Founded in 2017 in China by Changpeng Zhao, who more commonly goes by CZ, Binance is the largest cryptocurrency exchange in the world. It currently facilitates over $100 billion in trading volume every 24 hours. This is about five times more than Coinbase pro and 12 times more than Kraken.
The platform offers traders the most trading options in the industry. You can find tons of different coins and even more trading pairs on Binance than you will on any other platform. What you won’t find is US dollars (USD). This makes the world’s most popular crypto exchange a little difficult to use in the US.
There are ways around this, though, and you can still trade on Binance almost anywhere in the world. Here are the ways you can do that along with a few other crypto trader tips for using Binance.
1. Figuring out how to use Binance in the US
As noted by Cove Markets, Binance is an increasingly popular platform for crypto traders. To use it in the US, you need to figure out how to access Binance. Two general options are possible. Binance is available in 43 US states and, if you live here, you can use the platform, albeit without depositing or withdrawing USD. The way around this is to turn your currency into USD-backed stablecoins like Tether or BUSD.
You can do this on another platform or from a personal crypto wallet to fund your Binance account. It isn’t the easiest way to trade but if you’re fluent in crypto it should not be a huge issue.
The other way is to use Binance US. This gives you access to many of the features of the Binance platform but with scaled-back trading options. Binance US only offers about 50 coins. This isn’t as robust as the parent platform but it is easier than some other methods and gives you about the same number of options as Coinbase or Kraken.
2. Take advantage of the lower fees
One of the biggest advantages of using Binance is its fee structures. When you compare Binance’s fees to Coinbase, the choice is obvious. The fees on Coinbase and Coinbase Pro start at 0.50%. Fees on Coinbase Pro go down from there depending on your trading volume.
On Binance, you start with much lower fees that also go down as volume increases. The fees are based on the same sliding scale as Coinbase Pro and differ for makers and takers but they start at 0.075% and drop from there. They also drop based on 30-day trading volume or your Binance Coin (BNB) balance. Coinbase Pro is strictly by volume.
3. Find new crypto
For traders who have experimented with other platforms, chances are you trade in the crypto exchanges you are comfortable with. Most popular exchanges have a relatively small number of coin options with which most traders are familiar. By using Binance, you can really expand your horizons.
Binance offers over 500 different coins and 1,200-plus trading pairs. This is more than you will find on almost any crypto exchange in the world. Trading new coins or pairs can be risky, but it can also be lucrative when you pick a winner. Binance allows you to really explore all possible options.
4. Figure out which crypto offers the most liquidity
Being the biggest crypto exchange in the world, Binance supports an incredible amount of trading each day. The overall trading volume dwarfs the competition but these numbers can be a bit deceiving.
Although a platform like Coinbase has a fraction of the liquidity found with Binance, that liquidity is divided among about 60 coins and 200 pairs. The volume on Binance is split among many more coins and pairs. The biggest players, like Bitcoin and Ethereum, will provide industry-leading liquidity but others may not be traded at the volume you may expect. Keep an eye on the liquidity of the coins that most interest you.
5. Trade the way you like to trade
Binance is simple enough to be used by novice traders but also offers the most robust range of trading tools and capabilities in the industry. Not all types of trades and trading tools are for everyone but if you like to do something a little more advanced when trading crypto, Binance likely has you covered.
Some of the trading maneuvers and tools covered in Binance include:
- Limit order
- Market order
- Stop-limit order
- Trailing stop order
- Post only order
- Peer-to-peer trading
- Margin trading
- One-cancels-the-other order
If you don’t see something you like on this list, don’t worry, there is plenty more on Binance; this is just a tiny sample.
6. Be mindful of security issues
Binance is one of the most secure crypto exchange platforms in the world. They do a very good job adding and updating the latest security features to keep their users safe. There was an issue in 2019 where Bitcoin was stolen but the company offered to replace the value for customers. This is not uncommon at almost any exchange these days.
Although no longer headquartered there, the Binance company has roots in China. This makes the relationship between the company and the US government a bit precarious. Binance is currently being investigated by the US government for several possible transgressions.
This isn’t to say that the company is doing anything wrong or that any security issues will be found in these investigations but if you use Binance, it is worth being aware of these actions and to keep an eye on them.
The overarching principle for using Binance is this: if you want to use the platform, take your time and dive deep into all it has to offer. There is so much going on in Binance that you need to thoroughly investigate what and how you want to use it.
Binance is so vast and comprehensive, you should certainly be able to find the best trading options for your style but it may take some time and effort to find it. This may not be ideal for beginner traders, but for more advanced ones, it is very enticing.