Cryptos have become a hit financial product with them becoming an increasingly popular currency and a form of investment. A vital part of using cryptos is using a cryptocurrency exchange.
A pillar of the crypto economy is the exchange Binance.
Binance's market valuation is placed at $1.3 billion. The exchange was founded in 2017 with it being originally based in China. The company has since moved its headquarters several times in order to take advantage of favorable crypto laws.
In general, Binance charges a 0.1% trading fee. This is a low rate in comparison to other brokerages, and it is easy for traders to plan for this trading fee.
Binance charges different fees for different levels of traders. The different levels of traders depend on how much a trader trades on a monthly basis. The lowest rate is for traders who trade less than a hundred bitcoins on a monthly basis. There are other levels of traders with each subsequent level receiving lower trading rates.
Binance also charges different rates depending upon the crypto in relation to USD. Binance handles hundreds of different cryptos with the value of the crypto affecting the overall fee. Their complete list of trading fees can be found here.
Binance charges withdrawals fees based upon the type of crypto, and they regularly adjust their withdrawal fees based upon current market rates. Generally, their fee for withdrawals is low with it being in the range of a percentage point or less.
Traders can save money by keeping an eye on Binance's withdrawal fee schedule.
Binance does not necessarily charge an outright exchange fee. Instead, their exchange fee structure is built into their other services such as their trading, deposit, and withdrawal fees.
Binance similarly charges a fee for having an inactive account. With them charging their 0.1% trading fee to accounts that are not very active.
Binance Deposit Fees
Binance's deposit fee is completely free. This means that it is easy for traders to start using this exchange. This feature, combined with their low rates for low activity and low volume traders is one of the factors that have made them the most popular crypto exchanges.
Binance fees in regards to transactions come in the form of their trading fees. They do have BNB, which is their in-house crypto. Binance will deduct the fees from using BNB towards your general transactions fees.
Binance will also offer a discount for new traders. The transaction fees for new traders. They offer a fifty percent discount the first year. The discount reduces by half until the fifth year. At this point, Binance charges their full transactions fees. However, most Binance users will be established users by this point, and will be able to absorb the slightly higher fees.
Overall, Binance offers some of the most competitive fee structures around. Their fee structure is easy to understand, and users will not have to worry about being eligible for multiple fees. This allows traders to both avoid fees and plan for them. This an important question in terms of Bittrex vs Binance fees with both exchanges moving towards a simplified fee structure.
Binance's fee structure is one factor towards them becoming one of the most popular crypto exchanges. Their fee structure defaults to either USD or bitcoin. This means that it is easy for people from all countries to use this exchange. In addition, their aggressive moves against regulation has allowed Binance to develop a business model that will likely allow the exchange to continue to be the dominate exchange on the global market.
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