Bitcoin Forum

Hello everyone  ;D

To do spot trading on Binance, you can use the "Convert" tool with a $0 fee (in market or in limit).

My question is why many traders to buy and sell use the spot trading (where there are buy, sell buttons and order book) with fees instead of using the "Convert" tool without fees?

Thanks

It varies according to what you want. Do you want to trade or exchange cryptos?

In spot trading, you choose the buying or selling price at which you plan to execute the order at, and therefore, with a little technical analysis, you determine the buying and selling points, and from them you achieve profits by buying at a low price and selling at a fair price.

by using Convert you cant trade crypto in that way.


In spot trading, instead of exchanging cryptocurrencies at a specific price, you can choose the appropriate price with you and wait for some time until the order is executed in the order book, and thus you will get a better price.

It is true that Convert does not contain fees, but there are hidden fees, which is that the price of executing orders is chosen by exchange and it can profit from the price difference.

it is closer to say

spot trading:  exchange 1 BTC for 101 USD with 1$ fees
Convert: exchange 1 BTC for 100 USD

I don't think that any trader will ever use that tool for trading. The fees on Binance spot trading aren't much high and if someone can trade with a proper trading plan and well developed strategy the %age of earnings are much higher compare to that minimum fee. Spot trading offers many functionalities that the convert function doesn't allow. No good trader will give up on those features.

Convert function is only useful if you have small amount of a coin that you want to convert into a stable coin other than that I haven't found any good use case for that function in trading. Even if it doesn't have fees directly, but your conversion will be executed on higher price than the current market price so the exchange can earn their share from the conversion.

@OP you should compare how much you will get when you buy Bitcoin through spot trading and using convert feature. Centralized exchange will always charge you a fee in order to make them earn profit, they're a profit oriented exchange, not a non profit oriented exchange.

Even you're using a non profit oriented exchange e.g. Bisq aka decentralized exchange, you still need to pay fee to the miner when you've successfully send your Bitcoin.

Convert feature is just like using a swap or instant exchange, they're usually charge higher fees.

With spot trading, you can set your trading order (buy or sell) and wait for it to be filled when the market moves up or down.

With Convert feature, you will have to accept given price and convert rate from the exchange, which can be disadvantage for you. I think it will cost you more than with Sport trading.

I only use the Convert feature if I have some leftover coins, tokens from trading and want to convert them all to BNB. With tiny amount of each coin, I don't mind about its conversion rate.

You mean that the price on convert instead of the spot trading page is in a way it will not favour the trader and render the 0 fee to be useless, or to be in a way that using the convert will make a trader lose instead if compared with spot trading.

I have not used convert before, but this is what I found out.

I checked the price of sport trading now and it was $28044, sam on convert page.

See spot trading (left) and convert (right) trading fee for BTCUSDT pair:

https://i.imgur.com/EApOzJA.jpg   https://i.imgur.com/fJd2bXL.jpg

Like I said, the price is the same. You can also use limit order on the convert page too.

There are many reasons why traders choose to trade in spot trading compared to just using the convert option.

Look at this sample convert vs spot trading when trading BTC/USDT the rate on convert is low compared to spot trading.

Another thing is you can't able to use stop limit options and no chart compared to spot trading.

Better check them because if you are a trader you will need those charts and stop limit orders.

Hello, and thank you to all of you, I see more clearly.. I didn't know there were hidden costs.

Indeed you are right, as a trader, you have to use stop losses which do not exist with the "Convert" tool.

Thanks again

That is wrong according to what I posted above. Check what BitMaxz posted which I think is correct about it, most especially as there are some trading orders and options that are not in convert page. About the fee, SamReomo is completely wrong is what I see.

Yes I posted at the same time as you.. I'll check that.. thanks for sharing

The convert is like trading with the market price and it's an instant trade. While in the spot, you're the captain of your trade and set prices, stop losses and as in even it's not the market price, you can set it.

I do use the convert when I've some dust balances and wanted it to be converted into a specific coin. That's actually helpful but everything we do in a platform, they're all priced in. So it's wrong to think that it's for free unless the exchange itself states that there's zero trading fee.

And which they usually announce that for something that they do such as promos.

Every transaction in Binance has fees, unless you're using Binance coins such as BNB, BUSD then there is always be like hidden fees. If you try to review your transaction cost and history, you will be able to see it. The convert tool is very convenient when exchanging your small amount of coins for another coin and mainly Binance suggests and advertise that you would convert it to BNB without transaction cost.

Spot trading is ideal when you do analysis and have a preconceive price. You can set and demand what price you want to buy and sell. In spot trading, the volatility and liquidity of assets you are going to trade are crucial.

I used it before, it is not good at all, it is true that the fee is 0, but selling is at the lowest price and buying is at the highest price, so you will be a loser in the end.

Everyone prefers to place orders to sell at high prices that bring them good profits or to buy at low prices. You will wait for some time and pay some fees, but you will get what you want.

The only benefit I have found for this tool is that when you are in a hurry and want to buy or sell regardless of the price then you can execute the transfer immediately.

In sport trading, you can choose the price at which you decide to buy or sell. I can choose sell order at $29044. All I can do is place an order to buy or sell at that price and wait, if the order is executed or I will cancel it and another price is set. In any case, I control selling price At a low fees. I can place the order and go to work, gym or any place with not need to wait to be executed.

In the convert page, the set price is obligatory.
Either I sell it now or not, and it is an option for those who want money quickly and do not have time to wait.

read blown

You are not getting it correctly. Look at the image below:

https://i.imgur.com/fJd2bXL.jpg

That is the limit order for the convert. If you use limit, the order can stay up to 30 days before expiration, although if you use spot trading, no expiration. I think most of you are using the market order of the convert that makes the order to fill immediately.

Thank you for attaching the picture. I haven't used Binance for a while, so I didn't know that there was a limit order and a time delay. The above explanation is according to OKX with have a simple convert order.


I searched for the working mechanism, and quoted the following:

https://www.binance.com/en/blog/otc/all-you-need-to-know-about-binance-convert-421499824684904009


It seems that it was set up to provide liquidity for those who want to execute a large order, as when you place an order in Spot Trading, the order may not be executed 100% because it may not find sufficient liquidity.

Binance Converter is an order to provide liquidity for those who want to execute large orders.
The only difference is the ease of executing the order, but in Spot Trading there are more options such as One Cancels the Other Order (OCO).

thanks for correcting me

It really don't very hard to understand that why most do spot trading with out converting with zero fees. If you are a trader then you must know the volatilities of Cryptocurrencies and that's why you will see different prices from time to time. For that many we don't have to that much time to saw our destination price so it will very difficult to get it on convert options on the others hand if we saw the spot trading then we will fund some option to set our sell price to achieve the profit.

Thanks for mentioning OKX. I am using the exchange too and I check their convert page which let me know more about the reason the exchanges provide convert service for their customers. You can check this which is what I found on the convert page of OKX:


https://i.imgur.com/WsOmH8t.jpg

If you check 'no slippage' and simple conversion.

I noticed that it can be a good option for people that do not know much about spot trading but just having little knowledge or almost no knowledge about sport trading which requires more knowledge. With convert, anyone can easily convert from one coin to another.

The market price is good and the same as spot trading market price too, but with the benefit of zero trading fee. This is a good option for traders that are trading coins like bitcoin, ether and others that have high trading volume on the exchange.

Because I see the simplicity of how to use the convert. I check Binance lite and OKX lite. See what I found:

Binance lite at the left while OKX lite at the right side

https://i.imgur.com/HTWz4UW.jpg      https://i.imgur.com/vzut0up.jpg

I press on convert which is the only way to trade on the lite version. The spot trading is only available on the pro version. I think convert is just for people that do not want to learn much or go deeper into how to trade. Even a novice can easily use the convert to exchange from one coin to another.


About the convert on OKX, only market order option is available, unlike Binance convert that has both market and limit order option.

According to what I know about "Convert" tool, you can't choose whether to sell or buy at what price, but just what the current price is. As a result, I understand why individuals prefer to utilize "Spot" instead of a zero fee "Convert" tool.

1. Because Binance doesn't have a feature like "Spot" that can be seen immediately. Or they didn't explore in Binance of what's the new features and how to use them.

2. Because traders can't afford the current price in the market, and they don't have time to wait for the price to reach their desired price.

I think maybe you are missing the two functions together. Simply, when traders are converting, they are either switching their coin to another coin and that goes with no charge like I know from binance. You can convert btc to Usdt or any other or the other way and you hodl the new converted coin in there but if you are transferring it out, you get charged fees depending on the charge. Spot trading is different from converting your coin.

The only difference between these two trading is that, in spot trading is easily to monitor your trade but with convert form you can only place order and having lasting and limited period of 30 day thereabouts. Spots trading doesn't have lasting period and I believe can remain there as long you places your buy or sell order so whenever the market reaches your orders within 2 months or more it triggers automatically without expiration.
That is why people often use the spot trading and somewhat not too familiar with convert methods.

Now it makes sense on why the fees are zero but other than it, I think this tool is built for the casual customer of the exchange or those who are not really a serious trader who trades from time to time. Like me for example. Last time, I only used Binance to trade small amount of crypto to the other and I found out that I can't sell them in the spot trading because the minimum amount is too high.

I try using other pairs and the minimum there are also high. Fortunately I found that convert feature and that is how I trade my coin. I notice that this feature is also present in Trust wallet but I guess that is because Trust wallet is still associated with Binance.

I can vouch for the oodles of elements that shake things up when picking a Binance trading style. Sure, the "Convert" gizmo boasts a no-fee gig, but don't forget it's a one-and-done deal, lacking the finesse and mastery of the spot trading scene.

For example, on the spot trading stage, I can rock limit orders at primo prices, nailing the sweetest deals. Plus, I get real-time market deets and a peek at the order book, all key to making savvy trading moves.

What's more, the spot trading game opens the door to a smorgasbord of trading pairs, perfect for those craving a diverse crypto diet. The "Convert" tool's quickie swaps may be nifty, but it falls short in the asset arena.

At the end of it all, it's a matter of taste and trading targets when choosing between the spot trading interface and the "Convert" doohickey. While the "Convert" tool may rock for fast, low-fee trades, spot trading's the ticket for tailored control.

the facilities used in spot trading are more complete, there is a chart that can determine what price we buy and at what price we target to sell, in spot trading we can choose at what price we will sell and buy this is the advantage of spot trading compared to conversion. conversion is free, but it doesn't determine what price to sell and buy, this is perfect for those who want to take a salary from crypto and then exchange it.

Trading will always have a fees, and yes its more about your analysis and that convert option might not always be free, you also have to consider the exchange rate because they might charge higher on that. Binance always have a promotions for free trading fees, you might also want to take advantage of that, but again if its trading you have to deal with the fees and trade efficiently, some traders are too concern about the fees while some are not, choose what works for you.

You may not know that in spot trading you can enter any order you want. If you think I will place the order too low, you can place it on the spot trading platform. Later, if the market falls and your order is completed, you can sell at a higher price. Why should I hesitate to pay a small fee if I am profiting here. But you can never do it in convert system. Convert system requires you to convert directly from Instant Market. The Convert system also has hidden fees that you may not catch.

Im always using Convert when need quick money from Bitcoin to usdt or another coin to usdt.

People use spot with order book since we can see with better value or else like trading with huge volume.  For now I just convert small piece and only using huge marketcap coin like bitcoin or etherum I dont know if the convert can trade on any coin beside that people like maker because low fee than doing taker

I don't know how many fees are deducted while trading because I never noticed it because I always trade with a lot of dollars so I never noticed how much fees are deducted. But I think the fees are very little. Again some exchangers that trade in  I don't know if there are too many fees. But I think Binance and Kucoin are the two I trade all the time. These two are very popular with me and I put all my money in them.