Cryptocurrency trading has become increasingly accessible, especially with platforms like Binance simplifying the process of exchanging major digital assets such as Bitcoin (BTC) and Ethereum (ETH) for alternative coins—commonly known as alt-coins. Whether you're interested in acquiring Ripple (XRP), TRON (TRX), Stellar (XLM), or other emerging tokens, understanding how to navigate Binance efficiently is essential.
This guide walks you through the core steps of using BTC or ETH to buy alt-coins on Binance, from depositing funds to executing trades with confidence. We’ll cover key concepts like trading fees, order types, base currencies, and practical tips to enhance your trading experience—all while keeping security and efficiency in mind.
👉 Discover how to start trading alt-coins with low fees and high speed today.
Understanding Binance Trading Fees
Before diving into any transaction, it's crucial to understand the cost structure of the platform. Binance applies a flat trading fee of 0.1% for both market and limit orders. This fee is automatically deducted once your trade is executed and comes out of the cryptocurrency you receive.
For example, if you buy 100 TRX using ETH, the 0.1% fee will be taken from the total TRX amount credited to your wallet. While this may seem minor, frequent traders should account for these costs over time.
Additionally, users who hold Binance Coin (BNB) can use it to pay for trading fees and enjoy a significant discount—typically up to 25%. However, even without BNB, Binance remains one of the most cost-effective exchanges available.
Staying informed about fees helps you make smarter decisions and avoid unexpected deductions. Always review the final transaction details before confirming any trade.
How to Deposit Bitcoin or Ethereum into Binance
To begin trading alt-coins, you must first transfer BTC or ETH into your Binance account. If you already own cryptocurrency through another service—such as a wallet or exchange—you’ll need to withdraw it and send it to your Binance deposit address.
Here’s how:
- Log in to your Binance account via the app or website.
- Navigate to Wallet > Deposit.
- Select either Bitcoin (BTC) or Ethereum (ETH).
- Copy the unique deposit address provided by Binance.
- Go to your external wallet (e.g., Coinbase, Trust Wallet) and initiate a withdrawal using that address.
Ensure accuracy when entering the address—sending funds to the wrong network or address could result in permanent loss. Also, confirm that you’re using the correct blockchain network (e.g., ERC-20 for ETH-based tokens).
Transaction times vary depending on network congestion but typically take between 10 minutes to an hour. Once confirmed, your balance will update within Binance, and you're ready to trade.
👉 Learn how to securely transfer crypto and begin trading in minutes.
Limit Orders vs. Market Orders: What’s the Difference?
Binance offers two primary methods for buying alt-coins: limit orders and market orders. Each serves different strategies and risk tolerances.
Limit Orders
A limit order allows you to set a specific price at which you want to buy or sell an alt-coin. Your order will only execute when the market reaches that price.
- Pros: Full control over entry and exit points; ideal for strategic investors.
- Cons: Orders may not fill immediately—or at all—if the market doesn’t reach your specified price.
Market Orders
A market order buys or sells instantly at the best available current price.
- Pros: Immediate execution; perfect for quick entries or exits.
- Cons: Slight price slippage may occur during volatile periods, meaning you might pay slightly more than expected.
For beginners, market orders offer simplicity and speed. More experienced traders often prefer limit orders to optimize pricing and manage risk.
Choose based on your goals: precision or immediacy.
Choosing Your Base Currency
On Binance, a base currency is what you trade with, while the alt-coin is what you’re buying. The most commonly used base currencies are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Tether (USDT)
While USDT provides stability due to its dollar peg, BTC and ETH remain popular due to their widespread adoption and liquidity.
To select your base currency:
- Open the Binance app or website.
- Tap Markets.
- Choose your preferred base currency from the list at the top (e.g., ETH).
- Browse available trading pairs denominated in that currency.
For instance, selecting ETH will show pairs like ETH/USDT, XRP/ETH, TRX/ETH, etc. This streamlines your search so you can focus only on alt-coins tradable with Ethereum.
Finding and Buying Your Desired Alt-Coin
Once your base currency is selected, finding an alt-coin is straightforward.
Use the search bar at the top of the Markets page to look up symbols like XRP, TRX, or XLM. Alternatively, scroll through the list of available coins.
After locating your desired coin:
- Tap its ticker to open the market page.
- Review real-time price data, recent trades, and order book depth.
- Consider adding it to your favorites by tapping the star icon—this makes future access faster.
Now you're ready to place an order.
Executing Your Trade: Step-by-Step
Using a Limit Order
- On the coin’s market page, tap Order Book.
- Press the green Buy button.
Enter:
- The price per unit you’re willing to pay.
- The quantity of the alt-coin you wish to purchase.
- Use percentage buttons (25%, 50%, 75%, 100%) for quick allocation of available funds.
- Confirm all details, then tap Buy.
Your order enters the exchange’s order book and waits for a matching seller. You can monitor pending orders under the Open Orders tab.
Using a Market Order
- Tap Market Trades on the coin’s market page.
- Press Buy.
- Enter the amount of alt-coin you want.
- Confirm and execute.
The trade completes instantly at the prevailing market rate.
Always double-check values before confirming—especially when trading large amounts.
👉 Maximize your trading potential with fast, secure transactions on a trusted platform.
Frequently Asked Questions (FAQ)
Q: Can I buy alt-coins directly with fiat currency on Binance?
A: Yes, Binance supports direct purchases of certain alt-coins using fiat currencies like USD via bank cards or transfers. However, for broader selection, trading with BTC or ETH is often required.
Q: Is it safe to store my crypto on Binance?
A: Binance employs advanced security measures including two-factor authentication (2FA) and cold storage for most funds. However, for long-term holdings, consider transferring assets to a personal hardware wallet.
Q: Why didn’t my limit order execute?
A: Limit orders only fill when market prices match your set price. If the market moves away from your target, the order remains open until canceled or fulfilled.
Q: Are there withdrawal limits on Binance?
A: Yes, unverified accounts have lower limits. Completing identity verification (KYC) increases withdrawal capacity and unlocks additional features.
Q: Can I trade alt-coins 24/7 on Binance?
A: Absolutely. Unlike traditional stock markets, cryptocurrency exchanges operate around the clock, allowing trades at any time.
Q: What happens if I send crypto to the wrong network?
A: Sending tokens via an incompatible blockchain can result in irreversible loss. Always verify network compatibility before initiating transfers.
By mastering these foundational steps—understanding fees, depositing funds, choosing order types, and executing trades—you’ll be well-equipped to explore the diverse world of alt-coins on Binance. Stay informed, start small, and gradually build your confidence as you navigate this dynamic financial landscape.
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