Binance tips: achieve better results with Binance
Do you want to get better results with your crypto investments on Binance? Then this page is the right place for you! In this short guide, we will give you some indispensable tips to get better results with Binance!
Tip 1: Make use of discounts
Not everyone pays the same transaction fees on Binance. By making smart use of the possibilities, you can earn a hefty discount on Binance.
For example, you can take advantage of our friend discount on Binance if you have not yet opened an account. You will then receive a permanent 20% discount on all your transaction fees. Use the button below to claim this discount:
By using Binance Coin to pay your transaction fees, you can receive an additional 25% discount. By applying both discounts, you can easily get a 45% discount on the already very low transaction fees on Binance.
When you trade very high volumes, your discount can increase even further. In this article, you can read more about the cost structure of Binance.
Tip 2: secure your account
A major advantage of crypto is that it works on a decentralized blockchain. This means that external parties cannot influence transactions, which is an advantage in these uncertain times. This strength is however at the same time also a weakness. When hackers rob you, there is no party who will help you.
In 2019, it became painfully clear that theft is a risk: in this year 7,000 Bitcoin where stolen from users. Binance compensated its users after this hack. When your account is hacked because you did not secure it well, you will however not be compensated. It is therefore recommended to apply these security measures:
- Choose a strong password and change it regularly
- Protect yourself against phishing with a phishing code
- Monitor login attempts of new devices
- Apply 2FA to your account
In this article, you can read in more details how to secure your account. This is highly recommended if you are serious about crypto.
Tip 3: diversification
Many new investors are seduced by wild stories. This is not strange: if you are lucky with crypto, you can become a millionaire overnight. On the internet, you mostly read these kinds of stories, while there are of course many more people who lose a lot of money with crypto. Therefore, it is important to be sensible about the risks when you start investing in crypto on Binance.
Diversification is essential for this. There are thousands of cryptos, and it regularly happens that a cryptocurrency becomes worthless. Therefore, diversify your investments over different cryptos: this prevents you from losing your full deposit because one crypto goes bankrupt.
It is also wise to apply dollar cost averaging. In that case, you buy bitcoin and other cryptos at different moments. Timing the market is difficult in practice and if you buy at the wrong moment, it could take a long time before you make back your losses. When you buy crypto for a fixed amount on a monthly or weekly basis, you will benefit from an average return.
Tip 4: sufficient research
Do not blindly step into a random cryptocurrency: really investigate whether the crypto has a right to exist. You do this by investigating what the added value of a cryptocurrency is. For example, does the crypto offer unique solutions for privacy, scalability or interoperability? If the functions of the crypto exactly match those of an existing cryptocurrency, then it often has no right to exist. Users then have no reason to switch to the identical, less popular copy.
When a cryptocurrency offers sufficient added value, it is wise to ask yourself whether tokens are necessary. Tokens are the coins you trade on an exchange like Binance. In some cases, tokens are only issued in the hope that users will speculate in them. If you want to get a good result in the long run, it is important that the tokens actually have a function in the 'real world':
- Exchange value: you can use them to buy products or services
- Rights: you receive certain voting rights within the crypto blockchain
- Access: you receive access to a service, such as a super computer
- Function: the token adds a function within the network
- Revenue sharing: you receive a share of the revenue from the network
Tip 5: Do not invest based on your emotions
Many novice traders are active on the crypto market. Did you know, for example, that 25% of young people invest in cryptos, but most of them have no idea how investing works? Under false pretences, they believe that they will get rich quickly and sometimes put all their savings into a new, promising crypto. When this crypto becomes worthless, all that money disappears.
If you want to invest in crypto with Binance, you will need nerves of steel. Bitcoin has gone up in the long run. Yet, even within this rising trend, there were regular crashes of 30 to 80 percent! Reacting emotionally to such declines can lead to further losses.
It is therefore important to make a plan before a crash. Only invest with money you can really afford to lose, so that you are never forced to sell at an unfavourable time. Then set up rules on when to buy or sell a crypto and stick to them: this greatly increases your chance of success!
Tip 6: Don't just invest in crypto
Crypto can be the future, but it can also go to zero. The future is uncertain, and it is wise to prepare for it. Is crypto really the money of the future, or will it become some kind of shadow currency that loses the trust of the majority due to multiple hacks or problems?
Even if crypto is the future, we still do not know which crypto will become the most successful currency. With the rise of the Internet, you also saw many companies grow to record heights, only to collapse. The result was the Internet bubble of 2000, which burst with a loud bang.
By spreading your money over different types of assets, you avoid losing everything on a single bet. Diversification is important, and I mean that in the broadest sense of the word. Cryptos are extremely risky: treat them as such!
Tip 7: Evaluate your results
Take a moment on a regular basis to evaluate your results and decisions. Log in to your Binance account and see what trades you have executed. Evaluate whether you succeeded in following your own rules and plan. If this is not the case, you need to work on your discipline. Is your plan not working? Then you might have to adjust your plan.
It is essential to evaluate your results at a calm moment so that you can judge with full rationality whether changes are necessary.
Tip 8: Practice with Binance
Do not immediately deposit tens of thousands of euros on your Binance account! I understand that the temptation can be great due to the enormous price changes, but it is simply too risky. First, deposit a few hundred euros on your account and try the various possibilities.
There are so many trading options available on Binance that the possibilities can be quite overwhelming, especially as a beginner. Only start investing with money when you understand how Binance and the crypto market works. In our extensive Binance manual, you can read in more detail how to trade with this exchange.
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