Cryptocurrency Binance – How to Make Money on It?

Binance – cryptocurrency exchange, website and features

Binance Cryptocurrency Exchange (website: www.binance.com) started operating in 2017, but quickly became one of the most popular among investors and traders. In Russian, the site is positioned as a “blockchain cryptocurrency exchange.

The crypto-exchange was originally created in mainland China, but because of the ban in China cryptocurrency trading Binance has moved offices to Hong Kong and Tokyo and this is not the last destination.

According to Coinmarketcap ranking, in terms of cryptocurrency turnover (The whole truth about cryptocurrency) in 24 hours, cryptocurrency Binance ranks first ($489,168,091, data as of October 26, 2018).

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On the first page of the crypto exchange site (1) you need to choose a language. Russian-speaking users need to know that the exchange is not translated into Russian very well, it is recommended to use English, if the user has a good command of it. The first page also displays the volume and dynamics of cryptocurrency trading.

While working on the exchange, you should regularly follow the news of the crypto exchange in the “Announcements” section. The “Help Center” section provides answers to frequently asked questions and indicates the course of action in case of problems.

At the bottom of the site are sections where you can learn more about the crypto-exchange, read the agreement, which specifies the terms of customer service, as well as clarify the issues of Binance’s privacy policy. The corresponding sections explain the billing procedure in connection with the exchange cryptocurrency BNB, you can see the API document, offer the cryptocurrency in the exchange listing and download the application of the cryptocurrency exchange for smartphone.

By the way, in this part of the exchange there is a section “Labs”, which provides support for ICO startups.

Useful materials on the Binance exchange

On the main page of the website of the crypto exchange is a section which contains learning and educational user materials (2,3).

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First of all, this is Binance Academy (4). The section is not translated into Russian, so you will have to watch the educational videos and read the explanations to them in English. But if the user knows English at least on an average level, it is recommended to watch them.

There is also a “Glossary” section, which explains the basic concepts of the cryptocurrency industry. The VIDEOS subsection contains videos on Binance, Blockchain, Coins & Tokens, Trading, Security, Tutorials. The “ARTICLES” subsection contains detailed illustrated articles about cryptocurrencies and cryptocurrency exchange.

In addition, there are subsections SUBMIT, CONTENT and FEEDBACK, where users can address questions and requests to the cryptocurrency exchange by filling out the appropriate form in Google Docs.

Binance Info subsection provides summary information on cryptocurrency trading. By the way, through this section you can go to download the official Binance cryptocurrency wallet for Ethereum, ERC20 and ERC223 tokens (5).

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Binance: cabinet and trading

From the main page you can enter the user’s personal cabinet. To get an account, you need to register on the exchange. To do this on the main page you need to click on the appropriate sign. In the registration form you need to enter your email, password and optionally a referral number. Then you must enter the original captcha (6) and confirm the email. The captcha is also entered each time you login to the exchange.

Be aware that some browsers do not recognize mosaic captcha and do not see the moving fragment of the mosaic. Therefore, the best way to work on the exchange is through Google Chrome.

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In the review of Binance cryptocurrency exchange special attention should be paid to the authentication and verification of the account. Of course, it is possible to trade without verification by going to the exchange and clicking on the sign of any other section. But for full-fledged trading you’ll have to install 2AF and be verified.

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Without two-factor authentication it is impossible to verify, and without verification full-fledged trading is problematic. Moreover, the exchange itself reminds you of the need to confirm your identity and secure your activity.

Authentication can be done in your personal cabinet (8). According to a large number of reviews, it is preferable to authenticate via Google Authentication, rather than via sms-confirmation.

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Verification can be started in the personal cabinet, the top of the site shows the stages of registration on the crypto exchange, which have already been passed (9).

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Unverified user account has Lv1 status, which allows withdrawing no more than 2BTC per day. At Lv2 level you can withdraw up to 100 BTC per day. But it’s possible only after verification. To do that, you need to click on “Complete verification”, enter your personal information and upload scans of necessary documents.

At the highest Level 3 you can climb to the highest level by going through an in-depth verification and answering all the support questions.

In the personal cabinet, in addition to authentication and verification, you can change your password, set the anti-phishing code, connect to the API.

Once your identity has been verified and your account has received protection, you can start depositing cryptocurrencies to the exchange. It is not possible to deposit fiat currencies to Binance. To deposit cryptocurrencies to your Binance account, you must first buy cryptocurrencies on another cryptocurrency exchange and credit them to your Binance account.
Cryptocurrency enrollment starts from the “Asset” section at the top of the exchange site (10). In the drop-down menu you need to select “Balance”.

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The “Balance” section presents the balance of cryptocurrencies. Here you need to select the desired cryptocurrency. For example bitcoin.

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Next to this cryptocurrency, click on “Deposit” and in the section that appears, you can see the address (12), to which you will need to send funds from an exchange or exchanger.

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By the way, you can find out the status of the transfer, for this you need to enter the service “Protocol and the status of the deposit” through the same section “Asset”, which shows the history of transactions.

After replenishing your balance, you can start trading cryptocurrencies. To do this, you need to go to the “Trading Center” – basic or advanced options.

Let’s take a closer look at the toolkit of the trading terminal of Binance cryptocurrency exchange in the main version. The upper part of the trading terminal shows the main characteristics of the selected cryptocurrency for trading (13).

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In this part, you can see the full name of the coin, the price of the coin at the time of the last transaction, and the price trend over the last 24 hours. Red means the price is falling, green means the price is rising.

Next is an indicator of the minimum and maximum value of the cryptocurrency within 24 hours. And at the end you can see the trading volume in ethereum, since the deal is planned in pair with ethereum. This set of values allows to perform quite an adequate express analysis before carrying out any actions.

The next informative block is a graph of the price change, in this case, deshkoin to etherium, which can be tracked by time school, from 1 minute to 1 month (14). Graph TradingView shows the dynamics of trading in the selected pair.

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The depth chart graphically displays the information from the stock charts, it allows you to assess the market situation faster than if you look at the charts by themselves (15).

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In this graph, the horizontal line shows the price at which coins are bought and the vertical line shows the number of coins.

Exchange rates are located on the left side of the trading terminal page. The red glass shows coins for sale, green, respectively, for purchase. If you put the price of a coin close to the market price, you can see it immediately in the order.

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The next tool at the top right of the trading terminal allows you to see which coins are currently traded on the exchange, the last price at which the coin in the pair was bought, the dynamics (color) and the percentage change in price (16). The “Change” function allows you to see which coin grew better in the selected pair compared to other cryptocurrency pairs.

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The last deals can be viewed in the corresponding section (17), here it is possible to trace the price of the deal, volume of the deal and time of its conclusion. In this section, by the dynamics of price and volume changes over time, you can determine how popular the deals are on the selected pair.

There are two sections at the bottom of the trading terminal: “Open Order Header” and “Trade history”.

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The first section displays open orders that should be executed, but you can cancel them by clicking on “Cancel” (18).

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The second section of this part of the trading terminal shows all executed and cancelled orders for the last day. Here you can also view the history of transactions for a longer period by clicking on “View All” (19).

By the way, before you start trading, it is advisable to buy an internal coin of the cryptocurrency exchange – BNB. The commissions that are charged on buy and sell transactions, when paying in BNB is much less. Coin is deducted from the balance automatically. For commissions to be paid in BNB, it is necessary to tick the appropriate box in the user’s cabinet (20).

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Trading begins in the “Balance” section, to which you must go through the “Asset” tab. Here you need to select a cryptocurrency, click on “Trade” and select a currency pair (21).

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After that, you need to go to the “Trade Center”, to the main or extended trading terminal. In the terminal, you need to select the corresponding cryptocurrency pair, for example, by specifying the first currency in the search, and in the list of major currencies – the second cryptocurrency of the selected pair (22).

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Next, you need to select the type of trade order: Limit, Market or Stop-Limit and the price of the cryptocurrency (23).

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The default setting in the buy/sell service is Limit. In this tab, you need to select a clear coin price – you must specify the value of the coin and the amount, “Amount” is filled in automatically, you can calculate how many coins can be bought for 50%, 25%, etc. from the deposit of the user.

Limit implies setting values from which it is planned to buy or sell coins. In this case, the order is placed on the exchange immediately, after filling out the order. As soon as the market reaches the price specified in the order, the transaction will take place.

The Market tab is needed to buy or sell cryptocurrency at the market price, according to the last transaction. The price that the user puts up will appear in the exchange cup. Binance is the largest exchange at the moment, so the transaction is likely to be executed instantly.

Stop Limit allows you to hide orders so that no one can see the exposed price. This is the most common way to set the price drop limit, so as not to go into deficit in case of a sharp drop in value. In the similar way establish limits of price of purchase of a coin. Stop Limit is recommended to put on the sharply volatile market or when using strategies scalping, other high-frequency strategies.

In the extended version of the trading terminal in general all the same as in the basic, but there are many additional tools for technical analysis on the chart.

How to withdraw money from Binanse crypto exchange? To do this, you need to select “Withdraw Cash” in the “Asset” section and go to the section where you can select a coin to withdraw from the drop-down list (24).

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After a coin is selected, you will need to enter the address and number of coins to withdraw (25) into the form. Not all coins traded on the crypto exchange are available for withdrawal, so you need to clarify which coins can be withdrawn beforehand.

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Binance crypto exchange does not practice margin trading and there is no lending. Make money on the stock exchange You can only trade cryptocurrencies and invest in cryptocurrencies.

Binance cryptocurrency exchange: reviews

Most reviews of Binance cryptocurrency exchange positive. Users note the large number of supported cryptocurrencies, not only the major ones, but also little-known ones. Binance has a huge trading turnover, which allows for very large transactions. In this case, the exchange manages to maintain a high speed of transactions.

It is believed that the exchange has a high level of security. But how the security is ensured – is unknown, and most importantly, the exchange has existed for a little over a year, so its security has not been tested by the most important tester – time. At the same exchange has been repeatedly attacked, so far without success. Although it has suspended operations due to hacker attacks.

Cryptoexchange offers a wide range of trading tools, which allows you to implement different strategies.

Some users praise the referral system of the exchange, because referrals bring the user 20% commissions from transactions.

Quite a lot of negative reviews about Binance cryptocurrency exchange. The main disadvantage of the exchange is the lack of opportunity to use fiat. Therefore, the trader, when withdrawing cryptocurrency, is forced to perform additional manipulations – transferring from exchange to exchange, from exchange to exchange and back and so on. The only way to immediately assess the results of trading in dollars is to conduct transactions with USDT tokens.

There are difficulties both with verification, which is not always fast, and with authentication via SMS in the Russian-speaking segment.

For novice traders, the interface of Binance cryptocurrency exchange seems complicated. Especially Russian-speaking, because the exchange is partially and inaccurately translated into Russian. Therefore, trading functionality has to be mastered “with a dictionary” or by “scientific gut feeling” method. Support in Russian does not work, this is a big disadvantage.

From time to time, especially in periods of high volatility, the exchange “slows down” and sometimes suspends its work, there have been many such cases. The exchange claims that this is due to the influx of traders.

Many users, especially beginners, do not pay attention to the fact that only whole amounts of cryptocurrencies are traded on the exchange.

Binance BNB cryptocurrency

BNB is an internal token, the cryptocurrency of the Binance cryptocurrency exchange. BNB is based on the Ethereum blockchain (ERC20 token). BNB is the 28th in the list of cryptocurrencies by capitalization volume in 24 hours, the value of the coin is $9.67 (data as of 10/28/2018).

BNB’s ICO launched on July 1, 2017. Investors purchased 100 million coins over 20 days during the sale, which is a 50% issue. Investments were made for ethereum and bitcoins in three stages, each of which lasted a month.

35% investments were used for technical development of the platform, 50% for the promotion of the brand “Binance”, 15% were credited to the reserve fund.

Binance buys and destroys BNB every quarter, the number of coins is gradually decreasing, now there are about 99,00,000 coins in circulation.

Binance Coin cannot be mined, you can only get it by buying or trading on the cryptocurrency exchange Binance. Binance Coin is most often exchanged for BTC and USDT on the Binance cryptocurrency exchange.

BNB was created to promote the Binance cryptocurrency exchange and keep it running. BNB tokens can be used to buy cryptocurrencies, conduct transactions and I/O operations with a reduced fee. The discount plan is valid for 4 years, the first year the discount was 50%, each year it is halved (26). From the fifth year, there will be no discount.

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BNB has gathered many rave reviews, but one must be aware of its disadvantages as well. The prospects of using Binance are clearly defined by the discount plan. The real benefit it brings only to those who work directly on Binance, while it is an integral element of the ecosystem of the crypto-exchange. That said, the Binance Coin token is entirely dependent on the plans of the crypto-exchange executives.

ERC20 is the first token standard built on the etherium blockchain, and it has significant technical flaws that could lead to loss of funds. This problem will only worsen over time and may require changes to the crypto-exchange.

Thus, investing in the coin may be too risky; the risks will increase over time. Despite the fact that BNB is a domestic exchange token, its pricing dynamics generally correspond to the trends prevailing in the cryptocurrency market.

Nevertheless, as long as BNB is useful for trading, it is recommended to start activities on this exchange by buying BNB and use it, it really saves the user money.

BNB is more reasonable to keep on the crypto exchange itself to pay commissions. But coins can also be withdrawn to a third-party wallet. For ERC20 tokens a wallet based on this standard is suitable, in particular MyEtherWallet, which can be downloaded from https://www.myetherwallet.com/.

At the same time, you should know that after the withdrawal of BNB coins are not displayed in the wallet. You need to manually activate support for the cryptocurrency through the “Add Token” button. Information about BNB, which will be needed to display the coin in the wallet, can be found on the Etherscan website https://etherscan.io/.

Strategies of working with Binance cryptocurrency

There are no specific trading strategies for Binance Coin. However, given the position of the token on the Binance Coin cryptocurrency exchange and its low price, BNB can be used as a kind of “training” coin, practicing trading strategies with other coins. You can try to trade BNB without verification.

One of the popular strategies on Binance is trading with stop-loss. This strategy allows earning on cryptocurrency fluctuations, avoiding losses on significant drawdowns.

To trade BNBs, you must first buy them. The amount that is purchased will be displayed at the top right of the “Sell BNB” window (27).

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Now you need to set Stop-limit order, so as to sell cryptocurrency at the desired price. It is necessary to click on Stop-limit and fill with necessary data the window of selling service (29).

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The price of BNB now, on October 28, is 0.0014913 BTC, we can assume that the price will fall further and you need to choose the point at which the order will be activated and the price at which the cryptocurrency will be sold.

For example, when the price reaches 0.0014900 (Stop column), a stop loss is activated (Limit column) and the coin is sold at 0.0014899 (29). The small difference between the stop price and the limit price is due to the fact that, when reaching the price at which the stop-loss is activated, the cryptocurrency price may start to collapse. The price of the coin at which the order is opened can slip further down in a matter of seconds, for example, to 0.0014000, and the order will remain at the exposed price.

Having set a stop-loss, you need to choose how many percent of the deposit you plan to sell and click “Sell BNB”. The exchange will ask you to confirm the action, with an explanation of what will happen if the price of BNB reaches the set price. If the trader is sure he is right, he clicks “Yes”.

But this action can be canceled. To do this on the same page, you need to move down to the “Open Order Header” section, where you can cancel the order. There are no commissions for this action.

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Similarly, a stop limit is placed on a rising cryptocurrency price. For example, if the price went up to 0.0016000 and there is confidence that it will not fall below 0.0015500. In the Stop column put, for example, 0.0015500, in the Limit column 0.0015499. further, confirm the sale at the declared price. If the price continues to rise – put a stop loss at an even higher price level. Thus, the stop-limit is gradually moved higher.

Advice article: signals for cryptocurrency trading – https://revieweek.com/cryptocurrency-signals/

It is believed that a stop loss should be placed between 5% and 20% of the initial price, depending on the cryptocurrency and volatility.

If there is a need to withdraw cryptocurrency outside of the exchange, it should be remembered that it is only possible in whole numbers. But in the case of BNB this need does not arise often.