A beginner's guide to exchanges
Popular Exchanges
Binance
The world's largest platform in terms of trading volume, which offers quite low rates: the higher the volume of user transactions, the lower the commission. In addition, the platform provides discounts for using its own cryptocurrency BNB.
- More than 80 fiat currencies.
- Very low commissions for trading
- There is a mobile app
- P2P service
- Its own NFT-marketplace
- Binance Launchpad, where initial coin and token offerings of new projects take place.
- Binance Academy - an educational platform in the field of cryptocurrencies
- A large number of giveaways and activities.
- In-house cryptocurrency stacking with a stable income percentage.
- Discounts and bonuses for owning a BNB coin.
- The ability to fund the exchange with Payeer and AdvCash without commission
- Very limited functionality for accounts that have not passed the KYC procedure.
- The exchange listens to the laws of the countries. For example, recently the functionality for users from Russia with a balance of more than 10,000 euros was limited due to the sanctions from the European Union.
- Not every cryptocurrency can get on Binance. There are a lot of projects which are on other exchanges, but are not traded on this one.
A cryptocurrency exchange that specializes in trading derivatives and leveraged products. Founded in 2018 by former trader Sam Bankman-Fried.
Supports 9 fiat currencies and spot market trading in over 100 cryptocurrency pairs.
- The internal currency is USD, pegged 1:1 to the dollar exchange rate. I.e. you do not have to keep your deposit in stabelcoins.
- A huge number of different trading directions. If you are a professional trader or are interested in this direction, this exchange is for you.
- It has its own FTT token that provides discounts and bonuses for owning it
- It has a mobile app
- Complicated interface, for the beginner will be at first difficult to understand.
KuCoin
A cryptocurrency exchange for experienced traders. It offers some of the lowest prices on the market, and there are no account maintenance and storage fees for cryptocurrencies. According to KuCoin, the platform is used by one in four cryptocurrency owners in the world. The distinctive feature is access to less popular and new coins.
- Large selection of cryptocurrencies, many of which are not available on other exchanges.
- No mandatory verification. You can trade anonymously.
- Low withdrawal fees
- Own KCS token, between holders of which is divided by half of income from exchange commissions
- No support for fiat currencies
- No margin trading
Examples of Binance Account Creation
1. Go to the Binance homepage and click the "Register" button in the upper right corner.
2. Enter your email address and choose a strong password. If you prefer, you can register using your cell phone number. Enter your referral code if you have one.
3. Verify your account information by sending a code to your email address or cell phone number.
How to buy cryptocurrency on Binance
Before you can buy cryptocurrency on Binance, you need to pass Know Your Customer (KYC) verification. KYC helps verify that you are who you say you are.
Know Your Customer (KYC) is a process that banks and other financial institutions use to verify the identity of potential customers.
Its purpose is to prevent fraud, money laundering and other illegal activities, as well as the misuse of financial accounts.
You can go through the KYC of your account here - https://www.binance.com/en/my/settings/profile
After confirming your identity, you can start buying cryptocurrency in different ways.
1. Credit/debit card: the easiest option for new users.
Official guide - click
2. Transferring funds to fiat and spot wallets: transfer fiat currency from your bank account and use it on the exchange.
Official guide - click
3. Binance P2P: buy cryptocurrency directly from other users.
The official guide - click
How easy it is to trade cryptocurrency on Binance
If you're not used to the traditional trading interface, we recommend using the conversion feature. You can access it by hovering over the "Trade" button on the Binance homepage and selecting "Binance Convert".
The conversion feature allows you to select a cryptocurrency or fiat currency pair using a simple interface.
In the top field, select the coin you want to exchange and enter the amount. In the bottom field, select the target cryptocurrency or fiat currency. In our example, we will exchange BNB to BTC. After confirming your selection and clicking the "Preview" button, a transaction summary will appear.
Note: The default setting is "Market". This means that you are placing a market order. If you are satisfied with everything, confirm your order and the trade will take place. Commissions will also be included. If you want to create a limit order, select the "Limit" option on the left side of the screen.
A market order is an order to buy a cryptocurrency, which is placed for almost instant execution at the current market price.
A limit order is an order to buy or sell at a specified price that goes into the order book. The order will be executed when the market price reaches the limit price you specify (or the best price).
Limit orders can be used to buy or sell an asset at a lower or higher price than the current market price.
Spot Trading
Below the instruction will be shown on the example of a mobile application, so you can immediately start trading on the signals
To get to the spot trading menu, we need to select "markets"
After that we are presented with a menu for selecting an asset. I choose BTC/USDT
1. The panel at the top of the chart shows the cryptocurrency or fiat pair you are viewing, the current market price, and the change in price and trading volume over 24 hours. This example shows a pair that allows you to trade USDT for BTC and vice versa.
2. The graph shows the price ratio between the two assets.
3. The "Order book" panel displays a detailed list of prices and volumes. Current sell orders are highlighted in red. Below the current buy orders are highlighted in green. The large figure in the center is the price of the last transaction.
4. In the "Spot" panel you can create orders for trading on the spot market.
You get a signal to buy in a private club
Open the "markets" menu and in "search coin pairs" type BTS
As you can see, the coin has already grown. But let's assume that the price is now in the range 0.00940 - 0.00945.
For the entire purchase we allocate 4-6% of the deposit. For convenience, I will assume that our deposit equals $1000
We buy a coin for 2% of our deposit at the market price. That's $20.
And also put a limit order to buy at the price of 0.000600
1 - order type, in our case a limit order.
2 - price specified in the signal
3 - amount at which we buy a coin
It turns out that we have $40 involved in this purchase. If you have a small deposit, then on one purchase we allocate 6% instead of 4%.
In this case it will be necessary to buy on the market price for 30$ and to expose the limit order also for 30$. In total in one purchase 60$ will be involved
After a coin gives good growth, we sell it. To do this, we need to click on the "Sell" button
We close the deal in two stages. First we fix 50% of the position and then we close the remaining 50%. Thus we reduce the risks and almost guaranteed profit