How to

Binance Exchange: Bitcoin and Cryptocurrency Trading with Futures and Leverage

Binance Exchange allows you to exchange or trade Bitcoin and crypto assets. With one of the most extensive catalogs of cryptocurrencies and tokens in the industry, this branch of the Binance services conglomerate is one of the most used in the world.

The special thing about Binance Exchange is that the level of “trading” you do can be divided into scales. Ranging from the most basic, focused on simply exchanging bitcoins or cryptocurrencies, to the advanced one that offers you all the tools you might need as a professional trader.

Likewise, in addition to trading levels, one of the a new form of exchange is the P2P market, which is available for Latin America. There you can buy and sell bitcoins or cryptocurrencies directly in your local currency.

Cryptocurrencies and Tokens on Binance

First of all, it should be noted that Binance is currently the largest exchange, not only in terms of trading volume, but also in terms of the number of listed cryptocurrencies and tokens. Within this platform you will have no less than 400 pairs to exchange. Of course, this is in terms of crypto assets, because if we include in the list the national currencies managed by Binance P2P, the list is much wider.

You can see part of the list of active exchange Binance here.

Likewise, there is a specialized service within Binance Launchpad, which helps people and companies launch their own tokens within the Binance Exchange platform. This means that the financial instruments available here are growing every day.

Also, Binance integrates its own cryptocurrency called Binance Coin. This can be traded within the platform and offers certain benefits when used, such as reduced exchange fees.

Ways to exchange or trade on Binance

Easy Trade

Trades are made with your Binance account balance. Trading from external cryptocurrency wallets is not possible. Source: Binance.

The first of all types of exchange is called easy exchange or easy trade. This is quite similar to portals like ShapeShift or Changelly, which focuses on mere exchangewithout displaying any kind of chart or any other trading tool.

Inside Trade Facil, the only thing you have to enter is the cryptocurrencies to exchange along with the amount and that’s it, you can make the exchange.

The process, although it takes place in a very simple way, internally in more technical terms, the market order is executed at the market price.

Medium and advanced trade

This is the new advanced trading interface of Binance Exchange. If you want to access the old one, you can click on the ‘Old Website’ option. Source: Binance.

Within Binance Exchange, you will encounter two types of interfaces for experienced Bitcoin and cryptocurrency traders when trading: intermedia and advanced. The differences are more pronounced from a visual point of view because the organization of the design varies, while the boxes and tools remain the same. That’s why we decided to merge them into one section.

Likewise, in this type of exchange you will find everything you need for professional trading: charts, indicators, levers, order book, among others.

The charts are provided by Binance itself. However, you have the option to view them from within TradingView.

The orders you can execute within the expert trading interface are:

  • Limit: Where you set the price at which you want to buy and it is executed only when that price is reached.
  • Market: The order is executed at the market price, so you only need to set the amount of funds to buy.
  • Stop-Limit: It is a type of limit order (in which you set the price at which you want to buy or sell) that is placed in the order book only when a certain price, or Stop price, is reached. The latter will be above or below the limit price depending on whether it is a buy or sell order.
  • OCO (One Cancels Another): These are two limit orders that are placed simultaneously and when one of them is executed, the other is automatically canceled.

Among the charting tools you will have, apart from the basic ones such as horizontal line drawing and Fibonacci retracement, there are 18 indicators available for application within the charts provided by Binance. On the other hand, if you use TradingView charts, you will be able to apply all the tools that this analysis platform provides.

Binance Margin Trading with Bitcoin and Cryptocurrencies

The Spot option means that you will net trade your equity within Binance. Source: Binance.

He margin trading o Leverage trading is available within Binance. This is divided into two types: crossed (crossed) and isolated (isolated) and have well-defined differences. The first difference is that cross-margining is managed with one account for all instruments where you can use this type of leverage. On the other hand, in Isolated, an account is created per instrument, with an independent, irreplaceable balance.

Selecting the Cross or Insolate option displays a small warning about volatility and the possibility that your positions will be liquidated. Source: Binance.

Let’s use an example to explain better. Let’s say you want to trade two different instruments, BTC/USDT and ETH/USDT, with $400. Under cross-margin, you can deposit them into your account and assign the order size you want to each. On the other hand, in case of isolated, you have to deposit USD 200 in each isolated instrument account for a total of USD 400 in both instruments.

Another difference between both instruments is leverage size which allows: Cross Margin offers leverage levels reaching 5x or less, and isolated 10x. In other words, $1 can represent $5 in cross margin and $10 in isolated margin.

Likewise, it is also worth noting that not all trading pairs offer leverage. In a few cases you can get them to work with only one of the two, and in others with neither.

Another important thing to point out is that leveraged accounts can be funded with loans made by the platform itself, with collateral in cryptocurrencies.

P2P exchanges on Binance

If you are used to using exchanges like LocalBitcoins or LocalCryptos, the Binance P2P interface will be familiar to you. Source: Binance.

Some of the new ways to buy Bitcoin and the cryptocurrencies within Binance is a peer-to-peer (P2P) marketplace. with zero commissions. This market operates under the concept of escrow deposits, very similar to the way LocalBitcoins operates. and transactions are made directly with your cryptocurrency balance in your Binance wallet.

Transactions within Binance P2P are conducted between people, making Binance’s role solely as an intermediary or intermediary that protects or partially guarantees that another person will not run away with the bitcoins or cryptocurrencies you buy.

Within this platform, exchange for local currency is usually done through a payment processor such as PayPal, bank transactions or cash deposits. Available payment methods may vary depending on the country or currency in which you are transacting.

Among the Spanish-speaking countries where Binance P2P is available are: Venezuela, Mexico, Colombia, Brazil, Argentina, Peru and Spain. As for the available cryptocurrencies there are: Bitcoin, Tether, Binance Coin, Ether and EOS.

You can also use this type of exchange within the Binance mobile app.

OTC transactions on Binance

OTC transactions are operations outside the normal market, which seek to offer good prices to buyers and sellers of large quantities and which do not affect the current market price. Both individuals and companies can choose OTC trades on Binance.

The minimum purchase and sale amount is $10,000.

To perform this type of operations, it is only necessary that your account be verified to the highest level of KYC-AML standards.

You can also trade more than 20 cryptocurrencies, including Bitcoin, Ether, Bitcoin Cash and Binance coin, along with Binance stablecoins USD, USDC and Tether.

Cryptocurrency derivatives on Binance

Derivative products, financially speaking, are those in which the underlying asset is not traded directly, but under certain market conditions, such as its price on a certain scheduled date. What is commonly known as futures. You can find them within Binance in cryptocurrencies and tokens.

Binance offers the ability to work with quarterly and perpetual futures on the Bitcoin and cryptocurrency market with the USDT pair and with leverage that can reach 125x. Similarly, there are futures operations some tokens available within Binance whose leverage levels are usually a bit lower than listed.

What you need to work on Binance

To work or trade, the only thing Binance Exchange will ask you to do is: register, activate 2-factor verification and deposit. That way you will have a basic level account with a withdrawal limit of 2 BTC every 24 hours. However, if you want to access all the resources that Binance brings you, including OTC trading services, you can go through the KYC-AML verification process, which, at its most basic level, offers 100 BTC daily limits.

Binance Trading Fees

Commissions within Binance vary depending on VIP level or trading volume, trading time and deposits. Similarly, when trading, commissions are split between the Maker (who adds liquidity to the market by opening a matching order) and the Taker (who takes liquidity from the market by matching an order opened by another). These commissions can go from 0.1% for both Taker and Maker in transactions below 50 BTC, which is VIP level 0, up to 0.02% for operations above 150,000 BTC.

Likewise, to encourage the use of its BNB cryptocurrency, Binance offers a 25% discount on Taker and Maker fees for trading BNB pairs.

Margin loans also have a daily commission or interest rate that varies depending on the cryptocurrency you trade. You can see full list here.

In the case of the Binance cryptocurrency portfolio, there are only commissions and minimum payout amounts, which vary by cryptocurrency (you can see the list here).

Binance Exchange, an all-in-one brokerage

In the beginning, cryptocurrency traders used more than one platform to operate, as there was no one that offered everything an investor needed; from basic sharing to analysis tools. As a result of this need, specialized platforms were born such as Changelly, which allows you to quickly exchange cryptocurrencies, or TradingView, which offers very complete tools for technical analysis. But there hasn’t been an all-encompassing platform like Binance Exchange does, with good technical support, simple interface, high trading limits and derivative products it currently offers.

Trading within the Binance Exchange, although separated by tiers, is still easy in any of them. This is not only thanks to the fluid and practical interface, but also the number of tools it offers, either in the funds available, bearing in mind that it has one of the largest lists of cryptocurrencies and exchange tokens in its catalog, as well as derivative products and leverage levels.

In addition to all this, we must add that Binance Exchange is part of the Binance service package, which offers a large number of solutions in the field of cryptocurrencies.

In conclusion, Binance Exchange is an all-in-one brokerage. Where you can simply exchange cryptocurrencies, even speculate on cryptocurrency derivatives, so you don’t need any other platform.

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