What is Binance?
Binance is an exchange service that lets you buy or sell cryptocurrency. It is one of the largest exchanges on the market currently. Binance deals in more than 400 cryptocurrencies. You can trade in currencies like Ethereum, dogecoin, bitcoin, etc. Binance also launched his crypto called Binance coin.
It started in China but now has moved to Europe because China has rigid regulations. You can find most of the cryptocurrencies on this platform.
Binance is famous for its high security that assures safety for the users. According to statistics, in a second, it can process over a million orders. Binance provides all the necessary services and at a high speed. If you are willing to launch your tokens, Binance also provides that service which can be done by initial coin offerings.
Binance also provides safety by giving the option of two-factor authentication. It provides several options for payment so you are not limited. There is a special service used for the safety of the users, however, binance is not very transparent about their safety.
How to Trade on Binance?
Binance trades in more than 400 cryptocurrencies and it is also considered as one of the safest platforms. To trade in binance you have to follow these steps-
Create your account – first, you will need to create your account, you can create your account using the app or the website then enter your details. You will also have to process KYC to increase the limit on your funds.
Binance wallet – after providing the required information, you can transfer your crypto or funds into the Binance wallet. binance wallet does not hold crypto, they just help in sending and receiving your crypto.
All the personal data is encrypted and is not enclosed. if you do not wish to use a wallet, you can also use your credit cards and debit cards. There is some fee charged for using credit or debit cards for trading.
Buy/sell- Now, you have completed your profile and adding funds you can start trading. You can buy or sell your desired crypto without any fee.
Learn How to Short on Binance
Crypto is a very volatile market. You can buy crypto and can get a higher value and sometimes a lower value. Shorting is when you buy crypto for a lower price but sell it for higher but still is difficult to predict. To further understand shorting, here is an example –
Imagine you want to buy a bitcoin and the value of 1 bitcoin is $13,000. You borrow a bitcoin from someone and sell it for $13,000. Now you can just wait and predict if the value will go high or low.
Fortunately, the market price goes low and you buy the bitcoin back at $11,000. So, now you have made a profit of $2000. However, this whole process of buying lower but selling high is risky because crypto is a volatile market and difficult to predict.
The following steps will help you short crypto on binance,
If you have not created your account on binance, you can start by doing that. It requires some of your contact details and some personal information. You can also complete your KYC if you want to raise the limit of transactions.
On Binance there are many options if you want to short. One of the examples is Binance margin trading. In this method, rather than using your funds you use funds of other parties. It gives you three options to choose from.
Let’s say we use the cross-margin option, your entire balance is spread across to prevent liquidation. this is a riskier option.
If you are a beginner, the safer option would be an isolated margin. Where instead of your margin being spread all over, it is in a single position. This has lower risks.
Trading Through p2p on Binance
P2P trading is done between people to sell or buy crypto. Binance is one of the best platforms if you are looking for p2p trading. It provides services that are required for this purpose. you can buy or sell crypto using p2p by following these steps –
• You would have to create an account on binance and go to the p2p option.
• Register with your details.
• The platform will ask for identity verification. Also, add your mode of payment.
• Now you can proceed with buying your preferred crypto then add and verify your payment method.
• Your crypto will show up in a couple of minutes. You can access it from your account.
• For selling, you can choose the crypto you want to sell and enter your offer amount. Click the sell button and the fiat amount will show up in your account.
Benefits of p2p Trading
One of the benefits of p2p trading is no fees. You do not have to pay any charge for trading p2p on binance. No deductions will be made in your balance. You can set your margins when you want to sell your funds.
It is used internationally so you can get the best options and offers for your funds. You can also just buy p2p and not sell. It is a good investment and you can sell later when you get a better value. Holding your p2p also involves some risks. The value can decrease but there are good chances that you will get a fairly good return.
Binance has Several payment options for trading. So, you are not forced to use the wallet. There is no shortage of trading, you can liquidate a lot of cryptos using p2p. It is also very safe and highly regulated to avoid scams and the transactions are done smoothly.
Is it Safe to Use a Credit Card on Binance?
Some other platforms have stopped allowing credit cards on their platforms due to high risks. Does Binance accept credit cards?
Yes, Binance allows its users to use credit cards for trading. To avoid, bigger scams Binance sets a limit for the tokens and crypto you can buy using credit cards.
They partnered with a company called simplex to provide this service but Simplex is not available everywhere. If you want to use a credit card, there is a fee charged of about 3.5% and it takes about 20 minutes to process your transactions.
So, the answer to “does Binance accept credit cards” is more complicated than you think. Currently, users find fiat currency easier and more convenient to use. You can use your credit card by going to the add payment method and entering your card information there. Visa and Mastercard are more commonly used.
What is Staking and How is it Used?
Staking is a method that involves locking or holding your funds and you can earn money by holding your funds. This is a fairly less risky investment.
Different blockchains provide different privileges and rewards. It can be explained by using the term “interest” if we take out a loan, we require to pay an interest amount for the money we are holding.
Similar to that it is a good way to get money. When you mine crypto, you need equipment and skills but staking all of that is unnecessary. It is also an eco-friendlier option. You can earn a good amount of interest but it does come with its risks.
What are the Risks of Staking?
The crypto market is very volatile. The prices can drop at any time and you can lose a large amount of money. Due to the wild speculation of the crypto market, it is risky.
Once you lock your funds, you cannot sell them or use them in any way. It will just sit for a limited time. You cannot trade when your funds are staked.
Benefits of Binance
Binance offers no-fee transactions or low fee transactions which makes it easy to use. If you are a beginner, you will be able to learn buying and selling in no time.
Does Binance accept credit cards? Yes, it does which is another perk. Many exchange platforms do not support credit cards. It is still developing and a fee is charged for this service.
If you use the Binance coin, you will also get a good discount on the trading fee. there are more than 400 currencies available on binance so you can choose your desired option and start trading.
You can earn some rewards if you stake your funds. It supports blockchain and so it is promoted by exchanges. You can get a good amount of interest by staking.
It does not matter if you are a beginner or an expert. Binance caters to a wide range of audiences which makes it more convenient to use.
There is an option for two-factor authentication available which helps in securing your account. Virtual platforms and exchanges are easier but at the same time, there are some risks involved so, you must keep your account as safe as possible.