How to Trade Bitcoin on Binance.com Exchange
In late 2017, there are dozens of Bitcoin/cryptocurrency exchanges available to trade between Bitcoin and altcoins. Each has their pros and cons. Going into 2018, Binance is becoming one of the most popular and respected crypto to crypto exchanges around, supporting a range of cryptocurrencies and languages.
This guide will go through how to start on Binance as a beginner; from creating an account and depositing your money to trading, withdrawing and securing your account.
How do I Create a Binance Account?
To start on Binance you first need to create an account. Click here to go to their registration page and do this.
An important note here - make sure you're on Binance's website. There are many fake websites pretending to be Binance, which if you find yourself on - will steal your personal data and funds. Ensure the domain you're loading is www.binance.com.
After you fill in the Register form and click 'Register', you'll be send an email - you need to click the link in this email to verify the emal account is real. After doing this you can then login!
Enable Two-Factor Authentication
Before you consider putting any money on Binance, you'll want to secure it first by enabling Two-factor authentication - in particular, what they call 'Google Auth'. Two-factor authentication means that when you login or perform an important action (like a withdrawal), as well as your password, you need to enter a second code. This can either be sent via SMS to your phone, or generated using Google Authenticator.
In 2017, many users using SMS-based two-factor have had malicious people contact their mobile phone provider, take control of their number, and take control of their two-factor codes. This is why you should use Google Authenticator, as it's linked to your physical phone rather than your phone number - and so it's more difficult to bypass.
First you need to install the 'Google Authenticator' mobile app, which is available for Android & iOS. Then you need to 'Enable' two-factor on Binance. You'll then see a barcode on your screen and a secret backup code. Before you do anything else, take a backup of this secret backup code - ideally on paper, or somewhere not connected to the internet. Then click the + icon in Google Authenticator, select 'Scan barcode' - and scan the barcode on screen. Note that there's an option for 'Manual entry'; if you ever lose your phone - the secret backup code can be entered here to recover your two-factor access (it has the same effect in Google Authenticator as scanning the barcode). This is why it's important to keep the secret backup code secret!
A few things to note here. Once you add an exchange to Google Authenticator, you'll see a code has been generated. This will reset every 30 seconds or so, and can then be used to verify logins/important actions on Binance. You can add as many exchanges/websites as you like on Google Authenticator, scanning a barcode doesn't overwrite an existing website, only deleting it manually would do that. Uninstalling Google Authenticator may also do this, so make sure you have that secret backup code somewhere!
When you next login, there will now be a second step to the login process where you enter the two-factor code generated in Google Authenticator. We've found sometimes this second step doesn't always load; if you have problems, just reload the page a few times and disable your adblocker for Binance.
How to Deposit Money on Binance?
Lots of people get confused at this step. Not all exchanges support fiat (e.g. USD, EUR, GBP) deposits. Binance does not. So to get money onto Binance you need to first deposit your fiat into a different exchange. See this guide for potential options.
This raises the question, if you have to use a different exchange to deposit your fiat - what's the point in using Binance at all? The reason is that exchanges supporting fiat are regulated more heavily - and so they tend to only have the larger coins like Bitcoin, Ethereum and Litecoin. If you want to buy a coin that isn't in the top 10, you'll have to use an exchange like Binance.
If you plan to buy coins on Binance straight away, you'll want to buy a coin you can transfer cheaply and fast on the fiat exchange. Litecoin is a popular choice in late 2017, as Bitcoin's fees are very high. To make a deposit on Binance you need to send this coin to your Binance 'Deposit Address', which you can view by clicking on 'Funds' in the top menu, then 'Deposits Withdrawals', and finally clicking 'Deposit' next to the coin you're sending. There will be lots of coins on this page, so use the search box in the top right to find the one you want (for example search 'LTC' for Litecoin).
Now that you have the deposit address, you need to send your coins from your fiat exchange to this deposit address (alternatively if you store coins on a wallet, you can send directly from a wallet). Don't try typing this - copy it. If you make a mistake, miss a character, use the wrong address, you'll lose any money you send. So double, triple check, that the deposit address is correct - and when it is, send it! It may take up to an hour to show up on Binance, so don't panic if you don't see it immediately.
How to Trade on Binance?
Before you start trading on Binance, you need to deposit some money - see the above section for how to do this. Once you have money on Binance, click on 'Exchange' in the top menu, and then click 'Basic'. This will load a beginner-friendly page for trading!
To start, you need to be aware of what a trading pair is. So any coin on Binance can only be traded with specific coins. In the top right of the trading page there are 4 options for the primary coin; BTC, ETH, BNB and USDT. You'd select one of these, for example BTC by default, then search for the coin you want to trade with in the box just below. We'll use Cordano (ADA) in examples below as it's grown a lot over the past month, but this principle applies to all coins. So if we want to buy ADA, we'd search for 'ADA' in the search box in the top right - and if you can trade it with the primary coin, you'd see an option similar to 'ADA/BTC'. If you don't see any results, try changing the primary coin.
Next, click on the 'Pair' (e.g. 'ADA/BTC' part) to load the relevant trading page. Here you'll see lots of numbers and charts. On the left is the order book, which has all current sell orders at the top in red, and all current buy orders at the bottom in green. The number in the middle is the current price.
To buy/sell you ADA, there are 3 approaches; Limit, Market and Stop-Limit. For information on Limit and Stop-Limit orders, see this guide. For now click on 'Market', just below the chart, to load the interface for a market order - which allows you to buy/sell instantly at whatever the current price of ADA is. To buy some ADA, you'd put in the amount you want to buy on the left 'Amount' input, then click 'Buy ADA'. To sell it, use the 'Sell ADA' options on the right. Your current balance of the primary coin, e.g. BTC, and ADA, is displayed above the 'Amount' input.
Each time you buy/sell coins, a small fee is charged by Binance. A way to decrease these fees is to click on the icon of a person in the top right of the header menu, then click 'Account', and tick the option just below your email address for 'Using BNB to pay for fees'. This will give you a 50% discount on fees! If you don't have any BNB this may not give you the discount, so go buy a small amount of BNB if you don't have any!
To see a history of all your trades, click on 'Orders' in the top menu, then click 'Order History'.
How to keep track of coins?
Unlike fiat-based exchanges like GDAX and Kraken, which offer less than 20 coins to trade with, Binance offers hundreds - 267 at the time of writing this. This is great as it gives you the option to trade a wide range of coins, but it also causes problems for many people.
With so many coins available, you might find yourself with small amounts of 50+ coins unaware of why you bought them in the first place or how much they're now worth in fiat (USD). We experienced this issue ourselves, having accumulated a few dollars worth of dozens of coins while testing. This is where we plug something we made to solve this problem! We've been working on a Crypto Coin Tracker here on this website, where through Binance's API we can track the fiat value of a Binance account in real-time, and provide data like your profit/loss. If you've experienced this issue, where you're not really sure what you own or if you've profited from it, then give our tracker a try. If you have any feedback on it tell us here! :)
What are the lines and bars on the Trading Page Chart?
When you first see the trading charts on Binance it can look scary, but it's not as complex as it looks! There are 3 charts displayed, one large one, and 2 very short ones below. If you hover your mouse over each chart you should see a key in the top left showing what each line is. Generally:
- The one at the top displays the current price of the coin you're trading (generally this is the most curvy one), and the average price (the straighter line). Looking at this page logged out there seems to be 2 lines, one for the price and one for the average. When logged in the average seems to be displayed as 3 lines (called moving averages - each taking into account a different number of days, and so slightly different shapes), and the price as bars.
- The middle chart is the total volume traded.
- The bottom chart is an MACD (a popular technical indicator). As a beginner trader you should focus on the top 2 charts, and watch a tutorial on MACD's when you feel more confident.
How to Withdraw Money from Binance?
Withdrawing is very similar to depositing, where you just send a coin to a 'Withdrawal Address' provided by another exchange, or the address of your own wallet. Be aware that there is normally a fee for withdrawing coins, which will vary in amount for each coin. Generally try not to withdraw small amounts - instead send larger amounts less frequently.
By default you're limited to withdrawing a maximum of 2 BTC in value per day. If you want to increase this, click on the icon of a person in the top right of the header menu, then click 'Account'. At the top of this page, there's an option to 'Submit Verification Documents' to increase your daily withdrawal limit.
If you want to support us, use our affiliate link when signing up on Binance by clicking here!
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November 11th, 2018
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