Binance is a significant player in the crypto space. It offers many coins and cryptocurrencies to trade all over the world. The platform has grown exponentially since its launch and now hosts millions of users per day.
However, with this growth comes problems like regulations or security issues that they should address. Today, we review everything you need to know about Binance, from what it is, how to deposit, and even how to trade.
1. What is Binance?
Binance is a multi-cryptocurrency trading and exchange platform that allows its users to trade cryptocurrencies with each other. Changpeng Zhao developed it in 2017. The company aims to provide traders access to a large number of digital tokens while also ensuring the safety of their investments.
The main currencies on the platform include BNB coins, bitcoin (BTC), and Ethereum (ETH). But they also have several others, including stable coins such as USDT. Since it launched, the company has added support for more than fifty different digital tokens and offers investors numerous features to make trading easier.
Binance’s headquarters are in Caymans Islands, Seychelles. However, its servers are spread out worldwide to allow users to quickly access their accounts and perform transactions. In 2020, Binance also introduced a decentralized exchange, known as the Binance DEX, allowing every user to independently manage their wallets.
In addition to crypto-to-crypto trading on its platform, Binance offers competitive pricing for fiat pairs. Users can also use the exchange to obtain cryptocurrencies by using their credit cards. However, some banks have stopped working with crypto exchanges altogether due to ongoing regulatory concerns.
2. Why Binance?
Several other cryptocurrency exchanges and trading sites have sprung up over the years. But no matter how good they promise to be, I still find Binance an exchange platform worth considering. Of course, it has its flaws, but they are flaws that won’t inhibit your activities on the platform. With that in mind, let’s look at some of the advantages and disadvantages of using Binance.
2.a. Advantages of Binance
One of the reasons I love Binance is the P2P trading platform. Gone are the days when you had to go through a very long process just to buy or sell cryptocurrencies. Binance offers a marketplace where you can buy and sell cryptocurrencies to other traders. I’ve spent some time on this platform, where sellers set their limits and even offer various payment options, making it quite easy to use. The market is also highly regulated, whereby, once you purchase the coins, they will be held in an escrow-like platform until the seller confirms they’ve received the payment.
Any platform that deals with finances has to prove that they have the best security to protect the investments of their users, and Binance does that right from the registration process. Once you create an account, you go through a rigorous identification process that follows the KYC (Know Your Customer) principles. Before you start trading, you’ll have to provide photos of your ID, indicate the country you’re trading from, provide a selfie, and submit to a facial recognition test. All of this is to make sure that they are dealing with a real person.
You also have to activate a 2FA (Two-Factor Authentication). Other safety features include the anti-phishing code and email or mobile verification codes every time you log in on a new device. It’s true that with all these security measures, Binance was once hacked, and it lost 7000 bitcoins. But I love how forthcoming they were in explaining how it happened, which helps build trust in a brand.
Several Payment Options
Binance offers more than 60 payment options, from a bank transfer to credit cards, to mobile money; you’re most likely to find an option that works for you. They also operate in 180 countries worldwide, making an effort to integrate local currencies and payment methods into their platform. For instance, I am in Kenya, and one of the most used payment methods is a mobile money platform known as M-Pesa, and Binance allows us to trade in P2P using it, though manually. Better yet, you can also easily transfer your coins from other platforms to Binance or even convert from one coin to another.
Another perk of using Binance is the low trading fees. They charge at least 0.1% for those in the beginner level (VIP0), and the fees lower as you move up the ladder. Signing up through referral IDs earns you a 10% discount, and having BNB coins may also qualify you for a 25% discount. This allows you to save money and maximize your profits.
2.b. Disadvantages of Binance
Despite offering low fees, Binance is frowned upon by some regulatory agencies. For instance, Binance is not regulated by the US Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC). Investors in the US may also have trouble using it since it’s not available in some States. Binance.US is a version of Binance for US residents, but overall, the acceptance of this platform in the US hasn’t been great. Investigations on tax frauds and money laundering don’t help much either in building their credibility.
It can be quite challenging to use at first
Binance’s user interface isn’t that easy to maneuver for new users, and neither is the Academy., But once you spend some time learning, it won’t take you long to find your way through the platform. Better yet, Binance also has a huge community outside the platform on sites like Reddit, Bitcointalk, and many others. In these platforms, there are tons of information on how to utilize Binance. YouTube videos on how to navigate the platform can also help.
3. How to Use Binance?
Now that we know all Binance is all about, let’s see how we can start using it
3.a. How to Open an Account at Binance?
Creating an account on Binance isn’t that complicated. Below is a step-by-step process.
- In your search engine, type “Binance registration” or “Binance Create Free Account,” which brings the following page. You can also access the official website and click on “Register Now”
2. Fill in your email or mobile phone number and a strong password. IF someone referred you, enter their referral ID in the last box and click submit, which brings up a captcha verification, a jigsaw puzzle piece, as shown below. All you need to do is slide the piece into the puzzle.
3. Like in any other account, Binance will send you a verification code which you will copy and paste in the pop-up that looks like this.
4. Once you verify, you can now log in to your account. However, you can’t deposit or trade until you verify your identity, and I’ll show you how to do that in a minute.
There are three levels of verifications n Binance; Basic, Intermediate, and Advanced. But all you need are the basic and the intermediate verification. Below is how to complete the basic verification.
- On the left-hand side, click settings, then click identification.
2. That takes you to the following page
Each verification level has its requirements, and the screen pop-ups will guide you through the process. For basic verification, you will have to fill in the country you come from, a residential address, and your full name.
For intermediate verification, you’ll need to upload photos of your government-issued ID, passport or Driving License, a selfie, and facial verification, as mentioned earlier. There are times you have to stare at the camera for several minutes before it accepts. You may also get prompts to open your mouth, nod your head up and down or sideways. Personally, it took me several tries to get done, but it’s worth it.
Advanced verification may need more proof, such as utility bills, and it helps increase the amount of money or cryptos you can trade on the platform. Verification takes anywhere between minutes to a few days. And that’s it. Once you have the “verified” badge on the intermediate level, you are ready to start depositing and trading on the platform.
Activating the 2FA
Another layer of security that you must add to your account is the 2FA. That’s where every time you want to login to your account, Binance sends a verification code to your email, phone number, or you use an authenticator app such as the Google authenticator app. I find the Google authenticator to be the best, but you can explore the other options too. To activate it, click on the “Dashboard” section, and on the left-hand side, select Security.
The following screen will appear.
As you can see, I have already enabled it. For a new user, you’ll see an option to enable it on the right side. Doing this will take you through the following processes;
- Download the Google Authenticator App
- Scan the QR code on the screen using the app.
- Save the Key for cases where you lose your phone.
- Enter the code to enable it.
Below is the screen that Binance will guide you through.
You’ll have to enter the code generated by this app every time you log in. And a code expires after at least 60 seconds.
When you scroll further down, you’ll see the Anti-Phishing code. Basically, this is a code that will always be in the emails sent to you by Binance. It helps determine if the email is from Binance.
3.b. How to Deposit Funds at Binance?
There are several ways you can deposit to Binance, which often relies on where you’re from and the currencies that are supported. The main types are credit cards, P2P, and cash balances.
There are two ways to access the depositing page. You can access it on the top left section where it says “Buy Crypto.”
As you can see above, a drop-down appears, and you also get to select the payment method.
The other option is to go to the left-hand side and hover your mouse around the “Wallet.”
In the drop-down that appears, select overview. The following screen will appear.
Click on deposit, then Fiat Deposit. If you were transferring cryptocurrencies, you would select the Crypto Deposit option (more on this later).
The following screen will appear where you select your currency and payment method, in this case, the Bankcard.
The following screen appears, where you enter the card details and all other verification processes based on your card provider. Always make sure the name you use on Binance and the name on your Bank match. If they don’t, you can’t transfer the funds.
NOTE: The payment methods may differ with the currency.
To deposit crypto, access the depositing sections as I’ve described above and select Crypto Deposit.
In the next screen, select the coin you want to transfer and the network you need to deposit it to. If these two don’t match, you could lose your coins. For instance, if you select Bitcoin, but the network is Ethereum or a different coin, you put your assets at risk.
Once you’re sure everything is fine, click “Get Address.” This is the address you’ll paste on the platform you’re transferring from. Below is how it looks like.
Next to the code, you can see the option to copy it or scan a QR code.
Buying With Cash Balance
To purchase cryptocurrency with the available balance, click on “Buy Crypto” on the top right section.
The following section will appear where you choose how much you want to spend, and Binance will show you how many cryptocurrencies you’ll get.
3.c. How to Trade on Binance?
Now let’s get to the fun part, trading. The trading feature has several features such as convert, classic, and advanced. I may not go into the strategies for trading since everyone has their preferences, but I’ll show you what each feature stands for.
In this section, you will be converting the cryptocurrencies you already have to fiat (cash) or other cryptocurrencies. Find the “Trade” option on the taskbar and click “Convert.”
The following section will appear where you can select which currency to convert, how much, and the coin you want to convert it to, including a fiat currency for withdrawal (more on this later).
Now, the classic and Advanced are quite similar. And even though the Classic option is advertised as an easy-to-use interface, I find the advanced method great, even for beginners. Let’s see how you can use it.
On the Trade option in the taskbar, select “Advanced.”
Below is how it looks like.
As you can see above, I have selected Bitcoin/USDT, but you can select any other coins by clicking the drop-down arrow. Now let’s break it down;
· Next to the BTC/USDT label in the top left corner, we have a value that is the coin’s current value, Bitcoin in this case.
· Next to the value, we have a 24-hour change, which is the rate at which the cryptocurrency value has changed in the last 24 hours.
· Next to the 24-hour change, we have the 24-hour high and 24-low, representing the highest and lowest values of the coin in the last 24 hours.
· After the 24-hour low, we have the 24-hour volume, representing how many coins people have traded in the last 24 hours.
· On the right, we have the order book, which is values in Red and Green. Those in red present how much people are willing to sell their bitcoins, while the green prices are how much people are willing to pay for bitcoins. The prices keep fluctuating.
· On the far right, we have the Buy and Sell options. Now, there are three main ways you can sell or buy, with a Limit, through the Market price, or with a stop-limit.
§ Market price/Order — This is simply buying or selling with the current market price. It’s the fastest way to buy bitcoins. As you can see below, you don’t have an option to set a price.
§ Limit — In this option, you limit the price you want to pay or the price you want to sell. The order will be pending until you find someone willing to sell or buy bitcoins, or any other coins, at that rate.
§ Stop-Limit — For a Stop-Limit, you set a minimum profit that you want to earn or the lowest price you will accept on a trade, and once this limit is reached, the system pulls you out of the trade. This comes in handy in minimizing losses. What you need to do is set two prices, a stop price, and a limit price. Preferably, the limit price should be lower than the stop price when selling.
For instance, if you bought bitcoin for $100, but it increases to $120, you can set the stop price at $118 and limit the price to the same $100 you bought it at. Below the Stop-Limit, there’s also the OCO option (Once Cancels the Other). This option minimizes risks further since you can set two Stop-limit orders. If one is fulfilled, the other is canceled.
Cross Margin and Isolation
If you’ll note, all the trading we did above was on the Spot option, but there are two other options, the Margin Cross 3X and the Margin Isolated 10X. The difference between the margin and the Spot is that we use the funds and the coins we already have in Spot. But for margin, you can borrow funds and repay.
Start by clicking on the Margin Cross 3X, and you get the following screen.
§ Take the quiz to understand more about margin.
§ Create either a Margin or Isolation account. The difference is in Cross Section, you can deal with multiple currencies, while in Isolation, you can only deal with one cryptocurrency.
§ Transfer collateral from Spot to Margin.
§ Repay from your earnings or manually.
3.d. How to Withdraw from Binance?
You can either withdraw fiat to your bank or cryptocurrencies to your external wallet.
How to withdraw crypto
To withdraw your cryptocurrencies or fiat, go to wallet — then click overview.
In the next screen, click on withdraw.
As you can see below, there’s an option for crypto and fiat. Select crypto and select the coin that you would want to withdraw.
On the right, you can see the recipient’s address. This is another section to make sure they match to prevent losing coins. At the bottom, as shown below, enter the amount, and confirm to make the withdrawal.
How to Withdraw Fiat
To withdraw fiat, access Wallet — Overview — then withdraw as shown above. But this time, make sure you’re in the fiat section, not crypto, as shown below.
As you can see, you have the option to select the currency on the left and enter the appropriate amount on the left. After that, just confirm your bank details, and confirm the withdrawal.
4. Who Should Use Binance?
Anyone can use Binance, as long as it’s supported in your region. The popularity of this platform can be attributed to its low trading fees (0.1%), high liquidity, and responsive interface, which makes trading easy for beginners and veterans alike.
Considering I went from a beginner to an intermediate-level user within a few hours, I believe you can do it too.
Like in any other cryptocurrency exchange platforms, some knowledge of cryptocurrencies and how they work is paramount. It’s possible to make huge losses if you don’t do it right. So, before you sign up with Binance, make sure you’ve studied cryptocurrencies and can stomach the risks they bear.
And there you have it. If you were still on the fence about using Binance for your cryptocurrency endeavors, I hope I have cleared everything up for you. It may not be the easiest to use, but after some time, you can be trading on the platform like a pro. Besides, it’s one of the most secure platforms you can find, and security matters when dealing with money, just like it matters in any other sector. Yes, there have been scandals, hacks, and other issues that may taint its reputation, but don’t they all? I hope you have enjoyed this review and Happy Trading Folks.