Cryptocurrency has grown strongly since its inception in 2009. Bitcoin paved the way for the rise of other tokens and coins, and BitcoinMarket also helped to create other crypto exchanges.
BitcoinMarket was the first ever crypto exchange platform to trade crypto. Though it has closed operations as of today, it laid the foundation for other crypto exchange giants like Binance, Coinbase, Kraken, and others to come on board.
Our focus today is on Binance. We will look at how it started, what it does, and how to buy and sell crypto with Binance. You will learn the preliminaries that should happen before you trade, like how to set up your Binance account, fund it, and get tips.
What is Binance?
Binance is the largest platform for trading cryptocurrencies worldwide. Changpeng Zhao, also known as CZ, created it in 2017. For trading, Binance offers services such as staking Spot Trading, Margin Trading, Futures Trading, Options Trading, P2P Trading, Binance Earn, Savings, Staking, and others.
Binance is centralized and has its native coin, Binance Coin, or BNB. It supports up to 350 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, and Dogecoin.
Setting up Your Binance Account
There are 3 phases your Binance account must go through to trade crypto comfortably. They are
- Registration
- Verification
- Securing your account
Registration
Registration to create an account with Binance starts with the following steps:
- Go to Binance’s official website or download the mobile app to create your account.
- Click the “Register” button.
- Choose between email and phone number.
- Enter a valid email/phone number, create a strong password, and submit the form.
- Copy the activation code through email or SMS and paste it into the required field.
- Click ‘Done’ when you have completed the steps.
Verification (KYC)
Verification is a process to protect your account and ensure it is linked with a real user.
- Log in to your account and go to the “Profile” section.
- Input your basic personal details like full name, date of birth, and residential address.
- Upload the required identification documents, e.g., passport, driver’s license, or national ID card) based on your country.
- Upload clear images of the ID document (front and back, where possible).
- Do the facial verification through a selfie or live video.
- Binance will now review your verification while you wait for approval, typically a few minutes to hours.
Securing your account
Securing your account means adding an extra layer of security. Enable 2-factor authentication and set up anti-phishing codes to prevent fraud and protect your assets.
- Enable 2FA:
- Log in to your Binance account and go to “Security” in settings.
- Choose a 2FA method:
- Google Authenticator: Download the app, scan Binance’s QR code, and link your account.
- SMS Authentication: Link your phone number to receive verification codes.
- Confirm activation by entering the code sent to your email or phone.
- Set Up Anti-Phishing Codes:
- Go to “Security” in your settings.
- Select “Anti-Phishing Code” and create a unique phrase.
- Binance will include this code in all legitimate emails.
Funding Your Account
You need to fund your account before trading on Binance, and here is how to do it:
- Deposit Fiat Currency:
- Log in to your Binance account and navigate to the “Wallet” section.
- Click “Deposit” and select your local currency.
- Pay through bank transfer or debit/credit card.
- Follow the instructions to complete the transaction.
- Deposit Cryptocurrency:
- Go to “Wallet” and select “Deposit.”
- Choose the cryptocurrency you want to deposit (e.g., Bitcoin).
- Copy your Binance wallet address.
- Use this address to send crypto from an external wallet.
- Peer-to-Peer (P2P) Trading:
- Open the P2P section on Binance.
- Choose a trusted seller and initiate the trade.
- Make the payment using the seller’s preferred method.
- Confirm the transaction, and the crypto will be credited to your account.
How to Buy on Binance
You can buy cryptocurrency in any of the following ways;
- Spot trading
- Binance P2P
- Credit/Debit Card
- Stablecoins
1. Spot Trading
This involves buying and selling cryptocurrencies at the current market price.
Steps to Buy Crypto via Spot Trading:
- Log in to your Binance account and go to the “Trade” section.
- Select “Spot” to access the spot trading interface.
- Search for the trading pair you want (e.g., BTC/USDT).
- Choose the type of order:
- Market Order: Buys crypto instantly at the current market price.
- Limit Order: You set a specific price you want to buy.
- Enter the amount of crypto or fiat you wish to trade.
- Confirm the transaction and your purchased crypto will appear in your wallet.
2. P2P Trading (Peer-to-Peer)
How to Buy Crypto via P2P:
- Go to the “P2P” section on Binance.
- Select the crypto you want to buy (e.g., BTC, ETH, USDT).
- Browse seller offers and look for verified users with high ratings and good trading history.
- Start a trade by clicking “Buy.”
- Pay the seller with their preferred method.
- Once your receipt of payment is confirmed, the crypto will be released into your Binance wallet.
3. Credit/Debit Card
Follow these steps when using a card:
- Log in to Binance and click “Buy Crypto” from the homepage.
- Select “Credit/Debit Card”
- Choose the cryptocurrency you want to buy.
- Enter the amount in your local currency.
- Provide your card details and complete the payment.
- Your account will be credited immediately.
4. Stablecoins (e.g., USDT)
How to Use Stablecoins for Trading:
- Buy USDT or another stablecoin using one of the methods above (spot trading, P2P, or card).
- Navigate to the “Trade” section and select the stablecoin trading pair (e.g., BTC/USDT).
- Enter the amount you want to trade and confirm it.
- Your wallet will get credited.
How to Sell on Binance
These are the ways to sell cryptocurrency on Binance
1. Spot Trading
Steps to Sell Crypto via Spot Trading:
- Log in to your Binance account and go to the “Trade” section.
- Select “Spot” to access the spot trading interface.
- Search for the trading pair that matches your crypto (e.g., BTC/USDT if you want to sell Bitcoin for USDT).
- Choose between Market order and Limit order.
- Market Order: Sells instantly at the current price.
- Limit Order: You set the price at which you want to sell.
- Enter the amount of crypto you want to sell.
- Confirm the transaction to receive the crypto in your Binance wallet.
2. P2P Trading (Peer-to-Peer)
Steps to Sell Crypto via P2P:
- Navigate to the “P2P” section on Binance.
- Select the crypto you want to sell (e.g., BTC, ETH, USDT).
- Browse buyer offers and choose one with a good rating and preferred payment method.
- Initiate a trade by clicking “Sell.”
- Transfer the cryptocurrency to Binance’s P2P escrow wallet.
- Wait for the buyer to complete the payment to your specified account.
- Once you confirm receipt of the payment, release the crypto from escrow.
3. Credit/Debit Card
How to Sell Crypto for Fiat Using a Card:
- Go to “Buy & Sell Crypto” on Binance.
- Choose the cryptocurrency to be sold.
- Select the fiat currency you want.
- Input your card details.
- Confirm the transaction; the fiat will be transferred to your card or account.
4. Using Stablecoins for Easy Selling
Steps to Sell Crypto for Stablecoins:
- Use spot trading to sell your crypto (e.g., BTC) for a stablecoin like USDT.
- You can withdraw the stablecoins or use them for other trades from there.
Tips for Trading Crypto on Binance
- Select a suitable method: credit/debit cards for instant transactions, P2P for local payments, and spot trading with stablecoins for regular trading.
- Always verify wallet addresses when depositing or withdrawing cryptocurrency.
- Trade only with verified users and choose buyers or sellers with good ratings and verified accounts.
- Your payment or communication should be made on Binance’s platform to avoid scams.
- Know Binance’s Fee for each transaction.
- Never release cryptocurrency from escrow until receipt is confirmed.
- Use Two-Factor Authentication (2FA) and anti-phishing codes to protect your account.
- Use Stablecoins for stability, quick trades, and value maintenance.
- Look out for regional restrictions for fiat deposits, withdrawals, or payment methods done with Binance.
Conclusion
Binance is a big name in the cryptocurrency world. It allows you to trade in various forms, tokens, and coins.
Set up your account, verify it, and protect your funds to start trading. Whether you choose spot trading, P2P transactions, or the ease of using a credit/debit card, Binance is the best for buying and selling crypto.
You can make the most out of Binance effectively with all the knowledge you gain here. Start your journey today and take advantage of the opportunities Binance offers!
