A step-by-step guide on how to buy cryptocurrency on Binance exchange.
Cryptocurrency is a growing industry. I2021 was a breakthrough year for this field. Crypto investments are increasing around the world. The industry is also creating new technologies such as Metaverse, NFTs, and Web 3.0. Crypto has helped people earn via trading and holding.
Despite the sporadic growth, crypto remains the wild wild west of the internet. Digital assets are not like your usual fiat investments. No central bank or institute is heading over all the operations. Therefore, if you do something wrong or send money to the wrong person then there is not much that can be done. You can’t call any helpline or emergency number. While as scary as it may sound, you can be safe by following some smart strategies to buy cryptocurrency.
There are certain ground rules when it comes to investing in crypto.
Rule #1 Never Invest More than You Can Afford to Lose
The Crypto market is extremely volatile. It has a propensity to crash within hours. So if you want to remain safe then don’t overinvest. Higher risk can no doubt bring higher rewards. However, the global and 24/7 nature of crypto will make your life miserable if you are not investing wisely. Make an affordable investment and step by step climb the ladder.
Rule #2 Use Services of a Well Reputed Broker/Exchange
Crypto exchanges are one of the easiest and fastest gateways to buy cryptocurrency. Nevertheless, exchange frauds have also been common in the past. You need to be extra careful when accessing an exchange. Research the history of exchange, read reviews, and understand its security system before making any purchases.
Also Read: Best Cryptocurrency Exchnages for 2021
It is important to type the right URL and land on the correct website. Internet is full of impostor sites. They look just like the real site. Hence, carefully look at the letters of the URL. You can also bookmark the site for future visits.
Rule # 3 Use Complex Password and Keep them Secure
Your only safeguard on the internet is a password. Your password protects your information from getting leaked or going into the wrong hands. But passwords can be stolen or cracked. Therefore, you need to use a strong password and keep it safe in your diary or any other piece of paper.
A strong password is a combination of numbers, letters, capitalization, and special characters. Never save your password on the device or browser. Passwords saved on the device are vulnerable to attacks. Therefore, typing them manually will keep you safe.
Buy your First Crypto in 3 Easy Steps
Now let’s jump right in and see how you can buy cryptocurrency in 3 Easy Steps. First, you need to create an account.
1. Create an Account on Crypto Exchange:
For this guide, we will create an account on Binance Exchange. Binance is the best cryptocurrency exchange with the highest trading volume.
Step 1 Setting Up Your Account
Go to the cryptocurrency exchange of your choice. Let’s land on binance.com. In the upper right corner click on the button ‘Register’.
The site will ask you to select the country of your residence.
After choosing the right country, head on to create a personal account.
Step 2 Email and Phone Verification
For preliminary verification on Binance exchange users need to verify their Email address and phone number.
You will receive a verification code on your registered phone number and email address. Please enter the number that you have in use because you need to enter a verification code every time you log in or do a transaction.
Step 3 Identity Verification
Once you have created your account go to the log in button and open the interface. You can log in using your email or your phone.
Click on your profile icon and select identification from your drop-down menu.
To complete intermediate verification, you need to provide your personal information which includes:
- First Name
- Last Name
- Date of Birth
After entering the info you need to upload the picture of the identification document from front and back. Make sure that the info on the id document matches the one you provided earlier. Following documents are accepted in this field:
- Government Issued ID Card
- Driver’s License
Finally, you have to prove that you are the same person so take a selfie to confirm your identity.
Step 4 Advanced Verification
In many countries, advanced verification is a necessary step for starting trading. However, it is good to get it done even if you don’t necessarily have to. For advance verification, you need to upload a Bank Statement or Utility Bill that has the same address as your ID document. This confirms that you live in that place.
Your deposit and withdrawal limit increases up to $200K with full verification.
2. Funding Your Crypto Wallet
Once you have created an account on the Exchange, you are now in possession of an exchange wallet. The exchange wallet is a hot wallet. You can actively do trading via this wallet. But first, you need to top up your account with crypto.
There are four different methods of funding your account.
Binance charges a small fee for crypto purchases. However, there is no fee for P2P or peer-to-peer buying. Here is how P2P funding works.
Step 1 Choose the Seller
Head over to the P2P page and select the currency you want to buy. It is recommended to buy a stablecoin like USDT first. Every coin has a pair with stablecoins. So, you can, later on, buy a coin of your own choice.
After choosing the coins select your currency, payment method, and amount of money against which you want to make the purchase.
You can select the trader with high order completion rate and click on the buy USDT button.
Step 2 Transfer the Money:
On the order page, you will see the timer at the top. You have to pay the money in 15 minutes and notify the seller. Make the transaction on the given account number, take a screenshot and click the ‘transferred’ button. You can also send the screenshot to the seller via chatbox.
Once you notify the seller then the ball is in his court. He needs to release the crypto.
In P2P trading, fraud is very rare occurring. Binance makes sure that payment is released. If the seller fails to do so then you have a right to file a complaint.
Step 3 Transfer Funds to Spot Wallet
Transfer your funds from funding wallet to spot wallet so that you can start trading. Click on the wallet button in the top right corner of your dashboard. Click the funding wallet option.
In the funding wallet, you have all the money you just bought. You can now transfer it to the spot wallet by clicking on the ‘Transfer’ button and entering the details of the transaction.
3. Starting the Trading:
Now that you have crypto in your wallet, it is time to buy cryptocurrency and start trading it. You can go to ‘Trade’section from the bar and click the ‘Classic’ section.
Classic trading allows you to easily trade different cryptocurrency pairs. You can place an order and as soon as the price hits the target, your order is executed.
The sell order for spot trading can also be placed on the same screen.
Binance has real-time trading charts and order books available on its website. You can read charts and do your technical analysis before making any purchase.
Digital assets trading is made easier with hundred of online exchanges around the globe. You can buy and sell crypto 24/7. However, while buying crypto keep 2 things in mind:
- Select a Secure Exchange
- Do your Own Research
Prioritizing your safety will help you relieve your mind. You will no longer be worried about getting scammed. Moreover, the coin investment should also be only your discretion. Therefore, it is important to choose a well-reputed exchange like Binance or Coinbase.