Cryptocurrency News

Considering Buying the Dip? Here’s Why You Should Use Binance To Do It

By July 30, 2021 No Comments

Volatility in the market can create favorable buying opportunities

To everyone who closely follows the cryptocurrency price movements as well as for those who just take a look at the market values every now and then, it is obvious that the crypto marketplace is a volatile place.

A common difference between a serious investor and a casual one is that the experienced investor is at all times ready to execute a trade, while the amateur investor has to first resolve the issue of getting its funds on a crypto exchange. Once the funds are finally deposited, the opportunity to make a truly high-value trade might already be over.

As the cryptocurrency industry continued maturing over the years the crypto exchange options continued getting increasingly more refined and more numerous. In this article, we’ll be taking a look at Binance, one of the industry leaders.

Throughout the years, Binance managed to drastically improve its repertoire of deposit options. While at first Binance was a crypto-to-crypto exchange, it now supports debit/credit card transactions as well as old and proven bank transfers to facilitate crypto onboarding.

If you don’t yet have a Binance account you can create one by clicking on the button below.

Credit card or bank transfer – which to choose?

Once your account is created the next step is to choose a payment method with which to buy cryptocurrency on the exchange. In the upper left corner of the Binance homepage hover over the “Buy Crypto” button to gain access to all the offered payment options.

Binance hosts a huge catalog of cryptocurrency options as users are able to invest in 50 different cryptocurrencies. The largest coins in the market are obviously included, as Bitcoin, Ethereum and Binance Coin are all available. However, crypto enthusiasts are able to choose from lesser-known altcoins as well.

We’ll discuss each payment method in its own respective segment.

Credit/Debit Card payment method

Binance offers support for Visa and MasterCard, by far the biggest payment networks. Keep in mind though that their availability is dependant on your country of residence and varies by territory. Binance offers a time-limited opportunity as users buying with Visa/Mastercard get 50% off all transaction fees.

There are no hidden caveats when buying crypto with either a credit or debit card on the exchange as the whole process was made as straightforward and easy to use as possible.

Pros of purchasing crypto with a debit/credit card:

  • Supports Visa and MasterCard cards
  • Easy to use and very fast payment method
  • Visa Fast Funds allows instant fiat withdrawals

Cons of purchasing crypto with a debit/credit card:

  • Fees are higher than when using the bank transfer payment option

Bank transfer and 3rd party payment method

If you are looking to fund your account with a larger amount of fiat, bank transfers are the way to go. Bank transfers offer the lowest fees, however, SEPA transfers can take between 1 to 2 business days. The bank transactions are not being processed during the weekend, which can further delay access to your funds.

When your Binance account is funded with fiat currency, your can head to the “Markets” section that can be accessed on the page’s header at the top of the homepage. Once in the markets section, you can navigate to the “FIAT Markets” option to see all available trading pairs. The image below shows the EUR trading pairs, however, you can freely scroll through different fiat trading options.

Binance also has deals made with various third-party companies. When completing the transactions via a 3rd party company, you are taken to their payment page to complete the payment process. Once completed, the funds are immediately available on your Binance account. 3d party support varies between different cryptocurrencies, however, most coins can be bought using Binance’s partners Simplex and Banxa (as shown in the example of buying BNB below).

Pros of purchasing crypto via bank transfer/3rd party payment option:

  • Lower fees compared to debit/credit card payments
  • Allows for bigger transaction amounts

Cons of purchasing crypto via bank transfer/3rd party payment option:

  • Slow speed of transactions as SEPA transfers usually take 1 – 2 business days and are not processed on weekends

Complete your identity verification to get the most out of your Binance account

In order to raise your identity verification to the highest level, you have to supply Binance with the required personal information. A photo of a government-issued ID along with a selfie picture. For further information, you can head to Binance’s own step-by-step ‘How to Complete Identity Verification’ guide. The complete overview of different personal verification levels can be seen in the image below.

Identity verification is instrumental in unlocking all your cryptocurrency buying options. Once the identity verification process is complete you gain access to higher deposit/withdrawal limits. Additionally, your Binance account becomes more secure which can be crucial especially in the event of someone gaining unauthorized access to your exchange account.

Learn how to recognize a favorable buying opportunity

Once you have successfully put fiat into your Binance account and taken care of the identity verification process you are ready to make your first cryptocurrency investment.

The Binance trading page offers all the tools you could ever need both as an experienced trader as well as if you are just starting your crypto trading journey. Though the interface might seem overwhelming at first, Binance supplies each element on the page with concise descriptions and even offers video tutorials for certain options.

If you are just starting out in crypto trading and lack the time to learn all the details about advanced trading strategies you can take advantage of repeatedly tested dollar-cost averaging (DCA) investing strategy.

By dividing your investment funds into roughly equal amounts and make trades in predetermined time intervals, you can hardly go wrong. Using DCA can make it easier to “buy the dip” and execute your buying orders when most are too afraid to buy. DCA is especially useful if you are looking for long-term success and pay little attention to short-term price movements.

Staying on top of concurrent crypto events and finding legitimate news sources is mandatory. There is also a big number of crypto influencers who are a great source of information since they are usually quick to give praise to crypto projects when its due as well as share their criticism when it’s warranted. In the list below you can find some examples of crypto personalities who are great follows on social media.

The list of prominent social media personalities covering the crypto industry:

  • Anthony Pompliano is a founder of Morgan Creek Digital hedge fund that specializes in blockchain technology. He has a large Twitter following and is a host of ‘The Pomp Podcast’ and regularly covers topics pertaining to crypto.
  • Bob Loukas is an Australian born-trader currently residing in New York. Loukas is famous for in-depth market analysis focused mostly on Bitcoin and S&P stocks. If you are searching for long-form video format content, check out his superb ‘4-Year Cycle Journey’ Youtube series.
  • Willy Woo is a great pick for those who are looking for all detailed Bitcoin on-chain analytics and Bitcoin price-prediction models.

Bottom line

Binance offers a complete suite of features for purchasing digital currencies. Not only is there a huge number of coins available to chose from, but the exchange also accepts all kinds of payment methods with competitive fee rates. Click the link below to start your Binance trading today.