This tutorial will guide you through the process of making your first Cryptocurrency trade using the most popular Cryptocurrency exchange, Binance.
If you do not yet have a Binance account, or haven’t yet made a deposit, click here to view Part 1 of this tutorial on signing up and making a deposit with Binance. Or if you just want to sign up to Binance right now, click here
Making Your First Cryptocurrency Trade
When performing a Cryptocurrency trade, your are trading a “pair” of Cryptocurrencies. That is, you are exchanging one Cryptocurrency for a different Cryptocurrency. You are buying one Cryptocurrency using another Cryptocurrency.
Before making your first trade on Binance, you must decide which “pair” of Cryptocurrencies you wish to trade. Binance has four base Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Tether (USDT). All pairs contain one of these four Cryptocurrencies. The lists of pairs are available on the exchange page. Binance offers two different exchange pages: Basic and Advanced. For beginners, I suggest using the Basic exchange until you are comfortable with it. In this tutorial I will be showing the Basic Exchange page.
To access the Basic Exchange page, click the “Basic” menu item in the “Exchange” menu at the top left of the page.
The Basic Exchange
The Basic Exchange page may look complex at first if you are not used to exchange interfaces, but after I explain it, you will see it is actually rather straight forward.
The first section of the screen you will want to focus on is at the top right. This section contains the list of Cryptocurrency pairs that you can exchange. As you can see in the image below, the pairs are grouped by the four base Cryptocurrencies (BTC, ETH, BNB, USDT). This defaults to BTC (Bitcoin), if you want to use a different base Cryptocurrency, click on its corresponding button.
You can then select the Cryptocurrency pair from the list that you want to exchange by clicking on it. This list can be filtered using the text box with the magnifying glass. This helps as the list is quite long.
Once you have clicked on a Cryptocurrency pair, you will notice the data for that pair has now been loaded into the page. In this example I am going to exchange some Bitcoin(BTC) for some Ripple(XRP). That is, i am going to buy some Ripple(XRP) using Bitcoin(BTC). The first important thing to remember is that every price quoted on this page is in the base Cryptocurrency. This is the second currency in the pair, in this case Bitcoin(BTC). At the top of the page you will see some important information which I will explain below.
What are all these numbers?
- The Cryptocurrency pair being traded.
- The Last Price is the price of the last trade that occurred, also known as the Market Price.
- The first number is the price in the base currency (Bitcoin[BTC] in this case). This means that in the last trade that occurred, the buyer paid 0.00008263 Bitcoins(BTC) for each Ripple(XRP) they bought.
- This number will be green if the last price was higher than the trade before it, or red if it was lower.
- The second number is just the equivalent price in $USD
- The 24h Change shows the change in price over the past 24 hours along with the percentage change. This number will be green if the price has gone up in the past 24 hours, or red if it has gone down.
- The 24h High shows the highest priced trade in the past 24 hours.
- The 24h Low shows the lowest priced trade in the past 24 hours.
- The Volume shows the total amount traded in the past 24 hours.
The rest of the information on the page can be useful, but I will explain this in more detail in another tutorial. For now, we have all the information we need to make out first Cryptocurrency trade.
Making the Cryptocurrency Trade
If you look at bottom of the page, in the center, you will see 3 tabs: “Limit”, “Market”, “Stop-Limit”. These are the 3 different kind of orders you can place on the exchange. To keep things simple, I will be placing a “Market” order which simply means I am willing to buy my chosen Cryptocurrency (XRP) at the current market price. “Limit” and “Stop Limit” orders give you more control over the price you exchange at.
To place a “Market” order, click on the “Market” tab, this will show two separate sections: “Buy” and “Sell”. In this example I would like to buy some Ripple(XRP), so I will use the left-hand-side “Buy” section. If you wanted to sell Ripple, you would use the right-hand-side “Sell” section.
Enter the amount you wish to buy in the “Amount” box. You can also click on one of the “%” buttons below if you want to use a percentage of your available funds instead of specifying an amount. Note your available balance appears above.
When you have entered the amount you wish to buy or sell, click the corresponding “Buy” or “Sell” button to place your order. A market order will be processed instantly, and the amount you entered will be traded.
After the trade has been processed, you will see your balance increase (on the opposite side). If you click on the “Yours” button in the “Trade History” on the right, you will see the trade listed below.