Trade with Binance's "Convert" tool for $0 fees?

[Sun2k]

Hello everyone 

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

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[Yamane_Keto]

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?

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

[SamReomo]

Hello everyone 

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

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.

[Despairo]

@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.

[dzungmobile]

@OP you should compare how much you will get when you buy Bitcoin through spot trading and using convert feature.

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.

[Oshosondy]

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

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:

   

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

[BitMaxz]

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

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.

[Sun2k]

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

[Oshosondy]

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.

[Sun2k]

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

[boyptc]

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.

[CarnagexD]

Hello everyone 

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

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.

[yhiaali3]

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.

[Yamane_Keto]

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:

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

[Oshosondy]

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.

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



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.

[Yamane_Keto]

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

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

Large order size
Imagine that someone is placing a large order in the order book, such as 100 BTC to be converted to ETH. Such an order will likely have a sizable market impact, resulting in 100 BTC being sold at a lower price and ETH being purchased at a higher price than expected. With Binance Convert, a fixed execution price is guaranteed, making the execution process more manageable and cost-efficient. Trading large amounts through Binance Convert can also help users achieve VIP-level upgrades.

[|MINER|]

Hello everyone 
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 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.

[Oshosondy]

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:




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

     

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.

[jeraldskie11]

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?

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.

[palle11]

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

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.