Binance.com: buying Crypto with cash balance - 2 ways, what's the difference?

jackg

copper member

Activity: 2856

Merit: 3071

https://bit.ly/387FXHi lightning theory

Quote from: incognitus on December 14, 2020, 05:15:53 AM

Thanks for your answer! However, the "simple" option is only for using your existing cash balance on your Binance account (i.e.your account is already funded via transfer/CC). There are other dedicated interfaces for using CC etc. to buy crypto.
The only perceivable difference is the €10k limit, hence my question whether this "simple" interface is just executing a spot order in the background, or if this is using different underlying mechanics (with different prices/fees). I must say, coming from Coinbase and Kraken, that Binance can be quite confusing.

I came to binance when it was just like other exchanges with altcoin trading. I think they've lost that simplicity in trying to add so many options and there are at least a couple of gui bugs that add easy to spot in places.

The €10k is probably to prevent any sort of major slippage in the market so a gap isn't produced (eg someone did a market sell of a few million $ on coinbase and crashed the price).. .

incognitus

newbie

Activity: 3

Merit: 0

Quote from: TryNinja on December 13, 2020, 10:09:57 PM

It's like Coinbase vs Coinbase Pro.

The first one is more user-friendly and quickier. You put the amount you want, click buy and it's done. This means you will probably pay more and/or get a worse rate (price) since that's the price you need to pay for the convenience and for not having to wait for a limit order to fill.

The second allows you to create limit orders (check the Limit tab) with a specific price, so you can choose to only buy BTC when the price goes to X euros. It also has fewer fees, since 99% of the exchanges charge less for market makers (people who create orders that aren't executed immediatelly, cleaning the order books).

Thanks! That would be my assumption as well, however, it is nowhere disclosed on Binance. The second ("complex") interface also allows spot orders, so maybe the "simple" interface is just executing a spot order as well?

incognitus

newbie

Activity: 3

Merit: 0

Quote from: jackg on December 13, 2020, 10:04:05 PM

Ones the market and one is an easier to use screen imo.

The one that isn't the market and looks more simplistic probanly allows you to credit with a debit card and use other easier services while the other will require you to do a direct deposit transfer from a bank account.

Based on other exchanges the market/more complex one is normally cheaper but it'll depend on the payment method and a few other things imo as they might charge different fees and rates (such as the company your card is with and the fees they charge, along with the currency your bank is using/whether it one of them needs to exchange eg króna to euro)

Thanks for your answer! However, the "simple" option is only for using your existing cash balance on your Binance account (i.e.your account is already funded via transfer/CC). There are other dedicated interfaces for using CC etc. to buy crypto.
The only perceivable difference is the €10k limit, hence my question whether this "simple" interface is just executing a spot order in the background, or if this is using different underlying mechanics (with different prices/fees). I must say, coming from Coinbase and Kraken, that Binance can be quite confusing.

TryNinja

legendary

Activity: 2758

Merit: 6830

It's like Coinbase vs Coinbase Pro.

The first one is more user-friendly and quickier. You put the amount you want, click buy and it's done. This means you will probably pay more and/or get a worse rate (price) since that's the price you need to pay for the convenience and for not having to wait for a limit order to fill.

The second allows you to create limit orders (check the Limit tab) with a specific price, so you can choose to only buy BTC when the price goes to X euros. It also has fewer fees, since 99% of the exchanges charge less for market makers (people who create orders that aren't executed immediatelly, cleaning the order books).

jackg

copper member

Activity: 2856

Merit: 3071

https://bit.ly/387FXHi lightning theory

Ones the market and one is an easier to use screen imo.

The one that isn't the market and looks more simplistic probanly allows you to credit with a debit card and use other easier services while the other will require you to do a direct deposit transfer from a bank account.

Based on other exchanges the market/more complex one is normally cheaper but it'll depend on the payment method and a few other things imo as they might charge different fees and rates (such as the company your card is with and the fees they charge, along with the currency your bank is using/whether it one of them needs to exchange eg króna to euro)

incognitus

newbie

Activity: 3

Merit: 0

Hi,

both in the app as well as the binance.com website, there are apparently two different ways to buy crypto using the cash balance:

1) "Buy Crypto" -> "Cash balance": Using this method, the cash amount used to buy crypto is limited to €10,000 per transaction.
2) "Markets" -> "FIAT" -> e.g. BTC/EUR ->Spot: Using this method, I can (apparently) use all of my available cash balance to buy crypto without a € limit on the transaction.

Please see screenshots:

https://i.ibb.co/yypd1S7/Screenshot-2020-12-14-at-00-25-09.png
https://i.ibb.co/xm8rnkt/Screenshot-2020-12-14-at-00-31-36.png

Does anyone know whether this is indeed two different ways of buying crypto with cash balance, or are these just two different user interfaces using the same underlying method?

If these two methods are different (besides the obvious € limit with one of them), are there different fees? Different prices? Any (dis)advantages using either of them?

Thanks for any answer!

Topic: Binance.com: buying Crypto with cash balance - 2 ways, what's the difference? (Read 113 times)