In 2021, Binance was one of the most prominent cryptocurrency exchanges globally, offering a vast selection of digital assets, high liquidity, and advanced trading tools. For many newcomers, navigating the platform could seem overwhelming at first. This article provides a clear, step-by-step breakdown of how to use the Binance exchange in 2021, covering everything from account creation to executing the first trade.
Step 1: Creating and Verifying Your Account
The first step to using Binance is to create an account. Visit the official Binance website (binance.com) and click the "Register" button. You will need to provide a valid email address and a strong password. After registration, Binance sends a verification email to confirm your address. In 2021, Binance enforced KYC (Know Your Customer) regulations for many features, meaning you must complete identity verification to increase deposit and withdrawal limits. To verify, go to the "Identification" section in your account settings, upload a photo of your government-issued ID, and complete the facial recognition process. Verification can take from a few minutes to a day.
Step 2: Depositing Funds
Once your account is active, you need to deposit funds to start trading. Binance offers two primary methods: depositing cryptocurrency or depositing fiat currency. To deposit crypto, go to "Wallet" > "Fiat and Spot" > "Deposit". Select the cryptocurrency you wish to deposit (e.g., Bitcoin or USDT). Binance will generate a deposit address. Copy this address and use it to send funds from an external wallet or another exchange. For fiat deposits in 2021, Binance supported bank transfers, credit/debit cards, and third-party payment channels (like Simplex or AdvCash). Choose your preferred method on the "Buy Crypto" page, enter the amount of your local currency, and follow the on-screen instructions to complete the purchase.
Step 3: Navigating the Basic Interface
Binance’s interface can be customized. The classic view is recommended for beginners. On the homepage, the "Exchange" tab opens the trading interface. Here you see the price chart in the middle, the order book on the right (showing buy and sell orders), and your open orders below. The left side lists available trading pairs. In 2021, the most popular pairs included BTC/USDT, ETH/USDT, and BNB/USDT. Familiarize yourself with the "Limit" and "Market" order types. A limit order allows you to set the price you want to buy or sell at, while a market order executes immediately at the current best price.
Step 4: Placing Your First Trade
To place a market buy order: In the "Buy" section, select "Market". Enter the amount of USDT you want to spend. Click "Buy BTC" (or the pair you’ve selected). The trade will execute instantly. To place a limit buy order: Select "Limit". Enter the price (e.g., 45,000 USDT per BTC) and the quantity of BTC you wish to purchase. Click "Buy BTC". The order will remain open until the market price reaches your specified level. You can view pending orders in the "Open Orders" tab and cancel them manually if needed.
Step 5: Security Best Practices (2021 Version)
Security was a major concern on Binance in 2021, especially after a few high-profile incidents. Always enable two-factor authentication (2FA) using Google Authenticator, not SMS, as SMS can be vulnerable to SIM swapping. Set up anti-phishing codes to recognize official emails from Binance. Avoid clicking on unsolicited links, and double-check that you are on the correct binance.com domain. Additionally, use the "Whitelist Address" feature to restrict withdrawals to only verified wallet addresses. This extra step can prevent unauthorized transfers even if your account is compromised.
Step 6: Understanding Fees and Limits
Binance has a tiered fee structure based on your trading volume and whether you hold the BNB token. In 2021, if you used BNB to pay fees, you received a 25% discount. The standard trading fee was 0.1% for both makers and takers. Withdrawal fees depended on the specific cryptocurrency and network congestion. Always check the fee schedule on the Binance website before moving funds. For new users, daily withdrawal limits might start at 2 BTC worth of crypto, but this increased with higher verification levels.
Conclusion
Using Binance in 2021 was a straightforward process once you understood the registration, verification, deposit, and trading workflows. By following the steps outlined above—from KYC verification to placing your first limit or market order—you could start trading cryptocurrencies with confidence. Remember that the crypto market is highly volatile, so start with small amounts, prioritize security, and never invest more than you can afford to lose. For deeper analysis, explore Binance’s advanced features like margin trading and futures in later stages after you have mastered the fundamentals.