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How to trade cryptocurrencies on Binance? (Complete guide)

Free Complete Cryptocurrency Course

Now, once you opened an account and learned how to secure it and deposit coins to the exchange, it is time to learn how to buy and sell on Binance. 

One of the essential parts of the exchange has to be the trading platform.

Trading means buying and selling.

So, from now, instead of using two words, to express buying and selling, we will use trading. 

Not only in the currency world but in the real world.

To buy an apple, you trade money for an apple. You trade one good for another.

When it comes to Binance, it is well known for having one of the most efficient trade matching engines on the market.

Their matching engine can sustain a rate of 1.4m orders per second.

This means that even in periods of market strain, orders will still be executed.

The platform is technically powerful and highly functional, but it is also easy to use for those new to trading who merely want to buy or sell coins.

Binance has developed two different user platforms, basic and advanced platform.

The main difference between these two, apart from design, is the fact that advanced platform gives you more space for charting and allows you using more indicators.

Later on, in the trading course, you will see why this is totally unnecessary and why using basic one is more than enough, not only for beginners but for everyone.

Long story short, an exchange should be used as a platform to buy or sell your coins, not to do charting there.

Charting is done on special platforms that are used only for that and because of that they are made to be user-friendly so charting on them is very easy even for beginners. 

How does basic platform look like?

On the left, you have order books where you can see orders from other traders.

Red orders are the price they want to sell at while buy orders are the price they want to buy at.

There are two ways to buy coins. 

Below the chart, you have the buy and sell options.

As we said, there are two ways to buy and sell coins.

First one is by using the limit order and the second one is by using the market order.

How to buy using limit and market orders?

If you want to buy using the limit order, you place an order below the current price so if the price drops to your order and fills, you will buy the particular coin.

On the other side, someone won’t wait for the market to drop a little bit and he will want to buy automatically.

To do that, you place the market order.

The order will be filled automatically at the current price. 

How to sell using limit and market orders?

You also have two option.

One way is by placing a limit order at a higher price than the current one.

If the price reaches your order price, it will be filled and your coins will be sold.

The second option is by using market order that will automatically sell your coins at the current price. 

Binance is no doubt quite an impressive exchange.

Not only do they have one of the largest selections of coins to buy, but they are also the largest exchange by reported volume.

Moreover, they are well regarded in the cryptocurrency community for professionalism and security.

While hackers have tried on countless occasions to breach their systems, they have remained one step ahead.

The fact that they went from a startup in early 2017 to becoming biggest exchange in late 2018 by outperforming exchanges that were in the market for years before Binance is big enough to believe in the team and project behind this crypto exchange. 

 

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