Chapter 3: Funding Your Account & Making Your First Trade

Depositing Funds: Your First Step

To start trading on Binance, you need funds in your account. This can be either fiat currency (like USD, EUR) or cryptocurrency (like BTC, USDT, ETH).

Funding with Fiat (Traditional Money)

1. Log in to Binance and go to “Buy Crypto.”
Choose options like Bank Transfer, Credit/Debit Card, or third-party payment providers (availability depends on your country).

2. Enter amount and payment details.
Many regions allow instant or super-fast funding—some even for just $10, making it easy to try out.

“Can start with just a few bucks… Getting started is easier than getting a bank account!”

3. Complete payment and wait for confirmation.
Funds usually appear within minutes to a few hours.

Funding with Cryptocurrency

Already have crypto on another platform or wallet?
Go to “Wallet → Deposit”, select your coin, and generate a Binance deposit address.
Send your crypto from the external wallet to this address.
Always double-check coin type and network—sending to the wrong address or chain can mean funds are lost!

Understanding Tokens & Trading Pairs

Binance supports a vast list of cryptocurrencies and trading pairs.

• Major coins: BTC (Bitcoin), ETH (Ethereum), BNB (Binance Coin), USDT (Tether, a stablecoin).
• Trading pairs: Show how one coin is valued against another (e.g., BTC/USDT means buying or selling Bitcoin with Tether).

“Understand the tokens: BTC, ETH, USDT, BNB, stablecoins, and many, many more.”

Buying Your First Crypto

Let’s walk through buying crypto step-by-step, using Bitcoin (BTC) as the example.

Step-by-Step (With BNB Fee Optimization)

1. Navigate to “Trade.”
Use the “Spot” option for standard trades.

2. Choose a trading pair
For beginners, BTC/USDT is a popular pick.

3. Select Order Type:

• Market Order: Buys instantly at the current price.
• Limit Order: Set a price you’re willing to pay, order fills if the market hits it.

“Buy low, sell high. Sound simple, right?…Calculate and tabulate the numbers, don’t just estimate.”

4. Enter your purchase amount
You can buy fractions of a coin (e.g., 0.001 BTC).

5. Confirm the trade
Check all details carefully—once executed, the trade cannot be reversed.

Pro Tip: Use BNB to Save on Fees

Before trading, buy a small amount of BNB. In Binance’s Fee Settings, opt to use BNB for transaction fees—you’ll get a 25% reduction compared to paying with the asset you’re buying or selling.

“On Binance, buy some BNB to pay for fees first, it saves you 25%! …Doing a few hundred round-trip trades, you would have spent more than your original capital on fees.”

Making Your First Trade: Example

Suppose you want to buy $100 worth of Bitcoin using USDT.

1. In the BTC/USDT market, select “Market,” enter $100 worth, and click “Buy BTC.”
2. The exact amount of BTC (to 8 decimal places) will show in your wallet.

Don’t worry: You can buy as little as $10 worth of BTC or ETH, making it low-risk to get hands-on.

Using Limit, Stop-Limit, and Other Orders

As you gain comfort, learn about:

• Limit Orders: Set the exact price at which you want to buy or sell.
• Stop-Limit Orders: Automate stop-losses or take-profits (important for risk management).
• OCO (One Cancels the Other): Place two linked orders; when one fills, the other cancels.

“Work out the price you will sell or stop-loss. And try your very best to keep to it.”

Next Steps: Practice Makes Perfect

• Try small trades to understand how orders work.
• Track your trades and fees in a notebook or spreadsheet (see template at the end of the book).
• Don’t stress about small mistakes! Crypto buying is more forgiving than it seems; what matters most is building familiarity and discipline.

Key Takeaways:

• Funding your Binance account is fast and flexible, even for small amounts.
• Always check the coin, network, and addresses when depositing or withdrawing.
• Use BNB to pay fees for significant long-term savings.
• Practice with small trades and learn the mechanics before risking larger amounts.

You’re officially a crypto owner! In the next chapter, we’ll help you master the Binance trading interface and sharpen your execution.