In this article, you will learn about what are Binance Transaction Fees. Binance exchange is the world's largest crypto exchange with the least trading and transaction fees. Binance offered a 50% discount to its customers that opted to use Binance Coin (BNB) to pay for trading fees.
What are Binance Transaction Fees?
The majority of cryptocurrencies use transaction fees for two important reasons. First of all, fees reduce the amount of spam on the network. It also makes large-scale spam attacks costly and expensive to implement. Secondly, transaction fees act as an incentive for users that help verify and validate transactions. Think of it as a reward for helping the network.
Currency trading refers to spot trading and does not involve derivatives or leverage. Transactions are divided into Maker and Taker.
Maker: You place an order on the order book, and it will not be executed immediately. Makers are the traders that create orders and wait for them to be filled. Makers provide liquidity to an exchange and create a market for a token so its handling fee is cheaper.
Taker: Takers are the ones that fill someone else's orders. Takers remove liquidity by fulfilling open orders on the exchange so its handling fee is more expensive.
How to Save ≥ 35% in Binance Transaction Fees
When trading cryptocurrencies it's important to try and reduce your trading fees. At even a fraction of a percentage, these trading fees can really add up, especially with the potential that cryptocurrency has to multiply, in the coming years.
Even though Binance already offers some of the lowest fees in the industry, there are several ways to save even more on every transaction. Every bit helps, and savings do add up over time.
1. Binance Referral Program (-10% fee)
Binance offers a commission kickback for accounts created with a referral link or filling in the referral code: HIKMF086. You can save 10% on Binance's spot market fees just by creating an account through the link or code.
2. Paying Transaction Fee with BNB (-25% fee)
Binance Coin (BNB) is an exchange-based token created and issued by the cryptocurrency exchange Binance.
If you own any BNB coins, you can use it to pay for the transaction fee and save 25% in transaction fee. This option should be toggled “On” by default. If you are not sure whether it is turned on for your account, follow the steps below to check.
- Click on the profile icon on the top right corner
- Click on your email to access the profile page
- Make sure that the “Using BNB to pay for fees ( 25% discount )” is toggled to “On” (The fee section should be on the bottom right corner of the profile page)
3. Increase your VIP level
You can further reduce your transaction fees by simply trading more often. Binance offers 10 different VIP levels (VIP 0 — VIP 9), calculated based on your 30-day trading volume (equivalent in Bitcoin) and average BNB balance over the same period. You can find the full breakdown of all Binance's fee breakdowns here.
Bottom Line
Transaction fees are and have been an essential part of most blockchain systems since their inception. You are most likely to have come across them when sending, depositing, or withdrawing crypto so, you will need to know what are Binance Transaction Fees.
