This guide will break down everything you need to know about Binance. The contents of this guide are:
-Why Use Binance
-Basic Exchange (0:28)
-Exchange Selection (2:38)
-Candlestick Graph and Candles (0:55)
-Order Book (3:30)
-Market Order (3:59)
-Limit Order (4:20)
-Stop-Limit Order (4:46)
-Funds and Balances (8:43)
Why Should I use Binance instead of other exchanges like Coinbase or GDAX?
Binance has never had any security concerns, offers easy registration, has high trading volume, offers over 200 coins to trade, has different types of buy/sell orders, has a good English platform, has low trading fees, and is growing.
|Exchange Competitor Breakdown|
|Communicates Plans In Advance|||||
|Is Verification Mandatory|||||
|Easy limit order buttons|||||
|Total Coins Offered||200+||4|
|Volume (24 Hours)||$2 Billion +||$500 Million +|
To visit the exchange, go to the “Exchange” tab on the top left of the website and click “Basic”. The Basic exchange operates the same way as the Advanced exchange, but it has a simpler interface.
Specific Exchange Selection
Binance offers four different exchanges: Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Tether USD (USDT). In their respective exchange, those currencies are used as a base for a trading pair. The BTC exchange supports every coin on Binance and the BTC exchange has the most volume, but for this guide we will look at the USDT exchange and specifically look at the BTC/USDT trading pair. All four exchanges operate the same way so you only need to understand one to understand them all.
The top of the basic exchange displays the trading pair you are looking at, in this case this is buying Bitcoin with USDT. The Last Price shows the last price bitcoin was sold for. The 24 hour change compares the price of Bitcoin now to where it was 24 hours ago. Remember that crypto trading does not stop outside of 9:30AM-4PM, so most exchanges use a 24H change instead of an open/close price. The header also shows the 24 hour high, 24 hour low, and the total volume that was traded in the last 24 hours.
Candlestick Graph and Candles
If you are new to finance or candle stick charts, this could look intimidating but we will make it easy for you. The primary candlestick chart Binance uses is split up into three sections. The top part of the graph shows the price, the middle part shows the volume (VOL), and the bottom part shows the moving average convergence divergence (MACD). For the record, the MACD is a momentum indicator that shows the relationship between two different moving averages.
Each candle (bar) in the candlestick graph represents a time interval. On the top left of the chart you can select different time intervals for each candle. You can select 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 6 hours, 12 hours, 1 Day, or 1 week. For this example we are using 1 day candles.
Each candle signals the high, the low, the open, and the close for that certain interval. A candle is green if the value went up during that interval. A candle is red if it went down during that interval. The top part of the line of the candle shows the high. The top part of the bar of the candle shows the closing price of that interval if it’s a green candle or the open if it is a red candle. The bottom part of the bar of the candle shows the opening price of that interval if it is a green candle or the close of a red candle. The bottom part of the line of the candle shows the lowest price during the interval. Note that sometimes a candle will close or open on its highest or lowest point, so sometimes there will not be any lines sticking out of the candle.
There are three lines moving across the top graph. Each represent a moving average. The Yellow line shows the moving average over the last 7 days. The purple line shows the moving average over the last 25 days. The red line is the moving average over the last 99 days. It is human nature to not want to buy something at a higher price than its average, but past performance is not indicative of future results. Instead, we encourage you to focus on the fundamentals of a cryptocurrency rather than if it went up or down in the last week or month.
The top, red, half of the order book shows a list of sell orders. The bottom, green, half of the chart shows a list of buy orders. The first column is the price, the second column is the quantity, and the third column shows the quantity multiplied by the price. The number in between the sale and buy book shows the last price the currency was bought at.
The depth chart illustrates the buy and sell order book. The intersection of the buy and sell sections shows the market price. The blue percentage at the top of the screen shows the discrepancy between the lowest sell order and the highest buy order. We recommend focusing on the candlestick graph and not the depth chart.
Types of orders:
The market order is an instantaneous order that matches the amount that you want to buy or sell with the best existing sell or buy order. One nice feature about Binance is that you do not have to type in the market price so there is no way a typo would lead to a discount purchase or sale. Another good feature that Binance offers is the 25%, 50%, 75%, 100% balance buttons. When pressed, those buttons will type the amount of the currency you can afford with 25%, 50%, 75%, or 100% of your available balance for that exchange. So lets say you have 3 Bitcoins and you want to use 25% of your bitcoin balance to buy Ethereum. Instead of you doing the math, Binance will do the math for you if you type in how much Ethereum you can afford with .75 (25%) of your Bitcoins. Many other exchanges do not have this feature.
The limit order allows you to set a price to buy or sell a currency. Instead of you accepting somebody else’s offer, they get to accept your offer. For example, if you think the market price of a coin is currently too high, you can set a buy order at a lower price. If the market price ever drops to the price of your buy order, somebody will accept your buy order and sell to you. A limit order can be used to achieve a better price than a market order, but there is no guarantee that they will ever be filled. For example, if you think $11,000 is too high for bitcoin so you set a buy limit at $10,000, and bitcoin never drops to $10,000, your buy order will stay active until you cancel it. When you have an active order, those funds are no longer available to you until the order fills or until you cancel the order. If you want to make a new trade using a coin that is already part of an existing order, you will have to cancel the order in order to trade the coin. A coin can only be in one place at a time. To cancel an order, go to the “Orders” tab on the top right of the website, go to the “Open Orders” drop down, find the order you want to cancel, and click cancel.
A stop limit is the most confusing of the three orders and is most commonly used to stop or cut off a loss. One places a sell stop limit order if they think the price will go down and a buy stop limit order if they think the price will go up. A stop-limit order is a limit order that you would place in the future if a certain price is triggered. A stop-limit lets you create a limit order once a certain price is breached. Lets say Bitcoin is at $11,000. If you think it is possible it could quickly crash to $7,000, you could tell Binance that once the price breaches $8,000, to automatically set a sell limit at $7,900, which would save you $900 if it actually crashed to $7,000. However, if the market was crashing that rapidly, it is possible that somebody could undercut your $7,900 and your order would not be bought. This is only a concern when dealing with large amounts of money because small orders would most likely get filled before getting undercut. This is different than setting a normal sell limit because if you were to set a sell order at $7,900 if the market price was at $11,000, somebody would buy your order immediately. In the event described above you would set a stop at $8,000, set the limit order to $7,900, and then set the amount at whatever quantity you would want to sell at that price.
How do I see my funds?
Go to the “Funds” tab on the top right of the website and click “Balances”.