Hi, crypto enthusiasts!
Have you already started earning free tokens? I hope you have already applied for the first requests in the new and very promising airdrop.
In this lesson, we start talking about more serious topics and understand:
* What is a crypto exchange and how does it work
* What types of crypto exchanges exist
* Which exchange is best to create your first account on?
* Who is CZ?
* How to earn on the Binance exchange
* Creating your first account on the exchange
* Completing verification
* Seeing how to start trading without verification
A cryptocurrency exchange is a website where you can always exchange one cryptocurrency for another at a favorable price.
The cost of the same cryptocurrency on different exchanges is approximately the same, — there are special robots that make money on this.
These are arbitrage robots — they find price differences and equalize them using special algorithms. Sell on one exchange, Buy on another. Usually, arbitrage is only available to big players with large sums.
When choosing an exchange for registration, it is important that this website has to be one of the most popular on the market, it has excellent reviews, and is not prohibited in your country.
What is a crypto exchange?
Crypto exchange is an electronic market.
On the exchange, someone always wants to buy, and someone wants to sell.
We choose a category, which is a currency pair, and we can sell or buy.
A currency pair is what we buy and what we sell. The most popular currency pair is BTC/USDT.
If we have USDT and we want to buy BTC, we find this currency pair. And to sell BTC and receive USDT, we need to use the same pair.
And we will buy and sell these currencies on sale and buy ads board with called BTC/USDT.
If the exchange is a board, then what are these ads called here?
These ads are called orders.
Buy orders are called Bid and are marked in green on the slide. Sell orders, or sell ads, are called Ask and are marked in red on the slide. These ads form an order book.
In the order, the price and quantity of coins must be specified. To sell or buy, you must have enough coins in your account.
The exchange monitors this and acts as a guarantor for all that the order will be executed, that is, when selling BTC, I will receive USDT according to the terms of my order.
What types of exchanges exist?
There are many classifications of exchanges, but to cover all types of trading, we would need to expand the course by 50 lessons. Since our time is limited, we will focus on centralized, decentralized, and hybrid exchanges.
Centralized exchanges are like banks where you bring your assets and the exchange helps you easily exchange and guarantees their safety.
Advantages include easy understanding and high activity, which provides more favorable conditions for buying and selling cryptocurrencies. The main disadvantage is that your money is stored on the exchange wallet, although it is still personal.
Decentralized exchanges are exchanges that operate on the blockchain basis, meaning that they do not have a center, and their performance is ensured by the fact that a large number of wallets are simultaneously connected to the network, and wallet-to-wallet and exchange transactions are made by using smart contracts.
The main advantage of such an exchange is that your funds are stored on your wallet, but the exchange rates are less favorable and it is more difficult to understand how it works.
Hybrid exchanges are half centralized and half decentralized. You store your money on your wallet, but all exchange processes are centralized and managed by the exchange.
In this lesson, we will register on the most popular centralized exchange, and in lesson 13, we will create a wallet on a decentralized exchange.
The most popular centralized exchange is Binance. The guys from Binance not only created the exchange but also provide many useful tools for trading.
They offer cryptocurrency exchange, research, knowledge base, the ability to invest in new projects — such as IEOs, and much more.
Perhaps everyone is interested in why the exchange is interested in accepting my orders and helping to buy and sell cryptocurrencies.
Exchanges earn commissions for every exchange and transfer transaction. The commissions are very small, but according to the fact that transactions are made frequently and by a large number of people, exchanges are the most successful projects in the cryptocurrency market.
On Binance, the commission for exchange is taken either in the exchange currency or in their BNB token.
BNB is already a very popular currency in the crypto market, and paying commissions in BNB gives a discount.
If you have BNB in your account and have allowed them to be used as a commission, the commission will be automatically paid from your wallet at a more favorable price.
It’s impossible to talk about the Binance exchange without mentioning its owner and founder, who the whole world knows by the name CZ.
His real name is Changpeng Zhao, he is from China, and he is one of the most influential people in the cryptocurrency market.
The Binance exchange was founded in 2017 and in just six months surpassed all major players.
This is believed that full credit must go to CZ, who had already worked for several years in cryptocurrency projects before founding the exchange and knew very well what the market needed.
Among crypto enthusiasts and even owners of major projects, it is considered very cool to take a photo with CZ. I won’t argue with that.
Before we create our first account on Binance, let me tell you a little more about how you can earn money on this exchange.
You can profit from the difference in exchange rates.
You can participate in promotions and airdrops.
You can earn on deposits and much more.
Well, it’s time to create our first Binance account:
* Go to the exchange’s website, you will have the link.
* Choose «Register.»
* Select your country of residence.
* Create a personal account.
* Enter your email address and create a password.
* Confirm your account via email.
* Enter your phone number and confirm it.
* Account created.
To start trading on Binance, we need to verify our identity.
Go to the Account -> Verification section
For a beginner, Level 1 verification is sufficient
Choose your region/country -> You will see a list of data that citizens of your country need to provide
Enter your First Name, Last Name, and Date of Birth
Upload a photo of your Passport or Driver’s License
You also need to add a photo of the document directly in the program
Take a selfie and verify your face with the same camera
Download the app on your phone and scan the QR code
Wait for a response. Sometimes it comes within an hour, sometimes within 2-3 days.
You also have instructions for the Binance exchange in your presentation.
If for any reason you cannot register and verify on this exchange, you can create an account with the official broker.
Our Cryptorobotics platform is an official Binance broker, which means that Binance allows us to create accounts for users on our platform.
Here I will show you a simplified way to create an account without verification, in this case we act for you and for the exchange, to ensure that no illegal actions are taken on the platform.
In the near future, we plan to add our own identity verification system for your safety, but for now it works like this:
Log in to your Cryptorobotics account or register (you have a personal link in the bot, which you received at the very beginning)
Go to the Account section -> Binance Subaccounts and click on the + Binance Subaccount button
In the settings, add verification through Google Authenticator and Telegram
Enter the subaccount name in the field
Agree to the rules and click Create Subaccount
The account is created but requires additional verification from Binance integrated to the platform
It takes 1 minute to pass through it
Now you have access to deposit and withdraw funds to your personal Binance wallet through the Cryptorobotics terminal.
I recommend that you open an account on both the platform and the exchange, and then choose which one is more convenient to use.
At the end of Lesson 8, pick up your dictionary and the link to Binance.
In Lesson 9, we will find our own wallet on Binance and start using it.
It was Alina, see you soon.