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5 Essential Tips for New Binance Users
New to Binance? Here is What You Need to Know.
Are you a new user of Binance and feeling overwhelmed by the sheer number of options available? Don’t worry. You are not the only one! Here are five essential tips for new Binance users that will help you get started in the world of cryptocurrency trading and investing.
1. Diversify Your Binance Portfolio
When it comes to building a successful Binance portfolio, a little diversity is key. While the most important assets to hold will generally be longstanding mainstays like BTC, ETH, and BNB, there are many advantages to looking at the broader market. For example, some of the best yields on Binance Earn (discussed below) are going to be found on other coins.
To really understand everything Binance has and to make the most out of the cyclical nature of the crypto market, it can be useful to have a mix of different types of assets and strategies, as this will help mitigate risk and provide greater potential for profits. Consider investing in a mix of coins, tokens, and derivatives, such as futures and options, as well as different types of trading strategies, such as spot trading and day trading. With enough time, effort, and skill a broad basket of tools can help to smooth out some of crypto’s historical volatility.
2. Spot Trade Longstanding Tokens and DCA
Although diversity is important, focusing your portfolio on the top longstanding tokens and spot trading will probably still be the best move for most people.
Spot trading means buying crypto at market prices using any order type. In other words, not using margin trading, options, or futures. Spot trading is low risk, as you can set the price you are willing to pay or sell for, and you are not exposed to any future price volatility. This can be beneficial for long-term investors, as it allows them to buy and hold coins without having to worry as much about future price fluctuations.
With that said, Dollar Cost Averaging (DCA) can smooth things out even more by creating an average position over time. Although there are a few different types of DCA strategies to look at, any strategy that has you averaging into a market over time will help you to smooth out volatility.
3. Use BNB to Trade
When it comes to Binance, using BNB to trade is a must.
BNB (Binance Coin) is the native token of the Binance platform, and it can be used to pay for trading fees and other services. BNB has a number of advantages for traders, including reducing fees by 20% and giving you access to exclusive features such as the Binance Launchpad.
On top of this, BNB has historically performed well, so even if it didn’t have extra benefits, you would likely still want to consider it for your portfolio. However, since it has these benefits, you shouldn’t overlook this one.
4. Know When to Use Different Order Types
Different order types can be used to execute different types of trades. Market orders are the simplest type of order, as they are used to buy or sell an asset at the current market price. Limit orders allow you to specify the maximum price you are willing to pay or the minimum price you are willing to sell for. Stop-limit orders are similar to limit orders, but they are triggered when the price of an asset reaches a certain level.
It’s important to understand the different order types, so you can choose the right one for each trade. In general, limit orders are the cheapest type, and stop orders should be used only when trading, not when building a position over time. However, each trader will have their own strategy.
5. Don’t Forget About Binance Earn
Binance Earn allows users to earn rewards by staking their coins or providing liquidity to a pool. This means that you can generally make money on your crypto rather than having it sit around. This is a great way for long-term investors to earn interest on their holdings, as well as to diversify their portfolios and potentially reduce their risk. It’s important to note that different coins and earn products offer different rewards and risks. So it’s important to do your research and understand the product you are using and the coin you are trying to get a yield on.
We won’t go into every Binance Earn product here, but you can learn about all the different options on our Binance Earn page.
Building on Your Success
These are just a few of the essential tips for new Binance users. With the right strategy and the right knowledge, you can be well on your way to becoming a successful crypto trader. Just whatever you do, don’t forget to use BNB to pay fees and to utilize Binance Earn. Also, if you want to up your game, make sure to take a deep look into the more complex earn items, futures, options, alt trading, and more. There is a lot to do on Binance as an advanced user, but the first step is mastering the five points we described above to get a solid foundation.