Originally posted on 10/05/2021 @ 21:12
Any investor worth his salt in the cryptocurrency world knows that Binance, the creator of Binance.org/Binance DEX, is the largest exchange platform by volume. The company was founded in 2017 and headquartered in China but has since spread its operations worldwide. As of April 2021, Binance is the largest cryptocurrency exchange clocking an impressive $1.3 billion in market capitalization.
In February 2019, the crypto giant introduced Binance DEX. This revolutionary Binance decentralized exchange allows every trader and investor on the platform to take full control of his or her assets and funds, and thus you won’t need to use a Binance referral ID code when registering, as it’s purely peer-to-peer. This feature of crypto trading that gives the power of assets to investors is one reason Binance DEX is highly sought after.
In this review, we at Cryptoaffiliate.io dissect Binance.org at length – what is it, how to use Binance DEX, and everything else you need to know about this decentralized exchange.
What is Binance DEX?
Binance DEX, short for decentralized exchange, is a platform that allows investors and traders to perform on-chain trades. According to Binance CEO, Binance DEX is a platform with a decentralized network of nodes in which the users hold their private key in their custody and, therefore, manage their wallets.
Some of the top reasons that set the Binance decentralized exchange apart from other platforms in the crypto sphere include:
- Ease of using your digital wallet.
- Absolute freedom to use your digital wallet anytime and anywhere.
- Enhanced and balanced security for your digital assets.
- You gain total control of your digital funds and assets.
Binance DEX’s fundamental principle and selling point is that investors can trade directly with each other. In addition, the DEX platform also eliminates the need for an intermediary for transactions. Furthermore, the downtime while trading on Binance DEX is little to none since it operates on multiple servers based all around the globe.
However, users can only trade digital assets that are listed and issued on the Binance decentralized exchange platform. Every transaction on the platform is recorded on-chain to form a complete ledger for auditing.
In terms of technology, Binance DEX runs on the company’s proprietary blockchain. The platform currently has more than 100 crypto assets, making it one of the best inventories in the crypto sphere. Binance DEX also supports all major decentralized software as well as hardware wallets, including Ledger Nano S.
Since Binance DEX is built on the Binance chain, you need Binance Coin or BNB to trade. On the popular crypto website coinmarketcap, Binance Coin holds the third most valuable crypto-coin spot right after Bitcoin and Ethereum.
How to use Binance DEX?
Binance DEX is an exchange that targets crypto users with a certain level of experience in the industry. However, the platform itself is very easy to use with an intuitive interface and dark-themed design.
There are two options for using the Binance decentralized exchange – using test funds on the demo platform or using real funds on the normal trading platform. We recommend trying out the demo platform first if you are just getting into the world of the decentralized exchange. However, the steps to using Binance DEX are essentially the same on both platforms.
Create a wallet
You will find the “Create Wallet” option on the body of the Binance DEX testnet and towards the right-hand corner of the page. Click on it.
On the testnet platform, you will have two options to create a wallet: one, your existing Google account, and two, using a Keystore file.
On the main page, towards the right, you will see the “DEX” button along with a couple of others, such as Staking and Wallet.
Click on the DEX button, and you will reach the decentralized exchange interface.
To create a wallet, you need to create a password. Simultaneously, you also need to click on the “download Keystore file” and check a button to agree to the terms of Binance. We recommend storing the Keystore file on a USB stick.
On the next page, your Binance DEX wallet will be created. In addition, the platform will automatically generate a Keystore file, mnemonic phrase, and private key. You should write down these details manually and store them safely. If you lose the Binance DEX login credentials, not even the best technicians at Binance can help you recover them.
For an in-depth tutorial on how to create a wallet, visit the wallet tutorial page.
Unlock your wallet
- On binance.org or testnet.binance.com, find “Unlock Wallet.”
- There are three options to unlock an existing Binance DEX wallet – WalletConnect, Ledger Device, and Keystore File. The first two methods are the recommended ways to unlock your digital wallet. Note: You need to download and install the Binance DEX App if you choose to use the Ledger Device.
- As soon as you unlock the Binance DEX wallet, the webpage will automatically take you to the trading/exchange platform.
Visit Binance.academy for a step-by-step guide about unlocking your wallet.
Start Trading on Binance DEX
After you unlock your wallet, you want to start trading on the Binance decentralized exchange website. But before that, it’s a good idea to get familiar with the Binance decentralized exchange interface. If you are familiar with the Binance app’s interface, you shouldn’t have any problem finding your way on Binance DEX.
However, Binance DEX has a steep learning curve if you are new to the crypto sphere. So you might want to read up articles on Binance Academy or watch video tutorials, like this one.
The Tradingview Chart dominates the center of the interface while the left of the screen displays the Binance pairs with other cryptocurrencies. Binance DEX has one of the best inventories of assets on any crypto trading platform.
However, to trade on the platform, you need Binance DEX coins. Like the Ethereum platform where you need Ether and a dedicated wallet to trade, the same applies to Binance.
At the bottom of the page on the left is one of the most important sections on the Binance decentralized exchange interface. This includes:
- Open Orders
- Order History
- Trade History and Balances
These are essentially the Exchange Activity on Binance decentralized exchange dashboard.
To start trading or placing orders, you can do so in the bottom right corner. You will find the trading pairs of Binance Coin or BNB on the left-hand side of the page. You simply select the trading pair of choice and buy or sell your funds or assets.
As previously mentioned above, you need Binance Coins to trade on the platform. If you don’t already have BNB funds in your Binance DEX wallet, you have two options:
- Top up the funds in your Binance DEX wallet by transferring BNB to the address in the Balance Section. If your Binance DEX login session is active, you will find an address under the Balance Section.
- Alternatively, if you need to transfer funds into the Binance DEX wallet, you can buy BNB using fiat currency. However, this option to buy crypto using fiat is only available in some countries.
It is also worth pointing out that Binance DEX supports Limit orders exclusively at the moment.
Under the Limit Orders section, you will see Best Ask and Best Bid. These stand for the minimum buying price and highest selling price on the platform, respectively.
Binance Academy has an excellent guide on their website about using the Binance decentralized exchange Interface, so you can check it out.
Decentralized platforms, in general, are not the easiest to use as most of them target experienced crypto traders. The same applies to the Binance DEX platform, especially when it comes to depositing and withdrawing funds. Unless you are a veteran crypto trader, it’s a great idea to hone your trading skills on the testnet platform.
Can Bitcoin be traded on Binance DEX?
A straightforward answer? Yes, you can use Bitcoin to trade on the Binance decentralized exchange. On the Binance chain, Bitcoin is also represented by BTCB. Bitcoin or BTC pairs on this platform are:
Binance DEX also allows you to trade with all the major cryptocurrencies. Some of the cryptocurrencies you can trade with on Binance decentralized exchange are:
In addition, you can also trade with ALTS and Fiat currency on Binance DEX.
Do you only have one address on Binance DEX?
Yes, every trader on this crypto trading platform has a unique Binance Chain Address. You can generate this address with any digital wallet that is compatible with the Binance Chain.
For a full list of digital crypto wallets that support the Binance Chain, visit this link. In addition, the Binance Chain also supports MetaMask, an Ethereum wallet, which is fantastic since Ethereum is among the largest platforms in the crypto ecosystem.
On Binance DEX, the trader maintains full control and ownership of their address. This is fantastic since you can access your funds at will using the private key. However, you have to be extremely careful about keeping your private key safe. Binance chain will have no say in it, nor does it have the power to help you recover it if you lose it.
How to deposit to Binance DEX?
Depositing funds on Binance.org is where your experience in crypto trading will come in handy. Even then, the process of depositing funds on the Binance decentralized exchange wallet is a little different from other decentralized platforms.
On Binance DEX, there are two ways to deposit funds into your wallet.
Depositing cryptocurrencies to your Binance DEX wallet
Binance DEX is built on the Binance chain that runs on BEP2 and BEP20, which are token standards. BEP2 is for the Binance Chain, while BEP20 is for Binance Smart Chain.
This means that you cannot deposit crypto coins such as Ethereum and Bitcoin directly into your Binance DEX wallet. This is similar to the Ethereum network, where you send and receive ERC-20 tokens on the platform.
To deposit crypto coins to your Binance.org wallet, you need to purchase the corresponding tokens. The platform has tokens for every major cryptocurrency, so you can buy them before transacting them to your Binance DEX wallet.
However, if you already have BNB in your wallet, it’s easier to deposit any type of cryptocurrency into your Binance DEX wallet. You can simply choose your preferred BNB pair at binance.org, then buy or sell them under the Limit Order section of the trading interface.
Requesting funds into your wallet
You can also request and get funds into your Binance wallet on the testnet platform.
- First, if you don’t have an address on the Binance Smart Chain, create one. Make sure that you write down the details and keep them nearby.
- Next, you need to install a robust crypto wallet such as MetaMask or Math Wallet.
- Then access the testnet faucet on the Binance Chain.
- There you will need to put your BSC address.
- Next, click on the dropdown box where it says, “Give me BNB.” Currently, you can receive 1BNB in your account. You can also choose “Peggy Tokens,” where you can choose from several cryptocurrencies.
- Then you need to tweet “requesting faucet funds for (write your BSC address) #BinanceSmartChain #testnetwork.” Within a few seconds, you will receive the requested funds at your address.
You can view your wallet balance under “Balances” of the exchange activity.
Binance is one crypto platform that is growing very consistently, thanks to its innovative dual-chain technology of Binance Chain and Binance Smart Chain. And the introduction of Binance decentralized exchange has made this crypto trading platform cement its credentials as one of the top players in the decentralized crypto ecosystem.
Trading on Binance DEX requires some learning and researching. However, it does come with several advantages. Among them are low trading fee and the industry’s best security features. But of course, the ability for users to trade among themselves and assume full control/custody of their funds make the Binance decentralized exchange one of the best crypto trading platforms on the market.