Binance is the most popular crypto exchange on the planet. But just because it’s popular, it doesn’t mean you’re using the app correctly.
Here are eight ways you’re (might be) using Binance incorrectly, along with some advice on what to do about it.
1. Not Using 2FA
Two-Factor Authentication (2FA) adds an extra layer of security to your Binance account. Instead of only entering your username and password to log into the exchange, you’ll receive an additional code that you need to enter. You’ll also need to type a new code whenever you make a withdrawal from your Binance wallet.
As such, 2FA makes it much harder for someone to access your account without your knowledge. Given that you cannot reverse crypto transactions, it’s a vital last line of defense against hacking and theft.
The code can take the form of an SMS message or can be delivered via a dedicated 2FA app such as Google Authenticator or YubiKey.
2. Using the Advanced Exchange
On the web, Binance offers two versions of its exchange: Basic and Advanced. If you download the desktop app, you can only use the Advanced exchange.
Unless you’re well-accustomed to trading on exchanges (either crypto exchanges, FOREX exchanges, or equity exchanges), you’re quickly going to become confused if you try to use the Advanced version. It has considerably more tools, more indicators, and more options. Overall, it’s a more complicated user experience.
If you want to perform a straightforward trade and you don’t want to dig down into the minutiae of the markets, stick to the Basic version.
3. Not Using Your Referral Link
Almost all exchanges provide their users with a referral link. Every time someone signs up to the site using your link, you will receive a commission on the fees from any trades they perform.
You can create up to 20 Binance referral links. For each one, you can specify different commission kickbacks. For example, you could create a link for which you take 20 percent, and the person you referred receives nothing. Alternatively, you could split the commission pot on a 50/50 basis if you’re sharing with family and friends.
Creating referral links on Binance is easy. Just head to [Username] > Referral to get started. You can also use the same screen to see a breakdown of your commissions and link usage.
4. Not Owning BNB
Binance Coin (BNB) is Binance’s own in-house cryptocurrency. It powers the entire Binance ecosystem.
As a user, there are some significant benefits to holding BNB in your Binance account. Most notably, you can use it to receive a 25 percent discount on your trading fees. It’s an adage of all investing—both in crypto and traditional markets—that fees are the biggest drag on your portfolio’s performance. By reducing the fees as much as possible, you will see much better returns over the long term.
You can also use BNB in the real-world. For example, you can stake it on Mithril, pay travel expenses on TravelbyBit, use it to invest in stocks on NAGA, and even pay freelancers with BNB on CanYa.
5. Not Converting Tiny Token Balances to BNB
The nature of crypto means that even when you sell your entire holding of a certain coin, you’re often still left holding tiny fractions of a token. The units are too small to sell on the exchange. Over time, they can build up.
Binance gives you an easy way to trade the entirety of those small balances for BNB.
Just log into the web version of Binance and head to Wallet > Exchange Wallet. Make sure the checkbox next to Hide low balance assets is unmarked, then click on Convert to BNB.
You can only perform the process once every 24 hours.
(Note: You could make a counterargument in favor of holding those small balances rather than exchanging them for BNB. Do your own research.)
6. Not Downloading the Binance Desktop App
As long as you’re comfortable with the Advanced Exchange (as discussed earlier), you should be using the Binance desktop app rather than the web app.
It’s sleeker, faster, and has better usability. You can also customize more than 20 keyboard shortcuts. The app is free to download from Binance’s website. Do not download it from any other sources.
Perhaps the one downside of the desktop app is the lack of a light mode. For people who prefer a brighter screen, it’s a major turnoff.
(Note: Remember to also download the mobile app for either Android or iOS.)
7. Use Binance as a Crypto On-Ramp
Binance lets you buy crypto with US dollars via one of its fiat partners. Although there’s a lot to be said for its convenience, it’s not the best way to buy crypto—either from a cost or privacy standpoint.
Two payment services are available, Simplex and Koinal. Simplex will cost you 3.5 percent to make the purchase, along with a $10 minimum fee. Koinal costs 2.5 percent. There are cheaper alternatives out there.
And, because you’re tying your crypto purchase to your verified Binance account, you’re exchange is not private.
If you’d like to learn about some better alternatives, check out our other article on the best ways to buy Bitcoin anonymously.
8. Failure to Shop Around
Binance might be the most well-known crypto exchange, but it’s not necessarily the best. It has fewer altcoins than some of its rivals, has higher fees, offers smaller margin, and is less private thanks to KYC.
To make sure you’re getting access to the markets and features you need, make sure you shop around the Binance alternatives.
To learn more about using Binance, read our article on why is Binance so popular?
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