How To Avoid and Reduce Fees on Binance: A Full Breakdown
Binance has positioned itself as a leader among trading platforms around the globe. The exchange is easy to use for both beginner and expert cryptocurrency traders, and it provides very competitive rates.
Unfortunately, even competitive rates can add up to hefty fees over time. By understanding the Binance platform and its fee structure, you can learn how to avoid or minimize these fees and keep more of your hard-earned coins in your wallet.
What Is Binance?
Binance is a crypto-to-crypto exchange service that got its start in 2017 in Hong Kong. It grew into one of the most popular and commonly used crypto exchanges in the world in a handful of years.
Despite its success, Binance is always looking for ways to grow. The company continues to add new products and services to the platform. In addition to trading, Binance now offers savings options, staking, the Binance Smart Pool for miners, the Binance Visa card, crypto loans and the Binance Liquid Swap.
While these new resources are beneficial for users, purchasing and trading cryptocurrencies is still the principal focus for most of Binance’s users.
Keep in mind that Binance is not intended for U.S. residents. Binance.US was launched in 2019 as an alternative that is open to users in all but seven states in the U.S. The platform has its own schedule of fees.
How the Binance Exchange Platform Works
Binance offers a trading platform that directly connects buyers and sellers. It accepts multiple payment options.
Credit or Debit Card
Thanks to recent partnerships, Binance now accepts debit and credit cards for purchasing dozens of cryptocurrencies for a fee.
Binance has partnered with third parties to allow users to buy coins using SEPA (Single Euro Payments Area) payments or bank transfers. However, the service is only available for specific fiat options, including euros, Australian currency (AUD) and Canadian currency (CAD). It is not available for U.S. currency (USD).
Types of Currencies Available on Binance
Binance allows trades, deposits and withdrawals in almost 200 types of crypto. Some examples include:
- Bitcoin Cash (BCH)
- Binance Coin (BNB)
- Binance USD (BUSD)
- Tether (USDT)
- Stellar Lumens (XLM)
- Chainlink (LINK)
- Dash (DASH)
- Litecoin (LTC)
- Ethereum (ETH)
- Nano (NANO)
- Cosmos (ATOM)
- Basic Attention Token (BAT)
Binance offers some of the lowest fees in the crypto exchange market, making it a favorite among traders. Even as low as Binance’s rates are, there are a few tips to help you enjoy even lower ones.
If you choose to buy your cryptocurrencies with a debit or credit card, you can expect to pay up to 3.5% in fees. As that is a high rate, it is best to use other payment methods.
Wire transfers, on the other hand, come with no transaction fee but are not available everywhere. If your location does support wire transfers, you can use them to avoid paying purchasing fees.
There are no fees when depositing crypto assets on Binance with Bitcoin (BTC), Tether (USDT) and Ethereum (ETH). You will first need to exchange your fiat for crypto and then make your deposit.
Binance does charge a 0.1% fee for trading on the platform, meaning that your price will depend on the amount of the trade you make. The higher the transaction, the higher the fee.
Good To Know
There are two basic ways to reduce Binance trading fees. The first step occurs after you have a Binance account set up. Keep some BNB, or Binance Coin, in your account at all times and enable your fees to be taken from that. Doing so gets you a 25% discount on all of your trading fees.
The second step involves using the available futures trading platform. Binance offers fees as low as 0.02% and 0.04% for traders on the futures trading platform. This is lower than most other exchanges that charge up to 0.2%.
Withdrawing crypto also incurs a fee according to the type of crypto you are withdrawing. These fees change with the market’s status, making it difficult to understand what you might owe until you are ready to withdraw. Binance does, however, clearly provide accurate and up-to-date information for each type of cryptocurrency.
While one of the biggest complaints with Binance is the withdrawal fees, there are ways to lower them. It starts with the basic understanding that the fees are directly correlated with the type of crypto asset users are trying to withdraw. Some charge high rates, while others do not, so reducing withdrawal fees can be as simple as changing the coin.
Before you begin your withdrawal, check the rates on the coin you plan to request. Some of the highest fees come from currencies such as:
If the type of asset you were about to request has a high fee, consider trading and converting to Bitcoin or Ethereum on Binance first. You can also choose one of the many cheaper cryptocurrencies for a much lower cost. Some of these include:
- Ethereum Classic
- Bitcoin Gold
Under most circumstances, taking the time to compare withdrawal rates can make a significant impact on the total amount of fees you pay.
Most often, lowering the price of fees and other costs comes down to one thing: understanding what you are getting charged for and the purpose of that charge. With this knowledge, you can gain greater control of the situation. Take the time to learn as much as you can about any fees you face on Binance. Then you can begin to minimize their impact on your life and your wallet.
GOBankingRates’ Crypto Guides
- Coinbase Fees: Full Breakdown & How To Minimize
- What Is Cardano? (ADA)
- What Is Bitcoin Cash? (BCH)
- What Is Chainlink? (LINK)
- What Is Dogecoin? (DOGE)
- What Is Litecoin? (LTC)
- What Is Polkadot? (DOT)
- What Is Ripple? (XRP)
- What Is Stellar? (XLM)
- What Is Tether? (USDT)
Data is accurate as of March 31, 2021, and is subject to change.