Everyone in the crypto community is familiar with the name Binance. It is the world’s most popular cryptocurrency exchange and has launched coins Binance Coin (BNB) and Binance Smart Chain (BSC). In 2019, the crypto giant decided to step into decentralized finance and launched the decentralized cryptocurrency exchange Binance DEX. The platform charges lesser transaction fees and offers better security compared to centralized exchanges like Binance itself. It is also more user-friendly compared to other major decentralized exchanges. The Binance DEX will let users trade cryptocurrencies while maintaining complete control over their funds. But what exactly is the Binance DEX? How to use Binance DEX? How much are Binance DEX fees? Binance vs Binance DEX? Let’s find out.
Read more on What is Binance Smartchain? – A Complete Guide
What is Binance DEX?
Binance DEX enables traders to buy/sell crypto directly with each other, without involving any third parties in the process. In a centralized cryptocurrency exchange like Binance itself, the exchange functions as a third party that holds assets on behalf of its users. Binance DEX, on the other hand, lets users trade cryptocurrencies with each other directly, with complete command over their funds. The exchange doesn’t store the private keys or any other sensitive data of traders. Better security, privacy, and stability can also be experienced with Binance DEX. Centralized exchanges have been notorious in the past for going down when the markets experience high volatility. Binance DEX will not experience downtimes even in times of high market volatility as there is no centralized server controlling it.
Features of Binance DEX
Binance DEX is a web-based trading platform. It uses the same user interface as the original Binance exchange. Users can look at TradingView charts with a whole range of technical indicators. The platform also allows users to create their own wallets or integrate popular wallets like Trust Wallet or Ledger Wallet to the exchange.
The exchange runs based on the Binance chain. The blockchain has achieved near one second block time and instant transaction completion. This allows the DEX to support similar trading volumes as to the Binance exchange. Orders are matched using periodic auctions, eliminating the concept of makers and takers.
As it is a decentralized exchange, Binance DEX doesn’t hold any of the user’s funds. This reduces the chance of the exchange being targeted by cyber-attacks. Binance DEX uses a BFT and PoS based consensus system and various high-end security measures to maintain trading integrity.
Binance DEX provides increased support to their users compared to other major decentralized exchanges. There is an active Github community, FAQ section, forum, Twitter handles, and Telegram channel to support users 24×7.
How to use Binance DEX?
- Go to https://www.binance.org/en
- Select “Trade on Binance DEX”
- Here you can see the Main exchange homepage
- Select the “Unlock Wallet” option to connect your wallet
- You can create a new wallet or connect your existing mobile or offline wallets
- After connecting your wallet, you can start trading on the DEX
- Trading on Binance DEX is fairly simple Even people without any prior trading experience should have any trouble with it
- Traders can select their trading pair from the left column and place buy/sell orders accordingly
- You may find it a little different to get funds onto the Binance DEX
- You can top-up your account with BNB by transferring BNB to the address seen at the top of the Balances section
- Crypto can also be purchased with fiat currencies in certain countries using Binance DEX
- But it is slightly complicated to deposit or withdraw cryptocurrencies other than BNB
- To deposit other cryptocurrencies, you have to purchase corresponding tokens like BTCB for BTC, and ETHB for ETH, before sending them to your BNB address.
Binance DEX Fees
The trade fees in the Binance DEX are determined based on the trade notional value. It is free to send new orders, cancel or expire partially filled orders. Non-Trade related transactions are charged a fee when the transactions occur, which can only be returned in BNB. A fee is charged for trade-related transactions on the filling/canceling, or expiring of the order. BNB or non-BNB fee structure can be used. New orders are excluded from fees to promote usage. Larger trades are charged more because of the benefits they enjoy because of the liquidity of the network.
Binance vs Binance DEX
Let’s have a look at how Binance DEX compares to the original Binance centralized exchange in the case of supported cryptos, exchange fees, deposit methods, and more.
|Withdrawal Fee||0.0005 BTC||0.000375 BNB|
|Wire transfer||Allowed||Not Allowed|
|Credit transfer||Allowed||Not Allowed|
Binance DEX Review
Binance DEX allows traders to experience decentralized finance through the trusted and familiar Binance platform while staying in complete control of their funds. It is a sleek, well-designed exchange that is effortless to set up and start trading on. The increased security and lesser trading fees are appealing for traders. But there is a considerable learning curve involved in withdrawing and depositing the right coins. Binance DEX is a reliable exchange for those comfortable familiar with Binance and decentralized systems.
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