Even before the popularity of Bitcoin (BTC) reached mainstream media outlets, cryptocurrency trading has been a viable investment tool for the masses, especially the tech-savvy millennials.
Since then, other cryptocurrencies have emerged to ride on its success: Ethereum (ETH), Ripple (XRP), LiteCoin (LTC), Monero (XMR), etc. They are collectively known as altcoins (ALTS). Some estimates show that there are now more than 5,000 cryptocurrencies listed on exchanges, with a total market capitalization of $201 billion (as of April 2020).
Binance is the world’s largest altcoin exchange in terms of the trading volume. Changpeng Zhao founded Binance in 2017 to help ease the burden of trading between the vast number of cryptocurrencies. When it comes to the number of supported coins (and even fiat currencies), Binance has much greater selection than other competing exchanges. This is great news for traders who want to diversify their investment portfolio, greatly increasing their income potential.
Here’s a step-by-step process on how to invest your money with Binance:
To start trading in Binance, you need to sign up for an account. Simply go to their website and click the “Register” button at the navigation bar.
You will then be asked to provide the requested information. You also have the option to provide a referral ID to help you gain some commissions from your friends.
Once you’re done filling up this form, click the “Create Account” button to proceed. On the next page, you’ll then be asked to input a six (6) digit activation code. This code will be sent to the email address you provided in the signup form.
2. Deposit Funds
After completing the email verification process, you will be presented with different options to fund your account:
Binance supports cashing in from a lot of fiat currencies using different payment methods. After picking a currency and payment method, provide the amount in the “Payment details” box, and click “Continue.”
If you have credits in any cryptocurrency wallet on a supported network, you can transfer these funds to Binance to start trading. To successfully fund your account, simply pick your coin from the drop-down list, then follow the instructions.
Buy crypto with your credit card
If the need for verification turns you off and you don’t have a crypto wallet yet, this option is the easiest point of entry to trading in Binance. Simply pick the currency you want to use, the coin you want to buy, and follow the instructions presented on the site.
Now that your account is funded, it’s time for the main event. Click the “Markets” link at the navigation bar.
Here, you’ll notice that the markets are divided into different tabs:
BNB is the native coin of Binance Chain and powers the Binance Ecosystem. On Binance, trading fees are discounted if you use BNB to pay. This where you can buy and sell BNB coins.
The vast popularity of Bitcoin is probably the reason why it has its own tab here. Here, you can trade Bitcoins from or to other cryptocurrencies.
This tab allows you to exchange altcoins.
This is where you trade between “real-world” currencies to/from cryptocurrencies.
Once you decide on the market you want to trade in, click its row on the table and it’ll take you to a page with a chart on its historical performance.
As an example, let’s say you want to trade your Bitcoins to Etherium at the current market price. Here’s how to do it:
- Click the “BTC Markets” tab.
- On the search bar located at the far right side, type “ETH.”
- On the table below, click the “ETH/BTC” row.
- Below the price chart at the center, select the “Market” tab.
- Input the amount of ETH that you want to buy or pick a percentage button below based on what percent of your BTC wallet you want to spend.
- Click the “Buy ETH” button.
- Look at the “Open orders” table just below. Your order status should be “Filled” instantaneously since this is a market order.
Selling is simply doing the same thing but filling the corresponding input form and clicking the “Sell” button.
4. Withdrawing funds
Naturally, you will want to convert your investment back to reap your hard-earned gains. As with deposits, you have the option to withdraw your crypto or fiat funds to an external wallet.
To withdraw your balance:
- Hover the “Wallet” dropdown at the top navigation bar, then click on “Spot Wallet”
- Pick between Crypto or Fiat.
- Select the currency or coin that you want to transfer.
- Provide the amount you want to transfer and other necessary info (eg. BTC Address or ETH Address).
- Click “Submit” (for crypto) or “Continue” (for fiat) and wait for the transaction to complete.
With the help of the Internet, investing has become more accessible to the masses. Different platforms, like Binance, make it even more accessible by collating different currencies into a single dashboard.