Trading a cryptocurrency pair is one of the few means to make money in the digital currency ecosystem, one that is done by a lot of people around the world. That the barriers to entry in the industry are very low has given everyone the ability to join the train.
While trading crypto is now very common, quite a lot of people who want to join still don’t know how to start. With hundreds of centralized trading platforms around, finding where to start trading can even be more confusing than imagined.
In this guide, we’d explore how to trade crypto pairs such as BTC/USDT, or ETH/USDC on Binance.
Binance is one of the biggest exchanges in the world, and a good starting point for new users. It has one of the most robust platforms and supports over 390 digital currencies atop 1681 trading pairs.
Getting Started on Binance
As one of the most user-friendly trading platforms, Binance can be accessed through a mobile application, and its website. The Binance.com homepage looks as shown below;
For first-time users, the language preference can be set at the top right-hand corner of the page. Screenshots in this guide will be in English. To get started, prospective users will need to open an account by navigating to the ‘Register’ section of the website.
Depending on the user’s preference, an account can be opened with a phone number and a functional email address. Additionally, users can open a trading account with either their Google or Apple accounts respectively.
Signing up on Binance is easy to do, and while several steps are involved, they are often very self-explanatory. It is very important to open an account with your functional email and phone numbers. These are used to safeguard your account subsequently.
Once an account has been opened, there will be a need to activate all security checks as best as possible. This includes 2-FA authentication and submitting IDs to increase one’s trading limits.
After the account is opened and all necessary registration is completed, a user can then access his/her dashboard.
The dashboard serves as a gateway to so many products and services, most of which can be explored with time. For the sake of trading, however, a user will need funds in his ‘spot wallet’ account. There are different ways to fund a spot wallet, and these include;
- Buying with a credit/debit card if it is supported in your region
- Bank deposit
- Through third-party vendors such as Banxa, Simplex or Paxos
- Sending crypto directly to the appropriate wallet
- Buying via P2P marketplace.
While all of these methods are quite simple, let us consider the most risk-free for a new trader – Buying crypto through a credit/debit card. Navigate to the ‘Buy Crypto’ section on the top left section and click ‘Credit/Debit Card’ from the drop-down button.
The representation for this is shown below.
Buying crypto via this method is as simple as buying an item from an online marketplace. You can then choose your desired coin and the amount you wish to buy. Tether (USDT) is one of the most popular as most coins have it as their trading pair.
Once the payment has been confirmed, the right amount of purchased coin is credited into your spot wallet. With funds in the spot wallet, a user can then trade their desired trading pair by following the prompt below;
From your dashboard, navigate to the ‘Trade’ section and choose ‘Spot’ from the drop-down button. The spot trading interface looks as shown below;
To trade any coin, use the search button and type their ticker symbol. A list of suggestions will be brought out but only select one that is paired with the crypto in your spot wallet. Assuming you hold USDT, and you want to buy Bitcoin, the interface is as shown above. Other coins also have a similar interface.
To trade the BTC/USDT pair, scroll down, and you will see an interface that looks as shown.
Focus on the box with the green bar. By default, the USDT in your spot wallet will load up as your balance here as shown in the screenshot above. Edit the price bar and input the amount you want to buy which will automatically load up the Bitcoin equivalent.
A point to note before you click on ‘Buy’ is the ‘Limit’ and ‘Market’ order features. Assuming the price of Bitcoin is $21,000 and you expect it to fall to $20,500, you can set a limit order to buy whenever the coin reaches this lower level. Market orders on the other hand is when you buy the BTC at the current market price.
Once you have ascertained these parameters, you can then click on ‘Buy’, initiating your first trade on Binance.
Important Notes on How to Trade Crypto
Trading is the act of buying and selling by taking advantage of price differentials. Profit is earned when a trading pair appreciates in price over time, and the trader initiates a sell order. The dynamics of these actions are unique and are more complicated to learn.
The digital currency ecosystem is facing quite a lot of headwinds at this time with prices running low. To take advantage of this era, you may take a look at our previous post on how to maximize periods of crypto market slumps.
Disclaimer: This article is by no means certifying Binance or any particular trading pair. It is for educational purposes only. Trading cryptocurrency is very volatile and subject to significant risks. Intending traders need to analyze their risk strategies before committing real funds.