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Everything You Need to Know About Binance Convert

The new feature allows users to make cost-efficient transactions at guaranteed rates without the risk of unexpected prices.

Crypto Convert

Binance Convert is a user-friendly feature that allows users to convert their crypto holdings into other crypto or even fiat.

Posted to the Binance Blog on June 14th, Binance revealed that a cheaper alternative to spot trading is available on its platform. Binance Convert is a user-friendly feature that essentially creates a seamless on/off ramp for users looking to convert their crypto holdings. It also allows for crypto to crypto conversion. By selecting the asset they wish to convert into, a quote is produced, lasting for only a short window as it must reflect the live market price. After the conversion is enacted, the new holding will appear in the user's spot wallet. 

So why consider converting over spot trading?

  • Zero Fees: Anyone who uses Binance Convert will be able to swap their holdings with zero fees charged to them whereas a trade will incur a fee. 
  • Sophisticated Liquidity Provision: When a user places a large order, there is the potential for market impact which in turn can move the price up or down immediately. An example of this is a user who tries to sell 100 BTC to pick up ETH. By the time the transaction of that size goes through, the price of BTC has potentially dropped and the price of ETH has potentially gone up. With Binance Convert, the system offers users a sophisticated liquidity provision to secure the asset rates provided in the quote, minimizing market impact and swapping instantaneously. 
  • No Size Too Big: With Binance Convert, orders of all sizes are supported with no cap. When trading large amounts, a fixed price is still guaranteed, making the transaction more cost-effective for the user. Users can convert holdings as low as $1. 
  • Liquidity For All: Trading via an order book puts you at the mercy of availability of the trading pair on that exchange. Trading digital assets that have lower liquidity and volume can trigger slippage, leaving you potentially surprised with the actual final price. Slippage occurs when an insufficient amount of liquidity exists to fill the order at the user’s price target. Binance Convert effectively eliminates this problem. 
Source

For more details on Binance Convert, you can find the Binance FAQ here.

What is Binance:

Binance is the world's largest cryptocurrency exchange, founded in Shanghai, China by Changpeng Zhao (CZ). Binance supports over 740 trading pairs on its platform. 

With a low transaction fee (0.1%) as well as fast transaction processing, Binance has become the exchange with the largest trading volume in the cryptocurrency market. Binance exchange's technology is capable of processing 1.4 million orders per second, making it a top exchange in terms of  trading volume.

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