. The contributor invests in the Binance project and collects digital assets in return, which can then be kept or exchanged with other virtual currencies.

Fundraising

The ICO of July 2017 allows Binance teams to obtain a record envelope of $ 15 million, marking a real craze on the part of investors around this project. Changpeng Zhao can then attract experienced collaborators, deploy and promote the Binance ecosystem. In a few months, Binance is propelled into the gotha ​​of cryptocurrency exchange platforms, to become the main one after a year in terms of trade volumes.

Immediate success in figures

Binance’s success after five months was clear:

  • Exceptional performance: in just five months, it had already reached the top 3 exchanges with a transaction volume of $ 2.1 billion per day;
  • A big community which attracts Americans from the start (despite the already exponential offer across the Atlantic), but also Asians (the most keen on cryptocurrencies) and even Europeans (generally more cautious). A brooding community with monthly contests and votes;
  • Interest from the players themselves in the cryptoactive universe: an ICO organized on the platform and completed in less than two minutes, reception of 22 new cryptocurrencies, quickly 190 trading pairs (more than 500 today).

The launch of Binance Coin

The creator of Binance is also launching his own cryptocurrency, the Binance Coin (BNB), which is only used on the exchange. The idea is to seize the attractiveness of the platform to raise a cryptocurrency from the Binance ecosystem.

The Binance Coin (BNB), an important element of Binance's success

To promote it, Changpeng Zhao associates the Binance Coin with the possibility of obtaining discounts on transaction costs. Indeed, the usual transaction fees are 0.1% and go to 0.075% if you use BNB, a reduction of 25%. You can add to this the reduction of 10 to 20% (depending on whether the sponsor has more or less than 500 BNB) thanks to the program Binance Futures sponsorship.

The Binance Coin has another advantage: converting the dust from tokens (cryptocurrency unit), these residual transactions that could not be withdrawn by users, because they do not cover withdrawal costs. Again, success is there since the cryptocurrency of the Binance ecosystem quickly rose to the top 20 of virtual currencies by capitalization.

Payments with Binance

What are the payment methods on Binance? This is a relevant question when you know that not all exchanges are equal on the subject. On the cryptocurrency exchange platform created by Changpeng Zhao, it is possible to pay with cryptocurrencies, by credit card and by bank transfer.

Pay by credit card or bank transfer

In order to make life easier for investors, Binance has enriched its range of payment methods by authorizing credit cards and bank transfers using fiduciary currencies.

Simplex
Simplex main page, allowing payments on Binance

The Israeli company, whose service has been compatible since January 2019, initially allows the purchase by credit card (Visa, MasterCard) of bitcoins (BTC), from litecoins (LTC), of XRP and ethers (ETH). In terms of cost, transaction fees amount to 3.5% of the amount with a floor of $ 10 (fixed fees). The user can raise US $ 20,000 each day, with a monthly cap of US $ 50,000.

TrustToken
Binance partner TrustToken home page

In June 2019, Binance entered into a partnership with the TrustToken platform, which offers the creation of stable parts (stablecoins), which are cryptocurrencies whose value is based on another cryptocurrency, a fiduciary currency, or an exchange-traded product.

It has its own stablecoin called TrueUSD, backed by the US dollar, which is used on Binance to transfer money easily and quickly between cryptocurrency and the user’s bank account.

Koinal
Koinal, partner of Binance

The London-based company, Koinal, has been a partner of Binance since September 2019. This company, which specializes in the payment processor sector, allows investors to acquire five virtual currencies (Bitcoin [BTC], Ethrreum [ETH], Ripple [XRP], Licetoin [LTC] and Bitcoin cash [BCH]) by bank card (Visa, MasterCard) or by bank transfer, with euros and US dollars. The commission charged for each transaction is 2.5%.

Paxful
Logo of Paxful, partner of Binance

The collaboration between Binance and Paxful is announced in December 2019. Paxful is a platform peer to peer (peer-to-peer) buying and selling of Bitcoins. Consequence of the partnership: Binance integrates the Virtual Bitcoin Kiosk which offers users the opportunity to instantly compare suppliers whose criteria meet trading needs (payment method, currency). It therefore becomes possible to buy Bitcoin on Binance with more exotic currencies such as the Nigerian naira (NGN), the Vietnamese dong (VDN), the Mexican peso (MXN), the Indonesian rupiah (IDR) or the Canadian dollar (CAD).

Exchange your cryptocurrency for another

It is possible to exchange cryptocurrencies between them on Binance

Binance allows you to pay in cryptocurrency to buy another virtual currency. For example, you can buy Bitcoins by trading Ethereum. In other words: with this purchase method, you must first deposit a cryptocurrency into your Binance account, and then have it available as a bargaining chip. Thanks to its many partnerships, you can directly buy cryptocurrencies with different fiat-to-crypto currencies, store them on the official wallet (secure wallet) of the Trust Wallet exchange, and withdraw them in “standard” currency via Binance Jersey.

Before the arrival of these features, you were required to associate Binance with another exchange to transfer your funds. Obviously, this exchange should allow the purchase of cryptocurrencies in fiduciary currency. This is particularly the case on 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 examples cited above.

The most popular and listed publicly traded assets on Binance are listed below:

  • BTC (Bitcoin);
  • DASH (Dash);
  • ETC (Ethereum Classic);
  • ETH (Ethereum);
  • LTC (Litecoin);
  • BNB (Binance Coin);
  • XRP (Ripple);
  • XMR (Monero);
  • EOS (EOS);
  • BCC (Bitcoin Cash);
  • TRX (TRON);
  • RDN (Raiden Network Token);
  • QTUM (Qtum);
  • GAS (NeoGas);
  • MCO (MONACO);
  • ZEC (Zcash);
  • SNT (Status);
  • BNT (Bancor);
  • BTM (Bytom);
  • USDT (TetherUS);
  • HCC (Health Care Chain);
  • HSR (Hshare);
  • OAX (openANX);
  • DNT (district0x);
  • OMG (OmiseGO);
  • MTL (Metal);
  • MTH (Monetha);
  • ENG (Enigma);
  • AST (AirSwap);
  • BTG (Bitcoin Gold);
  • EVX (Everex);
  • REQ (Request Network);
  • VIB (Viberate);
  • POWR (Power Ledger);
  • ARK (Ark);
  • VEN (VeChain);
  • KMD (Komodo);
  • RCN (Ripio Credit Network);
  • NULL (Null);
  • DLT (Agrello);
  • AMB (Amber);
  • BAT (Basic Attention Token).

The new fiduciary-crypto exchange

In January 2019, Binance launched a new cryptocurrency exchange located on the island of Jersey, which allows users to exchange bitcoins and ethers against euros and pounds sterling. This new solution avoids opening two separate platforms, thus making it possible to compete with competing companies like Kraken, Coinbase, Paymium or Coinhouse.

Bwe have to know: transaction costs amount to 0.1% of the transaction amount, deposits in euros being invoiced at 8 euros and withdrawals at 20 euros.

In terms of security, Binance Jersey complies with European standards, respecting the mechanism Know Your Customer (KYC), which is part of the fight against money laundering and the financing of terrorism.

The Binance ecosystem

The platform which makes it possible to buy, sell and exchange cryptocurrencies has the advantage of presenting an ecosystem including several services in order to accompany aficionados (worshipers of ” bull “, Bull markets) of crypto assets. This ecosystem can in particular be broken down into nine complementary branches:

  • Binance Chain which is the blockchain software system running Binance;
  • Binance Academy which corresponds to the open access learning center for developers;
  • Binance Charity which is simply the Binance charitable foundation;
  • Binance Info which compiles all the information on cryptocurrencies to constitute a real online encyclopedia;
  • Binance Labs which forms the incubator dedicated to project leaders working on the blockchain;
  • Binance LauchPad which constitutes the platform for launching tokens (tokens);
  • Binance Research which is a channel for information and analysis on trading activity;
  • Trust Wallet which corresponds to the official wallet to store cryptocurrencies;
  • Binance Exchange which is simply the name of the trading platform.

Did you know ? The name Binance comes from the contraction of the English terms “Binary” and “Finance”.

Register and create your Binance account

Binance home page

You want to start on Binance and you have a lot of practical questions? How to invest in Binance? How to trade on Binance? How to buy on Binance? Don’t panic, this tutorial on Binance explains the steps to choose the right account according to your profile, the steps to register for the exchange and how to make your first deposit.

Choose the right account

Binance offers two versions of its platform, each corresponding to an investor profile. So the mode basic is suitable for traders who are just starting out (buying tokens altcoins = units of a crypto), while the mode advanced is designed for experienced investors (buying altcoin tokens and cryptocurrency pairs on a speculative 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 pieces of information to integrate to establish your investment strategy.

We can cite the history of the orders displayed (again in graphical form), the order placement buttons or the market value for the various cryptocurrency assets. This information got even more valuable than Binance bought CoinMarketCap in early April 2020, the world’s most popular crypto price information site. The seasoned investor also has access to technical analysis tools (linear tools, indicators) which can be adapted as needed (type of graph, data projection times).

Register on Binance

In order to start the procedure Binance, you should obviously go to the exchange site by selecting the language in which you want to continue the process.

Step 1: create an account

Binance registration

You have to :

  • Enter your valid email address;
  • Create your password which must consist of at least eight characters, with capital letters and numbers;
  • Indicate, if applicable, the sponsorship ID (optional, but recommended);
  • Confirm that you are over 18 by checking the box;
  • Commit to respecting the terms of use of Binance;
  • Complete a puzzle using the cursor, which lets Binance know that you are not a robot;
  • Click on the “create an account” button.

Step 2: validate my email address

You have to :

  • Consult your mailbox linked to the address indicated during registration;
  • Wait a few moments to receive the confirmation email sent by Binance;
  • Click on the link, which activates the creation of your personal Binance account.

Step 3: Connect to my Binance account

Connect to Binance

You have to :

  • Return to the Binance home page;
  • Connect to your personal space by clicking on the “Login” button;
  • Read the recommendation message which appears in red;
  • Choose or refuse two-step authentication, which is a mechanism for securing access to your Binance account;
  • Click on “Skip for now” to refuse this option and finalize the registration on Binance, or choose the two-step authentication mode, by sending a code via “SMS” or via “Google Authenticator”.

Our advice: choose security first while opting for the two-step authentication mechanism, which adds an additional protective layer to access to your account. Even if it lengthens your registration process and brings a point of friction in your user experience, a disappointment can quickly happen. And that will also unlock your withdrawal limit.

Make your first deposit

Deposit on Binance

To purchase on Binance once registration is confirmed, you must make a first deposit.

Option 1: deposit cryptocurrencies

You must provide:

  • The virtual currency you want to exchange;
  • The amount you wish to deposit on the site;
  • The address of your wallet in which you will store your tokens.

Option 2: purchase of cryptocurrency by bank card

Since January 2019, as seen previously, Binance has added the purchase of bitcoins, ethers, XRP and litecoins to its service. To do this, you must:

  • Click on the “Buy now” tab;
  • Choose the cryptocurrency and the amount;
  • Confirm the purchase by accepting the terms of use.

You are then redirected to the secure page of the payment provider in order to finalize the operation.

Buy and exchange cryptocurrencies

If you want to get cryptocurrencies in your Binance account, here’s how.

Where and how to buy cryptocurrencies?

To buy cryptocurrencies, you need to go to dedicated platforms. Even though Binance can buy the most popular, there are hundreds. A lot of platforms exist to get them, but we will mention here the most important as eToro, Kraken, Coinbase, LocalBitcoins, Coinhouse, Changelly, CEX.IO, etc.

The eToro platform

How to buy cryptocurrencies? Not all offer the same means of payment. It’s up to you to select the one that best suits your needs. Among the possible means of purchase, we can mention the bank card, bank transfer, prepaid cards, online payment solutions and even cash.

How to exchange cryptocurrencies with your Binance account?

To exchange your cryptocurrencies on Binance, you must:

  • Click at the top of the screen on the “Exchange” tab;
  • Choose the trading pair you want to trade;
  • View trading information (market trends, trading volume, number of cryptocurrencies purchased, etc.);
  • Validate the transaction after choosing the amounts.
Example of trading between Cardano and Bitcoin

How to make withdrawals from your Binance account?

To make your withdrawal, you must click on the “Binance Withdrawal” button and follow the instructions. You will have withdrawal fees to pay. This cost varies according to the volume of tokens withdrawn and the amount.

Be careful, you cannot do what you want in terms of withdrawals. There are two levels of withdrawal limits on Binance:

  • Level 1 accounts can withdraw a maximum of 2 BTCs in 24 hours;
  • Level 2 verified accounts can withdraw up to 100 BTC in 24 hours.

To broaden your withdrawal options, you must therefore comply with KYC account identification regulations. The exchange, 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.

The KYC device requires the sending of the number and a two-sided photocopy of your identity document, as well as your photo on which you must present this same identity document as well as a dated newspaper (or other document) of the day of the photo.

How secure is Binance?

Binance security

Cryptocurrency exchange platforms are prime targets for hackers. In this sense, it is more than recommended to store your private keys (giving access to funds) in a portfolio external to the platform. The best is to opt for cold storage, that is to say to deposit your private keys on a wallet not connected to the network (unlike hot wallets). We recommend the classic cold wallets produced and distributed by Ledger or Trezor.

How to create a portfolio on Binance?

Once your identity has been verified, you can store your purchased tokens in an internal Binance wallet. To do this, you must:

  • Go to your profile;
  • Click on the “deposit” button;
  • Generate an address by clicking on “generate new address”.

Our advice: 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 by making the link between the given address and the volume of cryptocurrencies held.

Binance and Trust Wallet

Since August 2018, Binance has offered to store cryptocurrencies on Trust Wallet, an open source wallet (whose source code is free to access) which campaigns for decentralized transactions and anonymity. 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 ethers (ETH) as well as tokens ERC-20, ERC-223 and ERC-721.

Binance security features

On the exchange, security is present on several levels with:

  • Two-factor authentication (2FA) to verify the identity of a user;
  • The captcha puzzle to counter automatic connections made by robots;
  • Password changes;
  • Email alert notifications as soon as a connection, deposit or withdrawal is triggered;
  • Possible withdrawal of tokens in cold wallets.
Account security on Binance via 2FA

This Binance tutorial has clarified a number of points to help understand how to buy on Binance. With its impressive catalog of cryptocurrencies and its future developments, in particular to facilitate payments, the exchange has a strong place in the world of cryptocurrency trading. Provided you understand risk management, it is a very attractive playground. Nevertheless, with ever more innovative novelties, one wonders how far the Binance platform will continue to mark its importance in the world of cryptocurrency.

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