TL;DR

Peer-to-peer (P2P) trading is the direct buying and selling of cryptocurrencies among users without intermediaries. P2P exchanges connect buyers and sellers and provide a layer of protection through escrow services, feedback / rating systems, and dispute resolution.

The advantages of P2P trading include global accessibility, multiple payment options, zero transaction fees, and personalized offers. However, it also has drawbacks, such as slower trading speeds and lower liquidity than centralized exchanges (CEXs).

Introduction

P2P cryptocurrency trading is a method of buying and selling cryptocurrencies directly between users without the need for a central intermediary. Users can use a P2P exchange to access a global marketplace, multiple payment options, and personalized offers. However, P2P trading also has its drawbacks, such as slower trading speeds and lower liquidity. In this article, we will discuss the pros and cons of P2P trading and how people can benefit from it.

What Is P2P Trading?

P2P crypto trading refers to the direct buying and selling of cryptocurrencies among users, without a third party or an intermediary. This is unlike buying and selling cryptocurrencies using a CEX, where you cannot transact directly with counterparties.

A CEX would use charts and market order aggregators to gauge the current market prices and determine the optimal time to buy, sell, or hold your crypto. When you are ready to buy or sell, the exchange enters your order into its order book and facilitates the transaction on your behalf.

Depending on the type of order you use, effects such as slippage may mean you don’t get the exact price you want. P2P trading, on the other hand, gives you full control over pricing, settlement time, and whom you choose to sell to and buy from.

How Does a P2P Exchange Work?

Think of a P2P exchange in the same way you might Facebook Marketplace — they are similar in that they both connect buyers and sellers. However, buying or selling something on Facebook Marketplace can be tricky as the counterparties are strangers and it’s difficult to establish trust.

What happens if the seller receives payment, then proceeds to block the buyer and not mail them the product that they purchased? In this instance, the buyer loses money due to fraud.

P2P exchanges aim to not only connect buyers and sellers, but also provide them with a layer of protection by securing transactions and reducing the risk of fraud. Buyers and sellers can browse crypto ads and post their own ads while enjoying this protection, made possible by feedback and rating systems.

In addition, the P2P exchange uses escrow to secure the crypto being bought and sold until both parties have confirmed the transaction. For example, if you are selling Bitcoin for fiat money, Binance will escrow your Bitcoin (BTC). Once you receive the fiat money, you can confirm the transaction and the BTC will be released to the buyer's wallet.

If either party is dissatisfied with the transaction, they can file an appeal to resolve the issue with the counterparty, or have Binance Customer Support step in. Do note, however, that the appeal must be filed during the order process, while the order is still pending.

Advantages of P2P Trading

Global marketplace

One advantage of using a local P2P Bitcoin exchange is that it gives you access to a global market of cryptocurrency buyers and sellers. For example, some P2P exchanges are accessible in hundreds of countries, allowing you to buy and sell cryptocurrencies with people around the world in a matter of minutes.

Multiple payment methods

Traditional exchanges may not offer as many payment options as P2P exchanges. Binance P2P, for example, offers over 700 payment methods, including in-person cash payments. This can be useful for those who prefer face-to-face transactions or those without access to a bank account.

Zero trading fees for takers

While some cryptocurrency exchanges charge a fixed fee or percentage per trade, others allow traders to connect and conduct transactions for free — be sure to check the terms and conditions before deciding on a P2P exchange. 

Secure transactions via escrow

As mentioned above, some cryptocurrency exchanges use escrow services to protect both buyers and sellers. When choosing to secure a transaction with escrow, funds are held by the exchange and released only when the terms of the transaction are met by both parties.

Transactions must be completed within a certain time frame; if a buyer doesn't make the fiat payment within the specified time, their order is canceled and the cryptocurrency is returned to the seller's wallet.

Personalized offers

Sellers have complete control over the selling price, exchange rate, payment method, and how much they are willing to sell per transaction. The same is true for buyers (buying price, payment method, and how much they are willing to spend per transaction). As long as both parties’ terms align, a deal can be struck.

Disadvantages of P2P Trading

Slower trading speeds

While a P2P transaction can be conducted almost instantly once both parties have confirmed the transaction, one party might delay the transaction for various reasons. With traditional trading, you don't have to wait for the buyer or seller to confirm the transaction before you can move on.

Low liquidity

P2P exchanges naturally have lower liquidity than CEXs due to the nature of the process. For this reason, larger traders who need to complete major transactions may prefer to use over-the-counter (OTC) trades, or buy / sell via the standard exchange.

How Do People Benefit from Trading P2P?

P2P trading is a convenient way to invest in cryptocurrency. Not only does it allow you to buy or sell cryptocurrency directly with others, it also lets you avoid some of the transaction fees associated with traditional exchanges. Here are three ways in which people use P2P trading to their advantage:

Arbitrage with fiat

P2P trading provides arbitrage opportunities with fiat money. With over 100 fiat currencies to choose from on Binance, for instance, you have the opportunity to benefit from the price differences between these fiat currencies.

Arbitrageurs start by calculating the price differences and potential profits before making any purchase. Below is an example of how an arbitrageur can leverage price differences.

Trading BTC/USD: If the buy price is $21,000 or €23,100 (the USD and EUR markets have different prices) and the sell price is $20,800 or €22,880, buying Bitcoin and immediately selling it back in USD would lead to a loss of $200 or €220 (sell price - buy price).

Trading BTC/EUR: If the buy price is $21,364 or €23,500 and the sell price is $21,182 or €23,300, purchasing Bitcoin with USD and selling it for EUR would lead to a profit of $182 or €200.

The above example shows how buying BTC on the US market and selling it for EUR can be more advantageous than buying and selling only on the domestic market.

Arbitrage between different exchanges

P2P trading provides plenty of opportunities for arbitrageurs, because there are often significant price differences between exchanges. Many people use P2P trading to buy and sell crypto assets in order to benefit from these differences.

They may arbitrage between different exchanges, usually through the purchase and sale of the same asset to take advantage of its price difference on different exchanges.

For example, if Bitcoin sells for $21,000 on exchange A and $21,100 on exchange B, buying it on A and immediately selling it on B would result in the buyer earning $100 per Bitcoin.

Publish buy and sell ads

This method allows you to post an ad on a P2P trading platform, featuring the asset you are interested in buying or selling and the price at which you’re willing to transact. Once your ad is posted, other platform users who see it will then decide if they want to trade with you.

If another P2P user decides to trade with you, he will send you a trade request. Once you accept the request, both parties can complete the trade. Choosing to set a higher price than the market price will ensure that you generate more revenue.

For example, you can publish an advertisement to purchase Bitcoin at $20,000 and another advertisement to sell Bitcoin at $20,200. This way, you can earn $200 for every 1 Bitcoin that you transact.

What Are the Risks of Arbitrage?

While arbitrage can be beneficial to a trader, it comes with its own risks and costs. For instance, shifts in exchange rates may drive the value of a currency or asset down. In this case, a trader may experience financial loss if their asset's value decreases before they manage to sell it on another market.

In addition, there are banking fees associated with transferring assets between markets, which can eat into profits. There may also be other indirect costs, such as the cost of financing transactions and the opportunity cost of not investing funds elsewhere.

Is P2P Trading Safe?

P2P trading is generally safe but this usually also depends on the exchange and the safety measures it has in place. While older P2P exchanges came with higher risk of theft and scams, many newer P2P trading platforms have greatly improved their security measures.

A leading P2P exchange today will have an escrow service, regular security updates, and a stringent identity verification process (among other measures) to keep users safe. However, even with robust safeguards in place, all trading activity comes with risks — and P2P trading is no exception.

Closing Thoughts

P2P cryptocurrency trading is a way to buy and sell cryptocurrencies without involving intermediaries. With P2P trading, you control the prices, counterparties, and timing of your transactions. It can be likened to Facebook Marketplace but with an added layer of security through feedback systems, ratings, and escrow services.

This global marketplace provides access to a variety of payment options, including in-person cash transactions. While P2P transactions can be slower and less liquid than those on CEXs, those willing to wait and who want personalization in their trades can benefit from the arbitrage and other opportunities P2P trading offers.

Further Reading

Peer-to-Peer Networks Explained

How Blockchain Technology Will Impact the Banking Industry

What Is Blockchain Technology? The Ultimate Guide

What Is Leverage in Crypto Trading?

Top 6 Dual Investment Trading Strategies

Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial advice, nor is it intended to recommend the purchase of any specific product or service. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. Not financial advice.

TL;DR

With Dual Investment, there’s an opportunity to employ different strategies depending on your market view. 

For less-experienced investors, you can easily take profits, buy dips, and earn interest on your crypto and stablecoin holdings. 

For experienced investors, it’s possible to enter multiple Dual Investment positions and take advantage of a short-term volatile market.

Introduction

For users looking to diversify their investments, Binance Earn’s products are a good place to start. Dual Investment is one of the more advanced ways to earn and provides a way to buy or sell a cryptocurrency at your desired price at your desired date in the future. Regardless of your position, you’ll earn a high-interest income no matter which direction the market goes.

So now we understand the basic concept, how exactly do we start earning? There are, in fact, many ways to use Dual Investment. Each one can complement your trading strategies and predictions for the market. Let’s get stuck in!

1. Taking Profits

Although it can be easy to get carried away, it’s always good to take some profits when you can. With this particular Dual Investment strategy, you can benefit from additional returns and realize some of your crypto gains in the future.

1. Select the Sell High Dual Investment product on Binance Earn. In this example, we’ll look at an Ether (ETH) product. Let's say the current ETH price is $2,900 (all prices given in TUSD).

2. We’ll set a Target Price of $3,500 and the Settlement Date for a week’s time. 

3. We’ll then have the chance to sell the deposited ETH at the Target Price if it’s reached on the Settlement Date in a week. If ETH is 3,500 TUSD or above on the Settlement Date, it will be sold for TUSD.

This removes the situation of forgetting to take your profits or not doing so due to greed! At the same time, you’ll also be earning APR.

4. If your Target Price isn’t reached on the Settlement Date, you’ll still earn APR on the deposited ETH and receive the ETH back. 

2. Buying the Dips

Buying the dip is another common trading strategy that allows you to take advantage of a market downturn. By purchasing at a lower price, you anticipate a later market upturn when you can sell for a profit. With Dual Investment, it’s simple to plan for potential future dips while earning an additional interest income.

1. Select the Buy Low Dual Investment product on Binance Earn. In this example, we’ll look at a BTC product purchasable with Tether (USDT). Let's say BTC’s current price is $39,000.

2. We’ll choose a Target Price of $36,500 for BTC with a Settlement Date in one week.

3. If the Market Price is $36,500 or lower on our Settlement Date, for example $36,000, BTC will be purchased at our Target Price. You’ll also get your earned interest too. 

4. If your Target Price ($36,500) isn’t reached on the Settlement Date, you’ll still earn APR on the deposited USDT before receiving it back. 

3. Growing Your HODLed Crypto

When entering into Dual Investment, you don’t always have to be betting on market movements. In fact, you can make good use of the product even when the price remains relatively stable or doesn’t reach your Target Price. Here, we’re just looking to make returns on crypto through interest.

1. Select the Sell High Dual Investment product on Binance Earn. In this example, we’ll look at a BTC product. BTC’s current price is $39,000.

2. We’ll choose a Target Price of $40,000 for BTC with a Settlement Date in one week.

3. To simply earn APR, we hope that Bitcoin’s price remains stable or decreases and doesn’t meet the Target Price.

4. At the Settlement Date, BTC’s price is $38,000. This means you keep your deposited BTC and receive all earned interest. This provides an easy way to earn high interest on your crypto holdings. 

4. Growing Your Stablecoin Stash

Many of us keep stablecoins as a way to keep captured profits in the blockchain ecosystem. But that doesn’t mean that we can’t make them start earning too. This strategy is similar to the previous one, in that we hope the Target Price isn’t reached.

1. Subscribe to a Buy Low Dual Investment product on Binance Earn. In this example, we’ll look at a MATIC product purchasable with USDT. MATIC’s current price is $1.20.

2. We’ll choose a Target Price of $1.10 for MATIC with a Settlement Date in one week.

3. To earn stablecoin APR, we hope that MATIC’s price remains stable or increases and doesn’t meet the Target Price.

4. At the Settlement Date, MATIC’s price is $1.22. This means you keep your deposited USDT and receive all earned stablecoin interest. This provides a simple way to earn high interest on your stablecoin holdings.

5. Compound Earning in a Short-Term Volatile Market

Our previous four strategies have provided simple ways to earn interest and buy or sell at preset prices according to your strategy. However, there’s also the opportunity for more advanced plays with Dual Investment.

As always, investing has an inherent risk. This strategy should only be used by experienced investors who feel comfortable in volatile markets. With this application, we expect market volatility but have no clear view of whether the market is bullish or bearish.

To take advantage of this situation, we need to use a combination of Buy Low and Sell High products. Let’s look at an example.

1. Select the Sell High Dual Investment product on Binance Earn. In this case, we’ll look at a BNB product. BNB’s current price is $395.

2. We’ll choose a Target Price of $420 for BNB with a Settlement Date in one week.

3. The market is volatile, meaning two things may happen. 

If the Target Price isn’t met, you’ll keep your BNB and earned interest. You can create a new Sell High order, allowing you to earn more interest or sell for a higher price. 

If the Target Price is met, you’ll sell your BNB at $420 per unit and gain interest. You can now place a Buy Low order, giving you the chance to purchase crypto at a lower price. 

4. Every time your Target Price is met, go for Dual Investment products in the other direction. If the Target Price is not met, continue in the same direction until the Target Price is met. 

5. Playing the market in this way lets you keep on buying lower and selling higher, all while compounding your returns.

6. Double-Sided Positions

Our final strategy has similarities with the previous one, but in this case, we open two positions simultaneously. To do this, you’ll need to hold two types of tokens: one in crypto (like BNB) and one in stablecoin (like USDT). Let’s see how it works if the price of BNB is currently $390. 

1. Use BNB to subscribe to a Sell High BNB Dual Investment product with a Target Price of $420 and a Settlement Date in one week.

2. Use USDT to subscribe to a Buy Low BNB Dual Investment product. Set your Target Price to $360 with a Settlement Date in one week.

3. The market is volatile leading to three possible outcomes: 

The Target Price of both positions isn’t met as the price stays between $360 and $420. In this case, you’ll keep your original BNB and USDT deposits, as well as earned interest in both currencies. 

The price of BNB reaches $420 or above, meaning the Sell High position’s Target Price is reached. Your BNB and accumulated interest will be sold for $420 per unit, and you’ll also keep your Buy Low USDT deposit plus earned interest. In conclusion, you get to take profit from selling BNB and also accumulate interest in USDT.

The price of BNB reaches $360 or below, meaning the Buy Low position’s Target Price is reached. You’ll purchase BNB at your desired price and receive your interest, and you’ll also keep your Sell High BNB deposit plus earned interest. In conclusion, you get to buy BNB at a lower price while also accumulating interest in BNB.

Closing Thoughts

There’s a lot more to Dual Investment than just earning interest and buying or selling. You can use the product as a way of planning your trading strategies with the added bonus of APR. So, if you’re looking for a way to diversify your investments, Dual Investment is a great product to explore.

Further Reading

A Quick Guide to Binance Dual Investment

Binance Margin Trading Guide

What Are Forward and Futures Contracts?

How to Calculate Return on Investment (ROI)

Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal, or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third-party contributor, please note that those views expressed belong to the third-party contributor and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions, and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal, or other professional advice. For more information, see our Terms of Use and Risk Warning.

TL;DR

Market sentiment considers investors' thoughts, feelings, and moods regarding an asset. These feelings don't always reflect an asset or project's fundamentals but can significantly affect the price.

Market sentiment analysis is a form of research that uses this information to try and predict price movements. By tracking the market dynamics with its participants' overall attitudes, you can understand the amount of hype or fear surrounding a specific cryptocurrency.

Introduction

Just like other assets, the price of a cryptocurrency is directly related to market supply and demand. These market forces can change for several reasons, including public opinion, the press, and social media. 

Many traders analyze the market's sentiment to predict the short and mid-term potential of a crypto asset. Along with the technical and fundamental analysis, investigating the crypto market sentiment can be a valuable addition to a trader's toolkit.

What is market sentiment?

Market sentiment is the collective attitude of traders and investors towards a financial asset or market. The concept exists in all financial markets, including cryptocurrencies. Market sentiment does have the power to influence market cycles.

Still, favorable market sentiment doesn't always lead to positive market conditions. Sometimes, strong positive sentiment (it's going to the moon!) may come before a market correction or even a bearish market.

Besides providing insights into market demand, traders can analyze these sentiments to predict potentially profitable trends. Market sentiment doesn't always consider a project's fundamentals, but they might be linked sometimes.

Let’s take Dogecoin as an example. A lot of Dogecoin's demand in its bull run likely came from social media hype (which led to positive market sentiment). Many traders and investors bought Dogecoin without considering the project's tokenomics or goals, but only because of the current market sentiment. Even a single tweet from a figure like Elon Musk is enough sometimes to cause positive or negative market sentiment.

Why is market sentiment analysis important?

Market sentiment analysis is an essential part of many trading strategies. Like technical or fundamental analysis, it's usually a good idea to make decisions using a mixture of all the information available. 

For instance, market sentiment analysis can help you investigate whether FOMO is justified or simply a result of herd mentality. Overall, combining technical and fundamental analysis with market sentiment studies allows you to:

Get a better idea of short and mid-term price action.

Develop better control of your emotional state. 

Discover potentially profitable opportunities.

How to perform market sentiment analysis

To understand the market's sentiment, you'll need to collect the market participants' views, ideas, and opinions. Again, while it can be helpful, you should not rely solely on market sentiment analysis. You could rather use the information collected in combination with your existing knowledge and experience before drawing actionable conclusions.

To get a basic feel, you might consider investigating the relevant social media pages and channels to understand what the community and investors are feeling about that specific project. You may also join official forums, Discord servers, or Telegram groups to talk directly with the project’s team and community members. But be careful! There are many scammers in those groups. Don’t trust random people, and make sure to do your own research before taking risks.

Social channels are just the first step. You can use many methods to get a broad overview of market sentiment. On top of monitoring social channels (particularly Twitter, given its popularity among cryptocurrency fans), you might consider the following:

1. Track social mentions with data collection software tools.

2. Stay up to date with the latest industry news through media portals and blogs. Binance Blog, Binance News, Bitcoin Magazine, CoinDesk, and CoinTelegraph are some examples.

3. Set alerts or track large transactions made by whales. These movements are regularly tracked by some crypto investors and sometimes might have an impact on market sentiment. You can find free whale alert bots on Telegram and Twitter.

4. Check market sentiment indicators and pricing signals on CoinMarketCap. These indexes analyze a range of different sources and provide easy summaries of current market sentiment.

5. Measure the level of hype surrounding a cryptocurrency with Google Trends. For example, a large search volume for “How to sell crypto,” could suggest that the market sentiment is negative.

Market sentiment indicators

Investors can look at market sentiment indicators to get an idea of the bullish or bearish feel of a market or asset. Indicators represent these feelings either graphically or with some kind of scale. These tools can make up a part of your sentiment analysis kit but shouldn’t be relied upon solely. It’s best practice to use multiple indicators to get a more balanced view of the market.

Most market sentiment indicators are focused on Bitcoin (BTC), but you can also find Ethereum (ETH) sentiment indexes. The Bitcoin Crypto Fear & Greed Index is perhaps the most known indicator of crypto market sentiment. The index shows Bitcoin market fear or greed on a scale of zero to 100 by analyzing five different information sources: volatility, market volume, social media, dominance, and trends.


The Bull & Bear Index by Augmento is a different sentiment indicator concentrating on social media. An artificial intelligence (AI) software analyzes 93 sentiments and topics using conversations on Twitter, Reddit, and Bitcointalk. The creators also backtest their indicator’s methodology with the year’s worth of data available. Zero is extremely bearish on the scale and one extremely bullish.

Putting it all together

Analyzing social media channels, on-chain metrics, and other crypto indicators can provide insights into a coin or project's sentiment. With a better understanding of the market's current attitudes, you are more likely to make better trading or investment decisions.

To help maximize the effectiveness of sentiment analysis, it’s usually best to combine it with:

Technical analysis – might help you make better predictions when it comes to short-term price action.

Fundamental analysis – to determine whether controversial information is justified or to evaluate a coin’s long-term potential.

Closing thoughts

While many traders use market sentiment analysis in investment markets, it can be particularly useful in the cryptocurrency market. Because the blockchain industry and crypto markets are still relatively small, public perceptions and sentiment can cause volatile price fluctuations.

By utilizing the methods discussed, you can begin to understand market sentiment and (hopefully) make better investment choices. Again, if you want to get started with market sentiment analysis, you may consider:

Tracking social media channels and the emotions surrounding a project.

Staying up to date with the latest industry news and upcoming events.

Using indicators that help you get a better idea of the public interest on a particular coin.

Market sentiment analysis tends to offer better results with more practice and experience, but it might not work in some cases. Make sure to do your due diligence before trading or investing because every decision involves a certain amount of risk.

Further reading

The Psychology of Market Cycles

Five Risk Management Strategies

What Is an NFT?

Web2 vs. Web3: Which Is Better?

What Is GameFi and How Does It Work?

Key Takeaways

Spot trading is among the simplest and most traditional ways of buying and selling financial assets.

Binance Spot trading platform offers a user-friendly interface with low fees and high liquidity. It’s suitable for all kinds of traders.

The guide covers the basics of spot trading and shows you how to use Binance Spot so you can easily buy or sell cryptocurrencies anytime.

Introduction

When people first begin their journey into cryptocurrency trading and investing, they often start with spot trading, which is among the simplest ways of buying and selling financial assets. 

Binance Spot is a spot trading platform that offers a user-friendly interface, allowing users to easily buy and sell assets with low fees and high liquidity, making it ideal for both beginners and experienced traders.

In this article, we will cover the basics of spot trading, how it differs from other forms of trading, and some of its advantages. After that, we will learn how to do spot trading on Binance.

What Is Spot Trading?

Spot trading is a direct and immediate form of trading, with transactions settling instantly and without any kind of leverage. It’s one of the most basic forms of trading and can be done with a variety of asset classes, such as cryptocurrencies, stocks, commodities, forex, bonds, and more.

Although spot trading may occur directly between traders, transactions are usually facilitated by an exchange like Binance.

What’s the Difference Between Spot Markets and Futures Markets?

Spot markets execute instant or short-term trades with immediate delivery, while futures markets involve contracts that set delivery for a future date. Spot trading relies on the current market price based on supply and demand. Futures contracts, on the other hand, are based on agreements between buyers and sellers.

What’s the Difference Between Spot Trading and Margin Trading?

Spot trading requires full asset purchase and immediate delivery, while margin trading allows borrowing funds to enter larger positions. Margin trading amplifies both potential profits and losses, offering increased risk and reward.

Advantages of Spot Trading

Lower risk: Spot markets rely solely on buy and sell orders without concerns of liquidation or margin calls. It’s ideal for users who want to buy and hold.

Simplicity: Spot trading is straightforward, making it accessible for everyone and ideal for beginners.

Immediate entry and exit: Traders can enter or exit a trade at any time.

How to Spot Trade on Binance?

In this example, we will go through the Binance Spot interface. Then, we will illustrate how to buy BTC with USDT using a limit order, followed by an example of how to sell BTC for USDT using a market order.

How to access the Binance Spot interface

1. Log in to your Binance account and find [Trade] → [Spot].

2. You will be redirected to the Binance trading interface.

3. On the left side is the order book. Sell orders (asks) are in red, while buy orders (bids) are in green.

4. The trading chart at the center is an interactive chart of the selected trading pair. In this example, BTC/USDT.

5. The trading pair list is on the right side. It contains all available trading pairs on Binance. You can use the Search function to find specific pairs.

6. Below the chart is where you can create buying and selling orders. But to do so, you need to fund your Spot Wallet.

7. For example, if you are buying BTC with USDT, you need to first add USDT to your Spot Wallet. Click the [+] icon to fund your account and choose your preferred method.

How to buy BTC with USDT

1. The first step is to choose an order type. A limit order allows you to set a specific price for your order (not necessarily the current price). A market order will try to fulfill your order as soon as possible at the current available price.

2. If you are using a limit order, specify the price and amount you want to buy and click [Buy BTC] to create the order.

3. You will get a notification at the top right corner of your screen. 

Note that you can track your open orders at the bottom of your trading interface.

4. If BTC reaches your order price, your order will be filled.

How to sell BTC for USDT

The process for creating selling orders is very similar. Let’s see how you can sell your BTC for USDT. In this example, we will use a market order.

1. Choose your order type, set the amount, and click [Sell BTC].

2. Since we are using a market order, the selling order will be created and filled immediately at market price.

How to view my order details

You can view your order history, trade history, and other details at the bottom of your trading interface.

You can also edit open orders by clicking the edit button near Price and Amount.

On the right side, you can click the bin icon to cancel orders individually or the [Cancel All] button to cancel all open orders.

Closing Thoughts

Embarking on the exciting journey of cryptocurrency trading often starts with the simplicity and accessibility of spot trading. Binance Spot, with its user-friendly interface, low fees, and high liquidity, is the ideal platform for both novice and seasoned traders.

Further Reading

Your Guide to Binance Launchpad and Launchpool

An Introduction to BNB Smart Chain (BSC)

What Are Bitcoin Layer 2 Networks?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.