Cryptocurrency is the buzzword of 2021 and people from all over the world are now investing in crypto coins.
Short-term investing is not bad however, the only catch is you need to stay updated with the market.
In this article, I will be providing a complete guide on how to buy a cryptocurrency for the long term using Binance.
Long-term investment in crypto is more beneficial and if you diversify your portfolio then chances are high you might get tremendous returns.
Ready? Let’s start…
Disclaimer
We are not providing any kind of financial advice related to cryptocurrency. You will be responsible for all your investment – profits and loss. This article is just an information guide.
How To Buy A Cryptocurrency For The Long Term Using Binance
Before you proceed check out this guide on How to Add Money In Binance App.
Step 1: Go To Trades & Pick The Cryptocurrency
Select the Trades option in the Binance app and follow step number two as shown in the above image.
A window from the left will open in which you will find all the coins that are listed on Binance.
Select which one you like to buy and ensure whatever coin you buy has USDT after slash e.g. ETH/USDT, SHIB/USDT, VET/USDT and so on.
Step 2: Decision
In the Decision stage, you will buy the cryptocurrency but before that, you must change an option Limit to Market.
Follow the No.3 and No.4 action as shown in the image. It’s a drop menu in which you have to select Market because you are buying a coin at market price.
After selecting the marketing option, you will notice there are two options, Amount and Total.
Learn the difference:
Amount
Amount = Quantity, how much quantity you wanted to buy. (The total value of the quantity must be greater than 10 USDT, it’s a minimum limit in Binance to purchase any cryptocurrency.)
Easy example: You are buying XRP/USDT (price as of 17-12-2021 is 0.81$ for 1 quality.)
You are looking to buy 20 XRP quantity or amount, which will cost 0.81(the price of XRP) x 20(quantity) = 16.2$. To purchase this much quantity you must have at least 20 USDT in your account.
Total
Here they are talking about money you have available in your spot wallet. You can buy cryptocurrencies using a particular amount(must be greater than 10 USDT) and it will automatically convert into quantity.
Easy example: You want to buy XRP for 20 USDT. Select the “Total” option and enter the amount around 19.20 USDT or 19.60USDT because Binance will charge a little fee for transactions.
The Binance app will automatically calculate the XRP quantity by dividing it by the cost that you have invested in.
Quantity = The amount you invested(19.60 USDT)/ price of 1 coin(XRP – 0.81)
A total of 24.1975 quantity of XRP will be credited to your account.
The bar you see with the percentage of 0 – 25 – 75 – 100% is for hassle-free investments.
If you have 20 USDT in your account and you want to spend 50% of your amount(USDT) to purchase a cryptocurrency then you can simply select 50% and the App will auto calculate immediately and provide you with a particular value.
We always prefer to select Total instead of Amount while buying cryptocurrencies however, you’re opinion can be different.
Once you entered the amount click on the Big Green button with the text on Buy ETH to purchase and it will be done in an instant.
Step 3: Confirm Your Purchase
Click on Wallets and go to the Spot option and refresh it by scrolling it down, you will see your purchased crypto token there.
Step 4: Sell When Price Go Up
Once you have done investment, then uninstall the app or hide it using third-party software because holding crypto tokens for the long term requires strong emotional control.
Use CoinMarketCap to track the price of your invested crypto.
Here’s how to sell crypto for profits:
You have to open the same window but look at Step-3 in the image. You need to click on the Sell button.
Setup the option to Market from that drop-down menu as shown in Step 4.
Be patient while selling crypto coins:
Look how much quantity you have in your account, it will be shown right under the percentage bar.
Select the quantity you want to sell and hit the Sell button and see the profit that is available in your Spot Wallet.
That’s it guys and easy peasy method on how to buy a cryptocurrency for the long term using Binance.
We hope this article helps with your query.
FAQs
What are the best cryptocurrencies exchange platforms?
There are multiple options available for buying and selling cryptocurrencies like Coinbase, Binance, WazirX, and many more but these three are market leaders.
Are cryptocurrencies regulated by the government?
No. Cryptocurrencies are digital assets and are distributed across a large number of computers. It’s decentralized currencies because cryptocurrencies are not owned or regulated by the government, it runs by users across all over the world.
Anyone can mine a cryptocurrency using the right hardware.
Cryptocurrencies or stocks, which one is better?
Cryptocurrencies are more volatile though stocks are risky as well however, stocks have proven fundamental which can be analyzed also they are less volatile.
Being unbiased, all we have to say is pick anyone or both and start learning about them. With experimenting, you will surely find one that suits your interest.
