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Crypto Guides Investments

Purchase your 1st crypto in Binance – Step By Step Guide

  • Binance [referral link] as in Binance International, apparently there is a different “Binance SG” as well. So if you are living in Singapore and would like to get into Crypt trading with Binance, you can follow this simple step by step guide. This is for informational purposes only. The author is not a financial advisor!

[Update: 11-Sep-2021]At the moment it seems that Binance has suspended P2P trading for SGD. I am not sure when this will resume but we are all hoping that it will be soon.

First of all you will need to create an account with Binance [referral link]. You can of course use my referral link or go direct to Binance [no referral] if you don’t want to use my link. Once you have created an account you will need to verify your identity. This is a requirement for most of the major crypto exchanges. Might as well do it once and for all.

So go to your account and choose Identification. There are several levels of verification but I would suggest you to complete advanced verification. The process is pretty straight forward and you should be able to complete them without much issues. For the advance verification, you will need proof of address – I used my Internet access bill as proof. There are several other types of documents you can use as well.

Once you have done the verification (which might take a few days – mine took all but one day), you are ready to start purchasing your first Crypto. This is where the fun begins. But how do you proceed?

First of all you will need to get convert some Fiat currency (eg Singapore dollar SGD) into a stablecoin. And with this stablecoin, you can use to trade for other Cryptocurrencies. The reason why we want to convert our Fiat currency into a stablecoin first is because usually the exchange rates for Fiat to other Cryptocurrencies are pretty bad. So it is a good idea to get stablecoins first and then use the market to trade for the cryptocurrency we want. Here I will show you how to get stablecoin via the Peer To Peer (P2P) platform. You can transfer via bank transfer or even PayNow depending on the other party. P2P basically means that you are trading directly with other traders in the platform.

Goto Trade and choose P2P.

Choose Buy, USDT (a very popular stablecoin pegged to the USD) and under Fiat type in “SGD” and then choose SGD.

You will then be presented with a whole list of traders/sellers. So choose the “advertiser” with the best rate (and good completion rate), the limit you can handle and the type of payment transfer you are able to do (like PayNow or Bank Transfer) and then click on Buy USDT. However make sure you check the exchange rates first. If it is not good, you should wait for a few hours or days to get a better rate. At the time of writing, there is 0 fee for P2P transfers in Binance. However it is important to check on Binance on the fees again.

Key in the amount you want to buy and make sure that the USDT is what you need and then choose Buy USDT.

You will come to this BUY page. But before you begin, you can chat with the seller. What I normally do is to check that he/she is actually online and awaiting my transfer of funds. Note that this is P2P and the seller might not even be aware that an order has been initiated if he/she is not paying attention. I will ask whether I should proceed and if I get a reply, then I will go ahead.

First choose the transfer method. I prefer PayNow but you can choose which payment method you want. Check everything is correct before you make the transfer. It is very tedious if you make any mistake here and to get a “refund”. So check and double check to see the amount and the transferee information is correct. And once you have sent the payment, click on Transferred, Next. You should also type that you have paid in the message box to alert the seller as well.

And if everything goes smoothly, you should be presented with this screen saying that the order has been completed and it is now in your P2P account. So click on Transfer to Spot.

You will then be transferred to the P2P page but will then need to transfer the stablecoin to the Spot section before you can do any trading. That is how this works. So go ahead and click on Transfer for your particular stablecoin.

So now you choose Fiat and Spot in the To section and click on MAX (if you so wish) and click on Confirm. If you don’t transfer to Fiat and Spot, you cannot do trading in the Binance Exchange.

Now we will go to the “Fiat and Spot” wallet to check whether it has been transferred successfully. So goto Wallet and choose Fiat and Spot.

Here we are. The most important page for us. As you can see our stablecoin (USDT) has been transferred to Spot and is now ready for trading. You can see the total amount, total available and the amount that has been set into orders. At the moment, the total amount should be the same as the total available for use. So well done! Now lets get into the actual trading!

So go to Markets, choose Zones and choose the Coin you want to trade and then click on Trade on the right. You can search for the coin name as well. These will be trading via the crypto-USDT pair.

So you will come into the trading page. In this example, I choose BTC. As this will usually be way more complicated than what I can list down here, so I will only go through the basics of trading. You should be very careful in this page and choose the correct Price that you want to buy the Crypto. Anyway click on BUY under place order, key in the price that you want to buy the coin and then drag the amount that you want eg. 25%, 50%, 75% or 100% or anything in between. Then after confirmation of the information, click on Buy BTC (or whatever Crypto you are trading).

You can see your trades in the Open Orders section. If you are lucky, the order will be fulfilled in no time and you just got your first Crypto! Of course it all depends on the price you have placed it on. Overall it really isn’t that difficult once you get the hang of it.

I hope you all the best in your crypto trading adventures. I would suggest first timers to start small. Never play with your entire life savings in the Crypto Market. May you always be able to buy the dip and make tons of money on your investments. If one day you make it big, don’t forget your buddy here. Buy me a beer or something. Please take care! You can also take a look at my Crypto Portfolio to see what I am holding. Or check out my guide on using Nexo to earn interest on your cryptocurrencies.

Categories
Crypto Investments

My current crypto portfolio

Update: 06-Jun-2021

Some of you guys might be interested in what I am holding in my Crypto portfolio. Do check the date above as my portfolio will change often. It is an ever changing market and prices and potential outlook will of course change with it. I am always very conservative and will never put a large chunk of my investments into unknown coins hoping to make it big and I would advise everyone not to do that as well. I also tend to spread my investments around to avoid being completely burnt in this volatile market.

Oh I am not a financial advisor and the information I provide here are just for educational purposes. Do not Never buy any investment products based on my recommendations and always do your own research.

ADA: Bought some after purchasing BTC. I hold a good amount of ADA in my portfolio and they are all staked. Cardano projects are looking promising even though many are yet to be launched on the platform. I think ADA has a lot of potential to grown. The prices have gone through the roof since I bought into ADA. At its peak in May 2021, it was at around USD 2.42. Even though it has dropped due to the recent crash, it is still way higher when I first purchased the coin. However I am holding it for the long term. If you are looking to adding this token into your portfolio, I would also suggest you to take it as a long term investment instead of pumping and dumping. By the way, the Alonzo testnet is coming soon. This means smart-contracts on Cardano!

XRP: Another promising candidate for long term investment. Just by looking at its ecosystem and the number of projects they have onboard, this will be a very good investment. However their prices are way undervalued recently. This could be due to the recent bad news coming out of the SEC case vs Ripple. But we are all hoping that the case will be settled soon and Ripple can go back into getting their projects up and running. Again, this should be viewed as a long term investment. Sadly I did buy a portion of my ADA when the price was high. Even though my overall XRP investments are still in the green, it is still a bit disappointing. The highest it ever went was USD 1.71. However things are surely looking up for Ripple and XRP.

EOS: <Update 06-Jun-2021> Looks like EOS is still not doing well. Even with the current rise of their cryptocurrencies, EOS is still not able to breakout. </Update>They do have quite a lot of projects onboard and hopefully they will continue to grow. But I am in the belief that EOS will soon be overtaken by other Crypto projects. Sure they do seem to have some pretty deep pockets but money alone sometimes will not solve everything. The EOS community is also not that engaged. Their prices did rise significantly recently after Block.one announced they will launch a new cryptocurrency exchange but it fell back down after the China ban announcement. It really doesn’t look too good if they are not able to hold on to the value despite the monetary support they have. They also lost a few projects recently. One of which was a major partner and that got me a bit worried. Unless there are more positive news, I will be selling my EOS token soon.

VET: This is a very recent purchase for me. The main reason that attracted me to Vechain is the sheer number of projects they have in the pipeline. With that many projects, their token VET will definitely be in high demand. And with the recent price drop, I think VET is severely undervalued. I will be keeping this in my portfolio in the near future. If you are looking into going into altcoins, VET should be a safe bet. Short of a Crypto winter scenario, I really doubt that there will be anything to stop the rise of VET. At the moment, the price of VET is pretty low. I might be stocking up on more if the price still remain at this level.

CAKE: Also a very recent purchase for me. I am keen to get into all these SWAPS tokens as I strongly believe decentralized exchanges are the future of Crypto trading. As to whether I will keep on holding onto the CAKE tokens depends on whether Ethereum gas fees will remain that high. So long as the gas fees of Ethereum is high, PANCAKE Swap will remain very attractive to smaller traders as an decentralized exchange compared to one like UNISWAP. Who wants to pay 500 dollars worth of gas fees to swap like 500 dollars worth of tokens? However with Ethereum 2.0 and UNISWAP V3’s Optimism coming to a theater near you with its reduced gas fees, all could change. Let’s see. I am currently staking half of my CAKE tokens. <Update: 06-Jun-2021>Sold my non-staked CAKE tokens and went into LP for SHIBA/USDT pair. Wish me luck.</Update>

I am also looking at DOT (Polkdot) and XLM (Stella) to add into my portfolio at a later date. Maybe even Theta as well.

You all might be wondering what happened to my BTC coins? At the moment, I am not holding any significant amounts of BTC. When I started crypto trading, I got burnt with BTC (damn market manipulators!) and that left a pretty bad scar and experience for me. I might get back investing into Bitcoin at a later date but definitely not now. I also hold small amounts of Monero & Ravencoin from mining. Yes, my portfolio is rather boring I know. But as a small time investor, being boring is good.

And if you are looking for a step by step guide on how to start trading on Binance, please take a look here.

Categories
Crypto Investments

Lessons learned from trading Crypto

Been trading crypto for a few months and yes sure the market is now in a bull run but I have learned quite a lot during this period. The Crypto market can be scary as new investors see the extreme volatility. I started when Bitcoin was trading at USD52k, saw it jump to USD63k then drop to USD 30k and now it is hovering around USD38k. Yo what’s going on bro?

That is Crypto for you. Apparently Crypto traders will immediately dump or grab when someone tweets something or some government official decides to make some statement. Worse still, some of the ups and downs make no real sense. We even have a cryptocurrency called DOGECOIN being one of the top 10 cryptocurrencies by market cap just because some celebrities think it is “cool”. Over 130 billion in circulating supply (with no hard cap limit) and each coin is worth USD 0.30 now. It went to USD 0.70 once. Furthermore there can be an addition of 5 billion coins into the market every year. Makes no sense at all. And it can be very dangerous for investors who don’t know better. I know quite a few who just invest in crypto because they read that they can make (lots of) money from it without understanding the risks.

Anyway enough of my rant. Here are some lessons I learned from trading crypto as a small time investor. Note that my experience is in the bull market. And take everything I write here with a pinch of salt. I am no financial advisor and you should always do your own research when doing investment.

Fear . Uncertainty . Doubt
  1. Don’t be afraid to take profits. Yes that is one of the biggest mistakes I made. We are all in this for making some income for ourselves right? So don’t be afraid to take profits from your cryptos. The market is extremely volatile and could drop the next day (or even the next hour). So take your profits. Don’t be too greedy. If I think a coin has some potential, I will normally sell half or even a quarter to recover some of my investment when the price is right. If it goes up further, good for me. If it goes down, well at least I made some profit. The rest I will just hold on till the next run.
  2. Never leverage. As a small time investor it is a very huge risk to leverage your crypto. Only play with crypto with what you can afford to lose. You can see in the crypto markets that a lot of investors are leveraging, hence the wild mood swings we see nearly every week. With so much money at risk, it also forces the investor to make bad, irrational and impulsive decisions. I know, I have done it myself. Something about crypto that makes it so that greed and fear simply overwhelms you.
  3. Invest in various cryptos. Don’t put all your eggs in one basket. I know of players who only invest in Bitcoin but my opinion is that this can be dangerous. We will also never know what will happen to that particular crypto and which internet celebrity or which government might suddenly harbor some hatred for it. Read about XRP, XMR and BTC. My strategy is to invest in a few different types of cryptos. My portfolio includes smart contract coins, “swap” coins (those decentralized exchange supported coins), defi coins, privacy coins and even at times stablecoins. But of course you should not invest in too many coins at the same time. It makes it very difficult to track the market trend and react if you have too many crypto to look at. I would suggest around 5 to 6 different coins at a time.
  4. Stablecoins. We might not think much about stablecoins like USDT or BUSD but they can be a good investment strategy as well. At times I will keep a modest amount of stablecoins in my exchange wallet. First they are very popular to trade with in exchanges. And if you need to act (trade) fast, those stablecoins can be used for purchase for other crypto immediately. They are also be a good source of passive income as their interest rate is pretty high. Even in Binance you can leave them to earn interest. Nexo and Celsius are also good platforms to earn some interest on stablecoins if you are planning to hold. However do note that there are “gas” fees for transfer of crypto between platforms/wallets, not to mention the withdrawal fees. So make sure it is still profitable before you transfer to and from wallets before you commit.
  5. Don’t panic. Let me tell you my experience about panicking. When I first started trading in cryptocurrencies, I bought BTC (as most first timers would) and it was fine for a few days. The price went up and I was happy. Then it tanked. Not that significantly, but it did tank beyond my initial purchase price. Being a first time investor, I went into panic mode and sold it off at a loss. And a few days later, it went up again. And I started hearing stories that Bitcoin will jump to USD 100k by this or that month and will reach a million by the end of the year and if I did not act now, I will never get it at “this price” (aka Fear of Missing Out or FOMO). So I went ahead and purchase BTC back. Of course things didn’t all go to plan. The cycle goes on and on. So my advise would be simply stay calm and think through before making any decision. The crypto market is extremely volatile and you will see big swings in either direction.
  6. Unknown coins. I know it is everyone’s dream to find a cryptocurrency that nobody knows about and hold like a million of said coins and in a few years time, they would be worth billions of dollars and we can retire at a beach somewhere enjoying life. I too have been searching high and low for such a coin. Even to the point of checking out those “burnt” tokens. But in reality such cryptos are nearly impossible to find and by the time we all heard about it, the run is all but over. Better stick to having a sound investment strategy rather than going around and buying up unknown coins which might turn out to be worthless or just a scam.
  7. Hype. One of the most dangerous of it all. Do I need to mention about DOGECOIN again? Yes we do read about people buying houses from the profits of just trading DOGECOIN for a few weeks but have you read about people losing all their life savings because of the wrong bet? Hype and sensational news are pretty dangerous in my opinion. Just a few weeks ago, DOGECOIN went up to USD 0.70 and everyone was claiming it would easily reach USD 1 or more. But it didn’t. In fact it dropped to USD 0.30. And now we have SHIBA INU. Imagine those small time investors who had placed a huge chunk of their life savings hoping to make it big, but it just didn’t materialize. Just because a celebrity “endorse” a coin doesn’t mean that it is a good investment.
  8. Know the crypto you are investing in. Or at least read a little about it. Yes there are really a lot of investors who dont even know what a cryptocurrency does. Blockchain? No idea. Well I won’t call myself an expert by any means but I will usually find out a little more about the coins I am currently investing in. Nowadays it is not that difficult to find information about such coins, especially if they are in the top 10 or top 20 in market cap. Of course you will need to differentiate between those who are trying to “sell” the crypto to you and those who are actually providing you with the facts. Furthermore if you understand a little about the crypto you are investing in, you will know a little more as to when to sell and when to buy. For example if you read that the governments around the world are trying to restrict trading in centralized trading (like Coinbase [referral link included] or Binance [referral link included]), it might be a good time to go into decentralized exchanges and the coins that support them (eg. UNI or CAKE). And you will be less prone to FOMO or FUD (aka Fear Uncertainty Doubt).
  9. Coinbase. Get some free cryptocurrency yo! Coinbase [referral link included] has this “earn rewards” section whereby you can earn some crypto by taking courses about different types of cryptocurrency and answering some quiz. I made like over USD 60 through their tutorials. Good way to get your toes wet. This is actually where I started my trading adventures.
  10. Market Manipulation. Market manipulation is very commonplace in the crypto market. Don’t believe me? Just start your favourite exchange platform and look at the history of various popular cryptocurrencies. The market goes up and down. Sheer madness. But in most cases, there is a method to the madness. It is market manipulation. For example, if a big whale wants to buy into lets say Litecoin (LTC) but they will not want to pay the current market price for their share. So what would they do? Manipulate the market! Create some imaginary “fear” so that the market will crash and buy in at the lower price. Yes cryptocurrencies with a bigger market cap is harder to manipulate and that is the reason why I always tell everyone to only invest into the bigger coins. But it still happens to a smaller extent. Just a few months ago, Elon Musk went on Twitter to tell the world that Telsa is holding Bitcoin. This resulted in BTC rising in price. But later it was revealed that they actually sold some BTC they had in Q1 of 2021. Sweet sweet profit for Telsa. So yes, small time investors like us should always take such tweets or news with a grain of salt.

Take care! Hope that these helped you in your journey into crypto investing. You can check out my current crypto portfolio here.