Binance cashback incentive - Would you hold BNB on the exchange?

[Ultegra134]

Binance is offering their own debit card, with which you're given a cashback ranging from 0.10% to 8% per successful transaction, no matter where this transaction has been conducted. 8% is absurd because it requires you to hold over 600 BNB, which is impossible for the average investor. However, you can receive up to 2% to 3% cashback for 1 and 10 BNB, respectively, which is a reasonable amount of BNB to own, provided that you're interested in the BNB coin itself.

Cashback is usually a feature of credit cards; I've got no clue what percentages and what kind of incentives are offered abroad, but using my credit card, I'm getting 1% of all purchases in commercial stores in Greece and abroad and 3% at a specific gas station franchise. Thus, Binance's debit card is able to offer as much as 2% to 3% only by holding 1 to 10 BNB; the latter is a decent amount of money indeed, but my point is that the average credit card out there doesn't give out such a large cashback. You can even receive cashback for paying taxes and, generally, any random purchase.

Is Binance's cashback enough incentive to hold and stake your BNB coins on their exchange, or do you prefer decentralized methods, such as the Metamask wallet, Beefy, or other similar platforms?

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[dothebeats]

The incentive is too small. Traditional banks are already offering more than that so I'd rather stick to those than hold a coin of a platform that is almost always in hot water It's a great way to advertise their debit card to the masses, and actual way of spending your altcoin in buying real world items however, I don't think people are buying crypto for the purpose of spending anymore but rather safekeeping and investing. Perhaps if they could up the cashback percentage to the smaller holders, it might push them to use the debit card.

[disconnectme]

If you've been watching the move of Binance for the past 2 to 3 years they want to become a full financial institution, remember when they acquired Swipes ($SXP). I think they need to offer good incentives to attracts users to their platform, it is a competitive space, I don't know the margin of profit but I believe they would have done their own home work before coming up with the discount figure. Binance is not new to this, remember they are the first to offer 75% trading discount if you hold their tokens and use it for paying trading fees. I just wish them luck because Binance has done really well for this industry no matter what people say, it is still the best market in the space

[cabron]

Seem fine for regular holders who just want to keep the tokens inside their account which they can easily access and use to buy items in stores. Not very different from staking the BNB but it's got to incentivize someone. While they see people not already interested to hold coins inside the exchanges, this can be a solution. Institutions like these kinds of investments and you can see how interested they are with ETH which is the same L1 as BNB.

[Wapinter]

Binance is offering their own debit card, with which you're given a cashback ranging from 0.10% to 8% per successful transaction, no matter where this transaction has been conducted. 8% is absurd because it requires you to hold over 600 BNB, which is impossible for the average investor. However, you can receive up to 2% to 3% cashback for 1 and 10 BNB, respectively, which is a reasonable amount of BNB to own, provided that you're interested in the BNB coin itself.

Cashback is usually a feature of credit cards; I've got no clue what percentages and what kind of incentives are offered abroad, but using my credit card, I'm getting 1% of all purchases in commercial stores in Greece and abroad and 3% at a specific gas station franchise. Thus, Binance's debit card is able to offer as much as 2% to 3% only by holding 1 to 10 BNB; the latter is a decent amount of money indeed, but my point is that the average credit card out there doesn't give out such a large cashback. You can even receive cashback for paying taxes and, generally, any random purchase.

Is Binance's cashback enough incentive to hold and stake your BNB coins on their exchange, or do you prefer decentralized methods, such as the Metamask wallet, Beefy, or other similar platforms?

Holding any coin on any exchange is not advised but I believe exchange tokens are exception to this rule.
Why, because the value of exchange coins depends on the existence of exchange itself.
If exchange suddenly disappear, their coins will also lose valu and even your holding them on your own wallet will not cover you from the loss.
By this logic, holding bnb on Binance for getting cashbacks is not a bad idea.

[abel1337]

Well, I guess they are trying to copy what credit card platforms do by doing promos such as cashback and the rewards thst the user gets is depending on the tier list that the user is in. To be honest for me it's a pretty small offering given that it is on crypto, I think it's on the same level on some credit card offerings. You can also increase your credit score by using credit card but if you support the idea of BNB, maybe use it rather than creditcard. Both creditcard and BNB knows your identity anyways.

[OgNasty]

You have to wonder why Binance would offer such a thing. For me it seems obvious. They’re trying to stop a Luna or FTT situation from happening to BNB. If the market turns on BNB then Binance will be called for countless margin calls and it would instantly destroy their business. It seems they’re now playing games to try and stop that from happening. I’d be hesitant to hold BNB. Interest won’t matter if your capital disappears.

[goaldigger]

Holding BNB on their exchange can give you more, so its ok to hold as long as you are aware of the risk and you think that site is safe to store coins. Cashback incentives might not be attractive but who cares? Because this is a good exchange that offers a cashback and even if its a small money only, that can still be consider as a cashback or a big discount for your spending. I’m holding BNB for different purpose anyway, so far its good.

[Coyster]

I don't hold BNB, whether in my own wallet or in an exchange. For people who are already holding BNB in their personal wallets, they can take advatage of this cashback, after considering the risks of course, but the thing is holding BNB anywhere is a risk on its own, so if they can earn cashbacks from the risk they are already taking, then it's a no-brainer. Having said that, what makes no sense is if one is going to convert a good coin they own (like Bitcoin) to BNB in order to earn from this cashback, that's a pretty bad decision.

[o48o]

I have tried it in the past, but i didn't hold significant amount enough and didn't spend so much it would have been worth it. And bnb (and other cryptos were so volatile that i wouldn't have even noticed if i got back few percent. It just didn't make any sense. There are better reasons holding BNB like less trading fees but cashback is far from of the main reasons.

[sheenshane]

IMO if you're a regular user of Binance, why not.
Besides the cashback and incentives, it also opens those other benefits that are offered by Binance if you're holding their BNB.
Just like qualifying for the Binance VIP programs and allowing BNB users to apply for a crypto loan but if your purpose is to have cashback, that's pretty small to pay attention to.  So there are too many benefits that might you'll unlock while holding your BNB on Binance.

That's might the purpose why Binance users prefer to hold their BNB on exchange.

[Psynthax]

this honestly seemed very interesting, moreover if your portfolio have BNB in it basically you get this facility for free while holding BNB waiting until it hits all time high.
the utility of BNB are increasing every year I think its such promising coin honestly.

[Bitcoin_Arena]

Is Binance's cashback enough incentive to hold and stake your BNB coins on their exchange, or do you prefer decentralized methods, such as the Metamask wallet, Beefy, or other similar platforms?

Holding funds in an exchange for just 1-3% cashback?

No way I am going to risk my funds for that. Not even 20%
What they are trying to do is to try to keep their BNB coin afloat after the recent attacks on Binance and an entity. Let be honest, this coins pump and dump by more than 10% in a day at times. Why would some be excited about 8% cashbacks?

[WalkerIVIV]

If you've been watching the move of Binance for the past 2 to 3 years they want to become a full financial institution, remember when they acquired Swipes ($SXP). I think they need to offer good incentives to attracts users to their platform, it is a competitive space, I don't know the margin of profit but I believe they would have done their own home work before coming up with the discount figure. Binance is not new to this, remember they are the first to offer 75% trading discount if you hold their tokens and use it for paying trading fees. I just wish them luck because Binance has done really well for this industry no matter what people say, it is still the best market in the space

I somewhat agree with this, the fact that binance's BNB is really offering so much is already good enough just for the sole reason of holding the coin alone already beneficial for many.
though the coin could be tanking due to the lawsuits at least binance having some efforts for this coin.

[Wexnident]

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Nope not going for it. If I wanted to use such a feature, the traditional banks that I use are more than enough. Besides, with how much stuff has happened on Binance for the past couple of months, I can't see this as anything besides them trying to keep their ground.

Probably a nice alternative for BNB holders, not enough for new investors to be tempted though. Plus, it'd Binance, a CEX, no way I'd hold my money there.

[shinratensei_]

I see this as some kind of gesture that they are trying hard to make BNB retain its value in the middle of lawsuit.
moreover the fact that the requirements for getting such cashback is to hold BNB and as you said to get the most cashback it wouldn't viable for average BNB holders kinda speaks for itself
the binance very purpose of gaining and increase holders of BNB.
I'd say they are trying to make BNB stronger with all these programs and event coming from binance, but then again the lawsuit involving them should really be of concern first.

[Ultegra134]

The incentive is too small. Traditional banks are already offering more than that so I'd rather stick to those than hold a coin of a platform that is almost always in hot water It's a great way to advertise their debit card to the masses, and actual way of spending your altcoin in buying real world items however, I don't think people are buying crypto for the purpose of spending anymore but rather safekeeping and investing. Perhaps if they could up the cashback percentage to the smaller holders, it might push them to use the debit card.

I'm not sure where you're from and what kind of incentives credit cards provide there, but 3% cashback isn't that insignificant, it's the most I'm able to get from my credit card and only applies to petrol, and as someone who's regularly using my car, the cashback quickly adds up. It's not necessary to use your cryptocurrency to make purchases through Binance's debit card, you can even use fiat currencies or even stablecoins.

Holding any coin on any exchange is not advised but I believe exchange tokens are exception to this rule.
Why, because the value of exchange coins depends on the existence of exchange itself.
If exchange suddenly disappear, their coins will also lose valu and even your holding them on your own wallet will not cover you from the loss.
By this logic, holding bnb on Binance for getting cashbacks is not a bad idea.

Exactly, if something happens and Binance crashes, then BNB is also doomed no matter where you're storing it. Thus, I don't see why it's a bad idea to hold BNB and take advantage of the debit card if it's useful for yourself.

I see this as some kind of gesture that they are trying hard to make BNB retain its value in the middle of lawsuit.
moreover the fact that the requirements for getting such cashback is to hold BNB and as you said to get the most cashback it wouldn't viable for average BNB holders kinda speaks for itself
the binance very purpose of gaining and increase holders of BNB.
I'd say they are trying to make BNB stronger with all these programs and event coming from binance, but then again the lawsuit involving them should really be of concern first.

The cashback incentives isn't something new, it's an old feature and I remember it from the first day I signed up on Binance, which is quite a few years ago. Thus, your claim about Binance trying to attract investors to hold in their exchange is irrelevant.

[blockman]

That's like a decent cashback if it's for me. I don't expect a lot from cash backs but 2%-3% are going to work for me. I've got a few BNB and that's why this is possible for me but I don't shop a lot so, I'd just be holding it on my own wallet and not on the platform if I wouldn't do that many transactions.

Probably a nice alternative for BNB holders, not enough for new investors to be tempted though. Plus, it'd Binance, a CEX, no way I'd hold my money there.

They might even market it as something cool and nice to have but you're right that for investors, this isn't going to make them stay their BNBs on them.