I wrote a Binance Beginner’s Guide to help crypto newbies like myself become familiar with using the basic functions of Binance website.
I’m sure that you’ve all heard about Bitcoin and other cryptocurrencies and crypto exchanges on various traditional media and social media websites. And maybe you got curious as well.
I also got SO INTERESTED that I started signing up with various online crypto accounts recently. I’m here to share with you some helpful tips about using one of the largest (if not the largest) crypto exchanges outside the US – Binance.
Before we go into some details on how to use Binance for beginners. I’d like to draw some parameters first to set the right expectation.
I’m from the Philippines and I’ll only be discussing features and options that are available to me. However, even if you’re from another country, the website that you’ll be seeing is practically the same. The only difference will just possibly be on my withdrawal and funding options and possibly on other features.
And also, Binance has a lot of features and this entire blog might not be enough to cover it all LOL!.
Having said that, for this article, I will only be only including the basics – buying and selling cryptocurrencies and basic navigation of the site, and of course, my personal experience as a new user of Binance.
By the way, before you sign up with Binance or any other cryptocurrencies exchanges, I highly suggest that you spend time reading (or watch Youtube Tutorials) about cryptocurrencies first and get yourself familiar with the history, technology, and also latest news about them. As of the time of writing, we all know that this is a highly volatile market and just like any other financial investments – please do your own due diligence.
Let’s start, shall we?
What is Binance?
Changpeng Zhao is the current CEO and Yi He is the current CMO of Binance.
Binance has various business operations and business support teams around the world.
Screenshot from CoinMarketCap as of February 4, 2021
They also have their own cryptocurrency called Binance Coin (BNB) which you can use to pay for your trading fees (with a discount).
Why You Should Sign up with Binance?
Signing Up is Free
Signing up with Binance is free. So, if you’re just thinking of familiarizing yourself with trading cryptocurrencies, then you should definitely try Binance.
One of the Largest Crypto Exchanges in the World
I have mentioned this already earlier, but to put more emphasis, Binance is one of the largest (largest as of the time of writing) crypto exchanges in the world. They have so many users from various countries which enables them to earn enough money to keep this business growing. Their size also means that they could keep on investing in updating their security measures and they’re capable of offering a lot more products and services in the future.
Low Trading Fee
Binance has a tiered trading fee system and your trading fee will vary depending on your VIP level. Since I just signed up recently, my current level is at VIP 0. At this level, my trading fee is only 0.1%. If I use BNB to pay for the trading fees, then I get a 25% discount which would lower my trading fee down to 0.075%.
You can view the Fee Schedule page on this link.
So Many Features
They have sooo many things going on! I only signed up probably a week or two ago and I only made just a few trades and I already got a voucher for a 0% interest on margin. I’m not going to itemize all their app features here to keep this article within the topic.
Why You Should NOT Sign up with Binance?
The only reason why you should not sign up with Binance (or with any other crypto exchanges) is if you have not done your due diligence yet. I’m putting a strong emphasis on this to remind you that this is a highly volatile market.
I highly suggest that before you sign up with any crypto exchanges including Binance, spend time reading articles (or watch Youtube tutorials) about cryptocurrencies.
I spent a week or two reading various articles about cryptocurrencies and I know that it’s not enough. I just want to have a basic idea of what this is all about before I signed up with Binance. I am and I will be continuously learning about crypto trading and investing and I will be sharing my ‘crypto trading and investing experiences’ on this blog.
By the way, just a quick reminder, this blog is not meant to be a financial nor an investment advice. Please consult a professional financial adviser and just like any for of investment, please do your own diligence before making any financial and investment decision. What I write here are just my personal experiences which will definitely be different from yours. Ok? Ok! 🙂 Thanks!
How to Sign up with Binance?
Signing up is easy but be ready with your valid ID because you will need it for verification. And also, be ready to take a selfie.
1. Go to Binance’s Website
Check if there’s the ‘lock’ symbol beside the URL to ensure that you’re on the secured website.
2. Fill in the Required Information and Complete the Sign-up Process
Note: Use an alphanumeric password with a symbol and write it down and keep it safe.
Go through the verification process and as soon as your done, you will receive a confirmation email.
3. Enable your 2-FA (2-Factor Authentication)
Do not skip this step! You can either opt to receive a text message containing a verification code or you can use Google Authenticator.
After you’ve finished this step, you’re done!
How to Buy Cryptocurrencies on Binance?
There are various ways to buy cryptocurrencies on Binance. You can either:
- Make a Crypto or Fiat Deposit (If your currency is supported)
- Buy Crypto using a Credit or Debit Card
- Buy Crypto using a Third-party Payment Channel (Simplex, Baxa, and Paxos)
- P2P Trading
Binance P2P is a peer-to-peer trading market where you can safely trade crypto in exchange for your local currency. Since I’m located in the Philippines, this is so far the most convenient and most cost-efficient option for me to take.
With P2P I can make payments via:
- Bank Transfer
If you’re from other countries, and if you want to buy cryptocurrencies via P2P then your payment option will definitely be different from mine.
How to Buy Cryptocurrencies via Binance P2P?
To buy cryptocurrencies using Binance P2P you have to:
1. Log in to your Binance account and click on Buy Crypto
2. Click on P2P Trading
3. Choose the Fiat Currency, in my case it’s PHP
4. Click on Payment and choose your preferred mode of Payment.
5. Check which seller offers the cheapest and also check the minimum amount.
For example, if you’re going to buy only P5000 worth of Etherium (ETH) using GCash then you wouldn’t be able to buy from the first seller because his limit is only between P18,000 – P50,000 and he only accepts bank transfers.
You also can’t buy from the second seller on the list because even if his limit is within your budget, he doesn’t accept GCash.
So that means, you’ll have to go to the third seller on the list. Once you have chosen which seller to buy from…
6. Click on Buy ETH to see the details
Note: You can buy USDT, BTC, BUSD, BNB, ETH, and DAI on P2P Trading (subject to availability of sellers of course). For this example, I chose on ETH buy you can choose which crypto you’d like to buy by clicking on the name of the crypto at the right side of ‘Buy/Sell’.
I enumerated the steps on the screenshot to guide you through the steps you need to take.
Once you click on Buy ETH, the details of the transactions will appear including the initial instructions of the seller.
Please note that there’s a few seconds time limit to place the order. This is because the price of crypto fluctuates every now and then. Once you have typed in the amount you want to pay, click on “Buy ETH” and you will receive further instructions such as the GCash number of the person.
To avoid any problems, make sure that you pay using the GCash number associated with your account and to the GCash number of the seller shown on your screen. The seller will also send you a message to provide instructions. Please do note that there’s also a time limit for the payment.
Sorry to remind you again, be sure that the number of the seller on your GCash app is correct before you send the money.
In order to pay, you have to go to your GCash app to send the money. Once you’ve sent the money, go back to Binance and click on ‘Transferred, Next.”
In my experience, it only took a few seconds from the time I made the payment transfer to receive the cryptocurrency I bought from the sellers.
When I first did it, I got so confused about how to pay.
I wasn’t aware that I had to go to my GCash app to make the transfer. I thought that it was already integrated into the Binance system but it wasn’t. Probably in the future, it will be, but as of the time of writing, it’s not.
I’ve bought thrice already this week using P2P and so far, I have never encountered any issues.
How to Transfer your Crypto from P2P Wallet to Spot Wallet?
Before we start discussing how to trade on Binance (not using P2P), you have to transfer your crypto first from P2p Wallet to Spot Wallet.
To do this all you have to do is:
- Click on Wallet
- Click on P2P
- Choose the crypto you want to transfer and click on ‘Transfer’
- Enter the amount that you wish to transfer
- Click on ‘Confirm transfer’
Once you click on confirm the transfer, your crypto, in this example, USDT, will then be transferred to your Spot Wallet.
You can only trade in the market the cryptocurrencies that have in your Spot Wallet.
You can also transfer it back by clicking on the circle icon with two arrow symbols if you wish to transfer your crypto from Spot Wallet to P2P Wallet.
Transferring your crypto to your P2P Wallet enables you to sell your crypto in the P2P market.
How to Trade Cryptocurrencies on Binance?
There are multiple ways to trade on Binance and these are:
I have only tried the first two and it’s really very simple. For this article, we will skip Advanced and Margin since this article is a Beginner’s Guide.
The last option, P2P, is what I just covered above.
How to Trade Cryptocurrencies on Binance using Convert
The easiest option is Convert. Basically, what it’ll do is it’ll convert your crypto to another crypto of your choice. In essence, it’s trading your crypto to another crypto of your choice using the current market price.
To ‘Convert’ cryptocurrencies all you have to is:
1. Log in to your Binance account and click on Trade
2. Click on Convert
3. Choose the type of Crypto that you wish to convert from and type in the amount
4. Choose the type of crypto that you wish to convert to
5. Click on ‘Preview Conversion’
6. You will be shown the conversion rate and the amount of crypto that you will receive
7. Click on ‘Convert’
Note: You’ll have to decide within 5s or else it will ask you to refresh. Bear in mind that this is due to the fact that price changes so quickly.
Once you’re done converting, you’ll see the crypto that you bought in your wallet.
For example, I bought USDT from P2P and I’m going to ‘Convert’ it to ADA:
How to Trade Cryptocurrencies on Binance using Classic
To trade cryptocurrencies using the ‘Classic’ option, all you have to is:
1. Log in to your Binance account and click on Trade
2. Click on Classic
3. Choose a ‘Coin Pair’ to see the price. You can see this on the upper right side of your screen.
4. Since, I’m using USDT. I’ll be clicking on ‘Fiat’ and I’ll choose ‘USDT’.And for this example, let’s say I’m going to trade my USDT to ADA. So, below the area that I highlighted, I will look for ADA/USDT and I’ll click on it.
5. When you click on ADA/USDT, it will show you the historical and current performance of ADA. Scroll down to see the part where you can place your order or where you can do the trading.
6. Highlighted in yellow is ‘Spot’ this is what you will use to trade your crypto. In my case, I will be trading my USDT to ADA. Cross 3x and Isolated 10x are trading with margin and I don’t use those options.
- Limit Price is where you buy crypto for a particular price.
- Market Price is where you buy crypto for the real-time market price.
- We will be skipping Stop-limit for now since that is an ‘Advanced’ feature
7. To buy crypto using Limit, all you have to do is to type in the price of crypto that you want to buy at (target buying price) or type in the amount of drag the button to the right until it reaches the amount of crypto that you want to exchange with.
If your target price is reached, then it will process the order for you. If it did not reach the price, then you can cancel the order if you want or wait for it until it reaches your target order.
If you buy using ‘Market’ then it will purchase the crypto at the current market price and you will see the crypto that you bought on your Spot Wallet.
8. The process of selling is basically the same as buying, except for, you will be using the ‘Sell’ portion of the trading section instead of the ‘Buy’ section.
How to Withdraw Cryptocurrencies on Binance?
You can withdraw your cryptocurrencies and fiat by going to your Binance Wallet as well. I have not done this yet since I’m not planning to withdraw my crypto for the time being.
Base on the current options that I see on my end, the most cost-efficient way for me to withdraw my money is to sell my crypto on P2P. By selling it on P2P, I can get my money in my local bank, GCash, or via Paymaya.
I will update this once I decide to withdraw my crypto. But for now, I’m still using them to practice trading so, they’ll stay there for the moment.
How to Keep Your Binance Account Secure?
Just like your bank account and credit cards, you must keep your Binance account secured at all times, especially if you have a lot of crypto in your account. Here are some basic steps on how to keep your Binance account secure:
Activate your 2-Factor Authentication
This should have been done during your setup stage but if you skipped it, you should activate it before you start putting money or crypto on your account. Binance is recommending that you use Google Authenticator.
Always check the List of Device on Your Binance Account
You can see this when you click on your ‘Security’ setting on your Binance account. Always check if there are any device/s that doesn’t seem to be familiar. Delete any unrecognized and unused device from that list.
Be Aware of Scams and other Phishing Schemes
The crypto market is becoming a hot target for scammers so be very careful!!! Always check the authenticity of the emails that you’re getting. DO not click on anything and do not give any of your important details especially your 2-FA codes.
Do Not Login on Unsecure Networks
Avoid connecting to public wi-fi and other unsecured networks. And also, do not browse dodgy and unsecured websites. Only go to websites that use SSL.
Use Anti-virus and Anti-malware Software
To keep your phone and laptop/desktop secure, always use anti-virus and anti-malware software. This is not only for your Binance account but this will also help secure your other digital accounts such as banks, emails, etc.
Invest in Advanced SecurityTechnologies
If you’re planning to trade a large amount of money, it would be best to invest in advanced security technologies such as Universal 2nd Factor (U2F) authenticators.
Wheew! If you have reached this part then you’ve already read 2857 words and this is just the basics. Hahaha! But don’t worry, it may look intimidating at first but it’s really not.
In my experience, it’s actually easy to navigate the Binance website for the basic part. I didn’t bother myself with the advance features yet though.
What I covered above is just the basics of using the Binance website for trading. There’s so much more than you can do on the website and there are so many features that you can also use. I’ll blog about those other features once I’ve tried them.
What I also love above the Binance website is that there are tutorial links and sometimes, videos on a lot of key pages to help new users navigate the website.
There are also precautionary messages on certain features to remind users about the risks associated with crypto trading.
Before I end this post, I’d like to remind you again that crypto is a highly volatile market. So please, please, please do your own diligence. Just like investing in the stock market or in any other financial vehicle, please make decisions on your own, and please take some time to study what you’re getting yourself into.
Sorry if I sounded so preachy, but there are just so many horror stories about people losing their money not just in crypto but in other forms of investments as well. And if you scrutinize the details, a lot of those losses boil down to not being fully accountable and responsible for the financial decisions that were made.
Anyway, I hope this article gives you an idea of how to use Binance. I signed up with other crypto exchanges too and I will share my experiences about them soon.