Binance tips

I have posted some of these tips earlier this year but it’s good to repeat them for newcomers to the crypto scene or newcomers to Binance.

1. Clean up your Dust on Binance

Clean up your Dust on Binance

As you might have noticed due to the way the selling works you often get stuck with fractions of coins aka DUST, after a while, you could have hundreds of small fractions worth a couple of dollars which you can no longer use because individually they are too small to trade. Go to the link below to convert that dust into BNB which you can then use to pay for your fees.

2. Stop paying withdrawal fees on Binance

Stop paying withdrawal fees on Binance (Photo by rawpixel on Unsplash)

If you use NEO or GAS coins you pay 0 for withdrawal cost! Plus NEO is a great coin to own as it pays you in GAS coins just to hold it.

For other exchanges that don’t have NEO using Digibyte is a great alternative to save on transaction costs, it’s blazing fast, and ultra cheap.

3. Pay your fees in BNB & trade with a discount

Pay your fees in BNB & trade with a discount

Make sure you enable β€œUsing BNB to pay for fees (25% discount)”

use BNB to pay for fees

The discount is variable in time and will halve each year until the 5th year when there no longer is a discount for using BNB.

To use this feature make sure to have some BNB on your account this way Binance can deduct trading fees using BNB and save you some money

3. Trade using BNB as your base currency

Trade using BNB as your base currency (Photo by rawpixel on Unsplash)

Usually, I advise against investing into exchange coins because their use is limited to the exchange itself and once the exchange goes bust the value of your coin becomes worthless.

I have seen this happen with Kucoin KCS coin where I made about 19000% profit on my investment during the December/January boom of 2017/2018. This coin is now worth $1.13 USD at its height it was around $20.

Why is Binance different? Well, Binance gave us a modern responsive trading platform, with high volume. It has proven to be resilient to governments trying to interfere with its operations and has addressed hacking attempts well. It also found a safe haven in Malta where the government welcomes cryptocurrency projects and provided Binance with a needed, supportive legal framework.

A. Repurchasing plan aka Coin Burn

Repurchasing plan aka Coin Burn

Every quarter, Binance will use 20% of their profits to buy back BNB and destroy them, until they buy 50% of all the BNB (100MM) back. All buy-back transactions are announced on the blockchain. They eventually will destroy 100MM BNB, leaving 100MM BNB remaining. This obviously increases the scarcity of BNB over time and should have a positive effect on the price.

B. Decentralized Exchange

In the future, Binance will build a decentralized exchange, where BNB will be used as one of the key base assets as well as gas to be spent.

C. Acceptance of BNB as payment outside of Binance

More and more businesses have been accepting BNB as payment

Acceptance of BNB as payment outside of Binance

D. Return on Investment

Return on Investment

Because of point A, B & C and because BNB more or less acts like a share its value increases with that of Binance. Therefore the return on investment for BNB has been better than that of BTC or ETH for the past year. Its value expressed in BTC is almost the same as it was at the January all-time high.

The above references an opinion and is for information purposes only. It is not intended to be investment advice and may contain affiliate links. Seek a duly licensed professional for investment advice.