If you’re new to cryptocurrency, it can be intimidating to use Bitcoin (BTC) or Ethereum (ETH) to purchase altcoins like Ripple (XRP) or Stellar (XLM).
You’ve probably heard stories about people purchasing altcoins for $0.70 per coin and multiplying their investment over the course of just a few weeks.
While it’s important that you do your own research before buying altcoins, Binance makes trading less of a hassle.
It’s an up-and-coming exchange with low trading fees, fast processing speeds, increased security, and more.
You can use the exchange to trade right from your smartphone, and it’s designed with both beginners and advanced traders in mind.
Here’s how to use Binance to buy altcoins.
Binance is an online platform where users can buy and sell cryptocurrencies using Bitcoin.
The exchange offers a large number of cryptocurrencies, so you’re bound to find the altcoins you’re looking to purchase on Binance.
The exchange is Chinese based and supports several different languages, including English, Japanese, Chinese, Korean, Russian, German, Vietnamese, French, and Spanish.
Based on information from Craft.co, Binance has received more than $10 million in funding from venture capital groups.
The exchange uses a multi-tier system architecture and supports web browsers, HTML5, WeChat, Android, and more.
Binance can also process 1.4 million orders every second, making it one of the fastest exchanges on the market.
Here’s exactly how the Binance exchange works.
Binance appeals to both beginner traders and advanced ones with basic and advanced view options.
Anyone with experience in the digital currency world can figure out how each of these viewing options work. All users should be able to navigate the platform and its features pretty easily.
The largest difference between the basic and advanced version is that the advanced version offers a more technical analysis of the coin you’re currently viewing over time.
The basic version, on the other hand, just shows graphs, charts, and other information about the trading pairs you’re interested in, along with order books and trade history.
Here’s what the basic view looks like:
And here’s how the advanced view differs:
Users can toggle between the basic and advanced view by clicking on “Exchange” at the top left corner of the Binance site.
Registering for an account is the first step to using Binance to buy altcoins.
To get started buying altcoins on the exchange, you’ll need to create an account.
The process is pretty straightforward. You’ll need to verify the email associated with your account for “Level 1,” which includes a daily withdrawal limit of 2 BTC.
Level 2 allows users a daily limit of 100 BTC every day, but you’ll have to upload a photo of your ID and wait for approval.
Higher limits are available, but users must contact the company to arrange any daily limit increases.
To register, simply enter the email and password you would like to use and click the “Register” button. You also have the option of creating a Referral ID during this step.
You should receive an email that includes a verification link once the account has been created. Once you have verified your email, you’re ready to buy.
Once you have created an account, you need to fund it.
You can choose from tons of different coins to fund your Binance account, but it’s recommended to use BTC or ETH.
To fund your account, head to “Funds” and then click “Deposits/Withdrawals” to select the currency you want to send.
From there, click the “Deposit” button next to it, which should provide you with a wallet address where you can send the coins to.
Copy this address and send funds to it to begin trading on the Binance platform.
Binance recommends that you enable two-factor authentication of your account.
If you want your coins to be more secure from hackers, (who doesn’t?) then you need to enable two-factor authentication, also called 2FA, on your account.
2FA creates a code that changes every 30 seconds that you must enter in addition to your email and password in order to log in.
When this feature is enabled, your account will be safe if someone steals your login information as long as they haven’t also stolen your 2FA device.
Currently, the 2FA authentication options offered by Binance include Google authentication and SMS authentication.
The SMS authentication option consists of the code being sent to your mobile device via an SMS message.
The Google authentication option uses Google Authenticator to verify your login, which is available for both iOS and Android smartphones.
Now that you’ve registered for an account, funded your wallet, and turned on 2FA, let’s go over the difference between limit orders and market orders.
More in-depth trades are available on the Binance website, but the smartphone app limits users to two different types of trades: limit orders and market orders.
Limit orders allow users to buy in or sell out at a certain price point.
Market orders, on the other hand, let users buy or sell their altcoins at the current market rate.
Each method has its pros and cons.
For example, trading via limit orders lets you buy and sell at the prices that you feel comfortable with.
However, limit orders take longer to complete.
Market orders allow users to buy and sell almost instantly, but prices might be higher when you buy in or lower when you sell.
Both methods are easy to use, but it’s up to you to decide which one works best for you.
Now comes the part you’ve been waiting for: here’s how to actually buy altcoins using the Binance exchange.
You should always do your own research before deciding which altcoins you want to invest in.
Check out news, pricing information, potential, and recent developments for every altcoin you’re interested in before actually pulling the trigger and making a purchase.
To start trading on Binance, click on the “Exchange” button on the top left-hand side of the screen.
I’d recommend starting out in Basic view to get an idea of how the exchange works. The “Basic” selection will take you to this page:
The two most important areas of this screen are the coins listed on the right and the trading area listed on the bottom.
First, you need to identify which coins you’re interested in trading. This means that you’ll take the BTC or ETH that you just deposited and trade it for an altcoin.
Let’s say you want to buy Dash.
Type in Dash’s code (DASH) into the box located under “Favorites” in the top right-hand section.
You’ll see the price of dash was 0.051350 Bitcoins.
Then, click on your desired altcoin to buy or sell it.
Binance offers a fast and simple way to trade by giving users the option to buy 25%, 50%, 75%, or 100% of their BTC balance.
For example, let’s say you’re really interested in Ripple (XRP) and you want to use all of your Bitcoin to buy as much of it as possible.
Click on “100%.”
This feature means that there’s truly no guesswork to how much BTC you need to trade for a certain amount of altcoins on Binance.
You can also enter your desired price or amount manually.
As with every exchange, there are some trading fees to be aware of.
Whether you’re buying or selling, Binance charges users a 0.1% flat fee for trading on the exchange.
Once your buy or sell order is completed, this fee is deducted.
This flat fee means that you’ll be charged for 1 coin per every 1,000 coins you purchase, 10 per every 10,000, 100 per every 100,000, and so on.
For example, if you purchased 1,000 POLY using ETH, the 0.1% fee of 1 POLY will be applied, leaving you will 999 POLY.
Deposits are free on the platform.
The withdrawal fees for certain coins vary. Here are some notable ones to be aware of:
If you have BNB, you can choose it to deduct 50% off of the trading fee temporarily.
This discount will depreciate as time goes on.
For a full breakdown of the transaction fees for each coin, visit this link.
Buying altcoins can be intimidating and tricky.
Binance makes it easy, whether you’re a beginner or an advanced trader.
It’s fast processing speeds, advanced features, and top-notch security make it one of the best exchanges out there.
You can even use it to buy altcoins right from your phone.
Basic and advanced views are available to suit your personal needs, and registering for an account is as simple as verifying your email address.
It’s recommended to enable two-factor authentication to ensure the security of your account. You wouldn’t want a hacker stealing your newly purchased altcoins.
Fund your Binance account by sending BTC or ETH to your Binance wallet. Then, complete limit or market orders by exchanging BTC or ETH for the altcoin of your choice.
Limit orders allow users to buy or sell coins at a certain desired price point and may take longer to process.
Market orders let users purchase or sell altcoins based on the current market rate at the time of the transaction and are almost instantaneous.
Keep in mind that trading fees differ for certain coins, but there is a small flat fee of 0.1%.
If you’re looking for a simple, secure, easy way to buy altcoins that will multiply in value, try out Binance today.