Trading Altcoins on Binance: Ethereum and Safemoon

When you think about crypto, the first thing that pops into your head is likely bitcoin. After all, it is the largest and most tried-and-tested coin in the industry.

However, since the landscape of cryptocurrency trading is continually changing, more and more alternative coins are entering the market.

In fact, Bitcoin has certainly ushered away to altcoins, allowing them to follow its path.

With over five billion users, Binance has been one of the few trading platforms that hold a wide range of coins for trading. It is the perfect platform for trading because you can read their charts and get live updates on pricing.

And, of course, their altcoin trading options are undoubtedly unmatchable.

While some of the newer cryptos may have failed, others have proven to be quite profitable. But knowing which altcoins to trade and how to trade them can often be challenging. This is why we have compiled this guide to shed some light on the two most popular altcoins in the market-Ethereum and Safemoon.

Keep reading to find out more about them and how you can trade them on Binance.

What is Ethereum?

This is a blockchain that allows for the running of software in a decentralized manner. It is essentially an open-source blockchain software platform. Ethereum runs on many machines all over the world, which means that anyone, regardless of their ethnicity, background, or geographical location, can access it.

Ethereum is one of the world's first decentralized software and application (DApps). What's more, is that Ethereum allows for the creation and exchange of NFTs. These are otherwise known as non-exchangeable tokens connected to real-world items.  

Currently, Ethereum’s bitcoin, Ether (ETH), is traded in the range of thousands of dollars. It initially started off at little value, but its value and growth, in general, have been rising exponentially.

It has thus quickly become the second most popular digital currency after bitcoin. You can trade this altcoin on the Ethereum platform or through Binance.

Since Ethereum is decentralized, it means that it is not linked to or can be issued by banks or other relevant authorities.

However, people still use it to make payments, as a store of value, or as collateral. Now, people consider ETH to be more promising than Bitcoin.

How to Trade Ethereum on Binance

Considering the fact that ETH is one of the most profitable and most significant digital currencies in the world, you might be wondering how to trade it on your Binance platform. Here's what you should know about trading ETH on Binance.

• Create an Account on Binance

If you don’t already have an account on Binance, this is where you will need to start. You will need to click on the register button and then begin entering your personal details, including name, address, social security number, and more. This process does not take long, and the Binance sign-up page is quite simple and easy to navigate.

Once you have signed up, Binance will need to verify your account. This is where you will likely need to provide documents and proof of identity.

• Deposit Currency

Again, if you are starting out with registering yourself on Binance, you will need to deposit some currency into your account first. You can do this simply by adding it through your debit or credit cards or bank account. The exact amount for investing depends on you; it can range from $5 to even $1,000.

After this, you will have set up your wallet on Binance.

• Find ETH in Your Wallet Address

On Binance, it is cheaper to buy and transfer Ethereum than it is with Bitcoin. So you can find ETH in the list of altcoins. Then, you will need to purchase and process your payments. It’s best to trade a large amount because Binance charges a trading fee on even smaller amounts.

• Transfer ETH into Your Wallet Address

Next to the ETH coin, you will likely find the ‘deposit’ button. Click on it to transfer this digital currency to your wallet from Binance.

Make sure that your wallet address is correct; it is imperative that you double-check the details because if you transfer to the wrong address, you will lose all your investments.

Alternatively, you can send the ETH coins to your bank account since the flat exchanges make it easy to withdraw. And now, you will be done!

What is Safemoon?

Smartmoon is another currency that is available on the Binance Smart Chain blockchain that you can consider trading. In fact, it is actually the first cryptocurrency to gain popularity on the platform's blockchain. This was mainly through social media when such trends became viral.

For this reason, the digital currency has gained a sudden surge in popularity and value, although it also recently felt a considerable drop. This is why it is considered to be an extremely volatile and risky cryptocurrency in the market.

What makes this digital currency unique from others is the fact that the manufacturers charge a 10% fee every time investors sell their coins. So, even when Safemoon is not providing any value, investors will still be selling their investments.

Half of the 10% fee is redistributed via other platforms to the holders, and the other half is burned. As a result, those with the most amounts of Safemoon coins earn the most. Those with a small amount of this coin simply earn pennies.

How to Buy and Trade Safemoon on Binance

The process of buying Safemoon is quite different from other types of digital currencies. Many people consider using Binance to trade this crypto because many large platforms do not support this altcoin. This is because of its relative novelty.

You can buy Safemoon through PancakeSwap, a decentralized exchange platform that allows for buying and selling altcoins. It belongs to Binance, which is why you will need to buy Binance tokens and open an account there.

So here’s what you need to know about how you can buy Safemoon on Binance.

• Open a Binance Account

You will need a Binance account in order to use its decentralized exchange, PancakeSwap. Creating an account with Binance is simple, quick, and easy. As mentioned earlier, you will need to enter your name, address, social security number, and other details. Then set a password and verify your account.

• Purchase Binance Coins

Once you have made an account and registered on the trading platform, you will need to buy Binance Coins (BNB). You will need to swap these coins for Safemoon, so buy as many Binance coins as you want Safemoon.

• Get the Appropriate Wallet

In order to use PancakeSwap on the Binance blockchain, you will need to get the appropriate wallet that is compatible with it. The two popular software wallets you can choose from are Metamask or Trust Wallet. These wallets were originally used for Ethereum, so you will need to enable them first so that they work for the Binance blockchain as well.

• Get a Hardware Wallet

Since these above-mentioned wallets are software-based and online, there is a small risk that they can get hacked. Though storing your crypto on them is much safer than leaving them on the platform, it is still better to get a hardware wallet. Hardware wallets are physical devices that store your crypto and protect it from any hacking whatsoever.

• Purchase Safemoon

Luckily, buying safemoon is quite easy. You will need to go to the PancakeSwap website or application and click on connect. Here, you will need to enter the details of your software wallet. Then, you need to choose the ‘Safemoon’ option and swap your Binance tokens for Safemoon.

At this point, you will need to verify your transaction, which might take some time. The new altcoins will be deposited in your wallet. Now, you have your Safemoon safely deposited into your wallet. You can use it as it is or transfers them to your hardware wallet if you have one.

Final Words

Binance is one of the most popular trading platforms globally, and part of the reason is that it supports a wide range of altcoins. For example, Safemoon is not supported by other platforms except for this one. Considering this fact, it is an excellent choice for people looking to trade less popular altcoins on Binance.

When it comes to buying Safemoon on Binance, it should be approached with caution because of the high risk and vitality associated with it. Though it has gained popularity and many people seem to buy it, it should only be used for short-term funds and not as a long-term investment.

However, that goes with all types of coins, including Ethereum, since crypto in itself tends to be volatile. For this reason, experts suggest to trade and buy as much as you are willing to lose.

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