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Binance has positioned itself as a leader among cryptocurrency trading platforms around the world, aiming to make it easy for beginners and experts alike to trade crypto while enjoying competitive rates.
Like any trading platform, Binance charges fees for certain trades and services. Understanding the Binance platform and fee structure can help you keep costs low so that more of your investment goes into your wallet. Keep reading to learn more.
What is Binance?
Binance is a crypto-to-crypto exchange service that launched in Hong Kong in 2017. It has since grown into one of the world’s most popular crypto exchanges. In addition to trading, Binance offers savings options, the Binance Smart Pool for miners, the Binance Visa card, crypto loans and more.
Binance’s US platform, Binance.US, was launched in 2019 and has its own schedule of benefits† It is available to users in every state except Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
Binance allows trades, deposits and withdrawals in nearly 200 cryptocurrencies, including:
Binance offers some of the lowest rates in the crypto exchange market, making it a favorite among traders. Here’s a quick rundown of some of the costs you may incur.
If you choose to buy your cryptocurrencies with a debit or credit card, you can expect to pay up to 4.5% in fees. Because of these costs, it is better to use other payment methods.
Wire transfers, on the other hand, do not incur any transaction fees, but are not available everywhere. If your location supports wire transfers, you can use them to avoid paying card fees.
There is no fee for depositing crypto assets on Binance using Bitcoin (BTC), Tether (USDT) and Ethereum (ETH). You must first exchange your fiat for crypto and then make your deposit.
Binance charges a 0.1% fee for trading on the platform and a 0.5% fee for instant buy/sell, so your actual fee amount will depend on the amount of the trade. The higher the transaction, the higher the fee. One way to reduce your trading fees is to keep some Binance Coin in your account at all times so that your fees can be deducted from that. Doing so will give you a 25% discount on all trading fees.
You will also be charged based on the type of crypto you are withdrawing. These fees change with the state of the market, making it difficult to know what you owe until you are ready to withdraw. Be sure to check the Binance.US website, which provides up-to-date information for each type of cryptocurrency.
There are ways to reduce withdrawal fees, and it starts with understanding that fees are based on the type of crypto asset you want to withdraw. Some assets charge higher rates than others, so cutting withdrawal fees can be as simple as changing the currency.
Before you start withdrawing, check the rates on the coin you want to apply for. Some of the highest fees come from these currencies:
If the type of asset you wanted to apply for has a high fee, consider trading and converting to Bitcoin or Ethereum first. You can also choose a cheaper cryptocurrency, such as one of the following:
Verge Steem Litecoin Ethereum Classic Cloak Bitcoin Gold PIVX
In most cases, taking the time to compare withdrawal rates can have a significant impact on the total amount of fees you pay.
Maker or taker
When you look at Binance’s fee schedule, you will notice that you are charged different fees depending on whether you are a ‘maker’ or a ‘taker’.
According to the Binance website, maker trades happen when you place an order that goes partially or completely into the order book, such as a limit order placed through the trading screen on binance.com. All subsequent trades that come out of that order are maker trades. The name is based on the fact that these orders add volume to the order book, “making” the market.
Taker trades take place on an order that trades immediately before it goes into the order book, whether you partially or fully execute an order. These trades “take” volume from the order book.
How Binance Fees Compare to Other Exchanges
Comparing fees across different crypto exchanges is tricky as they don’t all have the same fee structures or trade the same coins, but it’s still a good idea to familiarize yourself with some of the individual features.
Here’s a quick look at some of the fees you can face with some of the leading exchanges, and how they compare to Binance.
Exchange Fee Details Binance.US -0.1% Trading Fee
-0.5% direct buying/selling costs
-25% when using Binance coin Gemini -0.50% convenience surcharge
– $0.99 to $2.99 transaction fee
-1.49% transaction fee for transactions over $200 Bittrex -0.00%-0.35% maker/taker fee Coinbase -0.50% spread
-Trading fees between 1.49% and 3.99% (or $0.99 to $2.99 flat rate)
-2.49% flat rate for transactions with other cryptocurrencies
-2% credit transaction fee CEX.IO -0% – 0.25% maker/taker fees
– Deposit/withdrawal fees up to 3.99%
GOBankingRates Crypto Guides
Information is correct as of May 6, 2022
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About the author
Brandy Woodfolk is an entrepreneur, educator and freelance writer. She received my Bachelor of Business Administration from Everest College, Digital Marketing Certification from Shaw Academy, Certificate in Personal and Family Financial Planning from the University of Florida Through Coursera, and she is completing her Master of Project Management from Northcentral University. She has devoted her freelance writing career to creating content related to digital marketing and SEO, business, personal finance, family, and health and wellness.