Introduction to Binance: Everything You Need to Know

Carson O.
10 Min Read

You are new to Binance and don’t know where to start?

Worry not!

I’ve been there too. This blog post will take you through the Binance landscape, ensuring that you have understood how this cryptocurrency exchange works, and how you can manoeuvre through it.

Let’s dive in…

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What is Binance?

Binance is a cryptocurrency exchange that was founded in 2017 by Changpeng Zhao. It is by far, the largest cryptocurrency exchange in the world by trading volume.

Note, however, that Binance has some restrictions in countries such as the USA, thus somewhat limiting its potential. Consequently, Coinbase is the leading exchange platform in the US.

Binance offers a variety of features, including spot trading, margin trading, futures trading, and staking. It also has its cryptocurrency, Binance Coin (BNB).

We will delve into this later on in this post.

If you are a beginner in cryptocurrency, Binance has a friendly user interface that makes it easy to learn and manoeuvre.

Take Focus…

How to Create a Binance Account

Creating a Binance account is a relatively easy task. First things first, you will need to download the application from Google Playstore or Apple’s App Store. Once you’ve done that, follow the steps detailed below.

  1. Launch your Binance application and you will be prompted to either sign in to an existing account or register a new one. Select the latter.
  2. Select ‘Sign In’ with your Google account. This is the most recommended method as it makes it easy to recover your account in case you forget your password or if your account is compromised. You can also use your phone number.
  3. Verify your email address or phone number.
  4. Complete your identity verification – This involves scanning legal documents i.e., National ID or Passport and scanning your phase to prove your humanity.
  5. Wait for approval of the application, which typically takes 5-15 minutes.
  6. Congratulations! You have successfully created your Binance account!

Can you create a Binance account with your PC?

Yes, you can! Creating the account will follow the same procedure as the one mentioned above. You just have to navigate to binance.com to register. 

The Binance Landscape

binance landscape
The Binance Landscape

Now that we have a fully registered and verified Binance account, it’s time to grasp the landscape. First things first;

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Navigate to the top right corner of the app, and select the icon shown below. After that, select “Binance Pro” to enable the professional user interface.

After that, go back to the homepage and use the key we have made below to understand the different icons and what they mean.

How to Deposit, Buy or Sell Cryptocurrency in Binance

1. Peer-to-Peer Transfer Method

To buy cryptocurrency on Binance, say bitcoins, you will need to do this either via P2P or via bank transfer. To do this, use the Binance landscape image we designed earlier on. 

Click on P2P and you will be directed to a P2P (peer-to-peer) marketplace where you will buy your preferred cryptocurrency by sending money to the seller after they confirm that they have received the money, they will then release cryptocurrency equivalent to the money you sent.

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This is a relatively straightforward procedure. Nevertheless, here is the step-by-step procedure.

  1. Enable P2P trading – Navigate to the trade section and activate P2P
  2. Make sure the “buy” option is selected. This is at the top of the page.
  3. Choose a crypto asset to trade i.e., USDT, bitcoin, Ethereum, Solana etc.
  4. Scroll downwards and select which buyer you want to deal with. Click Buy
  5. Choose between *fiat and crypto. Fiat refers to currency like USD, Euros, Pounds etc. Choose any depending on your preference.
  6. Enter the amount of crypto or fiat equivalent to the crypto you want to buy.
  7. Select buy and you will be directed to the payment page.
  8. Pay the seller using the agreed payment method i.e., M-Pesa, Wire transfer, etc.
  9. Once the seller has received payment, they will release the crypto to your Binance account.

To sell crypto, proceed with the following steps;

  1. Enable P2P trading – Navigate to the trade section and activate P2P
  2. Make sure the “Sell” option is selected. Set this at the top of the application page.
  3. You will see a list of potential buyers, all with different pricing. Take keen note here and select the buyer whose terms you agree with. Terms include the minimum amount of cryptocurrency they are willing to buy per transaction.
  4. Click “sell” to place an order.
  5. Wait for the buyer to transfer payment to your payment-receiving account.
  6. Log in to your payment account to confirm that the payment has indeed been received.
  7. Click on Payment received in the Binance app and release crypto to the buyer.

Remember: Do not transfer crypto until you have verified that fiat money has been received in your account, e.g., M-Pesa or Bank Account. Further, never trust anyone who claims to be a Binance employee or anyone who asks you to release crypto before proper verification.

2. Bank Transfer Method of depositing fiat for crypto

  1. Navigate to “buy with Kes”
  2. Select Credit/Debit Card Deposit
  3. Enter Deposit Amount
  4. Verify Your Identity and provide card details. Note that the card name and other details must be similar to the registration information on your Binance account.
  5. Review the deposit details, including fees and exchange rates.
  6. Verify and complete transaction – Some transactions might require additional security steps, such as two-factor authentication (2FA) or a verification code sent to your mobile device.

3. Deposit Crypto via Wallet Address

  1. In your Binance, click on the “Wallet” tab.
  2. Select the “Fiat and Spot” tab.
  3. Click on the “Deposit” button.
  4. Select the cryptocurrency you want to deposit.
  5. Copy the deposit address.
  6. Go to the wallet where you are storing your crypto and paste the deposit address.
  7. Send the crypto to the address.
  8. Viola! Your crypto will be deposited.

Different wallets in Binance and what they do!

When you navigate to the wallets section in your Binance account, you will notice that there are five or more different wallets that you have, depending on which ones you have activated. Nevertheless, their default wallets are:

  • Overview – This will show the sum of all your crypto and tokens in all your wallets in Binance.
  • Funding Wallet – This is where you deposit crypto when you want to either trade or transact via bank transfer or P2P.
  • Spot wallet – This one is used to store cryptocurrencies that you are not actively trading.
  • Futures Wallet – This wallet is used for futures trading. When your futures trade, you bet on the future price of a cryptocurrency.
  • Margin Wallet – This wallet is used for margin trading. When you margin trade, you borrow money from Binance to buy more cryptocurrency. This concept is similar to leverage in forex.
  • DeFi (Decentralized Finance) wallet – DeFi applications allow you to lend, borrow, and earn interest on your cryptocurrency. For instance, check out BAKE DeFi.

Note that you can also create custom wallets for specific cryptocurrencies or tokens. For example, you could create a wallet for your Bitcoin or Ethereum holdings. Such wallets include:

  1. Optimism wallets for World Coin transactions
  2. BNB Smart Chain (BEP20)
  3. Tron TRC20
  4. Bitcoin used for the transfer of bitcoins
  5. BNB Beacon Chain (BEP2)
  6. BTC(SegWit)
  7. Ethereum (ER20)
  8. Lightning Network
  9. AVAX C-Chain
  10. Polygon etc…

Wrapping Up!

This is all we had planned for this short introduction to the Binance Crypto exchange platform. For more in-depth information, visit the Binance official tutorial page here.

Feel free to ask any related questions in the comment sections below.

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I am a multi-faceted professional with a strong foundation in Business and Finance, honed since 2020. Additionally, I possess a deep passion for automobiles, serving as an avid car enthusiast. In parallel to my diverse interests, I am also a dedicated student pursuing a career in the medical field.
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