What is Binance?

Binance is a cryptocurrency trading platform that opened its virtual doors in 2017. Founded by Changpeng Zhao (a former member of the Bitcoin wallet project blockchain.info), Binance quickly became the internet's biggest and most active crypto trading platform.

In fact, it became so popular and was used so frequently by crypto traders everywhere that it raked in over a billion dollars in profits in just its first year of operation, making it one of the first companies to do so in the crypto space.

Binance is used today by crypto traders all over the world. Recently, Binance opened up a new website and trading platform specifically for US traders called “Binance.us”. This new site for American crypto traders will feature everything that makes the original Binance platform great, including the security features that many traders have come to rely on to keep their coins safe.

Binance allows anyone worldwide to trade Bitcoin, Ethereum, Litecoin, and hundreds of lesser-known altcoins such as Dogecoin, Monero, Waves, Siacoin, Verge, and many more. With so many coins to choose from and the “big three”, people who use Binance will have no problem finding a coin project they believe in.

Along with the ability to trade all these different coins, Binance has even created its own cryptocurrency.

Called Binance Coin and shortened simply to BNB, Binance Coin allows traders on Binance to trade BNB for other currencies, making BNB and Bitcoin (BTC) the biggest ways to obtain altcoins on the platform. Traders will be able to find altcoins by searching in the trading pairs (the screens where they will find altcoins being traded for Bitcoin, Binance Coin, and a select few other trading pairs).

With all of this happening at Binance and millions of dollars of trading volume happening every single day, it is important to think about the security aspects that Binance has baked into the platform to keep user funds safe. Let’s take a look at these security features and see just how they protect you and your coins.

Security: Binance Does it Right

Security is one of the most important things to consider in cyberspace these days, with all of the hacks going on all across the world. Data is not safe anymore when companies do not go the extra mile to protect your information and, in some cases, your money.

Where there is data or money to be stolen, hackers and other malicious actors will always be looking for a way in.

This is doubly true with cryptocurrency exchanges, which have seen several hacks over the years. It can be hard for users to trust a platform that has been hacked several times when looking for a safe place to trade cryptocurrencies.

Luckily for those who use Binance, the crypto exchange considered many of these security risks when the platform started, and security and data protection have been one of their highlight features over the years, with many security functions coming baked right in.

Binance has taken several steps to ensure the safety and security of all of its crypto traders’ data and coins. Here are just a few of the steps the company has taken to make sure your data and money are safe from hackers and other unscrupulous actors:

• Regulation: Binance has taken steps to ensure that it complies with all of the laws and regulations required of a cryptocurrency exchange. The trading platform is based in Malta and is regulated by the VFA or the Maltese Virtual Finances Act.
• Verification processes: Verification processes to prove your identity are nothing new with most cryptocurrency exchanges. However, they are still welcome for users who follow the law and trade with their own money. On Binance, users will have to verify their identity when they try to withdraw more than two Bitcoins.
• Security: Binance has incorporated several security features into the platform to help users feel secure when using it. It is hard to completely trust any online platform, especially with such high trade volumes. Binance remains one of the most trusted and secure platforms in the cryptocurrency trading industry; however, baking features like two-factor authentication, multi-signature wallets, and cold storage right into the exchange.

Two Factor Authentication (2FA)

Binance has another great security feature that people all around the internet should take advantage of on most of their online accounts: two-factor authentication (also known as 2FA).

Two-factor authentication adds an extra layer of security to your Binance account by having you enter a unique code from an authentication app like Google Authenticator with your username and password after signing into the platform. 

If your account credentials are stolen, you will still be safe from anyone accessing your account and your funds, so keep your authentication app under lock and key and never share your 2FA codes with anyone!

Two of the most trustworthy and secure authentication applications available for you to use are Google Authenticator and Authy. You can find both of these applications available for your smartphone on the Google Play Store (for Android devices) or the App Store (for Apple iPhones and iPads).

Whatever operating system you run, you will be covered and secure with one of these authenticator apps, which will help you use 2FA to keep your Binance account and your coins secure.

Cold Storage

Cold storage is a huge security feature for anyone who holds cryptocurrency, whether they are a trader, a miner, or just someone who wants to hold coins long term. With cold storage, you can rest assured knowing your coins are safe from attackers.

Cold storage is, essentially, keeping your coins isolated away from the internet. With cold storage, you don’t have to worry about your coins when they are stored away. This gives traders peace of mind that hackers cannot touch their coins because the coins aren’t stored on hardware that is connected to the internet.

The only way coins in cold storage are moved is when the coins' owner is ready to transfer them to another wallet.

Cold storage is a boon for crypto traders worldwide who use it themselves as “air-gapped” computers (machines that aren’t connected to a network) or dedicated cold storage hardware wallets such as the KeepKey or Trezor.

With Binance, customer funds are kept in cold storage by default, making stealing any funds from customers quite the daunting task for malicious hackers.

Multisignature Wallets

With traditional, single-signature wallets (meaning only one person has to verify a private key in order to access or move funds), security measures can become more paramount because that single security key is a central point of failure.

With “multisig” or multi-signature wallets, two or more private keys must be verified before funds can be accessed or moved elsewhere. Binance employs multi-signature wallets for the added security of customer funds. This way, even if one of your security keys were stolen, your funds would still be safe from the attacker.

So, now you know a little bit about Binance how started, and you learned about some of the security features built into the exchange to keep you and your money safe.

If Binance sounds like the place you’d like to call your home for trading, then it’s time for you to learn how to get set up on Binance so you can start trading.

Trading On Binance: Sign Up For an Account

When it comes to trading on any exchange, the first thing to do is get yourself signed up for an account. This is simple enough. Binance does not require any sort of personal information when you first sign up, and the only time you will have to verify your identity is if you ever choose to withdraw more than two Bitcoins.

A few restrictions exist to having a Binance account, which you can find in the exchange’s Terms of Use. These restrictions include anyone under the age of 18, anyone who is a resident of a country in the UN Security Council Sanctions list, and a few other exceptions.

Get acquainted with the Binance Terms of Use, and if none of their restrictions apply to you, continue with the signup process. It’s as simple as heading to the Binance home page and clicking “Register” at the top options panel.

Here, you’ll only have to provide your email address, create a password, and enter your referral ID if applicable (signing someone else up for Binance when they use your Referral ID will net you a percentage of any profits they make trading on the exchange). After you do this, you’ll be ready to confirm your email address and deposit some funds for trading.

Trading on Binance: Deposit Some Coins

Before you can start trading on Binance, you will need some coins to trade with. You can purchase Bitcoins directly on Coinbase, localbitcoins, Paxful, or another Bitcoin vendor and then send those coins to your Binance wallet for trading, or you can use a Visa or MasterCard credit card to purchase certain coins directly from Binance.

If you purchase coins through Binance with your credit card, keep in mind that coins currently purchased this way on the exchange are limited to Bitcoin, Litecoin, and Ethereum. You will also have to prove your identity by submitting a photo of your government-issued driver’s license or other form of ID if purchasing crypto directly from Binance this way.

Once you have either bought some coins from Binance or sent some coins from your personal wallet to your Binance wallet, you will be ready to begin the most exciting part: trading!

Trading on Binance: Placing Your First Trade

So now you’re all set up with your brand new Binance account, and you have some coins in your Binance wallet. You’re ready to begin trading crypto! All you have to do is place a trade order now.

You’ll want to begin this process by reviewing the list of coins available for trade on Binance and selecting one that looks promising. Whether it’s one of the top coins or an altcoin, you can find it in the “trading pairs” section on Binance. The trading pairs section is where you will be able to see what coins you can obtain from trading other coins.

For example, if you wanted to purchase some Waves coins with Bitcoin, you would go down the list in the Bitcoin trading pairs until you found something like “BTC/WAVES”. After you find the desired trading pair, all you will have to do is enter a percentage of the coin you would like to trade (you can choose 10 per cent up to 100 per cent) and place your trade order by clicking “Buy WAVES”.

Your trade may go through instantaneously depending on the amount you are buying, or it might take a little bit longer to fill if it is smaller.

You can find all of your current trades in the “Open Trades” tab of your Binance account.

Trading on Binance: Withdrawing Your Coins

If you have made some money on Binance through your trades and you are now ready to withdraw your coins into a wallet you control, you will be happy to know that the withdrawal process on Binance is simple and straightforward.

When you’re ready to withdraw your coins, simply head over to the “Balances” page of your Binance account. Find the coin you wish to withdraw from your list of balances, and either paste your wallet address into the required field or have your wallet’s QR code handy. After you have entered your destination wallet address, select how much of the coin you want to withdraw and click “Submit”. Your withdrawal should go through in no time, and your coins will be on their way.

It really couldn’t be any simpler!

Trading on Binance: A Few Tips

Binance is one of the best exchanges on the internet for trading cryptocurrencies. Whether you want to trade the big three coins or select from hundreds of up-and-coming altcoins, Binance offers one of the hugest selections of available coins to trade online.

If the coin exists, there is a good chance it is listed on Binance and able to be traded.

As with any other crypto exchange, however, it is important to remember a few tips when trading. These tips will help you in your trading decisions and keep your funds safe.

• Don’t trade with more than you can afford.

When trading on any platform (not just Binance), keep in mind that the crypto market is very volatile and can have huge highs and sweeping lows. With this volatility comes the simple fact that sometimes, trades might not go how you expect.

This is why it is important never to spend more than you can afford on trades. You never know how the market might go, and you could lose money. Never trade with more than you are comfortable with losing.

• Don’t store more coins on the platform than you could stand to lose.

This is another tip that’s useful not only for Binance but also for any crypto exchange or online platform in which you can hold your coins. With all of the security features that Binance boasts, it is important to remember that nothing is bulletproof. You can feel secure knowing these features are in place, but your coins could be at risk if a determined hacker did get in.

Make sure you never store more than you intend to trade on the platform and withdraw it as soon as you have the chance if it is an amount you don’t want to risk losing.

Armed with these tips and all of the steps to getting started with trading on Binance, you are now ready to become a crypto trader. If you’re ready to start trading coins today, keep this article handy as your guide to getting started on Binance, and you will be trading coins to your heart’s desire in no time.

Good luck, and happy trading!