Binance is the future of cryptocurrency exchange. Learn about an enthusiastic platform for exchange.
Over the past 3 years, the word cryptocurrency has been rapidly growing, gaining understanding and support of its use and value in the public eye.
What used to be unfamiliar and scary is now popular thanks to the advancement of technology and the birth of more types of cryptocurrencies and exchanges in the market.
A cryptocurrency is a digital money created from sets of codes and encrypted with a string of data or a hash to signify one unit of currency.
It is important to note that cryptocurrency as of now is free of all government oversight across the world so that the cryptocurrency economy is monitored only through peer-to-peer internet protocols.
Examples of cryptocurrency include Bitcoin, Ethereum, Ripple, Dash, Dogecoin, Litecoin, Peercoin.
How does cryptocurrency help you?
It prevents fraud since cryptocurrencies are digital and counterfeiting is almost impossible.
As compared to credit card charge-backs, cryptocurrency transactions cannot be arbitrarily reversed by the sender; it also prevents identity theft due to the fact that cryptocurrency uses a push method that allows the user to send exactly what he or she wants to the merchant or recipient without disclosing further information.
Whereas, credit cards function on a pull method where the merchant initiates the payment and pulls the corresponding amount from your account.
Also, with credit cards, the merchant gets full access to your entire credit line regardless of the value of transaction amount; it facilitates immediate settlement since cryptocurrency operates like a large property rights database so that contracts can be designed and enforced to eliminate or add 3rd party approvals, external facts referencing, or post dating to a future date or time; it allows access to everyone since you only need to download and/or open the concerned exchange platform.
Certain class/type/level of users do not require verification. Unlike the traditional exchanges where registrations and verification of documents submitted are required before user can trade or transact. For now (may not be the case in the future), there is only minimal fee involved when transacting in cryptocurrency.
In some exchanges the users are compensated for transacting while other exchanges provide huge discounts when paying with their own in-house currency.
For the general public to gain full advantage of the benefits that cryptocurrencies offer, it is important that they be educated about it such as including it in the school curriculum and inclusion in the continuing professional education requirements.
Also, businesses need to start embracing and accepting it. The emergence of more exchanges and currencies will make it easier for the public to sign up and get started.
Transacting with cryptocurrency is enabled through the cryptocurrency exchange.
It is a digital currency exchange (DCE) that allows customers to trade in cryptocurrencies.
Here is a list of some of the most popular cryptocurrency exchanges today – WEX, Kraken USA, CoinEgg, Bitstamp, GDAX USA, Bit-Z, Bitfinex Hongkong, Bits Blockchain, OKEX, Bithumb, Bittrex USA, Huobi, UpBit, Binance Exchanges are important in the ongoing growth targets of cryptocurrencies.
It is where you can trade for other cryptocurrencies or trade with traditional currency like the US dollars. These platforms enable connection between the buyers and seller in which the exchanges earn fees out of such transactions.
Among the roles of cryptocurrency exchanges are to receive cryptocurrency, issue IOUs, receive fiat, process order book, and redeem IOUs.
Most active cryptocurrency traders keep their funds on the exchange due to significant time delay in moving money out of the exchange. This in turn exposes the traders to various risks in cases of platform security breach.
This is the reality in the cryptocurrency system today and is definitely one of the major areas for improvement and urgent attention.
Thus, using the exchange to store your precious cryptocurrency is not a good idea.
What is Binance
It is a trendy cryptocurrency exchange founded in China but later relocated its center of operations to Japan due to the Chinese law on Cryptocurrency.
It was formed to answer the question of “how to exchange one crypto for another” and targets at forming a better platform where users from all over the world can easily key into initial coin offerings (ICO’s) and seamlessly trade in digital currencies.
The company is rather new in the cryptocurrency business but has achieved a lot of fame due to its budget-friendly transaction fees as well as an extensive variety of initial coin offerings.
If you are into cryptocurrencies, you will notice that most traders have shifted from Bittrex and other trading platforms to Binance.
How Binance works
Binance has two offerings for cryptocurrency trading, these are Basic and Advanced. Unfortunately, none of them were created to suit the first-time cryptocurrency trader.
Both options are advanced but should not pose so much a problem to users who have background knowledge on how cryptocurrency exchanges work.
The difference between the Basic and Advanced version is that, the Advanced version offers a deeper insight into the technical analysis of your desired cryptocurrency’s value over a period, while the Basic version only displays graphs and charts including their trade history and order books.
How Do We Get started With Binance
As a new trader, you must sign up and verify your account before being allowed to commence trading for security purpose. This is something typical of all the traditional cryptocurrency exchanges.
You will notice that creating a user account in Binance is fairly easy and can actually be done without necessary assistance.
Of course, you need to be at least 18 years old to open an account. For Level 1 which has a daily withdrawal limit of 2BTC, account verification is optional.
However, for Level 2 which allows daily withdrawal limit of 100BTC submission of valid identification is required prior to account approval. If you are a Level2 user and you wish to withdraw beyond 100BTC you must contact Binance for approval.
Congratulations for a successful sign up, you may now proceed to fund your Binance account.
The Binance platform offers a wide variety of cryptocurrencies but BTC and ETH are the more popular.
How to Fund Your Binance Account
You must scroll to FUNDS at the top of the site then proceed to click on DEPOSIT/WITHDRAWALS.
Then try to find your preferred currency to send. Click on DEPOSIT button next to your desired currency and note that at this point in the process you will be pointed to a given wallet address.
You can now send your funds to the designated wallet address and finally start with cryptocurrency trading. Binance supports all major cryptocurrencies as well as numerous initial coin offerings and their tokens.
How to Trade on Binance
Do you have basic background on how exchanges work? If yes, then trading on Binance should not be difficult for you. At this stage, we assume that you have already funded your Binance account and already purchased your preferred cryptocurrency as detailed in our earlier discussions.
First step is to click on EXCHANGE at the top right menu of your Binance dashboard. You must choose between BASIC or ADVANCED trading view.
Next you will have to choose which currency to trade with by looking at the right-hand side of your screen where you will find cryptocurrencies such as USDT, BNB, ETH, and BTC.
After you choose your preferred cryptocurrency a list of trading pairs will be displayed. At this point where the list is displayed, you may opt to change to other cryptocurrency or proceed with your initial selection.
A useful tip so you won’t need to log in and search every time is to simply create your own favorites list of cryptocurrencies by clicking on the “star” icon next to them.
Now that you have chosen your preferred cryptocurrency, you must focus your attention to the column on the left-hand side of your screen. This column shows the prices available for your preferred currency for both the buying and selling price.
The prices shown in red at the top section of the column pertains to what people are willing to sell your currency at.
And the prices shown in green at the bottom section of the column refer to what people are willing to pay for the currency. The middle portion of the column shows the last sale price.
Next thing to do is to place your buy order. Please scroll to the section directly under the graphs to see the buy and sell boxes.
You can input your buying price on the “buy box”. Most conservative traders simply click on a figure on the left-hand column.
By doing this you are given two choices, either fill the amount of currency you are willing to buy or auto-fill an amount based on your available funds.
If you can view your order in the open order section this means that your order was successfully placed. Once fulfilled, it is made available for withdrawal to your desired wallet through the deposit/withdrawal menu. Else, it will remain in the “open orders” section until it is fulfilled.
What Currencies are Supported on Binance
Binance supports Altcoins such as DASH, RIPPLE, NEO, GAS and so much more (after the success of Bitcoin, alternative cryptocurrencies were launched and called Altcoins).
And to promote initial coin offerings (ICOs), Binance also supports a multitude of tokens. Users may opt to trade on these tokens which are proven to be quite profitable.
Why Buy the Binance Coin
Binance launched its own coin through an initial coin offering (ICO) and such coin can be used in paying transaction fees in the Binance platform. It is advantageous to buy this Binance coin when trading in the Binance platform as it is cheaper paying trading fees using them as compared to mainstream digital currencies.
It is said that Binance is planning to create a decentralized exchange wherein the Binance token will be established as an important base currency which will definitely increase the Binance coin’s value.
And during August 2018 Binance has released a demo of the planned decentralized exchange.
Just this September, Binance CEO Changpeng Zhao disclosed that Binance’s decentralized cryptocurrency exchange could be launched by Q1 2019.
Binance Trading and Other Fees
Binance platform charges its users a 0.1% fee on average per trade. There is a 50% discount in your first year and a 25% discount in subsequent years if you pay in BNB (Binance token).
Withdrawal fees under Binance platform tends to differ across currencies. In general, fees charged by Binance platform are competitive.
What Else is Important to Note in Binance platform
Binance places limits on the amount users can withdraw which varies depending on your level of verification.
Level 1 daily withdrawal limit of 2BTC and Level 2 daily withdrawal limit of 100BTC. Verified users in Level 2 are given the option to withdraw beyond the set daily withdrawal limit of 100BTC subject to Binance approval.
It is a common consensus among the users of Binance platform that it has multi-tier security framework though not enough has been disclosed by the company regarding its trading platform security measures.
It is good to note that there is a presence of two-factor authentication which can alleviate the fear of users losing their funds to hackers and other cyber criminals.
To contact Binance customer support and file complaints, users must fill in a support form on the website.
Responses, though, on these complaints are received only through email as Binance customer service does not support phone calls or live chat.
However, a comprehensive frequently asked questions section is available on the Binance platform for users’ utilization.
In Closing Upside
- Unlike most of the existing exchanges, Binance supports a wide variety of digital currencies, so traders are not limited to major currencies like Bitcoin, Ethereum, and Litecoin.
- The speed at which Binance adds tokens and coins to their initial coin offerings (ICOs). Through this, users have the opportunity of getting in early and buying at a much cheaper price which can then result to maximized profits.
- Huge discounts on trading and other fees when using Binance coin to pay.
- Supports a wide array of languages including Chinese, Japanese, English, and Korean.
- Works on all modern devices such as Windows, WeChat, Android, and IOS.
- Binance platform only allows generation of limit and market orders. Most advanced traders prefer more trading options.
- There have been insufficient disclosures on the Binance platform security measures to protect the users. (cryptocurrency exchange Bithumb was hacked last 19June 2018 and reported losses amounting to $32 million).
- Binance customer service does not support phone calls or live chat, only emails.