Binance Cryptocurrency Investment: A Beginner's Guide To Getting Started

Investing in cryptocurrency can be a confusing topic for newcomers, but it's a great way to diversify your investments. Before you get started, it's important to understand some basic concepts and principles. You should also be aware of the risks involved and only invest what you can afford to lose. There are a few steps you need to take before you can start investing in cryptocurrency on Binance. First, you need to choose a broker or a crypto exchange. Then, you need to create and verify your account. Once your account is set up, you can deposit funds and place your first cryptocurrency order. You can buy cryptocurrency on Binance using a credit/debit card, cash balance, or Apple Pay/Google Pay. It's important to do your own research and carefully consider your investment goals and financial situation before investing in cryptocurrency.

Choose a payment method

There are several payment methods you can use to invest in cryptocurrency on Binance. These include:

• Credit/debit card
• Cash balance
• Apple Pay/Google Pay
• Bank transfer
• SWIFT (international money transfers)
• SEPA bank transfers (for international EUR transactions)

The availability of these options may depend on your country/region. For example, SEPA transfers are only available to users in select European countries and territories.

If you're using a credit/debit card for the first time, you'll need to add your card details. Please note that you may be asked to wait 24 hours if you bind too many cards at once.

When using a bank transfer, you'll need to link your bank account to your Binance account. This will allow you to send and receive money directly from your bank account to the seller's bank account.

A step-by-step guide to buying cryptocurrency on Binance:

• Log in to your Binance account and click " [Buy Crypto]" on the homepage.
• Enter the fiat amount you want to spend, and the system will automatically display the amount of crypto you can get.
• Depending on your country/region, you'll see different payment options. Click the box under " [Pay With]" to select your preferred payment method.
• Follow the on-screen instructions to complete your purchase. This may include confirming your order, verifying your payment, and waiting for the crypto to appear in your Spot Wallet.

Create and verify your account

To create and verify your account, you can follow these steps:

• Registering an account: Go to the Binance homepage and click "Register" in the upper right corner. You will be asked to select a registration method – you can choose to sign up with your email, phone number, or an existing Google or Apple account. If you select the email option, you will need to enter your email address, create a secure password, and enter a 6-digit verification code that will be sent to your email. If you choose to register with your phone number, you will need to enter your phone number, create a password, and enter the 6-digit verification code sent to your phone. For Google or Apple registration, you will need to sign in to your account and agree to Binance's Terms of Service and Privacy Policy.
• Verifying your identity: After registering, you will need to verify your identity to unlock fiat deposit and withdrawal limits. Log in to your Binance account, go to the "User Center" or "Account" section, and click on "Identification" or "Verify". Select your country of residence, ensuring that it matches the information on your ID documents. Enter your personal information, such as your name, address, and date of birth. You will then need to upload photos of your ID documents, such as your passport, ID card, or driver's license. Follow the instructions to take clear photos of your documents. You may also need to complete a "liveness check" or face verification by taking a video or selfie. This step helps Binance confirm that you are who you claim to be and fulfils their legal requirements.

The identity verification process typically takes a few minutes to complete. Once your application has been reviewed and verified, you will receive an email notification.

Deposit cash to invest

To deposit cash to invest in cryptocurrency on Binance, you must first create an account. Go to the Binance homepage and click "Register" in the top right corner. Once you have an account, you will need to verify your identity. This is a KYC process that helps Binance confirm your identity and fulfil legal requirements.

After registering and verifying your account, you can deposit cash to invest. Log in to your Binance account and click "Deposit". Then, click "Deposit Crypto" on the side panel. You will be redirected to the Deposit Crypto page, where you can select the cryptocurrency you want to deposit. For example, BNB, which refers to the BNB Beacon Chain (BEP2), or BTC, which refers to the Bitcoin network.

It is important to choose the correct deposit network. The network selection depends on the options provided by the external wallet or exchange you are withdrawing funds from. For instance, if the external platform only supports ERC20, you must select the ERC20 deposit network. Make sure the selected network matches the network of the platform you are withdrawing funds from. If you select the wrong network, your funds may be lost and cannot be recovered.

After choosing the correct deposit network, you will see a QR code and the deposit address for the network you chose. Click the copy icon to copy the deposit address, then paste it into the address field on the platform you intend to withdraw crypto from. Alternatively, you can right-click on the QR code to save it as an image and import it to the withdrawing platform directly.

Once you have confirmed the deposit request, your transfer will be processed. The confirmation time varies depending on the blockchain and its current network traffic. After confirmation, the funds will be credited to your Binance account.

Place your cryptocurrency order

Once you have chosen a broker or crypto exchange, such as Binance, and set up your account, you can place your first cryptocurrency order.

There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin and Ethereum to more obscure cryptos like Theta Fuel or Holo.

When deciding which cryptocurrency to purchase, enter its ticker symbol—for instance, Bitcoin's is BTC—and how many coins you would like to buy. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like Bitcoin or Ethereum that would otherwise cost thousands.

Binance, for example, allows you to use a credit/debit card, cash balance, or Apple Pay/Google Pay to buy crypto.

Here's a step-by-step guide to buying your first Bitcoin on Binance:

• Log in to your Binance account and click ["Buy Crypto"] on the homepage.
• Enter the fiat amount you want to spend, and the system will display the amount of crypto you can purchase.
• Depending on your country/region, you will see different payment options. Click the box under ["Pay With"] to select your preferred method.
• If you choose to use a credit or debit card, select ["Card"] and click ["Confirm"].
• If it's your first time buying crypto with a card, click ["Add New Card"] and enter your card information. Then, click ["Confirm"].
• Review the payment details and confirm your order within the indicated time.
• You will be redirected to your bank's transaction page. Follow the instructions to verify the payment.
• After verification, the purchased crypto will appear in your Spot Wallet.

Alternatively, you can use the Binance P2P marketplace, which offers freedom in choosing the best price, payment method, and trading partners, all secured by Binance's escrow service.

Select a storage method

There are several types of crypto wallets available, including hardware, software, and custodial wallets. When picking a suitable wallet, you should consider four key factors: security, convenience, compatibility, and control.

Hardware wallets

Hardware wallets are physical devices that store your private keys offline, offering an additional layer of protection through encryption and PIN authentication. They are immune to online attacks and are considered the gold standard of safety. However, if you lose access to your key, your funds will likely be lost forever.

Software wallets

Software wallets are digital and usually connected to the internet. Examples include desktop, mobile, and web wallets. While they provide a balance between convenience and security, you should be cautious about downloading harmful programs and viruses.

Custodial wallets

Custodial wallets mean a third party, such as an exchange, holds and manages your private key. They are convenient and user-friendly, with intuitive user interfaces and large customer support teams. Binance, for instance, has a $1 billion insurance fund, the Secure Asset Fund for Users (SAFU), to protect users in emergencies.

Other storage methods

Cold storage methods, such as paper wallets and air-gapped systems, keep your private keys offline, protecting against online threats. Paper wallets were popular in the early days of Bitcoin, but are now discouraged due to the risk of damage or loss.

Binance storage

You can choose to keep your cryptocurrencies in your Binance account or transfer them to an external wallet. If you keep your crypto in your Binance account, you can explore options such as Binance Earn, which allows you to earn passive income while holding your crypto.

Frequently asked questions