Binance is the de facto leader in the altcoin trading world. Their cryptocurrency trading platform serves as the most affordable and secure place to buy and sell cryptos. With more than 300 different coins available, many crypto day traders have made this place their home.
Built with a terrific UI, their system is 100% beginner-friendly. The barrier to entry here is not high like with some other crypto exchanges (like Bitfinex or Bitmex). In fact, you will be fully confident in your ability to trade on Binance after reading this article.
Types of Trading That Binance Offers
First of all, part of the reason for Binance being so beginner-friendly is because they do not provide many trading options. You can buy or sell and use basic features like stop losses, but there are no complicated trading functions available.
Binance Exchange on Basic vs Advanced Mode?
When you hover over the “Exchange” button you will find two options in the drop-down menu, Basic and Advanced. Selecting either does not change the way you see the trading interface. So, what’s the difference between these two choices?
- Basic: The standard trading platform with basic graphs, allowing you to get a general idea on the coin’s technicals on a speculative level. Chosen by default.
- Advanced: The advanced trading platform with more detailed graphs, allowing for mid and long-term technical analysis on any coin.
Something to note …
The desktop version of Binance’s trading platform sometimes has frustrating lag issues. This problem tends to occur on individual trading pairs and only when many orders are placed at one time.
While generally not an issue, it does mean that you could “lose your shirt”. Many beginners make this mistake and chase low market cap coins that pump by 20-100% or more. The (wrong) mindset is that “I’ll ride the wave” but you never know when the pump subsides and you become a “bagholder”.
How to Place a Trade on Binance
You can trade with BTC (Bitcoin), ETH (Ethereum), USDT (Tether) or BNB (Binance Coin). The crypto pairs available will vary depending on which coin you use. Bitcoin trading pairs have the greatest variety (300+). Ethereum and Binance Coin have a considerable number of altcoins paired against them as well. Meanwhile, Tether is primarily used to exchange for bigger coins like Ethereum, Litecoin and Ripple.
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Determine how you plan to fund your trades…
Since most cryptos are valued by their Bitcoin or fiat worth, chances are you will lean toward trading with BTC or USDT. BTC will likely win over as you want the greatest number of trading opportunities to be made available to you. Also, you can’t deposit USDT so it would cost more to position yourself to trade this way. To combat that issue, you can always avoid more fees by selling for USDT when you liquidate your first position.
Keep in mind that Bitcoin’s value fluctuates and the worth of your account balance will be dependent on BTC’s market price.
Steps to Buying/Selling Cryptocurrency on Binance
Let’s pretend you want to buy Golem (GNT), maybe after hearing John McAfee preach predictions of a 10x value appreciation. You can go to Binance’s GNT / BTC trading pair page to place your order.
The different options available are Limit (default), Market, and Stop Limit.
Making Limit Orders on Binance
The price will be set at the last trade price by default. You can manually edit this number and select whatever you would like. Choosing a price far above the closest sell orders in the order book will result in a “market buy” up to that price-point (or as close to it as the amount your spending will afford you).
Binance also gives you a quick, one-button option for placing limit orders. You can divide up how much you buy into 25% , 50% , 75% or 100% of your account balance (except for any balance currently held up in an open trade). Also, there are arrows next to the order price which allows you to adjust your bid by one — not very effective in a fast-paced market.
Making Market Orders on Binance
Placing a market order is super easy. You only have to provide the amount you are looking to spend and submit your order and then you’re done. You have the option of dividing up your buy-in here too. Just select 25% , 50% , 75% or 100% and place your order.
Making Stop-Limit Orders on Binance
A stop-limit order allows you to minimize losses when you’re not around to what the price action in live time. The stop is the price where your limit order becomes active on the order book. The Limit is the price where your position will be sold.
If the market breaches the Stop and doesn’t return to the Limit price, the order will stay in the order books regardless of how far the price drops. However, if the price recovers enough the position will liquidate at the Limit price regardless of how high it return.
Trade with Lower Fees via Binance Coin
Binance is special for one major reason — low fees.
You pay just 0.1% on every trade you make!
By holding Binance Coin (BNB) this cost is cut in half which means you will only pay 0.05% per trade. BNB does not fluctuate dramatically in value (and has a 1B+ market cap) so you don’t have major risks by holding it.
Note: You are only required to hold BNB in your account to have the discount automatically applied. You do not need to trade any BNB crypto pairs and there are no notable benefits of doing so.
So, your goal is to always have enough BNB to cover your trading fees. If you enter and exit a $10,000 position 10 times a day that’s $100,000 in daily trades. Using BNB will save you 0.1% which means you pay $50 less a day in trading fees.
Make sure to keep an eye on your BNB balance so it doesn’t suddenly run out. Your account will automatically turn to whichever crypto you are holding when taking fees, at the rate of 0.1% per trade. Simply buy some more BNB and you’ll be back to the reduced rate.
Reminder: The discount rate for using BNB will decrease year-over-year and after five years this promotion will no longer be active. The discount halves each year which makes the rates as follows: 50% discount on Year 1, 25% on Year 2, 12.5% on Year 3 and 6.75% on Year 4.
How to Activate BNB Discount
Hover over the person icon in the right-hand side of the top menu bar. Select “Account (your email)” which brings you to a page with information and settings for your account. Under your email and last login time, you will find “Using BNB to pay for fees (50% discount)” and a little circle next to “ON” or “OFF” is next to it. Make sure this is set to “ON” so your BNB balance is put toward your trading fees instead of your other account balances.
You will notice that the stated fee changes to 0.05% when you have this activated. Just look above the sell order box before placing your trade to confirm it’s currently active. You should see the 0.10% slashed and faded and then 0.050% in normal font next to it.
Binance – The Place for Alt Coin Day Trading
As a low-fee cryptocurrency exchange, Binance gives altcoin day traders the chance to buy and sell cryptos many times a day. This component is crucial for your ability to make worthwhile profits as a crypto day trader. Many people achieve great success, but it takes having a calculated approach. Thankfully, Binance’s 0.1% trading fee (0.05% with BNB) is so cheap that that even an inexperienced trader could make large profits scalping 1-2% price movements.
We recommend that you treat Binance as your home when trying to day trade cryptocurrencies. You can withdraw your coins, unlike when you buy at a CFD platform like eToro. The spread is non-existent because you’re paying for actual market rates (although they will differ from other exchanges). Furthermore, the cost of buying and selling (entering and exiting) a position is so low that you can avoid getting stuck holding a losing play over closing costs.
Join serious cryptocurrency day traders on Binance. The world’s best crypto exchange.
Need help getting your Binance account good to go? Our Binance guide tells you everything you need to know.
Quick tip: Binance rolled out a feature that lets you turn your “dust” into BNB. It allows you to take any coins you have in small sums and convert them into Binance Coin. The value can add up over time, especially when you day trade and open and close many positions each day.
Are you looking to make money as a crypto day trader?
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Also, read ‘Day Trading Cryptocurrency 101‘ and learn how to become a more profitable crypto trader. This is our basic guide which shows you how to get some skin in the game and enhance your trading profitability.