Binance is the world’s largest cryptocurrency exchange, known for its wide variety of coins and tokens available for trade, Its popularity also stems from its low trading fees and its extensive selection of trading pairs. Binance gained popularity fast after launching in 2017.
How to setup Binance account
Setting up a Binance account is a really simple process, but there are a few key things to keep in mind to ensure a smooth and secure experience. In this blog post, we’ll walk you through the necessary steps of setting up a Binance account, from registering and verifying your email address to depositing funds and making your first trade.
Step 1: Register for a Binance account
The first step to setting up a Binance account is to register for an account on the Binance website. To do this, simply (click here) and then click the “Register” button on the top right corner of the page.
Now you will be asked to enter your email address and create a password. It’s super important to use a strong, unique password that you haven’t used for any other accounts. Additionally, you’ll need to quickly solve a captcha to prove that you’re human and not a robot.
Click the “Register” button after you have finished filling out your information… A verification email will be sent to the email address you provided. Follow the instructions in the email to verify your email address.
Step 2: Turn on two-factor authentication (2FA)
After verifying your email You’ll be asked to log in to your account. Enabling two-factor authentication (2FA) before accessing your Binance account is crucial for increased security. 2FA is a generated code that can be used in text messages or generated by a mobile app like Google Authenticator or Authy.
When you enable 2FA, you will have to input a code produced by your selected 2FA method each time you log in to your Binance account or make a withdrawal. This makes it more difficult for someone to access your account without your permission, even if they manage to obtain your login information.
Step 3: Complete Your Profile and Verify Your Identity
Following a successful login, you will be prompted to complete your account profile by providing your name, address, and a photo of a government-issued identity document. This can be a passport or driver’s licence. This is to comply with know-your-customer (KYC) rules, this is necessary, as it helps to ensure security.
Step 4: Deposit Funds into Your Binance Account
You can now add money to your Binance account once your identity has been confirmed. Once processed you can start buying cryptocurrencies using a credit, or debit card or deposit cryptocurrencies like Bitcoin or Cardano.
When depositing funds into your Binance account, it’s important to double-check the deposit address and amount before sending the funds. Sending funds to the wrong address or sending the wrong amount can result in the loss of your funds…
Step 5: Start Trading on Binance
Once your funds have safely been deposited, you will be able to trade on the Binance platform. However, before you start trading, make sure you get to know the platform’s interface and layout. This ensures a basic understanding of where everything is and how it works.
Unlike Coinbase Binance offers a wide variety of trading techniques, including spot trading, margin trading, and futures trading. It’s important to understand the differences between these market types and the risks involved before placing a trade. So we will cover this in the following section.
Spot trading vs Margin trading vs Futures trading
Binance spot trading
Spot trading is buying and selling an asset, such as cryptocurrencies, for immediate delivery. In spot trading, you are buying the asset at the current market price and can take possession of it immediately.
Binance margin trading
Margin trading, on the other hand, is a form of trading in which an investor borrows money from a broker to make trades. This allows the trader to make larger trades than they would be able to with their own capital. The trader is also required to maintain a certain level of collateral, called margin, in their account to cover the potential loss.
Binance futures trading
Futures trading is when an agreement between two parties to acquire or sell an asset at a certain price and date in the future. This is a strategy to protect yourself against the risk of price changes while still making money. Since futures trading requires a considerable amount of capital and carries a high level of risk, it is mostly used by institutions and expert traders.
In summary, spot trading is buying and selling assets for immediate delivery, margin trading is borrowing money to make trades and futures trading is buying or selling assets at a specific price and date in the future.
Fees
It’s also important to be aware of the fees associated with trading on Binance. Binance charges a small fee on trades. However, Binance’s fees are among the lowest in the industry, and they can be reduced by using Binance’s native token BNB. While U.S.-based users will pay slightly more on Binance.us, its fees are still lower than what you’d see on other leading platforms.
Binance Coin BNB
BNB is the native cryptocurrency of Binance, BNB’s main use case is to pay trading fees on the Binance exchange. Users can use BNB to pay trading fees at a discounted rate, which can give them significant savings over time. Additionally, Binance uses 20% of its profits to buy back and “burn” BNB each quarter, which reduces the total supply of BNB and can increase the token’s value over time. which makes it more attractive as an investment opportunity.
Binance has also created a Launchpad platform that enables projects to launch new tokens and investors to purchase fresh cryptocurrency projects, not available to the wider market yet. BNB can be used to take part in these Initial Exchange Offerings (IEOs). BNB can also be exchanged for other cryptocurrencies on the Binance exchange and some other platforms, serving as both a store of value and a medium of exchange.
Staking
Binance Staking allows users to earn a return on their crypto assets by holding them in a Binance account and participating in the validation of transactions on a blockchain network. The specific staking rewards and requirements vary by cryptocurrency, but generally, the more assets a user holds and stakes, the higher the potential reward. Binance Staking also allows users to earn rewards without the need for technical knowledge or running a node. Additionally, Binance Staking offers flexible staking options and allows users to un-stake their assets at any time. It is a way to earn passive income on your crypto assets while supporting the network’s security.
However, this comes with a slight risk as staking via exchanges requires you to leave your coins on the exchange. Thus making them vulnerable to any attack on the security of the exchange, so this is something to consider.
Binance is one of the biggest exchanges that offer staking so it may be more trustworthy and secure, other exchanges also have similar staking programs.
Pro vs Cons
Pro’s
Wide Asset Range
Wide selection of cryptocurrencies to trade
Low Fees
Binance offers some of the lowest fees in the space
Advance Options
Binance offers several trading options and trading types
Cons
Complex
Binance has many features that some users may find intimidating
Regulatory
Binance has run into various regulatory and legal concerns in numerous countries.
U.S Version is Limited
Binance.US is limited and only available in 44 states, compared to the standard Binance that offers hundreds of cryptocurrencies for trade globally.
Final Thoughts
One major selling point for Binance is it has a wide range of assets. With over 600 coins and low transaction fees. In recent years Binance has expanded its offerings and continued to grow no matter the market conditions. Every second, there are more than 1.4 million transactions completed on its platform. Binance also has its own blockchain network, Binance Chain and its own DEX (Decentralized Exchange) Binance DEX, where BNB can be used as a utility token for various use cases like paying for transaction fees and participating in token sales. Taking all this into account, I don’t think Binance is going anywhere and is here to stay. They are a major player in the crypto space who are committed to not only developing their own financial instruments and tools to aid in adoption but are continually investing in new projects as well.