Topic: Is it stupid to NOT use BNB on Binance? (Read 87 times)
Why not make it simple? We need Bitcoin and we will withdraw it. Doesn't matter the fees if need to make transactions on the address. If you want to hold BNB then of course you can withdraw it. It doesn't mean everyone needs BNB, I can't cash out BNB like Bitcoin. Almost centralized exchanges transactions fees are similar. Even you wondering to exchange from others centralized exchange, then I don't think it will help you with the savings transaction fee. If you convert all your BTC to BNB in order to withdraw and saving fees means you are still trading and wondering to hold BNB.
OK, I just want to know if I can keep just enough for the trading and withdrawal fees. For example, if I'm trading BTC>USDC, the fee will be %1 of the traded currency, taken out from the USDC (the currency acquired from the trade). So if 1 BTC is 50,000 USDC, and I traded 0.005 BTC for 250 USDC, they'll take %1 from the 250 USDC, which will be 2.5 USDC. So I'll end up with 247.5 USDC.
But if i use BNB, they say that the fees will be reduced (to %0.5 I think it was). So in the above example trade, they'll take out 1.25 instead of 2.5, but they will not take it from the USDC, but rather the BNB in my wallet.
Is the above correct? Did I understand how it works correctly? If yes, then...
1) Is it %0.5 of the BNB's exchange rate from the 250 USDC? So for example, if 1 BNB is 500 USDC, does it mean they will take out 0.0025 BNB? (1 USDC = 0.0020 BNB so 1.2 USDC would be 0.0025 BNB).
2) Can I buy enough BNB to keep in my wallet for just the transaction fee I want? Taking the above example, if I wanted to make that trade in an hour, and I currently have zero BNB in my wallet, can I go ahead and buy 0.0025 BNB just for the purpose of saving on fees for that transaction? Does it work that way?
But if i use BNB, they say that the fees will be reduced (to %0.5 I think it was). So in the above example trade, they'll take out 1.25 instead of 2.5, but they will not take it from the USDC, but rather the BNB in my wallet.
Is the above correct? Did I understand how it works correctly? If yes, then...
1) Is it %0.5 of the BNB's exchange rate from the 250 USDC? So for example, if 1 BNB is 500 USDC, does it mean they will take out 0.0025 BNB? (1 USDC = 0.0020 BNB so 1.2 USDC would be 0.0025 BNB).
2) Can I buy enough BNB to keep in my wallet for just the transaction fee I want? Taking the above example, if I wanted to make that trade in an hour, and I currently have zero BNB in my wallet, can I go ahead and buy 0.0025 BNB just for the purpose of saving on fees for that transaction? Does it work that way?
Indeed, they will be taking BNB from your Binance wallet as fee, not BTC or USDC. If you have BNB and this feature is enabled (afaik it is by default)
1. The fees are (10x) smaller than you wrote and BNB also doesn't help that much. (25% instead of 50%)
The fees are 0.1% (not 1%) and with BNB it's 0.075% (not 0.5%).
And I don't know 100% what conversion rate they use for BNB, sorry, I don't trade large amounts so it doesn't matter that much for me. It's probably the spot price.
Maybe you find more in their help pages.
2. I don't see why not. That's basically what I do, although I don't really "buy BNB" for this, instead I convert into BNB the small amounts now and then.
It is for practicality's sake. Especially if you are a day trader, creating a bunch of orders every hour of the day, moving coins in and out of the platform every now and then, and so on, there are indeed benefits from having BNB. Please refer to this guide by Binance itself: https://www.binance.com/en/support/faq/115000583311.
But then I don't recommend to buy and hodl BNB for the sake of having it or for profit in the future. BNB serves a practical purpose on its exchange platform. Outside of it, I am not sure.
But then I don't recommend to buy and hodl BNB for the sake of having it or for profit in the future. BNB serves a practical purpose on its exchange platform. Outside of it, I am not sure.
I do trade infrequently on at least 3 different exchanges -- each has their own "native coin" that costs next to nothing to use to pay your trading fee/commission. I did the numbers and I personally think I'm happy to pay the fee in BTC as I don't trade very often, and my single trade volume makes it worthwhile (the commissions on Binance and Bittrex anyway seem to be fixed for most pairs).
But yeah, if you even trade as much as one time daily, it already makes sense to buy some of their coin and use it up for fees. I pay almost $30 a month maybe for one or two trades, at least, last month that was my fee. Trading once daily I assume would take it to about $450. Silly to pay that if you can cough up $100 to buy stupid altcoin to eat up commissions.
But yeah, if you even trade as much as one time daily, it already makes sense to buy some of their coin and use it up for fees. I pay almost $30 a month maybe for one or two trades, at least, last month that was my fee. Trading once daily I assume would take it to about $450. Silly to pay that if you can cough up $100 to buy stupid altcoin to eat up commissions.
I just noticed that withdrawing from Binance using BTC is ridiculously expensive compared to BNB, which is almost nothing. So I was wondering, why am I not using it? Why don't YOU use it? I feel like there is a catch, just don't know what it is.
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
BNB is an altcoin. As long as Binance will have success, BNB should be pretty much OK. As soon as Binance will get into difficulties (and you may not be aware) BNB may no longer be OK.
Since Binance is getting at the verge of being banned here and there, they now try to start getting compliant with the law(s). This may be too late, this may be a problem for the customers, or may be just fine. I don't know.
Altcoins are risky. You should know that. All in all, I would not keep too many funds in BNB. But that's my opinion; some do consider it a wonderful investment.
Now, I'm not convinced how many exchanges accept BNB; I expect that they're are much less than USDT. Also you should know that if you withdraw BNB, you'll keep it in BNB wallet, not Bitcoin. You know the difference between Bitcoin and altcoins, right?
And at the end, I do keep some money in BNB. But it's under 1$. I keep it for cheaper exchange fees at Binance. For me, that's the only good use for BNB.
I hope it helps. But please do as you think fit. It's up to you whether you invest or not.
Thanks!
OK, I just want to know if I can keep just enough for the trading and withdrawal fees. For example, if I'm trading BTC>USDC, the fee will be %1 of the traded currency, taken out from the USDC (the currency acquired from the trade). So if 1 BTC is 50,000 USDC, and I traded 0.005 BTC for 250 USDC, they'll take %1 from the 250 USDC, which will be 2.5 USDC. So I'll end up with 247.5 USDC.
But if i use BNB, they say that the fees will be reduced (to %0.5 I think it was). So in the above example trade, they'll take out 1.25 instead of 2.5, but they will not take it from the USDC, but rather the BNB in my wallet.
Is the above correct? Did I understand how it works correctly? If yes, then...
1) Is it %0.5 of the BNB's exchange rate from the 250 USDC? So for example, if 1 BNB is 500 USDC, does it mean they will take out 0.0025 BNB? (1 USDC = 0.0020 BNB so 1.2 USDC would be 0.0025 BNB).
2) Can I buy enough BNB to keep in my wallet for just the transaction fee I want? Taking the above example, if I wanted to make that trade in an hour, and I currently have zero BNB in my wallet, can I go ahead and buy 0.0025 BNB just for the purpose of saving on fees for that transaction? Does it work that way?
It's still an option to use BNB within the exchange, trading fees as BNB make sense but withdrawing could be expensive. BNB is very much useful in the exchange and just within the BSC network, getting out of it will make you pay.
Learning from LoyceV's tip there is good for you. If you plan to move your coins to other exchanges where fees are lower, turn your BTC first to an altcoin like Doge or XRP. Not a stablecoin because withdrawing stablecoin from BNB still has a high fee.
I just noticed that withdrawing from Binance using BTC is ridiculously expensive compared to BNB, which is almost nothing. So I was wondering, why am I not using it? Why don't YOU use it? I feel like there is a catch, just don't know what it is.
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) (a)Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? (b)Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) (a)Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? (b)Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
All services will pamper customers who use their utility coins.
1) Keep in mind that BNB fluctuates. Maybe you should also pay attention to the price of BNB because you are making it a hedge.
2) Nothing. Binance obviously only offers a 25% discount on fees, nothing else.
3)(a)The answer is the same as point 1) and in addition, the pairs for BNB may not be as many as the stable coin pairs.
(b)That's better than option (a), but it also depends on how big your portfolio is and how often you execute. The smaller it is, the 25% off fees is meaningless.
To be honest, I don't really like this kind of trading because I have to do complicated calculations just for trading fees.
I just noticed that withdrawing from Binance using BTC is ridiculously expensive compared to BNB, which is almost nothing. So I was wondering, why am I not using it? Why don't YOU use it? I feel like there is a catch, just don't know what it is.
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
BNB is an altcoin. As long as Binance will have success, BNB should be pretty much OK. As soon as Binance will get into difficulties (and you may not be aware) BNB may no longer be OK.
Since Binance is getting at the verge of being banned here and there, they now try to start getting compliant with the law(s). This may be too late, this may be a problem for the customers, or may be just fine. I don't know.
Altcoins are risky. You should know that. All in all, I would not keep too many funds in BNB. But that's my opinion; some do consider it a wonderful investment.
Now, I'm not convinced how many exchanges accept BNB; I expect that they're are much less than USDT. Also you should know that if you withdraw BNB, you'll keep it in BNB wallet, not Bitcoin. You know the difference between Bitcoin and altcoins, right?
And at the end, I do keep some money in BNB. But it's under 1$. I keep it for cheaper exchange fees at Binance. For me, that's the only good use for BNB.
I hope it helps. But please do as you think fit. It's up to you whether you invest or not.
You're posting this on the wrong board, you should move (bottom left) it. Maybe Service Discussion fits better.
If you want to withdraw a small amount of Bitcoin from Binance and avoid fees, you could convert it to an altcoin and use an instant exchanger to convert it to Bitcoin again. You could even use this path to get Bitcoin LN.
I just noticed that withdrawing from Binance using BTC is ridiculously expensive compared to BNB, which is almost nothing. So I was wondering, why am I not using it? Why don't YOU use it? I feel like there is a catch, just don't know what it is.
I'll answer this by quoting myself:When withdrawing Bitcoin, Binance gives those options:
There's only one Bitcoin. Why would you accept a fake with CZ's promise to pay you back? Binance could just reduce Bitcoin withdrawal fees, but they don't want you to use Bitcoin. They want you to use their own counterfeit token.Quote
I think you definitely have Ethereum / ERC20 token
OP has Bitcoin, but Binance is trying to give him their own (or Vitalik's) made-up tokens instead. They charge very high withdrawal fees on the real Bitcoin to promote their own centralized shitcoin.If you want to withdraw a small amount of Bitcoin from Binance and avoid fees, you could convert it to an altcoin and use an instant exchanger to convert it to Bitcoin again. You could even use this path to get Bitcoin LN.
I just noticed that withdrawing from Binance using BTC is ridiculously expensive compared to BNB, which is almost nothing. So I was wondering, why am I not using it? Why don't YOU use it? I feel like there is a catch, just don't know what it is.
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
1) I use USDC to trade. Should I switch over to BNB? Why? Why not?
2) What are the advantages? Is it only to save on fees? If so, would there be any disadvantages that would negate that benefit?
3) Do I have to pair the crypto I'm trading with BNB in order to use BNB to avail the low fees? Or can I just exchange currency for some BNB to hold in my wallet and Binance will use that BNB to pay fees?
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