How do you trade crypto at Binance exchange? This guide will go step by step into the buying journey at Binance by using the ‘Classic’ interface.
Binance that has been founded in 2017, can be considered as the best altcoin trading platform if you consider the trading volume and the number of coins listed on the exchange.
Moreover, based on daily(24h) trading volumes, Binance is the biggest cryptocurrency exchange in the world. Also, it has millions of cryptocurrency traders using its platform on a daily basis.
Besides trading, Binance offers several other feature-rich products, including custodian wallets, crypto margin trading, lending service, and earning rewards with staking.
Trading crypto at Binance can be done with almost zero fees(0.075%) where you need to hold BNB coins to get the 25% discount for the fees.
This guide is going to show you how to trade your first cryptocurrency, via one of the world’s most popular exchanges, Binance.
How to start Trading Crypto at Binance: Quicktake
In general, buying cryptocurrency at Binance is a straightforward process, however, first-timers must do some extra necessary steps before they can start using the platform.
In short, below is the buying process for cryptocurrencies at Binance:
- Register at Binance for free by email or mobile phone
- Verify your account(KYC)
- Deposit money by bank account
- Or: Send crypto(BTC, ETH, DOT, or any other) to Binance
- Trade crypto at Binance platform
Open an Account at Binance and start Depositing
How to open an account at Binance? At this stage, I’ll explain in more detail what is needed for the beginner to open an account and deposit money or crypto.
1. Register for an Account at Binance
The first step will be to register for an account at Binance. If you haven’t already, register for an account. The process can usually be completed very quickly.
It just takes a few simple steps in order for users to be able to start trading digital currencies on the platform. However, if the goal is to have higher limits, the process needs verification and can take some more time to be completed.
It’s important to know that you have two options for sign up: by email or by mobile phone.
2. Verify your account
Before you can start trading crypto on Binance you have to confirm your account. Additionally, this can be done in two ways and depends upon the way you did your registration.
The first way would be to confirm your email address by clicking on the link that has been sent to you.
On the other hand, if you used your mobile phone you have to enter a confirmation code that has been sent to you by SMS. Remember that this code remains valid for just 30 minutes!
Verification on Binance
For cryptocurrency traders, there are three levels on the Binance platform: Basic, Intermediate, and Advanced. In the first place, there is Basic which allows you to start trading on the platform without any verification or KYC procedure.
Additionally, you are only allowed to trade or withdraw at a maximum of 0.06 BTC per 24 hours and deposits are crypto only.
If you are a professional trader and want to trade in bigger volumes then you have to upgrade(with KYC procedure) to Intermediate or even Advanced. Intermediate allows you to trade and withdraw at a maximum of 100 BTC per 24 hours.
3. Deposit Money or Crypto
At this stage, you are ready to use the platform but need to deposit first. Money transfers can be done at Binance in the major fiat currencies: USD, EUR, GBP, AUD, CHF, and JPY are good examples.
Also, Binance uses different channels for money deposits:
- P2P Bank Transfer(0 fees)
- Bank Card(1.8% fees)
- Advcash Account Balance(1.5% fees)
Another option that answers the question ‘how to trade crypto at Binance’ is by just depositing crypto(BTC, ETH, or any other). Moreover, this is the quickest and cheapest way to start using the platform in minutes.
In other words, if you already have some crypto in a local wallet or at another exchange, just sent it over to Binance and you can start using Binance right away!
Step By Step Guide: How to Trade Crypto at Binance
Next in this beginner’s guide to trading crypto on Binance, I will cover the basics of using the trading interface on this platform. Remember that there are several other options available(like advanced orders or margin trading) however, as a starter we will just focus on buying or selling crypto for fiat currency.
1. Select currency pair
First, you’ll need to know what assets you would like to exchange, for example buying Bitcoin with your USD, or selling Ethereum (ETH) for euros.
After you know which pairs you’ll be trading, you are able to load the Binance trading interface for the first time. Next, you go up in the menu and click on ‘Trade‘ and then ‘Classic‘ where the graph for BTC/USDT loads as default.
⚠️Pay attention: In this tutorial, I’m using the BTC/USDT pair as an example. Unfortunately, the Binance platform doesn’t offer the USD as pair to trade against. Instead, you can use the USDT which is a stablecoin. Furthermore, to get USDT you can easily convert your USD to USDT in the menu by choosing ‘Convert’.
Again, the BTC/USDT trading pair is the one I’ll use in this example and we don’t need to search for another pair. Besides, for trading, another pair just go to the right and type the symbol for the coin or fiat currency in the search bar.
2. Setting up the order(BUY)
Just to rephrase, in a buy order, you pay with the quote currency(USDT) and receive the base currency(BTC). Above you selected the trading pair so now it’s time to set up the order.
At this moment you are seeing the graph and order book for the BTC/USDT pair and the next step is to decide what type of order to use. To do this navigate below until you see the tab ‘Spot‘.
Here you’ll see three text boxes and the option to use a market, limit, or stop-limit order. Next, before you start entering values into these boxes, knowing how a market or limit order works is necessary.
A market order is meant for immediate execution, as it will match with limit orders that are already available on Binance order books. In other words, by executing a market order you take 1(or more) order(s) from the available order book.
Also, market orders will always incur a slightly higher fee known as a taker fee. With market orders, you can only input the volume you would like to buy or sell and not the price.
Limit orders will execute at the price you’ve set or better, once the market reaches your limit price. They can be subject to maker or taker fees depending on when it executes.
For example, you entered a buying price of $45000 into the order book while BTC is trading at $45500. Once the BTC price reaches $45000 the order will be executed at maker fees.
On the other hand, if a matching order already exists(at $45000), then it’s executed immediately, where the taker fees will occur.
3. Submit the Order
Once you’ve decided if you’re looking for a market or limit order, you fill in the required data and continue.
As you can see in the pictures above setting up the order can be done by typing data or using the slider that is below the ‘Amount‘ textbox.
Finally, make sure the data is correct before you submit the order by pressing the green ‘Buy BTC‘ button.
4. Wait for Execution
At this stage, your buying journey on trading crypto at Binance is coming to an end. Moreover, you just need to wait for the order to be completed. Remember that completion can occur in two ways:
Immediately, where a market order was selected and your balance will change as well. Also, funds will be available right away for new trades or to withdraw.
Unfilled orders occur when a limit order was selected and you need a little patience for this order to be executed. In addition, if it takes too long or you need the funds, you can cancel the order at any time.
Finally, below on the screen you can see the status of the orders these are:
- Open orders – Orders that are currently running or unfilled in the order book
- Order history – All orders(inclusive canceled) that apeared in the order book
- Trade history – All orders that recently has been filled
- Funds – Your account balance on Binance that instantly gets updated
…That’s it! At this point, you just traded your first USDT for BTC at Binance which is one of the most popular trading engines in the world. Happy trading 😁
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