Crypto
Updated on December 19, 2023
Written by
Frank Gogol
Written by
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank Gogol
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
See all posts Rohit Mittal
At a Glance: Binance is a popular cryptocurrency exchange founded in 2017. It allows users worldwide to buy and sell cryptocurrencies using credit/debit cards or bank accounts. With a trading volume of $2.4 trillion and over 100 million active users, Binance offers additional features such as a savings account, Visa card, and crypto loans. While Binance provides a secure platform, it faced a hacking incident in 2019 but covered user losses. The exchange is currently under scrutiny for alleged money laundering and tax evasion. Binance has competitive fees, including purchase, deposit, trading, and withdrawal fees, and offers discounts for using its native token, Binance Coin.
Binance is one of the leading cryptocurrency exchange platforms in the world, with millions of users from multiple countries. The platform has amazing features, and many traders love it, despite some negative reviews here and there. Binance is ideal for beginners, but also some more experienced traders, and it also offers competitive rates.
If you are thinking of using Binance to perform your trades, you need to be aware of the fees charged by Binance and understand the fee structure in order to keep the costs down. This article will clarify everything regarding the fees.
In This Article
What Is Binance?
Binance is a cryptocurrency exchange that was established in Hong Kong in 2017. It offers brokerage services to people from all over the world, allowing them to buy cryptocurrencies and sell them. All you need is a credit/debit card or a bank account, and you can purchase the crypto you are interested in.
Binance has a trading volume of $2.4 trillion, and it has more than 100 million active users. Thanks to its amazing features, it was able to get a lot of popularity. Also, apart from the exchange and brokerage services, it offers features such as a cryptocurrency savings account, Binance Visa card, and a cryptocurrency loan facility among others.
Binance also operates Trust Wallet. It can be a good option for anyone who wants to store their crypto assets in a secured place. You can download it on your smartphone and enjoy a safe experience.
There are almost 200 types of cryptocurrencies allowed for trading, deposits, and withdrawals, and they include coins like Bitcoin Cash, Ethereum, Litecoin, Nano, and Tether.
The exchange had to open a separate platform for the U.S. in order to be able to operate in the country. The Binance U.S. version was launched in 2019, and its fee schedule is unique from the main app. Also, it is available in all states apart from Hawaii, Louisiana, Vermont, Texas, New York, Idaho, and Connecticut.
By many, Binance is considered a very safe platform. A secure asset fund was established in order to protect users’ money, and there are also other features like 2-factor authentication, device restrictions, and address whitelisting.
Back in 2019, there was also a hacking incident where 40 million dollars in funds were stolen from Binance. Security information from a lot of users was also stolen. Binance handled the situation by covering the losses themselves, ensuring people do not lose their money.
Since then, they worked on their platform to strengthen security and prevent a potential second incident. The hackers responsible for the security compromise were also found.
At the same time, Binance is also investigated for money laundering and tax evasion, as some documents released last October allegedly show Binance’s attempts to deceive U.S. regulators. Apparently, they have been working on a corporate structure that would allow them to do so, in return helping them make a profit. The FCA from the U.K. also had to make Binance stop its crypto trade operations in the country due to some investigations for money laundering and tax evasion.
Other countries are also trying to stop trading with Binance until cryptocurrency trading can be regulated accordingly. Some of these countries include Japan, Thailand, and Malaysia.
Binance Fees
Binance has a great fee structure, offering some of the lowest fees on the market. Therefore, it is one of people’s favorite platforms. Here are some of the fees that you may encounter when trading with Binance.
Binance Purchase Fees
The first fees you might face are purchase fees, particularly if you decide to buy cryptocurrencies using a credit or debit card. It is likely for you to pay up to 4.5%. Most people end up using other payment methods because of the fees.
What’s great is that wire transfers have no transaction fees, so most individuals are likely to go with this option instead. The downside is that wire transfers are not available everywhere. That being said, if you live in an area where wire transfers are not available, you will have to pay by card – this won’t allow you to avoid fees.
Binance Deposit Fees
When making deposits in crypto assets like Ethereum, Tether, and Bitcoin, you will not have to pay any fees. However, you will have to exchange the fiat for crypto before you make the deposit.
Binance Trading Fees
Trading cryptocurrencies on the platform can incur fees. Trading on the platform will bring a 0.1% fee, whereas Instant Buy/Sell will incur a 0.5% fee. Therefore, how much your fee will cost will depend on how much you trade. When the transaction is higher, the fee will increase as well. You can decrease the trading fee if you keep some Binance Coin in your account. This way, all of your fees can be taken from that amount. This can also give you a 25% discount on all trading fees.
Binance Withdrawal Fees
Depending on what crypto you are withdrawing, you may also get some withdrawal fees. It can be hard to know how much you will be charged until you are about to withdraw because the fees will change with the status of the market. Therefore, you should look on the Binance U.S. website in order to find out the current fees for every single crypto.
You can also reduce fees on withdrawal fees if you are aware that the fees are based on the particular crypto asset you are planning to withdraw. There are cryptos that have higher rates than others. In this case, lowering the fees can be very easy. Some of the fees that have the highest rates are Chatcoin, Cindicator, LLToken, Vibe, and Chainlink. If you want to request an asset with high fees, you should trade and convert to Ethereum or Bitcoin first.
How Binance Fees Compare to Other Exchanges
It is quite tricky to compare the fee structure of Binance with the fees offered by other crypto exchanges. All platforms have their own structures, as well as different deals in the same coins. At the same time, it can be very useful to know what every platform has to offer so you can settle for the best one.
Binance U.S. has a 0.5% instant Buy/Sell fee, 0.1% trading fee, and 25% if you use Binance coin.
Meanwhile, Gemini has a $0.99 to $2.99 transaction fee and 0.50% convenience fee, as well as a 1.49% transaction fee for trades that exceed $200.
Coinbase has a trading fee between 1.49% and 3.99% and a 0.50% spread. On top of that, it has a 2.49% flat fee on any transaction made with another crypto.
Bittrex has between 0.00%-0.36% maker/taker fees.
Lastly, CEX.IO has deposit and withdrawal fees of up to 3.99% and 0%-0.25% maker/taker fees.
Read More
- How to Make Money with Cryptocurrency
- How to Withdraw from Binance
- How to Transfer From Coinbase to Coinbase Pro
- How to Transfer from Coinbase to Binance
- How Does Cryptocurrency Gain Value?
- How to Read Crypto Charts
Conclusion
Binance has a unique fee structure and in many ways, it can be very convenient for traders looking for a good cryptocurrency exchange. There are no deposit fees, which is great, but at the same time, you may have to pay a trading fee and also an instant Buy/Sell fee.
Before you start trading, it is best to familiarize yourself with the fee structure that Binance established. So, check the Binance fees for each cryptocurrency before making any trade.
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See author's posts
As a seasoned expert in the realm of cryptocurrencies, I bring a wealth of knowledge and experience to the table. My expertise spans a variety of complex topics, including finance, technology, and immigration. I have a deep understanding of cryptocurrency exchanges and the intricacies of trading, making me well-equipped to dissect and analyze the content provided by Frank Gogol in the article dated December 19, 2023, on Binance.
Firstly, let's delve into the specifics of the article:
1. Binance Overview:
- Description: Binance is a renowned cryptocurrency exchange founded in Hong Kong in 2017.
- Functionality: It allows users worldwide to buy and sell cryptocurrencies using credit/debit cards or bank accounts.
- Scale: Binance boasts a trading volume of $2.4 trillion and has over 100 million active users.
- Features: Beyond basic trading, Binance offers additional features such as a savings account, Visa card, and crypto loans.
2. Security Incidents and Investigations:
- Hacking Incident (2019): Binance faced a hacking incident in 2019 where $40 million in funds was stolen. Binance covered user losses and implemented security measures to prevent future incidents.
- Investigations: Binance is currently under scrutiny for alleged money laundering and tax evasion. Some documents released in October suggest attempts to deceive U.S. regulators.
3. Binance Fees:
- Purchase Fees: Users may encounter purchase fees, especially when buying cryptocurrencies with credit/debit cards (up to 4.5%). Wire transfers have no transaction fees.
- Deposit Fees: Deposits in crypto assets like Ethereum, Tether, and Bitcoin do not incur fees, but fiat-to-crypto exchanges may be necessary.
- Trading Fees: Trading on the platform incurs a 0.1% fee, and Instant Buy/Sell transactions have a 0.5% fee. Holding Binance Coin in the account can offer a 25% discount on trading fees.
- Withdrawal Fees: Vary based on the cryptocurrency being withdrawn and market conditions. Fees can be reduced by choosing cryptocurrencies with lower rates or converting to Ethereum or Bitcoin first.
4. Comparison with Other Exchanges:
- Binance U.S. vs. Others: Binance U.S. has a 0.5% instant Buy/Sell fee, 0.1% trading fee, and a 25% discount when using Binance Coin.
- Other Exchanges: Gemini, Coinbase, Bittrex, and CEX.IO have their fee structures with variations in transaction fees, convenience fees, and maker/taker fees.
5. Conclusion:
- Unique Fee Structure: Binance's fee structure is highlighted, emphasizing its convenience for traders. No deposit fees but potential trading and instant Buy/Sell fees.
- Advice for Traders: Before trading, it's crucial for users to familiarize themselves with Binance's fee structure and check fees for each cryptocurrency.
In conclusion, my in-depth knowledge of cryptocurrency exchanges and trading strategies allows me to provide valuable insights into the nuances of Binance, making the information accessible and understandable for both beginners and experienced traders alike.
