Binance Wallet Set-Up & Crypto Trading in Sri Lanka (Tutorial)
[Very Important] Please read the disclaimers at the end of the post to understand potential legal and financial risks of trading cryptocurrency in Sri Lanka.
Step 1 — Registration
Insert your email address, a secure password and confirm that you are over 18 years of age.
Step 2 — Verification
Fetch the verification code emailed to the address you registered with and key it in the given field to complete email verification.
(Recommended) Complete enablement of 2-Factor Authentication from the pop-up prompt by keying in your mobile phone number and retrieving the OTP for confirmation. Alternatively, Google Authenticator app can be used to generate unique authentication codes for login.
Step 3 — Identity Verification (KYC)
Use either the prompt or the verification link in the user account icon at the top of the screen to initiate the identity verification.
Confirm your residential country by selecting your country of residence from the prompted list.
Three levels of verification will be provided as follows:
Requires First Name, Middle Name, Last Name and Date of Birth, Residence Address, Postal Code and City of Residence details to complete.
Does not require any documents to prove the information.
Requires a form of Government ID (Identity Card, Passport or Driving License) and a Facial Verification through a real-time selfie for completion.
May require up-to 10-days to complete the verification. However, the verification is typically completed in less than 24-hours. Many users experience rejections of their applications on initial attempts. Try to ensure the documents and selfie submitted for facial verification are high quality images with good lighting and clear text.
Requires a proof of address in the form of a Utility Bill (electricity bill or water bill) or a Bank Statement for completion. Be sure to take clear images of the documents you wish to submit. I’ve noticed that brightly lit images receive approval very quickly.
Step 4 — Depositing Funds (Intermediate Verification Must Be Complete)
Click on “Trade” in the centre of the main menu ribbon (on website) or the centre icon at the bottom of the screen (on app).
Select “P2P” from the drop down menu (on website) or at the extreme right of the header menu ribbon (on app).
Select “LKR” in the “Fiat” field of the P2P trade screen to filter out local sellers who accept the Sri Lanka Rupee as a payment method through a local financial institution.
(Recommended) Select “USDT” from the options given in the top menu to filter out sellers who are able to provide USDT. Other cryptocurrency options available are Bitcoin (BTC), Binance USD (BUSD), Binance Coin (BNB), Ether (ETH) and DAI.
From the filtered list of sellers, compare the following selection criteria:
- Number of orders completed (more than 100 ideally)
- Order completion percentage (over 90% ideally)
- Price (the conversion rate offered between LKR and USDT)
- Available amount for sale
- Limit range (the range of LKR they are willing to accept from a sale)
- Ensure “Payment Method” is “Bank Transfer”
Once a seller has been selected based on:
- A competitive conversion rate (usually between LKR 212 and LKR 230 per 1 USDT)
- Limit range which accommodates the amount of investment you are willing to make (if your investment is LKR 10,000, the lower limit should be less than LKR 10,000 and the higher limit should be higher than LKR 10,000)
- High order completion rate (ideally above 90% with a large number of completed orders)
Proceed to click on “Buy USDT”
In the prompted dialog box, fill in the amount of LKR you are willing to invest at this point in time. Based on the amount entered by you in LKR, the amount of USDT you will receive will be displayed in the “I Will Receive” field.
An option to contact the seller ahead of continuing might be provided based on the seller’s preference to provide a contact number.
If you click on the “Buy USDT” button at the bottom of the dialog box, the transaction becomes irreversible. If the transaction is cancelled beyond this point, your completion rate will be impacted negatively and sellers will not trust you to be a legitimate buyer.
The next screen is a secure payment environment. In this environment, the following options are provided:
- Chat icon to initiate a chat message with the seller. Most sellers have an automatically triggered welcome message including their contact number.
- A running timer counting down the amount of time available for you to complete the transfer of the promised amount to the seller.
- Payment information which includes the bank details of the seller. Payment of the promised amount should be transferred to this mentioned account of the seller and a screenshot of the confirmation of payment (payment advice/payment reference) should be sent to the seller through the chat in the app.
- “Transferred, Next” button to be clicked when the payment transfer has been completed. Clicking this button will initiate a new countdown timer which is the amount of time the seller has to complete transferring the USDT (or other cryptocurrency) to your Binance wallet.
- “Appeal” button which is to be pressed in the extremely rare case the seller fails to transfer the USDT within the allocated time frame. Binance holds the seller’s cryptocurrency in escrow to ensure the payment is completed and that the buyer is not cheated out of his/her money. If the proof of transfer is provided in the chat and an appeal is raised, Binance will intervene and complete the transfer of the cryptocurrency.
My recommendation from a best practice point of view is to initiate a chat with the seller before transferring the money. Once the seller responds, establish a level of comfort and then ask the seller to stay online until the payment transfer is completed. Then, be sure to complete the transfer as quickly as possible and send a clear screenshot of the payment confirmation to the seller on the chat. Click on “Transferred, Next” and stay on the screen until a pop-up informs you that you have received the USDT.
Step 5 — Trading
Once the USDT purchase has been completed, click on “Wallets” from the top-level menu ribbon (on website) or the extreme right of the menu at the bottom of the screen (on app).
Select “P2P” from the list of wallets. In the app, you will need to slide to the extreme right on the top-level menu ribbon. On the website, the “P2P” wallet is at the bottom of the drop-down menu under the “Wallet” main menu item.
Once in the P2P Wallet, the purchased USDT amount will be listed in your balances. The values might be hidden for security reasons. Click on the “Show” icon to make the balances visible.
To trade cryptocurrency, click on “Transfer” in front of the USDT balance in your P2P Wallet and select:
- “P2P” in the “From” field
- “Fiat & Spot” in the “To” field
- “USDT” in the “Coin” field
- Click “Max” in the “Amount” field
- Click “Confirm”
Once the transfer of funds from the P2P Wallet to the Spot & Fiat Wallet has been completed, click on “Trade” and select “Classic” on the website and “Spot” on the app.
You are now ready to trade cryptocurrency!
Disclaimers (Please Read)
I am not a financial advisor in any capacity and neither am I an expert in trading cryptocurrency. My knowledge of the risks involved is limited as is my knowledge on the subject matter.
Disclaimer 2: To the best of my knowledge, cryptocurrency is not recognized as an illegal asset class in Sri Lanka. However, multiple warnings have been issued by the Central Bank of Sri Lanka with regards to the risks of being financially involved in the domain of digital currencies.