In this article we will look at how Indian users can buy and sell crypto with INR directly from the Binance Mobile app using Binance P2P.
Cryptocurrencies have gained so much in popularity lately, to the point of every other tech portal featuring a section dedicated to them. Some say buying cryptocurrencies is just like buying gold or silver, and it’s up to you to do whatever you want with them. You can either sell them later at a higher price or use them to buy something from companies that accept cryptocurrencies as a mode of payment. Or even just
hold hodl them.
This is a small guide on buying and selling cryptocurrencies via the exchange Binance – one of the largest crypto exchange in the world used by a staggering number of traders. Binance, however, doesn’t let us use fiat currencies to pair up with cryptocurrencies directly. That is why we’re going to be using the (P2P) peer-to-peer mode of exchange on Binance. That lets us use fiat money like the Indian Rupees (INR), to buy or sell cryptocurrencies in a jiffy.
Peer-to-peer mode of exchange
A P2P exchange refers to a transaction featuring digital currencies between two peers (electronic) directly, where, for security considerations, an Escrow (a third party trustee) account mechanism may be used. An escrow is essentially an intermediate caretaker that makes sure your funds are safe when transferring them to a user. Without an escrow, trusting on the other party to fulfil their end of the transaction can be difficult. An escrow holds the funds, the cryptocurrency asset before releasing them to each party, ensuring that both transact without trouble.
Let’s delve into how you can buy any crypto using INR, on the Binance P2P exchange.
Why Binance is a cut above the rest
- There are 6 cryptocurrencies available on Binance P2P, from which you can choose the one you like, or well, trade with all of them with your choice of payment method including bank transfer, UPI, etc. They are,
- BTC – Bitcoin
- ETH – Ethereum
- USDT – USD Tether
- BUSD – Binance USD
- BNB – Binance coin
- EOS – EOS
- Binance has Zero transaction fees until October of 2020, so go make use of it!
- Merchants are verified by Binance and only KYCed users can place orders.
- Escrow and robust dispute handling system protecting both buyers and sellers
How to Buy Crypto on Binance with INR
Step 1: Make sure you have an account on Binance and complete your KYC. Without a verified account, you can’t trade on the P2P market.
Step 2: Open the app and on the home screen in the center you will see an option ‘Buy with Cash’. Click the option and proceed to place the order
Step 3: You will see a screen with two options “P2P exchange” and “Credit/Debit Card”. Since Indian banks usually have restrictions on crypto transactions, we’re not opting for credit or debit cards. So, click on “P2P exchange” (short form for peer-to-peer exchange).
Step 4: Once you click on P2P, you’ll be taken to a page where you can either buy or sell crypto. You can also see the 6 cryptocurrencies listed in a row. You can click on any one to buy/sell that particular one.
Step 5: This is where you trade. Once you click on buy/sell, you can choose your payment options and proceed with the transaction.
How to Post an ad on Binance
Step 1: Check for a “+” button on the top right of the Buy/Sell page, click on it to post an ad.
Step 2: Choose whether you’d like to Buy or Sell. The option you’ve chosen will toggle to yellow. The ones you haven’t will remain grey.
Step 3: Choose your asset (your preferred cryptocurrency) and INR as the currency you’ll complete the transaction with.
Step 4: You’ll notice that under the price setting, there’s already a rate visible. This is the actual exchange rate that the app displays for you. You can either continue with the same rate or choose your price.
Step 5: You can increase your price in two ways:
- You can choose “Floating”, right below the price option – this automatically increases your price according to fluctuations in the price change of the cryptocurrency. Choose a margin per cent, which will increase or decrease your price range accordingly. For example, if you’ve set your price at 75 INR and have set your margin to be 104% if the rates fluctuate, your rate will change to a maximum of 78 INR (4% more).
- Let’s say you want your price to stay fixed even among the fluctuations. You can choose the next option of price-setting called “fixed”. This won’t change your price at all, but selecting the floating option is recommended. Click on “Next”.
Step 6: The first option, called “Total trading amount” denotes the number of coins bought/sold. Enter the number of your choice.
Step 7: The next option is the “order limit” where you enter the minimum amount (fiat money) you want to trade. Just next to this is the maximum limit, which is automatically taken care of, so you don’t need to hamper with it.
Step 8: The next option is the payment method. Here, there are about 45 types (UPI, IMPS, and the like), and you can choose the one you desire.
Step 9: Next option is the “Payment time limit” where you decide the time within which the transaction should complete. Click on “Next”.
Step 10: Under the remarks column, you can add whatever you want to communicate with the person you’re trading with. When buying, you can skip this option; but when you’re a seller, do add all instructions to the trader here.
Step 11: Once a user is ready to trade with you, Binance provides you a chat column where you two can communicate. The next option called “Auto reply” is to send an automatic message to the trader. Adding your contact number or something like “If I don’t reply here, contact me on telegram @coincrunchin….” would be suitable here.
Step 12: The next option is to filter the users you trade with. You can customise the options by choosing the desired ones under the “Counterparty conditions”.
Step 13: The next option is to schedule the posting of the ad if you want it done later.
Step 14: To complete the whole process, you’ll be asked to verify your phone number with an OTP.
How to Sell crypto on Binance
On the “sell” page, choose a trader and you can enter how many coins you want to sell to them at the price that they’ve set. You can communicate with the trader in the chatbox provided by Binance for further clarification.
Binance’s peer-to-peer Pioneer Program
In July 2020, Binance launched its peer-to-peer Pioneer program. The objective with Pioneer is to accelerate cryptocurrency adoption in India. Here are the exciting bits:
- Binance rewards you with 25 BUSD (Binance coin – the exchange’s stable coin) for every successful merchant referral you make, directly to your wallet.
- You don’t have to worry about paying more to upgrade to a VIP level on Binance. For every 10 successful merchant referrals you make, you level up.
- If you make 300 successful referrals, you get a bonus reward of 2500 BUSD along with the occasional 25 BUSD. How cool is that?
- What’s more – you get a “Merchant Pioneer Badge” to show off too. Plus the opportunities to engage and even speak at webinars and AMAs that Binance organises. Of course, there’s cool goodies to be had from time to time too!
- Here are the conditions that the referees have to meet. They:
- Shouldn’t already be a Binance P2P merchant.
- Should successfully pass the identification (KYC).
- Must complete at least 2 separate orders of 7500 INR as an advertiser.
- Must remain as a valid merchant for at least 30 days.
- The offer is valid only for 3 months from when you get a Pioneer title. You’ll be asked to deposit an amount when you join this program but it’ll be refunded the moment you exit.
- You can read further terms and conditions here.
- Once a trade is complete, and the money transfer has successfully taken place, the buyer has the freedom of releasing the cryptocurrency at their desired time.
- You can track your coins on your Binance wallet.
- While transferring money, make sure the seller’s name on Binance and on bank details provided match. Avoid making payment to a third party account to rule out fraud.Make sure you find the same trader name on Binance as well as when transferring fiat money to rule out fraud.
- Report to Binance immediately when you smell something fishy. You can appeal from within the app or write to [email protected]
- Binance rewards you (with free cryptocurrencies) if you refer your friends and they become merchants.
Tell us about your cryptocurrency experiences in the comments down below! Happy crypto-trading!
Watch the Video
If you want a full overview of the Binance P2P Exchange using the mobile app, watch this video.
Watch this video for a complete walk through and experience of Binance P2P over desktop app.
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