What is Binance Exchange?
By now, you must be knowing that there are many coins apart from Bitcoin on which you can invest and start trading.
These coins also known as Altcoins can be bought from various Cryptocurrency exchanges. Binance is one of the best exchanges out there.
It is trusted, reliable, fast and has a good number of coins.
More than that, it also has an Android App using which you can trade altcoins directly from your smartphones.
Getting Started with Binance
Binance is one of the fastest and easiest exchange to get started. You don’t even have to wait for your account to get approved.
The steps to make an account on Binance are:
• Go to Binance Website and Click on Register.
• Here is my referral link: https://www.binance.com/?ref=35565774 (If you dont mind)
• On the next page, enter your email, password and create an account.
• You will get a verification email to your inbox. Make sure to verify your account to get started.
Voila, your account is now ready !!!
You can do a daily withdrawal of up to 2 BTC. However, you can submit your verification documents to increase that limit to upto 100 BTC.
The verification documents include:
• Passport Number
• Passport Image
• Photo holding your national ID card
It’s up to you whether you want to increase the daily BTC limit or not.
Once your account is ready, you will have to enable some security measures in order to keep your account safe from hackers.
Just go to your account and Enable Google Authentication.
When you enable Google Authentication, you will be given a private key to keep it a safe place. Make sure to copy and save the key at a safe location.
Anyways, once you are done with the verification, your account will be fully ready to start trading.
How to Deposit Funds into your Binance Account
Now that your account is ready, you can transfer Bitcoin from any BTC exchange to Binance account.
You will have to add funds to Binance in order to buy coins from it.
To transfer/add funds (BTC) to your Binance account, simply head over to Deposits page on Binance. The page looks like this;
If you want to Add Bitcoin to your Binance account, simply select Bitcoin from the Deposit List.
It will show you the Deposit Address.
That’s the address where you will have to transfer your BTC. If you have your BTC on Zebpay (Indian BTC exchange), simply go to “SEND BTC” option on Zebpay and send any amount of BTC to the Address given by Binance.
Always copy the address or use Scan QR code feature. Typing it can cause errors and you may lose your money.
Anyways, just send the BTC from your Wallet or private exchange to your Binance account and wait for it gets processed.
Usually, BTC transaction can take up to 30-40 minutes depending on the block. You can see funds added to your Binance account after 2 Confirmations.
To check confirmations, simply open blockchain.info and enter your Binance BTC wallet address or your transaction ID.
Anyways, once you have the funds in your Binance account, you can start buying coins.
Note: You can also deposit ETH (Ethereum) to your Binance account.
Note: You can also Deposit other Altcoins to your Binance account.
However, you can buy altcoins only using BTC or ETH on Binance. So if you transfer any other coin to Binance, you will first have to sell that coin for BTC or ETH.
How to Buy Altcoins on Binance
Now that you have funds in the form of BTC or ETH, you can start trading altcoins.
Binance has 2 different types of exchanges. One is Basic and the other one is Advanced. Normally that doesn’t make any big difference, and you can start with any of them.
Understanding Binance Basic Exchange
In this article, I will be showing how to Buy Altcoins using the Basic Exchange on Binance.
Head over to the Basic Exchange;
Once you open the exchange, it will look like this;
In the search bar, you can type any altcoin letters and it will show up.
Note: If you want to purchase an altcoin using BTC, then make sure to use COINLETTERS/BTC Pair and if you want to buy altcoins using ETH, use the Coin/ETH Pair. The snapshot shows CND/BTC Pair.
Apart from the search bar with a list of coins, there are many other things for you to understand.
• Last Price: It Shows the Last Trade Price.
• 24h Change: It shows the change in the last 24 hours. It shows the change in Satoshis as well as in percentage.
• 24h High: Shows the Highest price for the last 24 hours.
• 24h Low: Shows the lowest price of the last 24 hours.
• Order Book: Shows the Buy and Sell orders along with the quantity and the price. The Red part shows Sell orders, while the green color shows buy orders.
• Graph: Shows a Candlestick graph of the price.
• Buy Coin Option: Shows 3 Ways to Place a buy order for the coin. (Limit, Market, Stop-Limit)
• Sell Coin: Shows 3 Ways to place a sell order for the coin.
So, that’s pretty much about the basics of the exchange. Now let’s learn how to buy an altcoin.
3 Ways to Buy a Coin from Binance
So, first of all, use the search bar and open the coin that you want to buy. Make sure to open its BTC pair if you want to buy it using BTC.
In this tutorial, I will be showing CND/BTC pair.
Once you open the Altcoin pair, you can see all the info about it. (Things that I mentioned under the previous subheading).
Now There are basically 3 ways to place a Buy Order for a Coin on Binance. Not only Binance, you will get similar options on almost every big exchange.
How to Buy Coins Using Limit Order on Binance
Basically, a Limit Buy order means, you specify the rate at which you want to buy the coin.
Let me quote an answer from a forum;
In a limit order, you specify how much of the asset (in this case the Altcoin you want) you want to buy, and the price you want. If there are matching orders on the book (e.g. someone who wants to sell at the same price, or lower, as the price at which you want to buy), your order will be filled immediately. If not, your order will stay on the book until matching orders arrive (which could be never).
Simple, right?
This means I can literally enter the Price at which I want the coin along with the number of coins I need. If the price of the coin reaches my specified price, my order will be fulfilled. If not, my order will remain in the open order book.
So, enter the Price in BTC. You can see the last price, 24h high, 24h low and enter the price accordingly.
In the amount field, Enter the number of coins you need. You can also click on 25%, 50%, 75% or 100% to select the amount.
Its the percentage of available BTC you wish to spend in buying the coin.
Anyways, once you enter the data, click on BUY CND. The Buy order will be placed and will be fulfilled once the price of the coin hits your specified price.
How to Buy Coins Using Market Order
There are times when you want to buy the coin immediately. Well, at such times, a market order is used.
By using Market buy order, you will be getting the coin instantly at the current market price.
Simply enter the number of coins you want to buy and hit the Buy button. The coins will be immediately bought and added to your coin balance.
How to Buy Altcoins using Stop-Limit on Binance
This can be confusing but it is one of the most used types among professional traders.
You don’t really have to use this in order to buy a coin, but if you know what you are doing, then this is probably the best way.
What is this basically?? In simple words, stop limit are condition based orders.
Well, there are times when we would want to buy a coin only when it hits or crosses a certain price. In such cases, a stop-limit order can be used.
A stop-limit order will be executed at a specified (or potentially better) price, after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy at the limit price or better.
So it’s like telling Binance, “If a coin reaches X value, place a buy order at Y value”
X is the Stop Price, while Y is the Limit Price.
Here’s the example,
Suppose CND Coin is at 0.00002400 and but has a good resistance at 0.00002450. You feel that it will go higher once it reaches its resistance level, so what you can do is, put a stop value at 0.00002500 with a limit value at 0.00002505. This way, as soon as CND touches 0.00002500, a buy order will be placed at 0.00002505.
The benefit of this method is, you don’t have to keep on watching the coin to cross its resistance level.
In Binance, you can place at max 2 Stop-Limit orders for a coin.
Note: If you are still confused with Stop-Limit, I strongly recommend you to watch some YouTube videos related to it.
So that’s how you can buy coins on Binance. You can always head over to the Funds page to check the total number of each Altcoin that you have.
Now that you have coins in your account, you may want to sell them whenever they give you a profit.
Let’s move onto the next topic!!!
How to Sell Coins on Binance
Selling Coins on Binance is as easy as buying coins!!
First of all, open the coin in the basic exchange that you want to sell.
Now there are 3 ways to sell a coin on Binance. I will be explaining all 3 of them in this article;
Follow each subheading for a step by step guide;
How to Sell an Altcoin using Limit order on Binance
A Limit Sell order means, you specify the rate at which you want to sell the coin. The coins get sold as soon as the value of the coin reaches your specified rate.
To Limit sell, you have to specify the value of the coin and the number of coins you want to sell. The snap shows an example;
The snap shows that I am placing an order to sell 50 Lend Coins at a rate of 0.00002500 BTC. Whenever the market value reaches 0.00002500, my order will be fulfilled.
Moving onto the next method now.
How to Sell Coins using Market Order
If you wish to sell the coin immediately at the current rate of the coin, you can use a market order.
You just have to specify the number of coins you want to sell. Your coins will be sold instantly at the market rate.
Note: If a coin is falling badly, then I prefer using a market order. While if a coin is rising, I prefer Limit Order.
How to Sell Coins using Stop-Limit on Binance
As mentioned before, stop-limit orders are triggered as soon as the value of a coin reaches a stop value. The limit value specifies the value at which the order gets placed.
Usually, Stop-Limit Sell order is used to stop-losses.
Stop-loss!!!
I guess you have heard this word before. Right??
Well, a Stop-Loss is a sell order placed to avoid losses.
Example of Stop-Loss Order
Suppose you buy a coin at the rate of $1 and it goes on increasing. You get happy seeing the rise and simply go to sleep thinking that you will wake up on Moon. But, Next morning you see that the same coin fell down to $0.3 and you simply start panicking. That’s a loss/dip of $0.7.
Would you like that to happen??
No!!
Well, to save your investment from such losses you can set up a Stop-Loss.
Before sleeping, you can place a Stop-Loss order specifying that if the value of a coin falls back to $0.9, your coins get’s sold at $0.9 automatically.
So in this case, next morning, you won’t see a big loss. Your Stop-Loss order saved you and you can again buy the coin at the dip.
Understood the concept??
That’s how Stop-Losses work.
Note: There can be many uses of Stop-Limit order on Binance.
How to Set up a Stop-Loss on Binance
Let me show how you can set up a stop-limit sell order or a stop loss order on Binance.
Select the Stop-Limit option firstly. Once you click on it, you will see 3 fields.
• Stop: The Condition that you specify
• Limit: The value at which the order must be placed after hitting the condition
• Amount: The number of coins to be sold
In Simple language;
The STOP is conditional. When the price is whatever you say in STOP, it will place your order at the price you set in LIMIT.
So in the above example, I have specified that whenever the value of LEND Hits 0.00001400 BTC, place a sell order at 0.00001400.
Once you click the sell Button, Binance will show you a confirmation box telling you about your order in a simple language.
If a coin is falling at a very fast rate, enter the LIMIT value slightly lower than the Stop Value. This way your order will be easily triggered.
That’s how you can set a stop-loss on Binance.
So, you have learned all the ways to buy and sell altcoins on Binance. Always make sure to double check the value before placing an order. A small decimal mistake can cause a big loss.
Now that you know how to buy and sell coins, you can start trading yourself.
But before that, do read the next heading where you will see how you can book a profit easily.
How to Book Profit in an altcoin on Binance
First of all, “You Book Profit on a coin only when you sell it.”
So if you are holding coin a profit, its good, but it’s not called BOOKING PROFIT.
Anyways, getting back to the topic;
Many times it becomes difficult and hectic to manually keep a track on the prices. You cannot be awake for 24 hours and at the same time, you would not want to lose your profits.
That’s where you must start using the different type of orders.
For example,
If you want to book a 10% profit on a coin, you can simply place a LIMIT SELL Order at a rate 10% higher than your buying rate. This way, whenever the coin reaches that rate, your Limit sell order will be triggered and you will book profit. You don’t have to be awake at 4 Am to do all this.
You can set multiple Limit Sell orders for portions of your coin. You can put a limit sell order for 25% coins when it reaches 10% profit, another limit sell order for 25% of your coins when it reaches 20% profit and so on.
In this way, you can book profits at different levels.
Got the point??
In the same manner, you can use the STOP-LIMIT orders to stop your losses.
For example,
If your coin is 20% above your buying rate (that is, at a 20% profit) and you wish not to lose money on it, then you can simply put a STOP-LIMIT SELL order putting a stop at 15% (or more).
This way, if the coin start falling, it automatically sells at 15% profit before falling back to the initial buying rate or even worse.
I hope you Understood the point.
Using these orders you can literally do better trades. Moreover, if you are into day trading or swing trading, then such type of orders are a must. You cannot always buy and sell coins at market order. You will eventually have to start using limit orders to make your trading easy.
If you are still confused then do the following;
• Watch some YouTube videos explaining LIMIT and STOP-LIMIT on Binance.
• Start Trading and experience yourself.
• Read this article multiple times. 😛
And, that’s pretty much about How to use Binance to Buy and Sell Altcoins.
Almost every exchange offers you the same set of features so it won’t be tough for you to understand other exchanges.
Final Things You Must Know Before Using Binance
Here are some final tips and points that you must know before you start trading on Binance exchange;
• Every Exchange charges a Fee whenever you buy or sell an altcoin. On Binance that fee can be either in BTC or in Binance coin (BNB). Using BNB as a Fee will save you 50% of the Transactions Fees.
To enable BNB as Transaction Fees, simply log in to your account and Turn on BNB as Fees option as shown in the snap.
• Enable Google Authentication to keep your account safe
• Always login to Binance by directly typing the URL in the address bar. There are many phishing (scam/hacking/clone) sites that can hack your credentials.
• Use Binance Desktop Client for a Smooth Experience. During heavy load, the Desktop software is very smooth and fast compared to the website. You can buy and sell coins easily on Binance desktop software.
• You can also use Binance Mobile App to Trade altcoins.
• Never buy a coin in a hurry, always double check the values before placing any type of limit order.
That’s it for now!!!
You now know how to Buy a coin, how to sell a coin and most importantly how to set stop losses on Binance exchange.
Let me know if you have any more questions regarding Binance Exchange. I will be writing more guides very soon.