Binance Cryptocurrency – How To Get Profit On It?
Binance – cryptocurrency exchange, website and features
Cryptocurrency exchange was originally created in mainland China, but because of the ban on cryptocurrency trading in China, Binance has relocated its offices to Hong Kong and Tokyo and this is not the last destination point.
According to the Coinmarketcap ranking on volume of cryptocurrency turnover (the truth about cryptocurrency) for 24 hours, Binance takes the first place ($489,168,091, as of October 26, 2018).
On the first page of the cryptographic website (1) you need to select a language. The translation into other languages is not always correct, so it is recommended to use English if the user speaks fluently. The first page also displays the volume and dynamics of cryptocurrency trading.
Working on the stock exchange, you need to regularly monitor the cryptocurrency news in the «Ads» section. The «Help Center» section provides answers to frequently asked questions and a procedure for solving the problems.
By the way, in this part of the exchange there is a section Labs, which provides support for ICO start-ups.
Useful materials on Binance exchange
On the main page of the cryptoexchange website there is a section containing training and educational materials for users (2,3).
First of all, this is Binance Academy (4). Educational videos and explanations exist in English only. But if the user speaks English at least at an average level, then it is recommended to see them.
There is also a section Glossary, which explains the basic concepts of cryptocurrency industry. In the subsection VIDEOS there are videos on the topics Binance, Blockchain, Coins&Tokens, Trading, Security, Tutorials. The ARTICLES subsection contains detailed illustrated articles on cryptocurrencies and crypto exchange.
In addition, there are SUBMIT, CONTENT and FEEDBACK subsections, in which users can send questions and requests to the crypto exchange, by filling out the appropriate form in Google Docs.
In the Binance Info subsection, a summary of cryptocurrency trading is presented. By the way, with this section you can go to downloading of official Binance cryptocurrency wallet for Ethereum, ERC20 and ERC223 tokens (5).
Binance: account and trading
On the main page, you can enter the user’s personal account. To get an account, you need to register on the exchange. To do this, on the main page you need to click on the corresponding sign. In the registration form you need to enter the email, password and optionally referral number. Then you need to enter the original authentication code (6) and confirm the email. Authentication code is also entered at each entry to the exchange through a login.
You need to know that some browsers do not recognize the mosaic authentication code and do not see a moving mosaic fragment. Therefore, it is optimal to work on the exchange with Google Chrome.
In the review of the Binance cryptocurrency, special attention should be paid to the authentication and verification of the account. Of course, you can trade without verification by going to the exchange and clicking on the sign of any other section. But for fully functional trading, you will have to install 2AF and verify yourself.
Without two-factor authentication, verification is not possible, and without verification, fully functional trading is problematic. Moreover, the exchange itself persistently remains about the need to confirm one’s identity and secure activities.
You can go through authentication in the personal account (8). According to a large number of reviews, it is preferable to authenticate through Google Authentication, rather than via SMS confirmation.
You can start the verification in your personal account, in the upper part of the site, the stages of registration at a crypto exchange are shown, which have already been completed (9).
An unverified user account has the status of Lv1, which allows you to withdraw no more than 2BTC per day. At the level of Lv2, you can withdraw up to 100 BTC per day. But this is possible only after the completion of verification. To do this, click on Complete identity check, enter your personal data and upload scans of necessary documents.
You can go up to the highest Level 3 by passing advanced verification and answering all support questions.
In your personal account, besides authentication and verification, you can change the password, set anti-phishing code, connect to the API.
Once the identity is confirmed, and the account is secured, you can proceed to depositing the cryptocurrency to the exchange. You cannot deposit fiat currencies to Binance. To deposit a cryptocurrency on the account at Binance, you should first buy a cryptocurrency on another exhange and deposit them to your Binance account. Cryptocurrency depositing begins with the «Asset» section in the upper part of the exchange website (10). In the drop-down menu, select «Balance».
The section «Balance» presents cryptocurrency balance. Here you need to select the desired cryptocurrency. For example, bitcoin.
Opposite this cryptocurrency you need to click on the «Deposit» and in the appeared section you can see the address (12), to which you will need to transfer funds from any exchange or exchanger.
By the way, you can find out the status of the transfer, for this you need in the same «Asset» section to enter the «Protocol and Deposit Status» service, which shows the transaction history.
After depositing the balance, you can start trading in cryptocurrencies. To do this, go to the «Shopping Center», – the main or advanced option.
Let us look more thoroughly at the tools of the Binance crypto-trading terminal in the main version. At the upper part of the trading terminal there are the main characteristics of the cryptocurrency chosen for trading (13).
In this part, you can see the full name of the coin, the price of the coin at the time of the last transaction, the price dynamics in the last 24 hours. Red color means that the price falls, green – the price rises.
Next – an indicator of the minimum and maximum cost of cryptocurrency for 24 hours. And at the end you can see the trading volume in ethereum, since the transaction is planned to be paired with ethereum. This set of values allows you to carry out quite an adequate express analysis before carrying out any actions.
The next informative block is a chart of price changes, in this case, dashcoin to ethereum, which can be tracked through time scale, from 1 minute to 1 month (14). TradingView chart (go to the site) shows the dynamics of trading in the selected pair.
The depth chart graphically displays information from depths of the market, this allows to assess the situation in the market quicker than if we look at the depths themselves (15).
This chart horizontally shows the price at which coins are bought, and vertically – the number of coins.
Trade blotters are located on the left margin of the trading terminal page. The red blotter shows coins for sale, green, respectively, for purchase. If you put the price of the coin close to the market one, then you can immediately see it in the application.
The next tool, located at the top right of the trading terminal, allows you to see which coins are being traded on the exchange at the moment, the last price at which the coin was bought in pairs, the dynamics (color) and the percentage change of price (16). The «Change» function allows you to see which coin has grown better in the selected pair compared to other cryptocurrency pairs.
Recent transactions can be viewed in the appropriate section (17), here you can track the price of the transaction, its volume and the time of its conclusion. In this section, according to the dynamics of price and volume changes depending on the time, you can determine how popular the transactions for the selected pair are.
At the bottom of the trading terminal there are two sections: Open order head and «Trade history». The first section displays open orders that should be executed, but you can cancel them by clicking on «Cancel». In the second section of this part of the trading terminal, all executed and canceled orders for the last 24 hours are shown. Here you can see the history of transactions for a longer period by clicking on «View all».
By the way, before starting trading, it is advisable to buy an internal crypto-bourgeon coin – BNB. The fees charged for purchasing and selling transactions are much less when using BNB. The coin is withdrawn from the balance automatically. To pay commissions in BNB, you need to put the appropriate mark in the user account (20).
Trading starts in the «Balance» section, to which you need to go through the Asset tab. Here you need to select a cryptocurrency, click on «Trade» and select a currency pair (21).
After that you change to «Trading center», the main or extended trading terminal. In the terminal you choose the relevant cryptocurrency pair, for instance, picking the first currency in searching box, ad the second currency of the chosen pair in the list of main ones (22).
Next you should choose the type of trading order: Limit, Market or Stop-Limit and price of cryptocurrency (23).
By default, the Limit is set in the purchase/sell service. In this tab, you need to choose a clear price for the coin – you need to indicate the value of the coin and the quantity, the Amount is filled automatically, and you can calculate how many coins you can buy at 50%, 25%, etc. from the user’s deposit.
Limit means setting values from which you plan to purchase or sell coins. Whereby the order is set on the stock, exchange immediately after filling out the application. As soon as the market reaches the price specified in the order, a transaction will take place.
The Market tab is needed for buying or selling cryptocurrency at the market price, in accordance with the last transaction. The price that the user sets, will appear in the trade blotter. Binance is the largest exchange at the moment, so the transaction is likely to be executed immediately.
Stop Limit allows you to hide orders so that no one sees the price. In such a manner, most often the limit of the fall in prices is set, so as not to go into the minus with a sharp fall in value. Similarly, the limits of the purchase price of a coin is set. Stop Limit is recommended to set on a sharply volatile market or when using the scalping strategy and other high-frequency strategies.
The advanced version of the trading terminal as a whole has everything the same as in the main one, but there are many additional technical analysis tools on the chart.
How to withdraw money from cryptoexchange Binance? To do this, in the «Asset» section, select «Withdraw cash» and go to the section where you select a coin to be withdrawn from the drop-down list (24).
After the coin is chosen, you need to enter the address and the number of coins to be withdrawn (25) into the form. Not all coins traded on a crypto exchange are available for withdrawal, so you need to first clarify which coins can be withdrawn.
There is no margin trading on Binance and there is no credit. You can get profit on the stock exchange only by trading cryptocurrency and investing in cryptocurrency.
Binance cryptocurrency exchange: comments
Most of the comments on crypto exchange are positive. Users note a large number of supported cryptocurrencies, not only basic, but little-known. Binance has a huge turnover, which allows you to enter into very large transactions. Whereby the exchange manages to maintain a high speed of transactions.
It is considered that the exchange has a high level of security. But how security is ensured is unknown, and most importantly, the stock exchange has existed for a little over a year, so its security has not been verified by the most important tester – by time. At the same time, the stock exchange has been repeatedly attacked, so far unsuccessfully. Although it suspended work due to hacker attacks.
Crypto exchange presents a large range of tools for trading, which allows you to implement different strategies. Some users appreciate the referral system of the exchange, as referrals bring the user 20% commission on transactions.
There are a lot of negative comments on Binance crypto exchange. Absence of option to use Fiat is indicated as the main disadvantage of the exchange. Therefore, when a cryptocurrency is withdrawn, a trader has to perform additional manipulations — transfer from stock exchange to stock exchange, from exchanger to stock exchange, and vice versa, and so on. The only way to evaluate the results of trading in dollars immediately is to conduct transactions with USDT tokens.
There are difficulties both with verification, which does not always pass quickly, and with authentication via SMS for some countries. For newcomers, the Binance crypto exchange interface seems complicated. Therefore, one has to master the trading functionality with a dictionary or by scientific trial and error.
Periodically, especially in periods of high volatility, the exchange slows down and sometimes suspends work; there have already been many such cases. The exchange claims that this is due to the influx of traders. Many users, especially newcomers, do not pay attention to the fact that cryptocurrencies are traded on the stock exchange only in even amounts.
Binance BNB cryptocurrency
BNB is an internal token, a cryptocurrency of Binance crypto exchange. BNB is based on the Ethereum blockchain (ERC20 token). BNB ranks 28th in the list of cryptocurrencies by capitalization volume in 24 hours, the price of the coin is 9.67 dollars (data as of 10.28.2018).
ICO BNB launched on July 1, 2017. Within 20 days during the sale, investors bought 100 million coins, which is 50% of the issue. The investment was carried out for ethereum and bitcoins in three stages, each of which lasted a month. 35% of investments were directed to the technical development of the platform, 50% to the promotion of the «Binance» brand, 15% were deposited to the reserve fund.
Binance buys and destroys BNB every quarter, the number of coins gradually decreases, now there are about 99 00 000 coins in circulation. Binance Coin cannot be mined; it can only be obtained by buying or trading on the Binance cryptocurrency exchange. On Binance crypto exchange, Binance Coin is most often exchanged for BTC and USDT.
BNB was created to promote Binance and support its work. For BNB tokens, you can buy cryptocurrencies, conduct transactions and depositing-withdrawal operations with a lower commission. The discount plan is valid for 4 years, in the first year the discount is 50%, every year it is halved. Starting from the fifth year there will be no discount.
BNB has collected many positive comments, but you need to know about its shortcomings. Prospects for using Binance are clearly defined with discount plan. It brings real benefit only to those who work directly on Binance, while it is an integral element of the crypto exchange ecosystem. At the same time, the Binance Coin token is completely dependent on the plans of crypto exchange managers. ERC20 is the first standard of tokens built on the ethereum blockchain; it has significant technical debts that can result in loss of funds. This problem will only worsen over time and may require changes to the work of the crypto exchange.
Thus, investing in a coin can be too risky, the risks will increase in time. Despite the fact that BNB is a domestic exchange token, the dynamics of its pricing generally corresponds to the trends prevailing in the cryptocurrency market. However, as long as BNB is useful for trading, it is recommended to start an activity on this exchange by purchasing BNB and using it, as it really saves the user’s money.
It is advisable to keep BNB t on a crypto exchange itself to pay the commission. But coins can also be withdrawn to a third-party wallet. For ERC20 tokens, a wallet that works on this standard is applicable, in particular, MyEtherWallet, which can be downloaded from www.myetherwallet.com/.
At the same time you need to know that after the withdrawal of BNB coins are not displayed in the wallet. You need to activate support for cryptocurrency manually with the Add Token button. Information on BNB, which will be needed for displaying of a coin in a wallet, can be found on the Etherscan website www.etherscan.io/.
Strategies of work with Binance cryptocurrency
There are no specific trading strategies for Binance Coin. However, taking into account the ranking of the token at Binance Coin 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 the Binance Exchange is trading with the installation of stop losses. This strategy allows you to earn on fluctuations in cryptocurrency, avoiding losses on significant drawdowns.
To trade BNB, you should first buy them. The amount purchased will be displayed on the upper right of the «Sell BNB» window (27).
Now you need to place Stop-limit order in such a way as to sell cryptocurrency on necessary price. You need to click Stop-limit and to fill selling service window with necessary data (28).
The BNB price as of October 28, is 0.0014913 BTC, we can assume that the price will fall further and you need to select the mark, upon reaching which the order is activated and the price, upon reaching which the cryptocurrency will be sold.
For example, when the price reaches 0.0014900 (Stop column), a stop loss is activated (Limit colunm) and the coin is sold at a price of 0.0014899 (29). The slight difference between the stop price and the price limit is due to the fact that when the price at which the stop loss is activated, a cryptocurrency price collapse may begin. The price of the coin on which the order is opened may in a matter of seconds slip further down, for example, to 0.0014000, and the order remains at the set 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 require confirmation of the action, explaining what will happen if the BNB price reaches the set price. If the trader is sure he is right, he clicks «Yes».
But this action can be cancelled. To do this, on the same page, you need to move down to the «Open order header» section, in which you can cancel the order. No fees are charged for this action.
A stop limit at a growing cryptocurrency price is set similarly. For example, if the price has risen up to 0.0016000 and there is confidence that it will not fall below 0.0015500. For example, 0.0015500 is placed in the Stop column, and 0.0015499 in the Limit column. Further, confirm the sale at the stated price. If the price continues to grow – put a stop loss at an even higher price mark. Thus, the stop limit gradually moves higher.
It is considered that the stop-loss should be set in the range from 5% to 20% of the original price, depending on the cryptocurrency and volatility. If there is a need to withdraw the cryptocurrency out of the stock exchange, then you need to remember that this is possible only with integers. But in case of BNB, this need is rare.