Binance Convert: Is It Better Than Spot Trading?

Here’s a tutorial on how to swap crypto for another crypto on Binance. Amilcar has 10 years of FinTech, blockchain, and crypto startup experience and advises financial institutions, governments, regulators, and startups. Here’s how Binance and Coinbase compare on some of the most important factors to traders. In this article, we’ll go over the basics of Binance fees and show how to calculate them. For those looking for tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, Cryptonomics Explainers, and Trading Tool Kits from BSC News. Juno is America’s most powerful account, where going from cash to crypto is easy, affordable, and instant.

We’ll compare it to Coinbase Advanced Trade, which offers much lower costs than the basic Coinbase service, though we’ll refer to it as Coinbase. Trading via order book is limited to the availability of the trading pairs listed on the exchange. Trading assets with lower liquidity and volume can cause slippage – when a trade settles for a different price than expected. Slippage happens when there is insufficient liquidity to fill the order at the requested price. Binance Convert provides sufficient liquidity to completely remove the risk of slippage.

The withdrawal limit depends upon the level of verification you have completed. The withdrawal fee and minimum withdrawal is determined upon the blockchain network. In this article, we will discuss the fees of Binance and Binance US. Sign up for our daily newsletter for the latest financial news and trending topics. Binance fees are some of the lowest in the industry, whereas Coinbase does not disclose its fees online. Unlike Coinbase, Binance was first established in China before moving to Japan, and the Binance.US platform is headquartered in Palo Alto, California.

• Coinbase is a U.S.-based exchange designed for beginners with a simple interface and limited transaction types.
• Binance agreed to pay $4.3 billion to settle charges; Changpeng Zhao stepped down as CEO and agreed to pay $50 million toward the settlement.
• People with no experience with cryptocurrency and investing terminology will face a learning curve on both platforms.
• You’ll first need to exchange your fiat for crypto and then make your deposit.

The table below shows the fee and limits of some of the popular cryptocurrencies. According to the Binance website, maker trades happen when you place an order that goes on the order book partially or fully, such as a limit order placed via the trading screen. Any subsequent trades coming from that order will be maker trades. The name Brokerage Fees is based on the fact that these orders add volume to the order book, helping to “make” the market. GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers.

The pricing structure for different types of transactions is divided into levels according to your thirty-day trading volume and BNB balance. Binance and Coinbase are geared toward different types of users. Coinbase offers a simple platform for investors new to trading cryptocurrency who want fast, easy, and secure ways to trade. Binance’s platform is easy to use, but the sheer number of choices can be overwhelming to a new user. Binance is a better fit for people familiar with cryptocurrency lingo and investing options, whereas Coinbase is built for convenient, easy trading.

Binance is a well-known cryptocurrency exchange and is recognized for its lightning-fast trading. Binance’s trading cost of 0.1 percent is cheaper than that of several other US exchanges. The new feature allows users to make cost-efficient transactions at guaranteed rates without the risk of unexpected prices. For crypto withdrawals, you will have to pay standard network or withdrawal fees depending on where you are transferring your crypto from. Binance US charges a dynamic base fee when you use the ‘buy, sell, convert’ feature on its platform. The withdrawal fee and the withdrawal limit vary according to the cryptocurrency you choose.

The USDⓈ-M Futures Trading Rates offers trading perpetually and quarterly with leverage up to 125x. Binance’s U.S. platform, Binance.US, was launched in 2019 and has its own schedule of fees. It’s available for users in every state except Hawaii, New York, Texas and Vermont. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. We independently evaluate all recommended products and services.

After your trade is complete, you can then withdraw your newly acquired cryptocurrency from Binance. Kraken and Binance both use the maker-taker fee structure, offering much lower fees than other popular platforms such as Coinbase. At first glance, you’ll notice that Kraken fees are higher than Binance, with maker-taker fees ranging from 0% to 0.26% versus Binance’s 0% to 0.10%. While both platforms meet strict U.S. standards for the know your customer (KYC) rule, they approach security a bit differently.

And for Kraken users, the Cryptowatch terminal is an additional perk to track your currencies invested across multiple exchanges. Kraken and Binance are cryptocurrency trading exchange platforms with millions of users. Both are on the top 10 list of largest exchanges by trading volume, with Kraken reaching third place and Binance in first. However, U.S.-based users must use Binance’s U.S. platform, called Binance.US., which ranks 44th on the list. So even if the coins are borrowed for less than an hour, you will be charged interest. Binance maintains a futures trading platform that is integrated seamlessly with the spot trading platform.

In recent years, cryptocurrency has literally taken over the digital assets space because of its versatility and high profit, but… Users can quickly convert the cryptocurrency they currently own into another cryptocurrency using the Binance Convert service. The main way to purchase cryptocurrency on the Binance Lite edition of the app is through Binance Convert, which also powers the Convert feature of the Binance app. After you have created your account, you will need to verify your identity in order to withdraw funds or use certain features on the platform. With that said, Kraken’s fee schedule is easy to read and understand, whereas Binance is more complex and varies by VIP level. Note that fees for Kraken Pro might be different than what’s detailed below, so you’ll want to check with the Kraken fee schedule directly.

Not to be confused, though, as various networks charge transaction fees for facilitating a transfer. For instance, if you are depositing  Bitcoin (BTC) into your Binance account, Bitcoin miners charge a transaction fee for using the network. Like any trading platform, Binance charges fees for certain trades and services. Understanding the Binance platform and its fee structure helps you keep costs down so more of your investment goes into your wallet. Both Kraken and Binance provide quick verification methods with entry-level tiers, but the lowest levels may not offer many trading or funding options, depending on your location.

In addition to trading, Binance offers savings options, the Binance Smart Pool for miners, the Binance Visa card, crypto loans and more. Binance provides the Binance Academy, similar to Gemini’s Cryptopedia, where users can access tutorials or helpful articles resembling cryptocurrency trading courses. Both platforms offer a blog and knowledge base, but Coinbase also lets users earn cryptocurrency for watching videos for beginners. Binance and Coinbase both offer many cryptocurrency pairs, but the number may vary based on your location. Binance is well-known for its massive altcoin list, with more than 600 choices available to non-U.S. One common reason is to make a profit by buying a certain cryptocurrency at a low price and then selling it at a higher price.

Remember that the fees displayed by the calculator are estimates and may be subject to change based on market conditions and other factors. It’s also important to note that fees may differ for different trading pairs and may also vary depending on your trading volume and Binance account level. With a low transaction fee (0.1%) as well as fast transaction processing, Binance has become the exchange with the largest trading volume in the cryptocurrency market. Binance exchange’s technology is capable of processing 1.4 million orders per second, making it a top exchange in terms of  trading volume. Binance allows its users to trade on margins and borrow from funds from the exchange.

Interest rates vary from asset to asset, and the interest is charged based on the amount of time (in hours) the loan remains unpaid. Binance considers a few factors when determining the fees to be paid by each of their customers for every trade. These include prior 30-day trading volume, BNB holdings, and whether or not they are makers or takers. One of the US exchanges, Binance US, charges high fees to its users.