Buying cryptocurrency correctly - first steps on the Binance exchange

Trust level

Binance is one of the newest exchanges in the industry. The company raised about $15 million during its ICO in July 2022. In the first days after the launch, the number of registered users reached more than 20,000 people.

Its CEO, Changpeng Zhao, has an impressive resume with years of experience in the cryptocurrency technology space. He led Blockchain development and was the co-founder and CTO of OKCoin and the founder and CEO of BijieTech before joining Binance.

Top up Binance through another exchange

Alternatively, you can top up your wallet in your Binance account from the same wallet on another exchange, for example Exmo , for which you will need to perform the following steps:

1. Log in to the exchange;
2. Check whether the phone number is registered for login verification;
3. In the top menu go to “Asset” => “Balance” ;
4. Opposite the desired coin in the list, click on “Deposit” ;
5. Create a wallet address (if it does not exist yet) and copy;
6. On the exchange from where the cryptocurrency will be withdrawn, go to the withdrawal page in your currency and insert the wallet address from Binance into the field .

Solving possible problems

Binance, like many well-known exchanges, has hundreds of thousands of users and millions of transactions per minute, and as a result, the server speed is not as fast as we would like, and the system freezes. If you have already encountered something similar, then first you should just wait.

Sometimes traders complain that they cannot register because registration for new users is closed. This phenomenon is already common, and occurs due to the powerful influx of new traders. But registration access is regularly re-opened, so you refresh the page often and wait for your time to open an account and top up your wallet.

A significant inconvenience for a million-plus exchange is the lack of any user support. In other words, here you cannot, like on Exmo or Livecoin, get help or advice from the administration to solve a problem, for example, if the money still hasn’t reached your balance. For customers, there is only a manual, where there is not much information, and the translation of the interface cannot be called good. Nevertheless, Binance has a growing number of positive reviews and is, in fact, a top cryptocurrency exchange .

Available cryptocurrencies

Binance offers a huge selection of coins that are traded in pairs with Bitcoin, Ethereum, Binance Coin and Tether.

Below are some of the cryptocurrencies available on Binance:

• Bitcoin;
• Binance Coin;
• EOS;
• Ethereum;
• Celer Network;
• Cardano;
• fetch;
• XRP;
• Litecoin;
• Bitcoin Cash;
• IOST;
• BitTorrent;
• TRON;
• Stellar;
• Ontology;
• TrueUSD;
• NEO;
• Paxos Standard Token;
• ICON;
• NULS;
• and more than 200 coins.

Many investors like Binance because it offers coins for trading that are often ignored by other trading services, including Bitcoin Gold, Walton Coin and IOTA.

How the spot market differs from other types of trading

The spot market is the basis for other markets. The objective is established only on it thanks to the turnover of assets owned by traders. The rest of the trading is carried out using credit money or contracts.

Margin transactions

This is a highly rewarding, but very risky type of trading. Analysis of each contract is important.

Unlike spot orders, where it is mandatory to own the asset, it uses borrowed funds to increase earnings. So a user, having $100, will use up to $1000, that is, the margin leverage (in simple words, a multiplier) is x10. At the same time, you will not be the full owner of the currencies you are buying and selling.

Futures

The futures market (from the English futures - futures contract) market is very different from the margin market. On it you purchase not tokens, but contracts, that is, you bet on a decrease or increase in price. Each futures contract obliges you to purchase or sell crypto in the future.

The use of leverage is also allowed. Futures transactions focus on short (short-term) positions, so credit is used much more efficiently than in margin transactions.

Options

The same futures with a difference in obligations: when an option is concluded, only the seller is obliged to buy the asset, and the buyer may not fulfill the terms of the contract.

Alternative trading platforms

Some good alternatives I can highlight are:

• Exmo – I sometimes use it as an intermediary because of the ability to top up my account in fiat. In comparison, Binance is inferior in terms of commissions and the number of supported pairs;
• HitBTC – compared to Binance, the commissions are higher, there are a lot of complaints from users, verification is extremely complicated . They charge fees even for replenishing a deposit. Works with a small amount of coins;
• Bittrex is inferior to Binance in terms of verification time and speed of solving problems with clients. You have to wait a very long time for verification . Trading fees double those of Binance. The work is carried out with a small amount of coins.

Transfer to Binance address from payment system or wallet

Payment systems Capitalist, Payeer, AdvCash, as well as any cryptocurrency wallets allow direct transfer of cryptocurrency to the exchange account.

direct transfer of cryptocurrency to the address of the Binance exchange from a payment system or wallet

To top up your trading platform account with cryptocurrency, you will first need to find out its address. Go to the “Fiat and Spot” section, find the desired cryptocurrency and press “Enter”.

This page contains the wallet address. It must be copied in order to send funds to it from any other system, exchange or wallet. A QR code is also provided for quick transfer to this address via mobile wallet.

Please note that the correct network must be selected if the cryptocurrency operates on multiple blockchains. For example, Bitcoin, in addition to the BTC standard, is presented in BEP2 (Binance Chain), BEP20 (Binance Smart Chain), ERC20 (Ethereum) and BTC (Segwit). Sending assets to the wrong network will result in their loss.

Funds usually arrive quickly, within one minute.

Pros and cons of the service

Before deciding to register on Binance , as on any other exchange, you should familiarize yourself with its pros, negative aspects and incomprehensible cases that do happen to other users. Of course, it will be easy for experienced traders to compare it with other competitors, but for beginners much will be unclear.

The advantages of this exchange are as follows:

• fourth place in the list of trading platforms and widely known among Russian and foreign traders;
• daily turnover is over 2 billion dollars;
• the commission per transaction is 0.1% , which can be reduced by almost half by using BNB to pay the commission;
• depositing any cryptocurrency into wallets is free, which provides additional benefits to traders;
• It is not necessary to undergo identity verification ;
• You can trade on the stock exchange through the official application from your smartphone, as well as through your own terminal for Windows;
• There is also a translation of the interface into Russian (albeit a little crooked), which is important for our traders.

Minuses:

• Although verification is not required on Binance, you should still go through it. In this case, the withdrawal limit of 2 BTC will be lifted from you and you will have the opportunity to receive a response from the administration, because support is not provided to anonymous users.
• Another inconvenience is the inability to deposit funds through common payment systems and from bank cards. All trading operations, withdrawals and deposits are made here exclusively in cryptocurrency.

To begin with, you should credit a small amount to your balance (you can start with 0.001 BTC) so that you have the opportunity to test the trading process and feel like a trader. Working here is simple and comfortable, without unnecessary effort or transitions.

Transfer between user accounts

If you know someone with a verified Binance account, then you can ask him to transfer you fiat by direct transfer from account to account. To do this, he will also need to go to the “Fiat and Spot” section, click “Withdraw” for fiat currency, and then select the “Fiat Transfer” option. No commission is charged. When making a transfer, you must specify either the email or phone number of the recipient account.

On your part, you will see a receipt request, which you must confirm within five days, otherwise the transaction will be cancelled.

Top up your account through exchangers

The easiest and fastest way to top up your exchange balance is with the help of exchange services. Be sure to first register on the exchanger's website , this will give you an additional % discount on the exchange .

I recommend using only reliable and verified exchangers . I personally use these:

• 60cek.org
• Prostocash.com
• Platov.cc
• Baksman

It will be enough to indicate the address of the cryptocurrency wallet on Binance in the receiving field and select the currency you want to give (Sberbank, QIWI, etc.). Make an exchange

If deposits or withdrawals in the cryptocurrency you need are not available, the “Balance” next to it in the list of cryptocurrencies will be temporarily deactivated.

For withdrawals, the exchange deducts about 0.1% of the withdrawn amount. But replenishment in almost any cryptocurrency is carried out without commissions .