Binance Trading Guide for Novice Traders

Binance trading guide for novice traders

March 26, 2020

Reading Time: 8 minutes

Binance Trading Guide

Most times, investors focus on bonds, stocks, and mutual funds when creating their investment portfolios. Notwithstanding, we have other financial markets besides the forex industry, which is very popular. Also the Binance future market is one that has attracted a lot of investors considering the numerous benefits of trading it.

In this article, you will learn what Binance and Binance futures are, easy way of going long, short, and setting a stop loss for your trade. Furthermore, you will learn important tips and tricks in trading Binance and Binance futures along with places to find Binance trading signals. Are you ready for something big?

Note that trading Binance futures is very risky and you stand to lose your entire capital. The content on this page provides educational information. Therefore, it is important to be careful.

What are Binance futures?

Originally, the futures market was designed to allow traders (buyers and sellers) to lock to a price to stabilize their revenues and costs. Today, investors use futures for speculation and hedging without any obligation to own the asset. In trading, a future is primarily an agreement between a seller and the buyer to exchange goods under a predetermined price and date.

Cryptocurrencies that Binance Future Supports

Currently, Binance Futures supports cryptocurrencies such as Stellar(XLM)/USDT, Cardano (ADA)/USDT, Ethereum (ETH)/USDT, Bitcoin Cash (BCH)/USDT, Litecoin (LTC)/USDT, Chainlink (Link)/USDT, Ethereum Classic (ETC)/USDT, Ripple (XRT)/USDT and Tron (TRX)/USDT.

Trading Binance Futures

To be able to trade Binance futures in the market, there are certain things you need. Firstly, you have to find out if the broker of your choice offers future trading in their platform. Furthermore, you need further explicit approval to trade in such future contracts. Importantly, some brokers don’t allow future trading. Once you’ve clarified this, the next step is to ascertain the particular future to trade and the particular exchange. With this, you can start by opening a futures account on such exchange.

How to open a Binance Futures Account

To begin your future trading journey, you need to create an account from an account. In this article, we will focus on the Binance exchange. However, if you need an account to trade Binance futures, visit the Binance website and at the top right corner of the website you can click on register. Once the registration page load up, then adhere to the steps below:

Creating Your Account

  1. Enter your information as displayed in the image below.
  2. In the email section, please insert a functioning email address because you need to verify the account once opened. If you were referred by someone, you need their referral ID besides creating your unique password, which must comprise of at least 8 characters (letters and upper case letters are compulsory). Once completed, tick the “Terms of Use” agreement before clicking the “Create account” button.
  3. Go to your email to verify your registration. After clicking the link in your email, your registration process is complete. Then, log in to your account using your login details (email and password created).
  4. On the menu after logging into your account, hover your mouse to futures and a dropdown menu will pop up. Then click on “Futures”

 

Note: After the Binance Futures Page opens, the first two characters of the email you use will appear on the top right corner of the page. Then click on the “Open Now” bottom to finally activate your account. With this, you are ready to begin your trading adventure.

 

 

Depositing into your Binance Futures Trading Account

To be able to trade Binance futures or have your Binance trading signals activated, you need to fund your account. Firstly, you have to deposit the money into your exchange wallet before transferring it into your futures wallet. There are various means of depositing money into your exchange wallet. The most common means is depositing through crypto coins. Importantly, each coin has a unique address. For instance, the address for Bitcoin (BTC) is different from that of Bitcoin Cash (BCH).

After the deposit, the next step is to transfer your money from the exchange wallet into your designated futures wallet. You will see your funds once you confirm the transfer and begin your trading.

Market Orders in Binance Trading

On Binance, a trader can place five different order types. These Binance trading orders include:

  • Limit – This particular order type is one that a trader place within a particular limit price, which is determined by the trader. Such trade will execute when the current market price reaches the limit price you set.
  • Market – This order is an order to sell or buy a commodity within the best current price available.
  • Stop limit – Most beginners tend to be confused about this order type. However, the best way to understand it is to break it into the limit price and stop price. Your stop price is the price that executes your limit order whereas the limit price is that which triggers the limit order.
  • Stop Market – The order is closed once your stop price is triggered.
  • Take Profit – Your take profit is the point at which you want your price to trigger after the market has gone to your favor.

A simple way of setting a stop loss on Binance

At times, as a trader, you may want to swing certain trades but understanding the concept of stop-loss is important because it will help limit your risk. For a novice, you may find it hard to know how to do this because the Binance interface doesn’t have the “stop-loss” option. The reason behind this is that the platform operates on sell and buy orders. In order words, a stop loss is not an order type. However, in this section, you will learn how to set your stop loss.

Stop Limit Order

The first way of creating a stop loss on Binance is to use a stop-limit sell order. Assuming you are trading against the USDT using a position of 10 ETH. What you have to do in this situation is to go to the sell section of the stop-limit order as display in the image below.

Binance trading guide for Novice Traders

Each field is unique with which you can enter your stop loss. The stop indicates the price your stop loss should trigger whereas the limit is the price the order should be placed. On the other hand, the amount indicates the rate that you want to sell, which in this case is 10 ETH. Finally, the total is the limit by the amount (Amount x limit)

Let’s use another example to throw more light on setting stop-loss on Binance. Assuming the price of ETH is sold for 200 USDT and you decide to set your limit order at 180 USDT. In this case, your sell order will look like this

Binance trading guide for Novice Traders

Using a take profit and stop loss

So far, you have learned how to set up a stop loss using a stop limit. However, there are situations where you also need to define your take profit together with your stop loss. In such a case, what do you do?

The best option in such a situation is to use the order cancer order (OCO) order type. You use this option to overload your balance while placing 2 different sell orders.

Binance trading guide for Novice Traders

The price is the point you want your take profit to execute whereas the stop is the trigger point for your stop loss. The limit is the price of your stop loss while the amount is the amount of amount you want to sell. Remember the total is the limit by the amount you want to sell as shown in our example.

This example is almost similar to the previous one, however, we included the price field for the take profit. Note that after setting this order, you will have two orders open but once a particular order is filled, the other is canceled automatically.

 

Tips for New Traders

For novice traders who use Binance, things can get confusing and daunting at the same considering the various terms and trading strategies. However, while it can be risky, there are numerous opportunities to minimize your losses in as much as you can multiply your profits. In this section, you will learn important tips and tricks most professional traders use while trading.

  • Set up your trading plan – As simple as this may sound, it is the most neglected tips for most beginners. Without a plan for your trading, you will consistently lose trades. Your trading plan must include your profit objective and exit plan. If you don’t have a plan, greed and fear will influence your trading psychology. However, with a good risk management plan, you can cut your losses while increasing your profits.
  • Protect your positions – Every trade you enter MUST have an exit plan peradventure the trade goes against your direction. Depending on the funds in your account, it is wise to place a stop loss on each trade.
  • Don’t “Over-speed” – You are a beginner and won’t understand everything once. Therefore, don’t push the accelerator button too much. Take it one step after the other – you don’t have to trade up to 10 contracts at a particular time. Rather, move slowly and develop your trading methodology. You can take advantage of professional cryptocurrency signals to make little cash while learning. Immediately you discover your trading strategy, slowly use it until you are comfortable before increasing your order size.
  • Be Patient – Apply the principle of the “patient dog eats the fattest bone.” Avoid being wrapped up by the condition of the market such that you miss the bigger trading setup. However, as a novice trader, a longer-term perspective will do the magic.

Additional Route For Binance Trading:

Not everyone is an expert or would be able to follow things perfectly due to time and various other limitations. Hence, knowing how to trade is tough and that’s where the use of signals is a worthy consideration. There are great fortune to be made through the Cryptocurrency industry but only when the right approach is taken and that should be left with experts unless you become that yourself.

This is where it’s a commendable thought to use alternatives like signal services. However, selecting the best is the need of time. And that’s where My Crypto Paradise is a quality option to proceed with.

My Crypto Paradise one of the solo flights in Signal Industry

Cryptocurrency signal providers bring ease to the user to do things right. My Crypto Paradise is an already well-known name in the industry. With their team of professionals, all the analyzing are done for you through the help of fundamental and technical analysis.

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However, in the bigger picture, there are paid signals available through ParadiseFamilyVIP Private Telegram Channels. As of present, there are 2 Private Channels available to join through which includes: MyBitmexParadiseFamilyVIP, and MyBinanceParadiseFamilyVIP. In these Premium Rooms, there are up to 9 Quality Signals given for major/minor Cryptocurrencies with complete info daily. While with the Free Channel, there are a couple of signals added once in a week to help novice traders build upon.

Binance Trading: Conclusion

For novice traders, the Cryptocurrency market is very risky and complicated for people considering investing. Although the market is not for everyone, however, with dedication, discipline, and quality signal services, it can be worthwhile. As a newbie, you must understand that the market is a global marketplace and involves a lot of risks that need to be managed.

Understandably, most novice traders find it hard to trade the market. However, with the right signal platform, a novice can enhance his earning levels without having to make an extra effort or putting time analyzing the market.

 

Hope you have enjoyed this Binance Trading Guide! We look forward to hearing your opinions in the comments section below.

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