Binance is truly a global cryptocurrency exchange. It came up in 2017 and trades more than 100 cryptocurrencies. It was founded in China, but due to operational problems (the Chinese ban on cryptocurrency trading); it moved its headquarters to Japan the same year.
In terms of trading volume, it is one of the biggest. Perhaps that is the reason why it offers the lowest prices compared to other well-known exchanges like Kraken, Bitstamp, and Bitfinex etc. Let's see this in detail.
Major Reasons that Make Binance Prices Lower Than Others
Binance coins are known as BNBs and trade at one of the lowest prices compared to other exchanges. For example, if we compare it with Bitstamp for the Taker Fee, it is about 0.25 % for the highest slab at Bitstamp, while it is only 0.1% at Binance. This will mostly be a trend if we compare it with other exchanges, and if we compare it to other fees like withdrawal fees, fiat conversion fees etc. Also, if you compare Binance will usually show quite a bit lower value for a coin price in USD as compared to other exchanges. But what are the reasons, let us explore.
1. The token price is based on the USDT value and not the USD value and this is a very important point to consider when you are checking and comparing the prices. The prices at Binance are still lower than but not as much as they seem to be at first glance.
2. Binance is less volatile: That means traders can take a little time to make decisions, and transaction time can also be compensated a bit. This gives Binance a good market reputation, and in turn a higher value for the BNB against USD.
3. Huge trading volume: Binance is definitely known for one thing among others. It has huge trading volumes and the number of cryptocurrencies that it supports. So there is a cycle effect that the volumes stabilize the low prices that it offers and the low prices lead to higher volumes back again.
4. Binance Competitions: Binance is an organization that regularly holds competitions, which reward a lot of Binance coins, or related awards which are useful in trading cryptocurrencies. So the overall Binance price comes down.
Why do you Need Professionals?
At first glance you might feel that the BTC/USD prices on say GDAX are mostly 300-500 dollars higher than that on Binance. And that is a lot of easy money. However, if you notice it in a more precise form, you would see it is BTC/USD on GDAX and BTC/USDT on Binance. But that does not mean that price variations do not exist. However, in order to tap these price differences, you must factor in a lot of other parameters, like the right time, the right amount, which cryptocurrency to trade, whether to trade on Binance and Bitstamp or Binance and Bitfinex etc. There are a lot, many complications that need to be addressed. This is where companies like executium.com fit in to give you real and holistic pictures of trade and market scenarios. Executium.com is an easy to use online platform that will help you make maximum profits with the minimum effort. If you want to capitalize on the lower prices at Binance, tell them your focus on investing and executium.com shall do the needful.