Binance Trading: A 2024 Guide for Beginners

Binance is the world's largest cryptocurrency exchange, both in terms of users and trading volume and after using the platform, it is easy to understand why. Binance is a renowned digital asset exchange that has features and advantages tailored to novice and experienced traders, as well as beginners. This guide will offer an in-depth look into how to start your journey on this platform as well as teach key elements that can help maximize potential trading success. Learn all there is to know about getting started with Binance and feel confident before placing your first trade.

As this article is strictly about the trading aspect of Binance, we have left out the history of the exchange and all the other core features and functions of the site such as the Launchpad, Binance Earn, the Binance crypto card and more. If you are interested in reading about what else Binance has to offer and why it is one of our favourite exchanges, be sure to check out our in-depth Binance Review.

We also have in-depth articles and guides covering various aspects of the Binance Exchange that you may find interesting:

• How to Sign Up on Binance: A Step-by-Step Guide
• Binance App review: Mobile Trading on the Go
• Binance Security Analysis: Is Binance Safe?
• Binance vs Binance US: An In-Depth Look
• BNB Coin: The Utility Coin for Binance
• Binance NFT Marketplace Review
• How to Buy Bitcoin on Binance
• Binance US Review

Short Summary

Binance is a secure and reliable platform for digital asset trading, offering support for over 500 cryptocurrencies and virtual tokens.

BNB token provides traders with fee discounts and other benefits on the Binance platform.

Research and analysis combined with technical analysis can help identify profitable entry points in the market.

Binance trading features advanced order types and trade functionality, capable of supporting experienced traders with advanced trading requirements.

Binance features risk management strategies that are essential to proper risk mitigation while trading.

Getting Started with Binance Trading

Account signup is necessary in order to utilize Binance's trading platform to its full potential. Your email address, a strong password, identity verification and KYC are required in order to create an account. When enrolling on their website, it is strongly advised to use two-factor authentication for additional security.

Once these steps are completed, users can deposit crypto or purchase with bank card or deposit fiat via bank transfer in order to begin trading various cryptocurrencies like Bitcoin or Ethereum. Once the desired amount has been sent successfully or purchase has been verified, you are ready for action! After everything checks out okay, traders may start making orders such as buying/selling coins and accessing the various products on the Binance platform.

If you are interested in video format, Guy has put together this fantastic Binance Step-by-Step Guide along with tips and tricks on how to get a fee discount:

Account Registration

Registering a new account on Binance is simple: just click "Sign up with Email or Phone" or "Register" at the main page, accept the Terms of Use and complete the captcha. Confirm your email address, enable two-factor authentication for more security, upload the required information and documents for KYC and sit back and wait for the verification process.

Binance verification often takes 24-48 hours but there have been cases and reviews of users stating that their verification took up to two weeks. In our experience, that certainly is not the norm.

Here are the steps to registering an account with Binance:

Visit Binance Website: Go to Binance's official website.

1. Click 'Register': On the top right corner of the Binance homepage, or choose between the Sign-Up options like so:

2. Enter Email and Password: You will be prompted to enter your email address and create a password. Make sure to use a secure and private email address and a strong unique password. Here you will also be required to select your country of residence.

3. Read and Accept Terms of Use: Read through Binance's Terms of Use and Privacy Policy. If you agree to their terms, tick the checkbox and then click on 'Create account'.

4. Verify Email: Binance will send a verification email to the address you provided. Open your email inbox, find the email from Binance, and click the verification link inside.

5. Complete Security Verification: After verifying your email, Binance may ask you to complete a security verification. Follow the on-screen instructions to complete this step.

6. Enable 2-Factor Authentication: For additional security, Binance might prompt you to set up Two-Factor Authentication (2FA). This is an extra layer of security for your account. You can use Google Authenticator or SMS for 2FA on Binance.

7. Complete Identity Verification (KYC): Depending on your country of residence, you will likely be required to complete identity verification, also known as the “Know Your Customer” (KYC) procedure. This usually involves providing a photo of your ID and a selfie.

Note that the exact steps may vary slightly depending on the platform you are using (e.g., website vs. mobile app) and your location.

That's it! Once you've completed these steps, you should have your own Binance account and be ready for trading.

Remember to keep your account secure at all times. Never share your password or 2FA codes with anyone, even if they claim to be from Binance. Always log out of your account when you're done using it, especially if you're on a public or shared device.

Depositing Funds

To deposit funds on Binance, you need to follow these steps for cryptocurrency deposits:

Log into your Binance account and click on "Deposit" in the top right-hand corner:

Select the cryptocurrency you want to deposit

Choose the deposit network carefully and make sure that the selected network is the same as the network of the platform you are withdrawing funds from. You can learn more about networks in our article: Layer One Networks

Click on "Copy" to copy your Binance Wallet's deposit address and paste it to the address field on the platform you intend to withdraw crypto from.

Pro Tip: Even when copy and pasting an address, ALWAYS be sure to double-check it. There is a common malware in circulation known as a clipboard hijacker, that will swap the pasted address with one owned and controlled by a scammer trying to steal your funds.

Alternatively, you can click the QR code icon to get a QR code of the address and import it to the platform you're withdrawing

After confirming the deposit request, the transfer will be processed, and the funds will be credited to your Binance account shortly after.

If you are needing to deposit fiat currency or buy crypto directly with cash, depending on your location and supported fiat methods in your jurisdiction, here are the steps needed to deposit fiat:

Log in to your Binance account and click on "Buy Crypto" and select the fiat currency you want to deposit and method.

Select "Bank Card" or "Bank Deposit" as your payment method

Enter the amount you want to deposit and click on "Continue"

Enter your credit or debit card information and click on "Pay Now"

Once the payment is processed, the funds will be credited to your Binance account shortly after. 

You can also purchase cryptocurrencies directly with bank card, Google Pay or Apple Pay, but note that some of these convenient "purchase crypto" options come with higher fees. To get the most bang for your buck, bank deposits are typically the lowest-fee method way to go. Purchases with bank card are instantaneous while bank deposits can take anywhere from a couple of hours to 3-4 business days.

Placing Your First Trade

If you're ready to make your debut trade with Binance, let's suppose that you want to sell some of your BNB (Binance Coin) and receive BTC (Bitcoin). To do this, go for either the Basic "Convert" feature or more advanced "Spot" trading option.

Here is a look at trading using the convert feature:

This is the easiest way to swap assets on Binance but doesn't allow for advanced order types or any form of analysis. The trade is typically executed instantaneously with the funds appearing in your wallet section.

Most traders on Binance will use the "spot" trading interface, which will take you to this screen:

From here, users can click on the right panel and select BNB (or cryptocurrency of choice) and the target asset to buy or sell, in our example, Bitcoin. So on the top right panel, you would select BNB/BTC

Note that the "3x" shown beside the BNB/BTC pair simply means that 3x leverage is available for this pair. We won't get into the complexities of leverage in this article, just be sure you understand leverage and the risks associated with it before choosing to use it, you can find more about that in this Investopedia article on why Leverage is a dual-edged sword.

Once you have the crypto pair selected, you can set the limit price and any market/limit orders as desired in order to complete this exchange process between two cryptos.

Order Types

Binance supports a range of order types to give traders more options and control over their transactions. Through limit orders, users are able to buy or sell at an established cost whereas the market order permits instantaneous buying and selling with the current trading price.

Stop-limit orders set up a specified value that triggers a corresponding stop-limit order, which is then executed once it reaches its set rate.

Here is a great diagram from Babypips showing the different limit order types:

Depending on individual strategies, each option gives different advantages when placing trades in varying markets. Access to these order types can be found in order execution panel:

A trailing stop is a risk management tool that is designed to protect profits and limit potential losses by automatically adjusting the stop-loss level as the price of an asset moves in a favorable direction.

Here's how it works: When a trader sets a trailing stop, they specify a percentage or a fixed amount below the current market price. As the price of the asset rises, the trailing stop will move up with it, maintaining the specified distance or percentage. However, if the price starts to decline, the trailing stop will remain unchanged, allowing for potential gains to be locked in.

A One Cancels the Other (OCO) order is a type of order that combines two separate orders with specific conditions. It allows traders to simultaneously place a stop order and a limit order on a particular asset, with the execution of one order automatically canceling the other.

Here's how it works: Let's say you're considering buying Bitcoin, but you're unsure about its short-term price movement. With an OCO order, you can set a stop order to sell BTC if its price falls below a certain level to limit potential losses. At the same time, you can also set a limit order to sell BTC if its price rises above a specified level to secure profits.

If either the stop order or the limit order is triggered and executed, the other order is automatically canceled. This allows traders to manage their risk by defining both their maximum loss (with the stop order) and their desired profit level (with the limit order) in advance.

Once you have your order type and pair selected, now is the time to enter the figures and place the trade:

That is it for the basics, with that, you have just completed your first spot trade at current market prices between the cryptocurrencies Bitcoin and Binance Coin. This is the most common form of trading that takes place.

On the same trading screen you will options for Cross 3x, Isolated 10x, Transfer, Auto-Invest, and Buy With (currency)

Cross 3x (cross margin)- Allows users to share the margin across their entire account. With cross margin, users are limited to one cross margin account, which includes all available trading pairs. In this account, assets are shared among all positions. The margin level is determined based on the total value of assets and debt in the cross margin account. Binance's system constantly monitors the margin level and notifies users to either provide additional margin or close positions if necessary. In the event of liquidation, all positions within the cross margin account will be liquidated. This ensures risk management and helps maintain the overall stability of the trading account.  

Isolated 10x (isolated margin)- In isolated margin mode, each trading pair has an independent margin account. Only specific cryptocurrencies can be used in each isolated margin account. The margin and risk are separate for each trading pair, and liquidation in one account does not affect others.

You can learn more about these two forms of margin in Binance's Margin article.

Transfer- Allows users to transfer funds between their Binance wallet and trading account. Internal transfers are free.

Auto-Invest- Allows users to automate cryptocurrency investments to increase their holdings over time. It is an investment strategy based on dollar-cost averaging (DCA). The cryptocurrencies you choose to buy on a daily, weekly, biweekly, or monthly basis are yours to decide.

Note that there are plenty more trading options available above and beyond just spot trading. Derivatives traders can also trade Futures, Options, and Margin as well as leveraged tokens are also available:

The charting interface on Binance is powered by Tradingview, the gold standard in charting applications, along with also offering its own proprietary charting platform. Most traders utilize the Tradingview chart as it provides robust features and functionality for the most hardcore of technical analysis traders.

If you want to learn more about how to read charts and trade, I recommend checking out our Coin Bureau Trading channel, where Dan, our in-house professional trader teaches the craft of crypto trading.

Key Features of Binance Trading

Binance offers a comprehensive selection of features to cater for its users' varied requirements. No matter what stage you are at in your cryptocurrency journey, Binance has something available for everyone.

The platform accommodates more than 500 cryptocurrencies and virtual tokens, offering an extensive array of trading pairs. Different order types such as limit, stop-limit, market orders and OCO are available in Binance's arsenal to suit varying strategies employed by the traders on this platform. Here are the key features at a glance:

Wide Range of Cryptocurrencies: Binance offers a wide range of cryptocurrencies for trading, including Bitcoin (BTC), Ethereum (ETH), and many others.

Low Fees- Binance has some of the lowest trading fees in the industry.

Spot and Futures Trading: Binance allows both spot trading (buying or selling a cryptocurrency outright) and futures trading (buying or selling cryptocurrency contracts that speculate on the future price of the asset).

High Liquidity: Binance is known for its high liquidity, which is crucial for traders as it allows them to open and close positions easily without impacting the market price significantly. Binance is a favourite for many large-volume and institutional traders.

Advanced Trading Features: Binance provides advanced trading features like margin trading, stop limit orders, and OCO (One Cancels the Other) orders, which can help traders optimize their strategies.

Security: Binance has implemented a variety of security measures, including two-factor authentication, withdrawal whitelisting, and the Binance SAFU (Secure Asset Fund for Users) insurance fund to protect users and their funds in the unlikely event of a security breach.

Education and Support: Binance Academy offers a range of educational resources to help traders understand cryptocurrency and trading concepts. They also provide customer support through various channels.

APIs for Automated Trading: Binance offers APIs that allow users to create bots for automated trading, which can execute trades based on predefined strategies even when the user is not actively trading.

Supported Cryptocurrencies

Traders using Binance have an extensive selection of crypto and virtual tokens available for trading, with more than 500 options. This includes well-known cryptos like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Dogecoin as well as the native token BNB offered by this exchange platform. With such a variety of cryptocurrencies to pick from, traders can diversify their portfolios while also exploring various opportunities in the markets.

Trading Pairs

Binance offers a variety of trading pairs - both crypto-to-crypto and fiat-to-crypto. Boasting 1409 different options in total, this selection allows individuals to take advantage of a great selection of market movements. With so many trade pairs available through Binance, investors are able to tailor strategies according to personal preferences.

All the Binance trading Paris can be found in the right column:

Understanding Binance Fees

Binance is popular for its competitive cost structure, being an industry leader when it comes to low fees. Binance also supports multiple zero-fee options for buying and trading cryptocurrencies... It doesn't get much cheaper than free!

Charges on withdrawing coins differ depending on the particular cryptocurrency, and fiat withdrawal fees vary depending on the currency and method selected. We cover Binance fees in more detail in our Binance Review.

Here is a look at Binance's fee structure, It works on a tiered structure based on a rolling 30-day trading period:

Binance's straightforward and easy-to-understand fee structure is attractive for traders who wish to reduce costs while maximizing earnings from their trades.

Binance Coin (BNB) and Its Role in Trading

The Binance Coin (BNB) was created in 2017 through an ICO and is the main token for the Binance platform. It can be used to pay for trading fees, offering traders up to a 25% discount when they choose to pay trading fees in BNB. BNB has various other uses like accessing higher cashback rewards for the Binance Card, fuelling the Binance Chain network, accessing products like the Binance Launchpad, and more!

BNB Token Overview

BNB was released during an Initial Coin Offering in 2017 and a total of 200 million tokens were distributed to the founding team and angel investors, with 100 million entering public sale circulation.

Fast forward to 2024, its market capitalization has risen to around $34 billion making it rank fourth among blockchain-based tokens in terms of value with each coin costing approximately $225 as per current prices.

Using BNB for Fee Discounts

Trading fees on the Binance platform can be paid with discounts using BNB. Traders can enjoy 25% off trading fees for Spot trading and 10% off Futures if they pay fees in BNB token. Here is a look at what enabling this feature looks like in your account settings:

This is an advantage that could help users maximize their profitability since it reduces expenses related to trading activities within the Binance ecosystem. Even those not able to hold large sums of BNB will benefit from smaller progressive fee reductions as long as they use it for payment instead of other available options in this platform's marketplace.

Security and Trustworthiness of Binance

Cryptocurrency users around the world rely on Binance to conduct secure and reliable transactions with digital assets. Though no platform is bulletproof, Binance continues striving for the utmost security measures to keep user funds safe and promote a seamless trading environment.

They safeguard user funds by securing their platform with strict protocols and industry-leading technical measures, including real-time monitoring, a 360-degree risk management system, advanced data privacy tools, and end-user security education. 

The vast majority of user funds and assets are stored in offline, cold storage facilities. Their risk management system analyzes every withdrawal attempt, password reset, two-factor authentication reset, and email address change, with unusual activity triggering suspended withdrawals for at least 24-48 hours. 

Furthermore, Binance's wallet and personnel infrastructure feature advanced security measures, including multisignature and threshold signature schemes (TSS), to ensure the safety and integrity of users’ funds. User data and personal information, including Know-Your-Customer (KYC) information, are protected by encrypting data in storage, with data in transit secured via end-to-end encryption.

Binance supports strict sign-in protocols using two-factor authentication, including hardware, app-based, SMS, and email methods. Advanced access control provides users with opt-in security features such as IP and wallet address whitelisting, API access control, and device management. Users receive emails, notifications, and security alerts in the event that suspicious activity is detected.

Binance Trading Tips for Beginners

If you're new to trading on Binance, don't worry! There are a few tips and tricks that can help you get started on the right foot. 

Before diving into the world of cryptocurrency trading, it is important to have a clear understanding of the market and its dynamics. One useful tip for beginners is to start small and learn as much as possible about trading strategies and risk management. Consider learning as much as you can about trading and practicing on demo accounts before risking live funds.

Another important consideration is to stay up to date with news and trends in the cryptocurrency world to make informed investment decisions. Here are some great resources to ensure you are up to speed and have the best competitive edge to prepare for trading:

• Top Crypto YouTube Channels
• Top Crypto Podcasts
• Top Crypto Telegram Channels

To excel at cryptocurrency trading, it is essential to equip yourself with useful facts and understanding - this of course entails grasping how vital risk management is, carrying out comprehensive research & analysis as well as learning technical analysis properly.

Risk Management

One of the most important aspects of trading is understanding risk, how to manage and mitigate it, and understanding not only trading psychology, but your own psychology to understand how risk-averse you are.

Risk management can help reduce the potential for losses and increase profits. Establishing well-defined targets, spotting economic events, news, technological, legal, and regulatory risks, while determining their effects and carrying out appropriate responses can give traders a higher degree of control when navigating volatile crypto markets.

Pro Tip:  Many seasoned traders will agree that risk management is the most important aspect of trading. If you manage your risk correctly, you can remain consistently profitable even if you lose more trades than you win. Be sure to understand responsible risk management before trading live funds.

To provide extra protection for a crypto portfolio against loss, Binance presents its users with stop/limit orders including take-profits and stop losses. By applying these tools prudently alongside a detailed approach to risk management tactics. Investors are capable not only of safeguarding investments but also of improving their trades significantly.

Research and Analysis

For successful Binance trading, researching and analyzing trends, data, and psychology is a must. In order to make educated choices when it comes to cryptocurrency investments, traders should look into various techniques and trade strategies such as the ones taught on Coin Bureau Trading and other trading educational providers as well as understand the different types of orders available. Here is a link to some of the resources that many beginner traders find useful:

• Investopedia
• Baby Pips
• Coin Bureau Trading
• The Trading Channel

Fundamental analysis takes a deeper dive by assessing major elements which may have an effect on cryptocurrency prices such as news announcements or economic data impacting company performance.

Technical Analysis

Technical analysis examines price history in search of patterns that can be used for decision-making purposes while dealing with digital assets. If you ever see a chart that has lines, boxes and symbols on it, that is a chart where the trader has deployed technical analysis.

Technical analysis is an important part of trading as it assists traders in discovering potential entry and exit points. By utilizing historical price patterns and indicators, users can gain knowledge into the market price movements as well as more accurately predict future trends based on previous data regarding volume and prices.

Various methods are available for technical analysis such as trend assessment, support/resistance investigation, chart formations & signal bars, Elliott Trade Theory, and an endless plethora of other strategies. If a trader has mastery over these practices, it will help them refine their prediction accuracy to benefit from the opportunities present in volatile markets when making trades through Binance.

There are also indicators that can help analyze a chart such as Stochastics, RSI, MACD, and Bollinger Bands to name a few of the more popular ones.

Pro Tip: Many beginner traders fall into the trap of relying too much on indicators and not taking the time to understand the fundamentals of price movements, thinking it is a shortcut. The majority of professional traders will tell you that before you dive too deep into indicators, the three most important things a trader must understand are:

• Price Structure
• Candlestick Analysis
• Price Action

The reason for this is that all indicators are lagging, simply showing the trader what price has already done. Many beginner traders mistakenly believe that indicators can help predict where price is going to go, when in reality, they are all lagging and simply showing what price has already done. I'm not saying that indicators are useless, but it is important to understand their limitations. There are many wildly successful traders who do not use any indicators at all, and by focusing on price structure, candlestick analysis, and price action, they practice what is known as "naked trading."

By assimilating both fundamental and technical analyses together one will gain a good overall knowledge about market conditions plus what factors influence them - enhancing chances of success during crypto trading on Binance.

Summary

Binance is a fantastic platform to start your journey into crypto trading. By registering for an account and depositing funds, and utilizing Binance's powerful platform, Binance is a cryptocurrency exchange that can evolve with you throughout your trading journey and offer you the ability to execute nearly any trading strategy that suits you.

I say "nearly" because there are some seriously advanced trading strategies that involve things like placing multiple orders at once, setting more than one take profit level, and scaling in and out of trades. Binance does natively support these features but can integrate with an advanced trading platform like 3Commas which allows for such sophisticated manual strategies. Be sure to check out our 3Commas review if you are looking to automate your trading or incorporate advanced trading tools when trading on Binance.

Through the use of risk management techniques combined with research & analysis tools along with technical analysis skills, you can confidently navigate the world of crypto trading on Binance.

What's more? You will also benefit from reduced fees when using their native cryptocurrency, BNB. Binance is at the forefront of cryptocurrency exchanges and features one of the most feature-rich platforms available today.