Binance’s Lowest Exchange Cost

Different online trading platforms use different methods to calculate transaction fees.

For example, Binance adopts a user-centric approach.

On the other hand, different users have different views on transaction fees.

For hedge traders, even a small profit is important; other users may place more emphasis on the transparency of transaction fees, which is an important part of their trading experience.

As a crypto asset trader, regardless of your professional level, you should have some understanding of transaction fees.

Below are some of my personal thoughts on transaction fees, how transaction fees affect transactions, and how trading platforms can improve the user’s trading experience.

Go to Binance Official Website

CZ’s view on transaction fees

First, the transaction fee charged for crypto-asset transactions should be the same as the actual transaction cost.

High transaction fees can deter traders and affect the trading experience.

For example, when users buy Bitcoin and convert it into other currencies, the impact of transaction fees should be as low as possible.

Frankly, I’m not a frequent trader, I prefer to hold for the long term.

But cryptoasset markets, like traditional markets, have frequent regular investments and trades, so traders shouldn’t be concerned that transaction fees could erode investment returns.

Binance’s philosophy is simple – users come first.

As a result, we offer some of the most competitive transaction rates in the industry.

Only 0.1% fee will be charged for opening or closing positions on Binance Spot, and holding BNB can get an additional 25% fee discount.

There is a lot more information to share about transaction fees.

I know this sounds intimidating, especially for new traders.

In order to give users a clearer understanding of the composition of transaction fees, the following chart lists the transaction fees that may be incurred during the user’s transaction process.

Why can Binance achieve the lowest transaction fees in the market

Open Binance’s Account

What is the spread? How does it affect transactions?

Users need to understand the difference between spreads and transaction fees, both of which are an important part of cryptoasset trading.

  • Transaction fee refers to the handling fee charged by the trading platform after each transaction is completed.
  • The market spread refers to the difference between the buying price and the selling price of an asset at a certain point in time.

The lower these two fees, the better the user’s trading experience.

For example, a user may find that the selling price is lower than the buying price after buying bitcoin at the market price, and the difference between the two prices may be quite different on different exchanges.

Why does this happen? The answer is – the trading platform you use may be illiquid.

Market spreads arise when the underlying asset is not actively traded and trading volume is low.

Some exchanges may advertise themselves as “zero transaction fees”.

But in fact, these trading platforms have low liquidity and market spreads are higher than other platforms.

To make matters worse, many users do not fully understand the rate structure, resulting in some trading platforms putting out eye-catching and garish advertisements without providing users with transparent and open rate structure information.

Go to Binance Official Website

Entry barriers to the ecosystem

High transaction fees not only reduce the profits of users, but also discourage many newbies, forming a barrier to entering the crypto asset and blockchain ecosystem.

Binance is inherently an inclusive platform.

All of our products and services are designed with accessibility in mind to ensure that users are not plagued by slow transaction speeds and high transaction fees on our platform.

Attracting more users through competitive transaction rates is what drives Binance forward.

The lower the fee, the more users you can attract, and more users means higher popularity.

Open Binance’s Account

How can trading platforms improve rate structures?

Transaction fees play an important role in the crypto asset and blockchain ecosystem.

I think crypto-asset exchanges will always find ways to improve their rate structures.

New trading platforms appear on the market every day, but the user demand for lower transaction fees is only going to get stronger.

Crypto assets exist for users, but many trading platforms sacrifice users in pursuit of profits, which goes against the original intention of crypto assets.

Of course, trading platforms can make a lot of money in the short term by this means, but users will eventually choose those platforms that are most friendly to them.

Therefore, Binance will continue to provide users with the lowest rates in the market.

Go to Binance Official Website