Nate has a degree in Finance and is an investor in OTC, Crypto, and NASDAQ related investments.
What Is Binance?
Binance is a cryptocurrency exchange that was created in China and later moved to Japan, which utilizes crypto-for-crypto trading. Binance is one of the top-rated and most widely used exchanges for altcoin (coins other that BTC) trading. The exchange offers a large variety of cryptocurrencies that can be traded allowing investors to invest in coins outside of the four coins offered by Coinbase (BTC, LTC, ETH, BCH).
Necessities for Setting Up a Binance Account
The things you will need to have are:
- Google Authenticator
- Coinbase Account
The use of your email is a given, but Google Authenticator is used to be sure you are the only one logging into your account. Google Authenticator is a type of two-factor authentication method that is constantly changing the code to gain access to the account. So, only the owner of the Google Authenticator account will know the current code. This is an awesome security feature of Binance that gives it an edge over most altcoin exchanges. You will need a Coinbase account in order to exchange your fiat currency for the cryptocurrency needed to trade on the exchange.
Setting Up Your Binance Account
The first step to setting up your Binance account, is to make sure you have a Coinbase account. As discussed above, Binance does not allow you to trade using fiat currencies, only certain cryptocurrencies. In order to trade on Binance you must first purchase cryptocurrency on Coinbase then transfer the coin to Binance.
Once you are ready to create a Binance account, you must go to their website and click register in the top right. It will ask you for basic personal information. Once you enter your information your account will go active, but before you begin transferring any currency to the exchange be sure to activate the two-factor authentication. This will turn on the Google Authenticator feature we discussed above ensuring your account is secure. If you do not activate this feature your account is very vulnerable to theives, so be sure to do so.
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Trading on Binance
Once you have your account set up you can begin transferring cryptocurrency from your Coinbase account to Binance (in this example we will use BTC). To do this you must copy the deposit address of your Binance BTC wallet to your clipboard, then go to Coinbase and click the transfer button of your BTC wallet. Once you decide how much BTC you would like to send you must paste the Binance BTC deposit address you copied earlier here.
Be sure you do not mix up addresses or copy the wrong address.
If you do you will lose all the BTC you tried to transfer and there is no getting it back. Once you are sure the addresses are correct you can now send your coins to Binance. The transfer process can take a while depending on the coin you are sending so don't panic if it is not instant. A way you can check this progress is to watch the Coinbase verification process. Once it is verified on Coinbase it will appear in your deposit history on Binance where Binance will also have to verify the transaction.
Once the transfer process is complete you will be able to trade your BTC with any coin that Binance has it paired with. If you want to convert back to fiat currency, you just do this process in reverse, so copy the deposit address from the Coinbase wallet into Binance. You must be sure that you are converted back into a coin the Coinbase accepts, so BTC in this case. If you traded your BTC for an altcoin and try to transfer it to Coinbase it will not work and you will lose your coins.
Why Create a Binance Account?
Binance allows you to trade many more altcoin options than Coinbase offers. If you would like access to more investment opportunities, Binance gives you the ability to do so. Also, because Binance is one of the most popular altcoin exchanges, it provides more liquidity for traders, so they are not stuck in a trade which is a big problem for a lot of smaller exchanges. Binance also offers a mobile app available in most app stores allowing you to manage your trades while mobile.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2018 Nate Robbins
Alexander James Guckenberger from Maryland, United States of America on July 17, 2018:
I might set up an account with them at some point. :)