Tutorial we’re going to go through this screen right here and learn how to buy and sell cryptocurrency on Binance. We’ll learn how to use all of the different order types and navigate the entire screen. Timestamps for everything below. Fiat & Spot.
Navigating Binance’s Fiat & Spot Trading Section
We’re going to get right into trading on Binance then, which is up in the trade option and then spot, and this is where we actually buy and sell cryptocurrency. If you want a beginner’s guide, I’ll leave that in the description. They give a deposit and trading bonus; you can check the details down there. But what we need is some value in order to swap into a cryptocurrency.
Understanding Fiat and Cryptocurrency Balances in Binance Wallet
- So, what we can do is just look in our Fiat and Spot account.
- So if you go to your wallet and then Fiat and Spot, this is kind of the main page.
- And what you’ll see here are any fiat currency balances up at the top and any cryptocurrency balances down here.
- So if you’ve got a fiat currency deposited on the platform, like pounds, Aussie dollars, or euros, that will all be shown here as a fiat balance, and you can use that to swap into a cryptocurrency that you want.
- Now, if you deposit dollars onto Binance, they will auto-convert it usually into BUSD, which is their stablecoin.
- So that’s a one-for-one with the dollar.
- In the future, BUSD has basically been sunsetted right now, so that may be US dollar Tether or TUSD.
- These are just stablecoins, and they trade one-for-one with the dollar.
- So whatever you have, that’s up to you.
- But we can have that value in our account first, and then we can obviously switch that into a cryptocurrency.
Exploring Spot Trading Pairs and Fiat Conversion on Binance
If we go over to the spot trading platform, you’ll see lots of trading pairs, and you can search them all right here. So like I said, if you have a fiat currency, then you can very easily trade that into a cryptocurrency. If we go over to the right-hand side, you should see fiats right here, and then you can choose, for example, euro, pounds, or Aussie dollar. And like I said, you won’t find dollars here; if you deposit dollars onto the platform, it will be auto-converted into BUSD, TUSD, or USDT, as you can see here, mostly BUSD until that’s sunsetted. So fiat currency right here, we’ll choose pound sterling, and you can see the different assets that you can trade against pound sterling or euros right here.
Trading Bitcoin Against US Dollar Tether on Binance
So I’m just going to click this. What this is telling me is I’m now trading the currency pair of Bitcoin against US dollar Tether. So it doesn’t really matter if you want to buy and sell this because if we come down here, you can see you have a buy and a sell box. So it doesn’t matter which side you want to take. One thing that it’s important to know, just for clarity, is this is known as the base currency, and this is known as the quote currency. So this is the base of the pair, which is Bitcoin, and then this is the price that Bitcoin is quoted in, which is US dollar Tether.
Understanding Price Quotes and Currency Pairs on Binance
What we can see is the price for Bitcoin now quoted in US dollars is 28,600. If I go over to a fiat currency, for example, pound sterling, so I’m gonna go fiat pound right here, and then we’re going to choose the Bitcoin pound sterling pair. Now, because pound sterling is valued at about 1.24 dollars right now, the price is different because Bitcoin is now priced in pounds and not dollars, so the price is 23,000 more or less, as you can see here. Right, so the currency pair does matter, but it’s very, very simple. You jus .
Analyzing Market Trades and Order Book on Binance
This is the current price that traders are meeting in the middle and essentially trading Bitcoin at. You have some pricing information over the last day or so on the right-hand side. This is all of the market trades, so the actual trades that are going through on the Binance platform right now. You can see them all here. You see the price, and you see the amount and the time, right? So these are actual trades that are happening between a buyer and a seller who are coming and meeting in the middle and trading at that price.
Now, on the left-hand side, we have something known as the order book, and this is simply just a book of orders. So you have sellers up at the top, and you have buyers down at the bottom, and everyone is putting in their prices, right? So this is just like an auction. If you went into a shop and there were a couple of buyers there, and you would bid a price, this is what’s happening, obviously at a larger scale. This is how an order book works. This guy says, I want to buy 17 Bitcoin at 26,000. These guys up here are saying, I’m a seller of Bitcoin, so the price is here, as you can see. I’m buying one; I’m buying three; I’m buying two, right? And of course, these guys and these guys are not going to trade because their prices are different.
The best bid is at the top, and that’s 28,000; the best offer is at the bottom, 30,000. When they actually meet in the middle and a buyer and seller come in and say, I want to buy at 29, and I want to sell at 29, that is when they actually trade, and that is the price that is quoted in the market at the time. So you can see that all here. The mid-price is 28,654, and that is trading right now, and all of these guys have their orders in below that. We and these are buyers, obviously, they’re trying to buy cheaper, and these guys are sellers, and they’re trying to sell a little bit more expensive.t thing do you want to buy? It’s just those two things that you can enter into the system to tell it exactly what you want to do.
Placing Limit Orders for Bitcoin on Binance’s Spot Market
| Action | Details |
|---|---|
| Go to spot | Trading in the spot market |
| Choose a limit order | Limit order allows choosing the price to pay |
| Select price | Choose a price of 25,000 |
| Select amount of BTC | Choose an amount of BTC to buy |
| Price quoted | One full Bitcoin is worth 28,600 |
| Purchase options | Buy any fraction of Bitcoin |
| Choose amount in BTC or other currency | Select either BTC amount or US dollar Tether |
| Example order | Buy twenty dollars worth of Bitcoin at 25,000 |
| Placing the order | Telling the system to buy Bitcoin at a price of 25,000 per Bitcoin |
| Specifics of the order | Buy 0.0008 of a Bitcoin, which is twenty dollars worth |
So what I’m going to do is press buy right now
So what I’m going to do is press buy right now, and what you should see is that I now have an open order. So down here in open orders, I have the currency pair that I’m trading. My order type is a limit order because I’m giving the instruction of what price to buy at, and you can see my fill percentage is zero percent. Why is that? Well, the current price of Bitcoin is 28,650 per Bitcoin, and my price is 25,000, so I’m actually way down here on the order book. The system has my order, and if the price gets there, I will trade at 25,000, but for right now, my order and my bid are just too low for the current market price. It’s just not going to go through. So I’ve put the order on the system, and it’s working for me right now. That will be there, what’s known as GTC or good till canceled, and so that’s just going to be there on the system until the price reaches 25,000 if it ever reaches there ever aga