Binance is one of the most popular cryptocurrency exchanges on the market. It was launched in 2017 and has become a significant player in the crypto space with its low trading fees, wide range of coins available for trading, and high liquidity. This article will discuss how it works to help you understand this exchange better to trade there more confidently.
It is a simplified process that only takes a few minutes. Once you have registered, you will need to verify your identity by providing personal information. This is standard procedure for most exchanges and is necessary to comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations.
Once your account is verified, you will deposit funds into it and start trading.
The platform offers several features that make it one of the most popular exchanges on the market. They include:
- Low Trading Fees
- Wide Range of Coins Available for Trading
- High Liquidity
- User-Friendly Interface
- Security Features
How the Exchange Work
To trade or purchase any coin, you must first create an account. In Italy, registration is done only through Binance official website available in the country. Binance is an exchange where buyers and sellers meet to trade coins for other coins or fiat currencies like US dollars and Euros. The main difference between this platform and others is that there isn’t a fiat currency involved during the trade. Instead, coins are exchanged directly from one user to another. It also does not involve selling ownership in a company and doesn’t offer any dividends or other investor perks like that.
This platform itself doesn’t buy, sell, or hold any coins. Instead, their role is to connect buyers with sellers and take a fee. They also ensure that everything runs smoothly by providing software support and steps like implementing security features to protect customer investments.
How to Trade: Wallet and Pairings
As we mentioned above, when you trade, you will buy or sell coins for other coins or fiat currencies like US dollars and Euros. It means that the first thing you need to do is identify which type of coin, BTC, XRP, ETH, LTC, etc., you want to trade and then find a pairing with another coin or currency.
For example, if you want to buy Ripple (XRP) with US dollars, you would go to the “USD” tab on the website and find the XRP/USD pair. This will show you all the current offers to buy and sell XRP using US dollars.
How to Deposit Funds
After selecting a coin pairing, the next step is to deposit funds. This process will vary depending on what type of trading you want to do and how much money you are depositing, but the basic steps involved in this step include:
- Login either by using your email address or through Google or Facebook
- Depositing Funds
Click on the “Funds” tab at the top of the page and then select “Deposit.” You will then be given a deposit address for the coin or currency you want to use.
- Sending Funds To The Address
After sending funds to that address, they will show up in your account.
- Sending Funds To The Binance Exchange
Once your funds are available, you can send them to the exchange by clicking on “Exchange” and selecting either “Basic” or “Advanced.” Unless you want to use advanced features like margin trading, choose Basic. You will be presented with a list of all of the available pairings.
If you are trading a pairing with another coin or fiat currency, select one from the drop-down box near the bottom of the screen and fill out all required information. If you are trading a pairing with another coin, click on “Select Market” near the top right corner to open up a list of available pairs, find your coin/currency pairings, and select one.
After completing these steps successfully, make sure to double-check that all fields are filled in correctly; the funds will automatically be transferred to your trading wallet.
How To Withdraw Funds
The last step when using this platform is withdrawing your coins or fiat currency back into either an external wallet or your bank account. It is a pretty straightforward process, but there are a few things you need to keep in mind:
- Log in to your account
- Withdrawing Funds
Click on the “Funds” tab at the top of the page and then select “Withdrawal.” You will then be presented with a list of all the available coin/currency pairings. Alternatively, click the “Select All” button near the top left corner of this screen.
This will automatically transfer each coin/currency pairing you selected back into your external wallet or bank account, depending on what you are withdrawing.
That’s all there is to it. Now you know how to use one of the most popular cryptocurrency exchanges available today.