Binance Exchange Introduction
In the world of Cryptocurrency exchanges, Hong Kong-based Binance exchange is a relative newcomer in this field. Launched in early 2017 by a group of Hong Kong-based crypto-experts and developers, Binance has taken the cryptocurrency market by storm. Part of that has to be the ease of use this exchange offers. Professional traders and novice traders alike can trade comfortably by offering a variety of tools for digital asset-market interaction. For instance, it has both “Basic” and “advanced” trading modes and is capable of handling almost all complex trading operations.
In August 2017, Binance’s core team announced that Yi He, co-founder of OKCoin, was joining the platform. Yi He is also known for being a renowned cryptocurrency evangelist and investor. She’s one of the most respected and influential individuals in China’s online economy. After leaving OKCoin at the end of 2015, she joined Yixia Technology as their Vice President. She later launched Yi Zhi Bo, a China-based broadcasting platform that exploded with growth in 2016.
Binance exchange offers a large degree of compatibility as well, offering versions for Web, iOS, Android, HTML5, WeChat and PC client. It is a “strictly crypto only” exchange, and does not offer any fiat/cryptocurrency pairings. This means members cannot buy Bitcoin or any other crypto coin with dollars or Euros directly. The core team even released a statement saying they do not intend to incorporate fiat trades support in the near future.
So this brings us to the question,
“Why use Binance exchange over other popular crypto-exchanges in the world?”
- Transactions fees are low (0.1%). If you own Binance Coins (BNB), the fees are divided per 2 and payed directly with BNB
- Binance exchange is very easy to use, even if you are new to the Cryptocurrency or trading world
- The website is constantly improving, the team is adding a lot of content and the support is quite quick, compared to many other platforms
- Over 100 Cryptocurrencies are available for trading and more added almost every month
How To Create An Account On Binance Exchange platform?
The first step for any trader to enter the world of cryptocurrency trading on an exchange is to set up an account. Binance’s interface makes it very easy for novice traders to sign up. Because of the recent fraudulent websites and scammers posing as popular exchange sites, Binance exchange displays a warning message for its users in the log-in page after you click Register.
Securing the account with Google 2FA authentication
After clicking on Register, you may be directed to a CAPTCHA page. Verification and authentication are required to eliminate the possibility of giving robots access. The CAPTCHA involves solving a simple puzzle to prove that the user is indeed “human”.
Binance exchange prefers that their members use a 2FA Google Authentication method over the traditional SMS verification method. It is indeed true, that the 2FA Google Authentication adds an extra layer of security to guard against the worst-case scenarios.
There are two methods to get your account verified and secured: SMS Authentication and Google Authentication. This 2FA Google authentication method adds an extra layer of security, which is becoming increasingly crucial due to the influx of scams, trading bots, phishing sites etc.
1#: First you have installed the Google Authenticator App
2#: You’ll be prompted to scan a QR code, similar to the one shown below.
After opening the authenticator app on any wireless device, you will be prompted to click on any one of the following options: [Scan QR] and [Manual Entry] which refers to the 2FA 16 digit key.
Setting up the Backup key
Setting up the Backup key for Google 2FA is crucial for maximum security. A Key/code will appear for the user to note down. After clicking “next step”, click on Enable Google authentication after entering the necessary credentials as prompted. And you’re done.
Things to remember for Google Authentication:
- Update the app from time to time as Google issues regular updates for updating protocols.
- Ensure always that the mobile or other wireless devices you’re using is running and has an uninterrupted cellular network and internet connectivity.
- Always ensure that the date/time setting on the Mobile App is correctly synced with the Desktop you’re using to log in.
- For iPhone users, it is advised to set your date and time setting to “Set Automatically”.
In case of a Reset Request:
- After logging in, click on “No authentication Code” to request a reset.
- Use the Backup key mentioned in the previous steps to quickly reset it.
- In other cases, click “confirm application reset’.
- A link will be sent to your registered email address, with instructions for resetting the account.
Making Your First Deposit
After all the registration steps have been completed, you are ready to start trading. The first thing to do though is to deposit funds into your account. Binance exchange offers users the privilege of selecting Bitcoin or any tradable cryptocurrency in the exchange. Click on the Funds tab on the top and choose the option, “Deposit Funds”.
In this example, we will take Bitcoin as a mode of deposit. Click on the “Deposit” button on the right side of the currency selected. There is a search tab for ease.
The next page will have the Deposit Address of the recipient. Always check that you’re sending it to a Bitcoin Address as each cryptocurrency has different formats of addresses.
Making Binance Withdrawals
For completing withdrawals you will need to generate an address with a cryptocurrency wallet where the balance is to be received. Follow the steps given below to complete your withdrawals.
1#: Select the “Funds” Tab located in the top menu area of the Account Center. Open the “Deposits Withdrawals. Here we have taken the TRX token as an example.
2#: The Withdrawal Address Tab will have a dropdown list where you can select the coin. Click “use new address” and enter the specific target address as shown below.
3#: Once you have entered the correct address and the amount, click on “Submit” to finalise the process. The 2FA authentication page then pops up.
4#: Enter the 6 digit number after enabling the authentication. After that, a withdrawal confirmation mail would be sent to your registered email address.
5#: Click the “confirm withdraw” link in your email to confirm this action.
6#: Go back to Binance.com and search for the “funds” tab in the top menu arc. There is even a withdrawal history tab to check transactional records.
7#: You will find that the withdrawal process has completed, with the coins being transferred to the specific target address. Note, that this process cannot be cancelled once you click on “confirm withdraw”.
How to use Binance Exchange platform?
Under the exchanges tab, there are two options called “Basic” and “Advanced”. The only difference between these two modes is that the advanced version offers extra tools and functions for the benefit of a seasoned trader. We will now examine both the basic and the advanced versions and discuss the different functions under it.
The Basic Version
Binance exchange has a basic version for its novice members in an attempt to make it easily understandable and functional for all. It consists of a basic interface where users can scroll down to place orders. Below that is the “Open Orders” tab along with a tab for viewing past transactional records. Novice users can simply expand the highlighted sections to get more details.
Binance exchange has colour indications for buy/sell functions, with the Sell orders highlighted in pink or red and the Buy orders in green. This is done to make the trading experience similar and more streamlined for newcomers.
The following pictorial highlights the important functions present in the Basic interface.
The Advanced Version
After entering the “Advanced” mode, you will directly notice the candlestick graphs, important crypto tabs and indicators which are present on the upper left-hand side. This mode is aimed at the advanced users and experienced traders who know the ins and outs of crypto trading. The special feature of the advanced tab is that all the important trading tools for technical analysis are included in one single page for ease of use.
The following are some crucial elements of the advanced mode with attached pictorials.
Figure 1: Chart Panel
Figure 2: Current holdings
The current holdings tab is a special feature of the advanced version which is not present in the basic version. Traders can simply view their current holdings or balance in their crypto wallets by a single click on the button.
List of available indicators
In the middle of the screen, you will see a panel for displaying graphs, with options for candlestick graphs and depth graphs. Candlesticks indicate upward or downward movements of the selected cryptocurrencies. You will also notice some moving average lines crossing the screen, with a volume and MACD technical indicators.
Figure 1: Candlestick Charts in the Basic Version
Figure 2: Depth indicators in the Basic mode
Using Indicators and Graphs for Trading (Example)
To better explain these functions, we’ll take an example. Suppose you want to buy NEO from Binance exchange. Usually, Neo and any other cryptocurrencies are paired with BTC or ETH. If we use the advanced mode, things can seem a bit confusing, especially for less experienced individuals. This is what the NEO/BTC market will look like.
Figure 1: The NEO/BTC Market
The candlestick chart, located on the left-hand side shows the price movement experienced by NEO overtime. All figures are relative to the BTC valuation. Technical indicators such as the previously mentioned MACD (moving-average-convergence-divergence) are available. However, to see a visual representation of your order book, select the “depth” graph, as shown below.
Figure 2: Depth
The Depth Chart (as shown in Figure 2) is aimed at providing a visual representation of the various trading figures mentioned above. In our example of NEO, The X-axis contains all prices in BTC while the Y-axis indicates the volume of NEO that buyers and sellers in the market are willing to trade. The graphs are colour coded in a similar fashion as the indicators, with green indicating buyers and the red indicating sellers. The intersection point of these two graphs indicates the active trading price or the price you will be permissible to transact in.
The Order’s Panel
The order’s panel consists of several tools and information resources that a trader can use to place a trade order. We will now isolate each function and discuss their advantages and uses.
The Price Ladder: The price ladder is basically an auto-updated streaming table of numbers as shown in the figure. The numbers are colour coded into two types, with the red numbers coming from the top belonging to the sellers who are willing to Sell the cryptocurrency (in this case, XRP) at that particular price.
Similarly, the green figures represent the buyer’s price or the price at which
traders are willing to Buy at that moment.
The Past Orders Tab: The Transaction History Panel located just beside the price ladder, displays a continuously updated list of transactions that have occurred over a stipulated time period.
The price ladder usually updates faster than the graphs and indicators to help traders get updated information (accurate to the second). The price ladder has some valuable functions such as
The ‘groups’ tab has a dropdown list of the number of decibels which traders can select according to their choice or convenience. It is generally preferred to use the maximum amount of decibel allowed so as to prevent the loss of any price data due and get an accurate representation of the price of a particular cryptocurrency. There are even separate options for displaying only the “Buy” or “Sell” prices in the price ladder.
The Buy/Sell Panel
The Buy and Sell Panel is probably the most important feature of any exchange and traders should have extensive knowledge on how this works and the principles behind it before even attempting to trade.
Figure 1: Buy/Sell Panel
As pictured above, there are separate buying and selling sections at the bottom right of the screen. The basic principles and directive for performing buying and selling actions on this platform is the same but reversed. For simplicity, we will go through the whole “Buy” process in brief.
Binance – using the “Limit” function
For instance, when buying a particular cryptocurrency, in this case, XRP, the trader has to first figure out the bidding price of the purchase. There are separate text input boxes where you can manually type the price, or adjust it accordingly. The advanced platform also offers the benefit of selecting the price from the numbers in the price ladder.
Once the price has been locked, set the amount of XRP you want to purchase. This exchange offers percentage bookmarks like 25%, 50%, 75%, and 100% to assist quick and responsive trading in a populated market.
When using the “Market” option
The Market option available in the Buy/Sell panel simplifies things for novice traders. The Market tab allows Binance exchange to automatically select the best or lowest price that a trader can buy to acquire the requested amount of XRP. However, it is important to note that the “Market” function is not favourable for coins that have very less volume. There is a 100% option which allows the trader to see the maximum amount of XRP that can be purchased with your available BTC balance. Click on the “Buy” button to confirm your transaction.
Binance – Open Orders
As soon as you click on the Buy button, you should see the “Open Orders” tab appearing on the left-hand side as shown below. This indicates your active request to buy XRP.
After you have submitted your XRP Buying Order using BTC, you will have to wait for some time to get through. Once the trade is completed, the transactional record will be displayed in the transaction history tab. Traders can either leave their XRP on their Binance account or transfer them to a Ripple compatible wallet. The Funds tab shows the total balance available in your account at any given time.
Binance – Stop Limit Orders
The Stop Limit Order function is very helpful in certain situations, especially when a trader is not present on the exchange but wants to protect his/her funds from an unexpected loss. You can also earn some extra profit, even when you are not online.
Basically, the Stop Limit order lets traders create a certain order which is triggered when some special conditions are met. The main condition here is a pre-determined price level where the stop-limit order function is triggered. There are three components under this function, namely, the Stop price, the Limit Price and the number of tokens or coins you would like to sell.
The Stop Limit: It refers to the trigger price of the order. After this price level is reached in the market, an automated system places your orders instantly.
The Limit price: It refers to the price at which a trader wants to trade. The orders get filled automatically after the order is placed and the specified “limit” price is available.
The Amount: Here you have to enter the specific amount of a particular token that you want to Buy or Sell.
Working Example: To further explain the use of the Stop-Limit order, we will take BNB as an example, given that the last traded price of a Binance Token is 0.000165 BTC with a resistance of around 0.000169 BTC. It now depends on the trader’s knowledge and decision. If you believe the price will go higher after reaching the point of resistance, put a Stop-Limit order. This will direct the system to automatically Buy more BNB at the price of 0.000170 BTC. This eliminates the need to constantly monitor the price and watch market movements.
The Binance exchange certainly offers a lot of simplicity and functionality as compared to other popular exchanges like Bitfinex and Bittrex. Various plus points of the exchange include the reasonable 25 USD minimum buying clause as well as the plethora of trading options. The various standout benefits of using this exchange are compiled below.
- Multiple Exchange Views: Binance offers Basic and Advanced Options for the exchange interface. The basic edition has simplified tools while the advanced version has informative graphs and other resources.
- A Myriad of Coins: There is an excess of 100 cryptocurrencies presently supported on the Binance exchange.
- Language Support: The Binance exchange website currently has multi-language support including English, France, and Chinese etc.
- In-house Token: Binance exchange has specific in-house tokens called BNB tokens. These can be used for reducing trading fees or as investment vehicles like other coins.
- Liquidity: Compared to other crypto exchanges in the world, there is a high degree of liquidity in the exchange.
- Processing: Binance exchange has one of the fastest processing speeds among all the crypto exchanges. It’s capable of processing 1.4 million transactions per second currently, with developers constantly improving the system.
- Core Team: Binance exchange is backed by an established team of investors and developers, with a proven track record in the industry.
- Fees: Binance has incredibly low transaction and withdrawal fees compared to other South Asian cryptocurrency exchanges.
- Offers and Bonuses: Binance exchange offers regular bounty and reward programs, which are displayed on the banner on the homepage.
This was all about Binance Exchange. For any query, we are readily available for you.