There are over 2,000 cryptocurrencies currently available for trade on the open digital marketplace. Many consider it the wild west, because of its 24/7 nonstop trading and a lack of regulation, but everyone agrees its where users have the chance to make their portfolio boom or bust.
Accessing Your Binance BTC Wallet
On the previous segment of sending bitcoin from Coinbase to Binance, we left off once your bitcoin arrived in your Binance BTC wallet. On the Binance home page, click on the “funds” tab. You should see the exact amount you sent in the “available balance” section of your BTC wallet.
Choosing an Asset to Trade on Binance
Assuming you’ve done your research on the coin you intend on trading, go to the assets page and search for the coin’s ticker. A ticker is a few symbols that represent an asset, such as BTC for bitcoin or ETH for ethereum.
Make sure you are looking at BTC markets since you intend on trading your BTC for something else. Due to bitcoin’s popularity, it’s paired with every available asset on the exchange.
Look at the above screenshot. We will use the BNB/BTC market as an example.
- The announcements bar. Newly listed assets are posted here along with various competitions and distributions.
- This shows the name of the currency pair, current price, 24hr volume and the high and low of the past 24hr.
- This red section is the Sell Book. As you can see, there are three columns. The left column shows the price in BTC (with the lowest price at the bottom). The middle column shows the amount of BNB to be sold, and the right column shows the amount to be sold to BTC. Therefore, this section is for those who hold BNB but plan to sell back to BTC.
- This green section is the Buy Book. This is for buyers who hold BTC but want to buy BNB. The left column shows the buy prices (highest price on top) in BTC. The middle column shows the amount of BNB desired. The right column shows the amount of BTC it will cost.
- This is the chart. You can select various time frames such as 5 minutes, 1-hour, 1-day, and 1-week. The chart will help you better understand if the coin is in the right place to buy or not.
- This section gives you three options: Limit, Market, and Stop-Limit.
- Limit Order: An order that is placed as a buy or sells at a specified price point.
- Market Order: An order that buys or sells the current price.
- Stop-Limit: An order that’s executed at a specified price, and once this price is met turns into a limit order to buy or sell at the limit price.
7.) This is the buy area. As you learned in #6, you can choose one of the three options and place your order in this section if you are a buyer. You will see the price in BTC, the amount of BNB you are buying, and the amount of BTC you are selling.
8.) This is the Sell area. You will see the price in BTC, the amount of BNB you intend on selling, and the amount of BTC you will receive.
9.) This list shows the rest of the BTC markets/pairs. If you click these, you’ll redirect to the specified pair.
10.) This continually moving list is the trade history. Since our example is of BNB/BTC, the green numbers are the buy prices in BTC, and the red numbers are the sell price in BTC.
USDT Market on Binance
Cryptocurrency prices don’t tend to stay the same for long, and with such high volatility, how do traders find stable ground? Tether is the usual go-to stablecoin because it holds the same value as the U.S Dollar.
On Binance, there is a dedicated USDT market with 20 pairs. This is the market for those that don’t enjoy figuring out ratios between BTC and ETH or don’t appreciate their volatility that keeps their pairings in constant flux.
Users can use the USDT market in the same way as the BTC marketplace. Therefore, the main difference is that instead of trading ratios, you’ll trade fiat values.
ETH Market on Binance
Similarly, ETH also has its marketplace. It has the same amount of currency pairs as BTC but at its ratios. Bitcoin’s ratios display in units called the Satoshi. Ethereum’s ratios display in units called Gwei. Therefore, when you look at the BNB/ETH and BNB/BTC, the prices in fiat are the same, but the ratios differ.
The reason ETH has as many pairings as BTC is because it’s the second largest currency and has spawned the majority of the altcoins through its ERC-20 token standard.
BNB Market on Binance
Since Binance Coin is the native asset to Binance’s exchange platform, it only makes sense that they have an entire marketplace paired with BNB. Similarly to the previous markets and pairings, the ratios will be different, but the way a user trades remains the same.
Binance’s Trading Fees
Every trade on Binance incurs a fee. Luckily, Binance has offered its users a way to cut down on trading fees. Fees to trade cost 0.1%, but if you have Binance Coin (BNB) in your wallet, the fee is only 0.05%. This may not seem significant at first, but once you begin trading more, you’ll find it meaningful. As a result, Binance deducts a small amount of BNB in place of the standard fee.
After you sell an asset, you’re left with a small portion that isn’t enough to sell back to BTC or ETH. As a result, users call this untradeable amount “dust.” Luckily, Binance allows users to convert dust into BNB to be used for fees.
You’ll need to turn on the option for using BNB to pay fees, and this can be found on your account page. To convert dust, go to the funds’ tab, and then balances; as a result, each coin that’s worth less than .001 BTC is eligible.