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Buying the Crypto Dip? Here's How You Can Do It on Binance

3y ago
bullish:

10

bearish:

1

Crypto price dips can present good buying opportunities

The cryptocurrency market is currently in a very interesting position – investors can’t seem to agree on whether the 2020-2021 bull market is over, or if the lower cryptocurrency prices are just a temporary phase before another bullish leg up. The fact that many of the top crypto assets are down 50% or more from their all-time high can represent a good opportunity for those that believe in the long-term potential of cryptocurrencies.

Investors that are involved in the crypto market might already have some fiat currency or stablecoins deposited on their exchange so that they can “buy the dip” when the opportunity presents itself. If you’re just getting started, however, you’ll first have to get some of your cash on a cryptocurrency exchange.

The cryptocurrency industry has evolved to a point where investors have many great exchanges to choose from. In this article, we’ll be focusing on Binance, which is undoubtedly one of the best options available on the market. One of Binance’s biggest strengths is that it lists hundreds of different cryptocurrencies, so you likely won’t have to hop between different exchanges if you discover a coin you’re interested in – the odds are that it’s already available on Binance. 

Even though Binance rose to prominence as a crypto-to-crypto exchange, it has made massive improvements to its fiat currency support in recent years. Now, you can easily buy cryptocurrency on Binance with your debit/credit card or a simple bank transfer. 

Before you get started, you’ll need to register an account on Binance. 

Create Binance Account

How to identify a good buying opportunity?

With the rapidly changing cryptocurrency market landscape, it can sometimes feel like a daunting task having to decide which project you would like to invest in or trying to find the right time to act. Fortunately, Binance offers all the necessary tools an avid investor could ever want.

Frequently checking the "Market Activity" section in the lower right corner of each coin’s trade page can give you a good idea about the current market sentiment. Binance updates the section with useful information about large buys and sells, notifies about all-time high prices based on different time bases (24 hours, 7 days, etc.), and more.

Additionally, using technical analysis indicators that are available on Binance to help you identify key support and resistance levels and pinpoint the best time to make a trade, can help you propel your investing strategies to the next level. At CoinCodex, we offer daily crypto price analysis updates, which take into account the general economic and financial factors that play a pivotal role on a macro level. We also regularly analyze historical data in order to extract critical details so we can give our best possible predictions about the market.

Consider dollar-cost averaging strategy if you are just starting out 

If you work a regular nine-to-five job and you lack the necessary time to take a deep dive into advanced investing strategies and learn all the technical caveats that come with the territory, it might be a good idea to use the old and proven dollar-cost averaging (DCA) strategy.

DCA is a simple investing technique that makes you spread your cryptocurrency purchases over regular time intervals with each purchase amounting to an approximately equal amount. If you lack the skills of an experienced day trader, DCA might be your best bet when starting out with crypto trading. It can mitigate some of the short-term volatility woes and allow you to “buy the dip” and invest when most are too afraid to make a purchase. The strategy has been proven successful time and again, especially if you have long-term investment goals in mind.

However, just randomly picking a crypto project to use DCA on and hope for the best is definitely not recommended. Staying on top of major news stories, following updates about the most promising blockchain projects and keeping up to date with quickly changing currency prices is crucial. Following the biggest crypto influencers is a good additional source of information.

Anthony Pompliano and Tone Vays are great follows if you are interested in a more general cryptocurrency overview. Both frequently appear in the media and have built quite a reputation over the years. Willy Woo, on the other hand, is Bitcoin on-chain analyst who frequently shares Bitcoin price models and focuses mostly on crypto’s largest currency. Australian-born trader Bob Loukas is a solid choice for those who prefer all the nitty-gritty details minus the drama. Loukas shares daily technical analysis posts mostly about Bitcoin and S&P 500 stocks. His Youtube series ‘4-Year Cycle journey’ is a goldmine of long-form market examination. 

Should you use your card or a bank transfer to buy crypto on Binance?

The main decision you’ll be looking at when funding your account on Binance will be whether to make your payment with a debit/credit card or a bank transfer. Both payment methods have their own pros and cons. 

You can select the payment method you want to use in the “Buy Crypto” menu at the top of your Binance interface. 

Credit and debit card payment

You can use your debit/credit card on Binance to buy more than 50 different cryptocurrencies – obviously, you can buy the most popular coins like Bitcoin, Ethereum and Cardano, but the feature also supports smaller altcoins like Enjin Coin and Zcash

Binance supports cards on both of the major payment networks, Visa and Mastercard. However, the availability of each might change depending on where you live. Make sure to check if you live in a supported country for the payment method you’re trying to use. 

Binance has ensured that buying cryptocurrency with a debit/credit card is as straightforward as possible. If you do have any questions or want a more detailed step-by-step guide on how you can buy cryptocurrency with a debit/credit card on Binance, you can check out the exchange’s official guide

The advantages of buying crypto on Binance with a debit/credit card:

  • One of the fastest and simplest methods to acquire crypto
  • More than 50 cryptocurrencies supported
  • Works with both Visa and Mastercard cards
  • You can withdraw fiat instantly to your card through Visa Fast Funds (Visa Direct)

The main disadvantage of buying cryptocurrency with debit/credit cards are the fees, which are higher than the bank transfer fees. If you plan on buying larger amounts of cryptocurrency, a bank transfer might be a better option. 

Bank transfer / 3rd party payment

Bank transfers are the cheapest way of funding your account on Binance, and this method also lets you deposit larger amounts of money. Binance supports bank transfer via SEPA (Single Euro Payments Area), but does not support SWIFT. 

Binance has a step-by-step guide that will help address any questions you might have when it comes to funding your account with a bank transfer.

The advantages of buying crypto on Binance with a debit/credit card:

  • Lower fees compared to debit/credit card purchases
  • Supports higher transaction amounts

The main downside of bank transfers is that it might take a while before your deposit is completed and credited in your account – SEPA transfers usually take between 1 and 2 business days, and they are not processed on weekends. 

Once the fiat currency is deposited to your Binance account, you can use the “Cash Balance” feature to convert it to different cryptocurrencies. Alternatively, you can go to Binance’s “Markets” section and see which trading pairs are available against the fiat currency you have deposited. Here are just a few examples of the coins that you can trade against EUR:

You can also choose to buy cryptocurrency through one of the 3rd party companies that are partnered with Binance. You will have to complete the payment with the third-party company, but the cryptocurrency you buy will be available directly in your Binance account. Some examples of the third-party payment processors currently supported by Binance include Simplex and Banxa.  

Identity verification

The process of buying and selling cryptocurrency on Binance will be a lot smoother if you complete identity verification for your account. Your account needs to be verified to have higher deposit/withdrawal limits, and verification will also help you make your account more secure in the event that someone gets unauthorized access to your account. 

Binance has different identity verification levels, which all require you to provide different information. In order to reach the necessary verification level, you might have to provide a photo of government-issued ID and take a selfie. 

The bottom line 

If you’re just getting started, Binance is one of the better options for purchasing cryptocurrency. The exchange supports a huge variety of cryptocurrencies, and also provides a lot of flexibility to users by supporting debit/credit card payments, bank transfers and 3rd party payment providers. Once you buy cryptocurrency on Binance, you can withdraw it to your own personal wallet. Alternatively, you could trade your cryptocurrency on the exchange, or use it on Binance Earn, Liquid Swap and other services provided by the exchange. 

3y ago
bullish:

10

bearish:

1

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