Binance is one of the most popular cryptocurrency exchanges in the world, and it’s not hard to see why. The company was founded by Changpeng Zhao, who has been involved in the cryptocurrency industry since 2011. Their headquarters are located in Shanghai, China, with additional offices in Japan and Korea. In just over one year, Binance has become the largest crypto exchange in the world by trading volume with over $1.3 billion USD worth of trades on any given day.
Sign up for an account on Binance
Getting an account with a major exchange is one of your first steps. Binance is one of my favorites because it’s incredibly user-friendly and requires no verification, meaning you can get started right away (you will have to use another crypto wallet if you don’t have one yet). The other thing I like about Binance is that it has such an incredible selection of coins and tokens—it’s really mind-boggling how much they have! Don’t forget your password or recovery seed as you may need them in case something goes wrong. It’s also a good idea to setup two-factor authentication so that hackers can’t get into your account if they steal your password.
Add funds to your account
Once you’ve signed up for an account, it’s time to fund it. Your options are: Bank wire – You will be required to provide your bank information (or Paypal if you don’t have a bank account) in order to make a deposit into your account. The good news is that many major banks around the world offer their customers bank wires directly into their accounts and transfers typically clear fairly quickly. Be aware that fees can apply and vary from country to country so you will want to inquire about them before depositing any funds. Wire transfers originating from US banks typically cost $25-$30 USD.
Know the difference between buying, selling, and trading
Buying, selling, and trading are three separate processes that involve different considerations. Before you can successfully trade your way to bitcoin profits, you’ll need a clear understanding of what each means. Buying refers to purchasing units of cryptocurrency with your available funds (or with fiat money, if you’re using an exchange that accepts it). When buying cryptocurrencies, it’s important to choose an exchange and a payment method that suits your needs. For example, buying bitcoin with cash is often more convenient than other options because most exchanges don’t allow funding via credit card or bank transfer. Exchanges also have a variety of payment methods they accept such as PayPal or bank wire transfers.
Pick a cryptocurrency
Cryptocurrencies like bitcoin, ethereum, and ripple are making waves in traditional markets. With valuations of hundreds of millions of dollars, coins like these might be something you want a stake in. If you have an interest in trading or investing in cryptocurrencies, it’s important to understand how you can do so—and which cryptocurrency exchange might be right for your needs. Here’s a quick introduction to one popular exchange: Binance . This Hong Kong-based company has risen quickly as a go-to option for traders looking for high volumes and advanced features such as stop losses and margin trading. This guide will help newcomers get started with Binance.
Assess market trends before you buy
In its simplest form, investing is just buying a stock at one price and selling it at another. But while making good investments requires a solid understanding of how markets work, it’s also important to be aware of how your money is doing without you looking after it. Consider setting up alerts on your broker account so that if prices go above or below certain thresholds, you’ll get an email or text message letting you know what’s going on with your investments. This way, you can decide if now is a good time to buy in or sell out.
Use limit orders, not market orders
To ensure that you’re not dealing with a potential scam, always make sure your cryptocurrency exchange uses two-factor authentication (2FA). Additionally, trade coins using limit orders (try not to use market orders). If you want to execute a market order, make sure first that it’s in line with your strategy and risk level. For example, if you have an easy-to-execute buy order for $100 worth of bitcoin every Monday at $1000/BTC then it’s going to be executed as close as possible to 1PM UTC each Monday. Keep in mind that it can take hours or days before your order is filled so consider placing a time limit on market orders and don’t leave your investment unattended overnight.
Use stop loss orders
When you place a trade, your exchange will typically show you a window in which it calculates how much of its own currency you need to put down as collateral. This is called a margin requirement and it’s there for a reason: It reduces your risk exposure if the market moves against you. To continue our example above, let’s say that you plan to sell $5,000 worth of BTC tomorrow at price A. You could set up an order like so: Buy $5,000 worth of bitcoin @ 5% over current price (= current price x 1.05).
Keep it safe with two-factor authentication
The most important security feature that you should enable is two-factor authentication (2FA). In order to take full advantage of 2FA, you’ll need a Google Authenticator application or a similar device, such as Yubikey.
Stay in control with time restrictions
Trading digital currencies is a great way to earn income, but you must be aware of how much time and money you can afford to put in. Unlike most trading techniques that call for little monitoring, cryptocurrency trading is highly time-sensitive. You will need a computer and lots of patience. Work only during your favorite times of day, such as early morning or late evening hours when your mind is rested and clear after a long day’s work.
Transfer your coins into a secure wallet
One of the most important things you need to do when you buy bitcoin or any other cryptocurrency is move your coins into a secure wallet. Leaving your coins in an exchange means they’re not in your control. There have been instances where exchanges have been hacked, and millions of dollars worth of coins were stolen as a result. If you don’t want to fall victim to these hacks then the easiest way is to store your coins in a secure wallet.