Binance is the most commonly used platform for crypto trading. It is not controversial to suggest that it offers the best overall package from all of the trading platforms out there. The pairs, instruments, and the overall quality of service is difficult to match.
However, the fees can sometimes seem a little too much. Due to its superior quality, Binance often charges a fee that is considerably higher than some of its competitors. Thankfully, there are ways through which you can mitigate some of the fees and pay less than you normally would. We are going to look at 3 such ways!
Use BNB to Pay for Trades
BNB is Binance’s own cryptocurrency. Apart from working as a standard cryptocurrency that can be traded and used to pay for things, its main feature is that it is used to pay for Binance fees.
Using BNB is an easy way to make sure that you pay less Binance fees. In order to increase its adoption, Binance allows for a special discount.
This discount decreases every 12 months starting from July 2017. During the first year, Binance offered a 50% discount. A 25% discount was offered during the second and the third year, and a 6.75% discount is offered during the fourth year. After the end of the fourth year (July 2021), no discounts will be offered when using BNB to pay Binance fees.
Remember that the discounts apply to the total fee amount. For example, if you make a trade that has a fee of $1, using BNB will allow you to avail a discount of 6.75 cents, and the total fee that you pay will be $0.9325.
Remember to make sure that you have enough BNB in your account. If you do not, then Binance will simply deduct the fee from your balance. Thankfully, you can purchase BNB within Binance, so having enough of it will not be a problem. For any additional questions, you can go through the Binance guide on how to pay fees with BNB.
Register With Our Referral Code: BI75U50T
Another way to pay fewer fees on the Binance platform is by using our referral code. This code will allow you to avail a 10% discount on all of your fees.
When registering with the platform, you will be asked whether anyone referred you to Binance. Here, you will have the option to enter the code. Simply enter “BI75U50T” and continue with the registration process as you normally would.
This code is indefinitely applicable, meaning that you will be able to use the discount for as long as you are on Binance with this one code.
However, you will need to use this code when registering with the service. If you already have an account, then you will need to create another one.
Unless you are a daytrader or someone who places a ton of orders, creating a new account is not worth it. That said, those that transact a lot of cryptocurrency on Binance will be able to save a lot of money because of the 10% discount.
Use Maker Orders Instead of Taker Orders
The final way to pay fewer Binance fees is by making use of marker orders instead of taker orders.
While the difference between the two order types is zero in some cases, you might be able to save a considerable amount of money this way in certain conditions.
You may be wondering what’s the catch. After all, there must be a reason Binance (and other exchanges) require less fees for maker orders than they do for taker orders.
Binance themselves explain this very well. Simply put, market makers are the ones that place their orders on the exchange and wait for them to be filled. Market takers are the ones that utilize the makers and have their orders filled immediately. Makers are adding liquidity to the exchange, whereas takers are taking away liquidity.
Because of this, the market makers are offered a rebate by the exchanges. If you decide to use maker orders instead of taker orders, it could be a while before your trade goes through. However, you will end up saving a little bit of money with each trade, which could stack up considerably over time.
Conclusion
We just went through three ways that you can use to pay less Binance fees. If you are someone who buys and holds cryptocurrency, then you probably will not be making a lot of trades, and these fees will not impact your bottom line very much.
However, active traders will be able to make use of these three tips to save a considerable amount of money in the long run. A 10% discount may not seem like a lot, but imagine it applying to 10 trades a day throughout the year, and you will be able to see the impact it could have.