I was able to save more than 5000 USD worth of trading fees on Binance with this simplest trick.
If you are new to the cryptocurrency field you might be unable to gauge the harm done by trading fees on your profits! You might think that a 0.1% or even 1% trading fee may matter to my profits, but trust us, it does matter when this trading fee is charged every time you use the crypto platform to trade.
In this article, we have discussed all the fees charged by Binance and also given some tricks to reduce them for you.
But first, let’s understand what is Binance
What is Binance?
Binance is one of the popular trading platforms for cryptocurrency. It was first started in Hong Kong in 2017 and now its market is growing rapidly all over the world.
Recently it has entered the Indian Cryptocurrency market as well. Traders can make accounts on Binance and start their buys and sales. It can be operated from our mobile apps also.
A unique thing about Binance is that it does not allow all cryptocurrencies to be operated on it. There are a few terms and conditions that the cryptocurrency has to adhere to and only then can they be used. It means the cryptos used here are pretty authentic as well.
It is a crypto-crypto trade platform that allows transactions with Bitcoins, Ethereum, and many others. The platform offers saving options, a Binance Visa card, Crypto Loans, the Binance liquid swap, and the Binance smart pool for miners.
One of the biggest advantages of using Binance is that the trading fees of Binance are lower compared to other cryptocurrency currency platforms.
So, let’s look at what trading fees are.
What Are Trading Fees?
So suppose you have an account in any cryptocurrency currency trading platform. You will always see that for every transaction of crypto you are being charged a trading fee.
Now let’s take a simple example. When you use your bank cards to make online payments, is there something called bank charges? Yes, there is. And there are very few cards against which the banks do not charge fees.
Another way of looking at trading fees would be seeing them as the premium required to be paid for investment services. This is a commission that needs to be paid to the broker (who helped you get details of the investment) and also the financial advisor (who helped you navigate your way through all the stages of investment).
In most cases these trading fees are so hefty they tend to eat away at your profits. A similar thing happens in the crypto platforms as well. Fir dealing in cryptocurrency from their platforms all platforms charge you trading fees which after a point you realize are eating away at a chunk in your profits.
For example one of the highest trading fees is charged by Coinbase and Gemini and the lower charges are found in, yes You guessed it correct Binance and a few others.
Talking about Binance trading fees, it is presently one of the lowest trading fees of cryptocurrency. Presently Binance charges 0.1% as a trading fee on all transactions. Of course, it varies with a few factors that we will look at now.
Trading Fees Structure on Binance
Understanding the fee structure in Binance requires you to familiarize yourself with its schedule.
First Binance has this curious process called the VIP project. So what is this?
By default all traders on Binance a VIPs. But as your trading volume per month increases along with your BNB balance, the trading fee is reduced accordingly.
By default, one is VIP 0. This means this person has less than 50 BNB and their last 30 days’ trade volume is less than 50BTC. In this case, the trading fee is 0.1% for both makers and buyers.
As you go down the list all to VIP 9 (the last one) here the trading fee is 0.02% for buyers and 0.04% for takers.
So although this trading fee is less compared to the lofty charges like 1% or something asked by other platforms, still if calculated in a cumulative way it proves that much of our profit earnings is washed away by these fees.
So here are some ways you can at least try to reduce the trading fees you pay on Binance.
Ways To Save Trading Fee On Binance
Enable BNB
So when you sign up for a Binance account, ensure to go and buy some BNB. What is BNB?
BNB is the native cryptocurrency of Binance that you need to use to reduce your fees.
So once you have logged in to Binance go to your dashboard. On the right side of the dashboard, you will see an option saying use BNB for trading fees. Enable this feature.
By this, you can save almost 25% of the trading fees charged!
Increase Your VIP level
Now, this is a very risky step as you have to increase your investment in the field. We are NOT your financial advisors so we cannot ask you to follow this process.
But since the trading fee is reduced with increased ownership of BNBs and increased trading on Binance monthly, this is an option that is open to users.
Apart from trading fees, there are some additional fees required in certain cases.
Some Other Fees Charged By Binance
Card Fees
So if you want to purchase crypto on Binance through a credit card or debit card then the platform charges up to 3.5% purchasing fees from you.
This rate is pretty high and you can avail of some other methods to purchase cryptocurrency, like wire transfers. Which again is not feasible in all areas.
Deposit Fees
If you deposit crypto assets using cryptocurrency like Bitcoins or Ethereum there is no additional charge. But if you do the same with some other currency then there is a problem of high deposit fees.
Withdrawal Fees
When you are trying to withdraw from your Binance account you are charged a withdrawal fee. This depends on the type of cryptocurrency you use and is dependent on its market value of it.
Binance prides itself on being updated on such trends.
Final Words
In conclusion, we would like to reiterate that presently Binance charges the lowest trading fees. While enabling BNB can reduce some part of your trading fee, trying to increase your VIP level is not feasible for all.
So until some more concrete trick comes try to use the BNB solution to save trading fees on Binance.
In the long run, you will find you have saved a lot of money with this trick.
Hope this article was helpful!
