How to buy and sell on Binance for Beginners

How to buy and sell on Binance for those who are new to the crypto market. This article is not meant to advise you on investing in cryptocurrencies, you are solely responsible for participating in this market. All information in the article is informative for your reference.

How to buy and sell crypto on Binance for Beginners

1 – Sign up for a Binance account

If you do not know how to register an account on the binance exchange and how to verify your KYC identity, please see this article.

>> How to create a Binance account and how to trade Bitcoin

Or you can sign up quickly through binance.com

2 – Things to know before buying and selling on Binance

Before trading crypto, you need to meet the following conditions:

You have a bank account or visa / mastercard registered in your own name.

Your binance account has 2FA (2 layers) security set up and KYC identity verified.

View more:

>> How to verify a successful Binance account
>> How to set up 2FA on Binance safely to trade crypto

One more thing you should note before buying and selling on Binance, you should see if binance has system maintenance notice. If so, please look at the detailed maintenance intervals to avoid transactions within those timeframes. Because your transaction processing will be processed more slowly than usual.

How to buy and sell crypto on Binance for Beginners

3 – Learn the terminology of buying and selling on Binance

3.1 – Distinguish transactions Spot, Margin, Futures

A.Spot

Spot trading means you buy Crypto on Binance at a low price and hold until it rises in price to take profit or decrease the price and cut loss.
Take profit example:
You buy 1 BTC at $ 40,000 when BTC price increases to $ 50,000, you sell. At this point you profit 10,000$.
Stop Loss Example:
You buy 1 BTC at $ 40,000 when BTC falls in price to $ 39,000, you sell. Now you lose $ 1000.
In case if you bought BTC at a time when the price was too high then the price dropped, you would swing to the top and have to wait until the price of BTC rises again to sell or you can cut loss.

So when you understand the buying and selling on Binance will help you maximize your profits

B.Margin

Margin trading means you will be leveraged x3 or x10 times the exchange’s loan amount.

The example below makes it easy for you to understand:

1. You buy 1BTC at the price of 40,000 $.

2. You use x3 margin leverage, you will be able to borrow $ 80,000 from the floor.

3. The price of 1BTC increased to $ 50,000.

4. You sold $ 150,000.

5. You return the exchange $ 80,000.

6. Get a profit of $ 30,000 ($ 150,000 – $ 80,000 of the exchange’s loan – $ 40,000 of your principal).

Conversely, if the price of 1BTC drops to $ 39,000, you will lose money and lose all your money.

C.Futures

How to buy and sell crypto on Binance for Beginners

Futures Trading means that will be leveraged up to x125, you can make a profit even when the BTC market price goes up or down by guessing the future price of 1 cryptocurrency. Helping buying and selling on Binance achieve high profits.

This Futures Trading is more confusing than the two types of transactions that cryptocurrencyin4.com just mentioned above. To explain this term Futures trading, perhaps cryptocurrencyin4.com see you for another article.

For those who are new to joining, do not have much trading experience, it is not advisable to trade with this form of Futures. Because the risk is very high, if you are not familiar with it.

3.2 – Distinguish Limit, Market, Stop-limit, OCO

When you have understood the above trading terms, now cryptocurrencyin4.com will explain to you to distinguish between 3 orders Limit, Market, Stop-limit and OCO. Differentiating the orders will make buying and selling on Binance easier.

A. Limit orderHow to buy and sell crypto on Binance for Beginners

Limit order has the function to help you to limit the buying price or selling price according to your wishes.

The example is as follows:

1.1BTC is currently priced at 40,000 USDT.

2.You predict 1BTC will increase by 50,000 USDT.

3. You place order limit 50,000 USDT.

Wait until 1BTC increases to 50,000 USDT your order is matched and you successfully sell BTC.

How to buy and sell crypto on Binance for Beginners

B. Market order

With this market order, when you buy and sell cryptocurrencies on binance, it will be priced according to the market regulations. Which means that the market price of the cryptocurrency is, you will buy or sell at that price. When you use this market order, the order will be executed immediately.

How to buy and sell crypto on Binance for Beginners

C. Stop-limit order

Stop-limit order (Stop loss) is a combination of Limit and Market orders. You can use this order to take profit or stop loss.

Take profit example:

1. The current price of 1BTC is 40,000 USDT.

2. You predict an increase of 50,000 USDT.

3. You place a Stop-limit order with the following conditions:

3.1. If 1BTC raises 50,000 USDT (Stop)

3.2. Then automatically sell 1BTC for 49,000 USDT (Limit)

4. When 1BTC increases 50,000 USDT, the order is matched and you successfully take profit.

Stop – Limit order makes buying and selling on Binance easier and easier to understand.

Stop loss example:

1. Current BTC price is 40,000 USDT.

2. You expect a drop to 30,000 USDT.

3. You place a Stop-limit order with the following conditions:

3.1. If BTC drops 30,000 USDT (Stop).

3.2. Then automatically sell 1BTC for 29,000 USDT (limit).

4. When 1BTC drops to 30,000 USDT, the order is executed and you successfully cut your loss.

How to buy and sell crypto on Binance for Beginners

D. OCO order

OCO order is an order combining Limit and Stop-limit orders. When 1 of 2 orders is activated, the other will be automatically canceled. As such, it will help you reduce the risk of buying and selling on Binance.

Buy order example:

1. The current price of 1BTC is 40,000 USDT.

2. You expect the price to drop by 30,000 USDT.

3. You place a buy order if BTC falls 30,000 USDT.

4. At the same time, you anticipate that BTC rises above the threshold> 50,000 USDT (stop).

5. You place an order to buy 1BTC at the price of 50,050 USDT.

Sell order example:

1. Currently the price of 1BTC is 40,000 USDT.

2. You predict 1BTC will increase 50,000 USDT.

3. You place a limit order to buy BTC if you increase 50,000 USDT.

4. At the same time you anticipate BTC falling more than <30,000 USDT (stop).

5. You place a sell order at 29,000 USDT.

How to buy and sell crypto on Binance for Beginners

3.3 – What are the trading order?

Trading order means manipulating you to place Limit, market, Stop-limit, OCO orders to buy or sell crypto on an exchange.

3.4 – What is a trading pair?

Trading pair means that you will use 1 cryptocurrency to trade to buy or sell with another cryptocurrency.

For example:

BTC / USDT trading pair, which means you use USDT to buy BTC.

Or you can sell BTC for USDT.

4 – Distinguish Bitcoin, AltCoin, StableCoin

A. What’s a Bitcoin?

Bitcoin denoted BTC is the first decentralized cryptocurrency invented by Satoshi Nakamoto in 2009.

B. what’s a Altcoin?

Altcoin is the generic name for cryptocurrencies other than bitcoin. For example, the Litecoin, Dogecoin, … will be called AltCoin.

C. What’s a StableCoin?

StableCoin is a cryptocurrency that is priced according to the value of a certain type of asset such as traditional paper money, gold, silver, …

The purpose of StableCoin’s emergence is to reduce volatility in value.

For example, the cryptocurrency USDT will be listed according to the value of USD.

5 – Instructions to top up USDT to buy AltCoin in 2 ways

To be able to buy other altcoins, you have to buy USDT first, then use this coin to buy other altcoins. Or you can also buy BUSD, which is issued by Binance exchange, to help reduce transaction costs for you.

5.1 – Option 1: Buy USDT with P2P transaction

To buy Crypto with P2P transaction forms, you first need to add a bank account card.

Note: You must use a bank card registered with your own name in the account you choose to “Security”.

You operate in the order as shown below:

1. Choose “payment”.

2. Select “P2P account”.

3. Select “add a payment method”.

4. Select “bank transfer”.

Next, you enter your bank account information then click “confirm”.

After you have finished adding your bank account you now choose to go to “Buy Crypto” -> “P2P transactions”.

Now execute the operation in the order shown below:

1. Select “Buy”.

2. Choose the type of Crypto you want to buy, normally you should choose “USDT”.

3.Select the currency by country.

4.Select the right payment limit.

5. Select the button “Buy” corresponding to the seller.

Transfer money according to the information on the screen and then press the button “transferred, next”.

Note: Remember to take a photo of your transfer proof and send it to the merchant’s chat box to make the transaction confirmation process faster.

After the process is completed you will receive a USDT number from the seller.

5.2. Option 2: Buy USDT with visa / mastercard

To be able to buy USDT with a visa / mastercard you select “Buy Crypto” -> “credit / debit card”.

You enter the amount to buy and choose the currency of USDT or BUSD -> press the button “Buy”.

Next step you fill in the information of your visa / mastercard and 3DS verification to complete.

6 – Instructions for using USDT to buy AltCoin

When you have USDT so now you will use this agreement to purchase the other altcoin by selecting the “Transaction” -> “Advanced”.

Now, follow the steps shown below.

1. Click the down arrow icon.

2. Enter to find the crypto name you want to buy.

3. Select trading pair as * Crypto * / USDT or * Crypto * / BUSD.

4. Choose the trade type as Spot or Margin leverage. If you are “Newbie” then you should choose “Spot”.

5. Select “Buy”.

6. Choose Limit, Market, Stop-Limit, OCO trading orders. If you want to buy now, you should choose the order “Market”.

7. Enter the quantity you want to buy.

8. Click “Buy …”.

buy eth by usdt binance

So you have already bought crypto.

7 – Guide to sell crypto to withdraw money to the bank

Above Cryptocurrencyin4.com has instructed you how to buy crypto, but if you want to sell crypto to withdraw money to your bank account, please see the tutorial below.

>> How to withdraw money from binance to bank account

8 – Conclusion

ok, so cryptocurrencyin4.com has completed guider how to buy and sell on Binance for newbies. Hope you will practice successfully!

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