How to Use Binance and How Does it work?
Binance is a leading cryptocurrency exchange with a strong focus on altcoins. Founded in 2017, the Hong Kong-based exchange offers crypto trading in well over 500 crypto and virtual tokens such as Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), and its native currency Binance Coin (BNB).
Binance is also well known for its lowest transaction fees for token exchanges as compared to its counterparts. Moreover, it offers high liquidity and for users who use BNB to pay for transactions, the exchange offers discounts.
The exchange boasts high security and safety standards with its multi-clustered and multi-tier architecture. Along with security, Binance claims that it can process around 1.4 million transactions in a second. In this article, we will elucidate on How to use Binance and how Binance works amongst other functionalities of the exchange.
Connecting your Binance Account to ZenLedger For Your Crypto Tax Forms
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you'll see a table which outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the "Exchanges" tab of the "Imports" page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!
How Does Binance Work?
As a fully operational cryptocurrency exchange, Binance offers a wide variety of services. Investors/traders use Binance for:
- Buy/selling/trading cryptocurrency
- Configure periodic buys
- Trade non-fungible tokens (NFTs)
- Earn passive income
- Access upcoming tokens with Binance’s Launchpool and Launchpad
- Portfolio insights, alerts, live tracking
- Tracking taxes with the tax reporting tool
Binance warns its users of the risk that comes with cryptocurrency trading. To support its users, it has integrated an anti-addiction setting into the platform that suspends the user’s account temporarily if they make several losing trades in a short timeframe. Still, it gives its users access to margin trading, which is considered highly risky. Thus, it is the users who have to manage their risks properly.
How to Use Binance?
Binance users can leverage the platform for trading, fundraising, listing, de-listing, or withdrawal of cryptocurrencies. Crypto launching is made easy with the platform with its initial coin offering (ICO) feature. If you want to start trading with the Binance platform, here’s how you do it:
- Go to the Binance homepage and click “Register” in the top right-hand corner
- You’ll be asked to prove that you are not a robot via some puzzles
- A confirmation email will be sent to you. Go to your inbox and “Verify your Email,” to finish your registration.
Now, you are a Binance account holder. Secure your account with two-factor authentication as it protects your account from malicious activity. Let’s take a look at how you can fund your account.
- Log in to your Binance account and then click on “Wallet” on the top menu bar. Tap on “Deposit”
- Choose the "Fiat” tab.
- Choose the token you want to purchase along with the payment method. Binance accepts payments from credit/debit cards, bank transfers, and your fiat balance.
- Enter the card details or other details required for the payment
- Double-check the payment details and submit the payment.
When you are executing an order, you’ll come across three types of trade orders:
- Limit order (only executed at the limit price set by the trader)
- Market order (executed immediately at the available market price)
- Stop-limit order (only valid when the price reaches a specified level)
Other than these market orders, Binance offers four additional types of orders for crypto derivatives:
- Trailing stop order
- Stop market order
- Limit TP/SL order
- Post only order
While depositing funds, Binance doesn’t charge a fee, but when you withdraw there is a transaction fee, which depends on the cryptocurrency and the amount. Now that we’ve briefly touched upon how to use Binance, let’s see what else the exchange has to offer.
Other Services Offered by Binance
Barring the exchange specific services, Binance offers some other platforms, tools, services such as:
The Binance Earn platform allows users to stake and earn interest by depositing stablecoins. Users get diverse options and interest rates depending on the coin and the tenure of stake or deposit.
The Binance Visa Card, allows its users to convert their tokens into fiat currency and use it to buy products and services.
Binance smart pool allows miners to move between various tokens to optimize and multiply their income.
The exchange offers LaunchPad where its users can host new and emerging blockchain projects and API interfaces.
Binance is one of the largest cryptocurrency exchanges and it is known for combining digital technology and finance. It offers access to digital assets and at the same time maintains liquidity, security, and offers a way to trade efficiently from anywhere and anytime. We hope that with this guide we have delivered some understanding of how to use Binance and its services.