- Do you aspire to trade cryptocurrencies?
- Do you want to day trade?
If your answer to any of these questions is Yes (!), you are in the right place.
Day trading of cryptocurrencies is catching the trend, and many people are opting to do this full-time.
But I wouldn’t recommend you to do this full-time yet and especially drop all the ideas in your head of leaving your job for day trading of crypto.
Now, that I have put your mind on rest, it is imperative to tell you about the best cryptocurrency trading exchange, i.e. Binance exchange.
The first rule of day trading is liquidity. If you don’t have decent liquidity, you are going to lose in day trading irrespective of how good a strategy you make.
That’s we recommend day trading cryptos on Binance exchange because it has the maximum liquidity in the crypto markets.
For the uninitiated, Binance exchange got into the crypto game in 2017, and less than a year became the go-to exchange of the market.
Thanks to the great bull run of 2017 and also the Binance’s competent team.
Since then, many crypto traders- veterans and beginners both trade on Binance exchange. But mind you, it is a centralized exchange so never trade/store more than what you can afford to lose.
In this guide, I intend to convey how you can use Binance exchange in a step by step manner to trade cryptocurrencies. In the end, I will briefly touch upon day trading.
So hold your horses untill the end.
Getting Started To Day Trade On Binance
The first step is to sign-up on Binance using your email ID and register yourself. You don’t need anything else at this moment to get started with Binance.
When you sign-up, you automatically agree to abide by the terms and conditions of the Binance exchange. Mainly, you should be above 18-years of age and a non-US citizen.
Don’t worry for US citizens they have launched Binance.US which all the US citizens can use after verifying their nationality through photo ID proofs.
I am coming back to the Binance.com. Here you don’t require to do a mandatory KYC check, and you can trade crypto to crypto without any verification.
Of course, if your skip KYC, your daily crypto limits will be low but you can increase these limits.
Deposit Cryptocurrencies In Binance
Get ready to deposit base cryptocurrencies like BTC or ETH or USDT in Binance exchange so that you can trade them against other cryptocurrency pairs.
As of speak, Binance exchange has 550+ cryptocurrency trading pairs listed against USDT, BTC, ETH, BNB, etc. So to be able to trade against these pairs you will need base currencies like BTC/ETH etc.
If you already have these currencies in your wallet, go to the Exchange Wallet section where you can deposit these cryptocurrencies on Binance exchange.
While doing this, make sure you use the displayed QR code. Copy-paste of deposit address can lead to some irreversible transaction leading to permanent loss of your funds.
On the other hand, if you don’t have any of these base currencies, buy some directly from Binance exchange using credit/debit card.
Use this Buy Crypto option from the Binance exchange to buy directly using your credit/debit cards. You will be required to complete a quick KYC while buying crypto through this option because you will be exchanging cryptos for fiat currencies.
Once you have done this, the currency you bought will start reflecting in your Exchange Wallet section.
Let say, you have deposited or bought BTC, and now you are ready to exchange this BTC into some other currency which we shall discuss in the next section !!
Place A Trade On Binance
Now you have BTC in your deposit, so it is an excellent time to see who to place a trade to exchange this BTC into some other cryptocurrency, for example, ETH.
Go to the Exchange section on Binance home page and under that choose Advanced. Once you select this, you will be able to see this trading window.
I have provided some vocabulary in the above picture so that it becomes easy for you to understand, which section of this window is called by what name !!
You have the advanced charts and TA tools on one side and under that, you have the order history of your orders. On the other side, you have buy/sell prices, or bids/asks of the ETH/BTC pair with all the latest buy/sell transactions which are happening in real-time.
Under this, you have the actual window or section from where you place your trade.
You can see there your BTC balance, and you can put trade or order to buy ETH from this BTC. If you pay attention to this, you will be able to see different percentage denotions.
These percentages mean, how much percentage of your total BTC you wish to exchange for ETH. In this example, I have chosen 100% of my BTC holdings to exchange into 1 ETH.
Select 100% and click on ‘Buy ETH’ green button. As soon as your order is filled, you will be able to see it in the left section of the exchange dashboard.
Withdrawal Of Funds
Congratulations, your order must be fulfilled in seconds on Binance that’s the power of enormous liquidity but now what next?
Next is obvious, you would want to withdraw your currencies which you just bought. In this case, ETH. However, I understand for a day trader it doesn’t make sense to withdraw your cryptocurrencies.
But if you are from another category, i.e. HODLers, you need to know this part well and keep your cryptocurrencies safe in a non-custodial wallet.
Again go the home page of the Binance exchange and go to Exchange Wallet section. Under that choose deposits and withdrawals to go to your ETH wallet.
Click on Withdraw against ETH wallet and put your Ethereum wallet’s address in which you want to withdraw your Ether coins. Make sure to double-check your address while withdrawals as many commit mistake here and end up losing their coins.
So that’s pretty much on a high level how to do you place orders on Binance and trade cryptocurrencies for one and another.
Whether you are day trading or trading occasionally for HODLing purposes, the process of exchanging remains the same. But let me tell you:
Day trading isn’t everyone’s cup of tea. There are numerous things to take care of, and especially for working professionals, it is a hectic way of making money.
If you are someone who wants to still day trade, I would recommend you to go through these best crypto trading tools which will help you ease your day trading life a bit.
On the other hand, you can subscribe to some good crypto signals group who provided automated trading bots which does the trading on your behalf just in one-click.
This is ideal for working professionals !!
Now you let us know: What are your thoughts on day trading of crypto? Which exchange do you use for day trading of cryptos if you do anything at all?
Let us know in the comments section below; we will be waiting 🙂
Hey there! I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India. Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else.