How to Trade on Binance

Cryptocurrency trading on the digital asset platform Binance is carried out in the formats of direct exchange, classic trading, margin trading. Direct exchange is an over-the-counter (OTC) and conversion, the easiest way to trade on the site binance.com.

In the “From” line enters the amount ready to be exchanged, which is in the user’s spot wallet. In the drop-down menu on the right side of the top line selects the currency, in the bottom line the exchange amount is placed (in the drop-down menu you can also select the cryptocurrency). When all the data is entered, the third line “Preview” is activated, by clicking on it, the trader receives information about the resulting coin from the transaction. If there is not enough money, the system will remind about it here.

A big plus is that this service allows you to trade in cryptocurrencies without the full KYC-verification, although with a limit on the withdrawal of the equivalent of 2 BTC per day. There is also a minimum transaction amount, which is equivalent to 10 USDTThe minimum and maximum transaction amounts will depend on the coin and pair traded. There are no commissions for OTC trading, but in the case of buying, Binance prices will be higher than the market price for buyers, and in the case of selling, the price will be lower than the market price, this is called the spread.

Spotlight

Classical trading is done in the trading terminal, which you can switch to by clicking on the appropriate button in the drop-down menu of the “Trade” section.

Despite the fact that the terminal is positioned cryptocurrency exchange Binance as suitable for beginners, but objectively it is quite a complex terminal, before working in which you should undergo theoretical preparation and training. The exchange has a section for training, which is placed in the section “Binance Academy”. In the center of the trading terminal the chart of price changes of the chosen asset is placed, originally in the basic exchange version, but it can be changed for the popular format TradingView, which may be more convenient for beginners. Under the price chart is shown the dynamics of the cryptocurrency volumes in the given pair.

To the right of the chart is a selection table of coin, fiat, trading pairs or zones to choose from. For beginning traders it is enough to understand how the necessary trading pair is selected. Under this table there is a table of history of transactions, both on the market as a whole, and the user of the given account. And under this table important events in the market, large purchases and sales are shown.

Under the trading chart is placed the service of buying and selling crypto-assets in the spot. It consists of two parts, respectively “Buy” and “Sell” cryptocurrency. By default, the trader sets limit orders. The “Price” line leaves the market price or is assigned by the trader. The “Quantity” line specifies how many coins are supposed to buy or sell, the ruler with a rhombus shows what percentage of the coins in the user’s wallet will be used for the transaction. The limit can be set at the top of the service on the left. “Market” allows you to place an order at the market price.

“Stop Limit” stops the trade at a certain price. In the drop-down menu under “Stop Limit” there is also a CCA order, which allows you to set a limit and a stop limit at the same time. At the top right of the buy/sell service, the “Transfer” button allows you to make an internal Binance transfer. The “Buy For” feature moves to a cryptocurrency buying and selling page. On this page, you can click the “Order History” button on the right to go to the “Buying and Selling History” section.

To the left of the trading terminal there is a stock market. In the upper part are placed sell trades, colored in red; in the lower part green marked buy trades. The market depth is extremely important in cryptocurrency trading, as it shows the existing buy/sell prices online and their depth. Based on these indicators, the trader can place an order at the desired price, according to his strategy. Above the trading terminal is a ribbon of basic information about the trading pair. But the more important button here is the “Spot Trading Guide”, which presents an instructional video on the functionality of the crypto exchange. It is advisable to get acquainted with it before you start trading.

Margin

In the drop-down menu “Trade” button “Margin” is used to switch to the terminal for margin trading (exchanges with margin trading), that is, trading with leverage, on borrowed funds. Before you trade here, the exchange offers to take a test.

The test can be ignored if the user really knows what it’s about and how to trade. From a technical point of view, the terminal for margin trading is similar to spot trading. But the service of placing orders (buy/sell) is different. You should be careful when placing orders, because the default setting is cross-margin, for the full amount of funds in the balance. To the isolated margin (the borrowed amount is separated from the balance) user passes by clicking on the corresponding button. Margin trading is even more risky than classic spot trading. Therefore, before trading with leverage, it is necessary to have experience in trading in the spot, to pass theoretical preparation and training in the demo-mode of the margin trading and testing on the stock exchange.