Now that you have made your first deposit to Binance, you need to understand the various features available on the Binance interface and get yourself familiar with it before you start trading Cryptocurrencies. Trades are conducted on the feature called “Exchange” located on the top left of your screen. Click on it and then choose between Basic and Advanced. I will advise that you use “Basic” if you are not familiar with trading.
After you have landed on the basic trading interface, you have to choose the Market on which you want to trade. On the top right (Red on the picture). You can trade Cryptocurrencies against Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) or Tether (USDT). In this example, we will choose BTC.
Just below, you can see the list of cryptocurrencies that you can trade against BTC. Click on the cryptocurrency you want to buy or sell. It’s also possible to search directly the currency you want (Orange on the picture). You can see the chosen cryptocurrency on the top left of the page (Green on the picture), and the actual price just beside it. On the bottom of the page, you have a tab where you can buy or sell the currency you selected (Blue on the picture).
In this example, we will buy Binance Coin (BNB) with Bitcoin (BTC).
You have three choices:
– Limit: Choose your price
– Market: Buy/Sell directly at actual market price
– Stop-Limit: Fix a price to Buy/ Sell in advance.
If you choose “Limit“, you will have to put the price, and then choose the amount you want to buy (or sell). With “Market”, you just need to enter the amount. You will then see below the total amount of the order (Here in Bitcoin).
The Stop-Limit allows you to fix a price for which you are ready to buy.
– Stop will allow you to fix the price, from which your order (Limit) will be automatically be submitted. This means that your order will not appear on Binance orderbook until this “stop price” is reached.
– Limit is the price at which your Buy/Sell order will be executed automatically. The “limit price” will be submitted automatically once your price has reached the “Stop Price”.
Let’s take an example :
I have 1 Binance Coin (BNB), the price is now at 0.000200 BTC. Let’s say that I bought it at 0.000100, so I got a 2x on my investment. To minimize loss and lock in my profit, I would like to sell it automatically if the price drops under 0.000150 BTC. I have to put set 0.000150 in Stop and put a bit less say 0.000148 for the Limit. In amount, I put the number of BNB I want to sell. If the last price is equal or less than 0.000150 BTC, my Sell order at 0.000148 will be submitted automatically. This could help me to limit losses should the market go against me. It’s also possible to do the same for a buy order.
Israel Martins is a cryptocurrency researcher and trader since 2016, passionate about blockchain and other emerging technologies.