Arbitrum has become one of the most popular layer 2 scaling solutions for Ethereum, providing faster and cheaper transactions. As a leading cryptocurrency exchange, Binance offers users access to trade and invest in arbitrum tokens and coins. This article will provide a step-by-step guide for investors who want to invest in arbitrum tokens on the binance app.
Connect your wallet to binance app to start investing in arbitrum
The first step is to connect your crypto wallet to the binance app. Binance supports major wallets like MetaMask, WalletConnect, Coinbase Wallet etc. After logging into the binance app, go to your profile and select the wallet connect option. Scan the QR code shown using your preferred wallet app to connect it to binance. Once connected, you can directly access arbitrum tokens in your wallet on binance without having to transfer or deposit tokens separately.
Search for arbitrum tokens available on binance
After connecting your wallet, you can start searching for arbitrum tokens listed on binance app. Some popular arbitrum coins like GMX, DYDX, UNI are available for trading on binance. You can search for these tokens directly or filter tokens by blockchain – arbitrum. The app shows arbitrum tokens paired with stablecoins like USDT, BUSD as well as with ETH or BNB for trading.
Fund your binance wallet to invest in arbitrum coins
Before you can invest, you need to fund your binance wallet with crypto. You can deposit cryptocurrencies like BTC, ETH, stablecoins which can then be traded for arbitrum tokens. If you already have tokens in your connected wallet, they will automatically reflect in your binance app wallet balance. No need to transfer tokens separately. You can also use various fiat on-ramps on binance app to directly purchase crypto using a debit card.
Place arbitrum token orders on binance spot, margin or futures
Once your binance wallet is funded, you can start investing in arbitrum tokens. You can go to the spot trading tab and place limit orders for arbitrum tokens using USDT or other stablecoins. More advanced traders can also trade arbitrum tokens on binance futures or margin trading using leverage. Make sure to use appropriate stop-losses on leveraged positions.
Stake your arbitrum tokens to earn yields
Instead of actively trading, you can also earn passive income on your arbitrum tokens by staking them on binance Earn. Tokens like UNI, GMX, DYDX have staking pools on Earn where you can stake them to earn annual percentage yields paid out daily/weekly. Staking arbitrum tokens is safer than trading while still earning decent yields.
Investing in arbitrum tokens on binance app is easy by connecting your wallet, funding your account and then trading or staking arbitrum coins. Leverage spot, futures and staking options based on your risk appetite to maximize returns.