Order book or converting in Binance !?!

[10_sjdovn_10]

Hello I just want to know deeply difference mechanism of converting between cryptocurrencies and selling or buying via order book. in exchanges like Binance

Is it possible to say both methods are the same when you want to trade ?
 
Thank you.

[mk4]

It's pretty much the same. The "convert" feature is there for quick spot market conversions, and for the mega-newbies who don't want to get overwhelmed by looking at the order book.

Is it possible to say both methods are the same when you want to trade ?

Yes. But if you're a trader, you'd for sure prefer to see the chart and order book.

[Husires]

The more you know about cryptocurrencies, the better deals you will get.
converting: beginners who know nothing about cryptocurrencies and want to buy regardless of the price.

Market orders: have Spot for beginners and professionals to place buy/sell order and when that order is fulfilled, then the buy or sell order will be executed and thus you may not be able to buy or sell if your selling order is not fulfilled.

then you can place stop loss orders and others.

[Dilerium90]

Hello I just want to know deeply difference mechanism of converting between cryptocurrencies and selling or buying via order book. in exchanges like Binance

Is it possible to say both methods are the same when you want to trade ?
 
Thank you.

I want also add to the above, that converting between cryptocurrencies eats up little bit more commissions, than just buying a cryptocurrency in an order book on Binance exchange. So I always use the second option.

[BrewMaster]

I want also add to the above, that converting between cryptocurrencies eats up little bit more commissions, than just buying a cryptocurrency in an order book on Binance exchange. So I always use the second option.

are you sure about this?
last time i checked the convert method was there to only let users buy or sell at market price instead of placing a buy or sell order at their desired price and wait for it to be filled. that means the commissions should also be the same.

[mk4]

I want also add to the above, that converting between cryptocurrencies eats up little bit more commissions, than just buying a cryptocurrency in an order book on Binance exchange. So I always use the second option.

are you sure about this?
last time i checked the convert method was there to only let users buy or sell at market price instead of placing a buy or sell order at their desired price and wait for it to be filled. that means the commissions should also be the same.

As far as I know, the "convert" method having higher fees than the typical orderbook method only applies to Coinbase("convert", higher fees) and CoinbasePro(orderbook, lower fees), but not with Binance. Feel free to correct me if I'm wrong though.

[fiulpro]

It's pretty much the same. The "convert" feature is there for quick spot market conversions, and for the mega-newbies who don't want to get overwhelmed by looking at the order book.

Is it possible to say both methods are the same when you want to trade ?

Yes. But if you're a trader, you'd for sure prefer to see the chart and order book.

At the same time there are exchanges providing free conversion. So its easier to convert. Sometimes there are several days when you can easily convert the trading pairs and this saves you much more then order book. But the price is although nominal if you are not investing much.

I want also add to the above, that converting between cryptocurrencies eats up little bit more commissions, than just buying a cryptocurrency in an order book on Binance exchange. So I always use the second option.

are you sure about this?
last time i checked the convert method was there to only let users buy or sell at market price instead of placing a buy or sell order at their desired price and wait for it to be filled. that means the commissions should also be the same.

Even if you place a buy/sell order at your desired price unfortunately it does not go through. You have to at least reach the market price there or wait for a while which literally is more worrisome since the price changes every second.

- Please check out the market rate and the commission of various exchanges it's all very different. Then only make a wise decision. But the difference is not much !

[bitmover]

I want also add to the above, that converting between cryptocurrencies eats up little bit more commissions, than just buying a cryptocurrency in an order book on Binance exchange. So I always use the second option.

are you sure about this?
last time i checked the convert method was there to only let users buy or sell at market price instead of placing a buy or sell order at their desired price and wait for it to be filled. that means the commissions should also be the same.

As far as I know, the "convert" method having higher fees than the typical orderbook method only applies to Coinbase("convert", higher fees) and CoinbasePro(orderbook, lower fees), but not with Binance. Feel free to correct me if I'm wrong though.

It doesn't look like there is any real difference in fees. Binance is very transparent in their fee policy, and we cannot see any difference here:
https://www.binance.com/en/fee/schedule

I think it is just the same as trading fee. You will pay the Taker Fee, AFAIK.

If there was any difference it would be explicit mentioned. Otherwise it would be a very dishonest practice.


Even when you convert to BNB (in that button , to convert dust) the fee is very transparent:

https://www.binance.com/en/support/faq/360003012371
Please note that the conversion value suggested by the system is an estimation. The selected amount is converted to BNB according to the market price at the time of the click that confirms the conversion.

[FanEagle]

Hello I just want to know deeply difference mechanism of converting between cryptocurrencies and selling or buying via order book. in exchanges like Binance

Is it possible to say both methods are the same when you want to trade ?

There are literally people who use order book to make money, so it is not the same for a high level trader for sure, but when it comes down to making a trade, like your whole purpose is to turn bitcoin into bnb? Then they are the same thing and there is absolutely no difference at all.

One difference is, if you are talking about just a very low level coin, the value may drop, if there is not enough coin in the order book and you do a market trade (the converting) then the system will just sell it all on orderbook anyway but since it doesn't have many buyers the result will be substandard and you will lose out on some profit. That's about it though, as long as you deal with top level coins (and binance usually just have that) and you are doing something small, then it is the same thing when you just want to turn one thing into another.

[sunsilk]

The "convert" feature is there for quick spot market conversions

This is true and I've italicized the keyword. I'm not the usual trader and I do conversion in exchanges that it has that feature to avoid waiting for the price to hit and just get it at anytime that I want.

It's a quick method to trade and exchange the crypto that you're trading on any platform like Binance.

[jrrsparkles]

Hello I just want to know deeply difference mechanism of converting between cryptocurrencies and selling or buying via order book. in exchanges like Binance

Is it possible to say both methods are the same when you want to trade ?
 
Thank you.

Yes they are same, only the interface os different, on some occasions you may not find the coin you want to convert so you have to convert into BTC or any coin which is available with the coin you trade then you need to repeat.

Swap trades are expensive when you compare with the traditional trade order book trading.