Binance is by far one of the most popular cryptocurrency exchanges out there. It offers so many different features that it is hard to keep track of all of them. Even though you might be using Binance for quite some time already, there may be some features that you may not have taken advantage of yet. One of these features is the Binance Liquid Swap and this is exactly what this post is about.
What is Binance Liquid Swap and what are the Benefits?
Binance Liquid Swap is based on liquidity pools with two different tokens in each pool. The relative amount of these two tokens determines the price for a swap between them at the time of your swap. The two tokens in the liquidity pool can always be traded as long as there are corresponding tokens in the pool.
This means that you can trade one cryptocurrency for another without any hassle. It is actually the simplest way to trade cryptocurrencies. It is as simple as it can be because there aren't any complex trading features like complex order books. On the screenshot below, you see the difference between the clean user interface of Binance Liquid Swap and the complex user interface of traditional Binance Spot trading.
Of course, you can not only swap but also provide liquidity yourself to earn rewards. However, this post focuses only on the simple swap function. If you are interested in providing liquidity, please DYOR.
Especially for large transactions, the Binance Liquid Swap offers more stable prices and lower fees.
In general, the fees for swapping are low. The fee is only 0,1% and if you pay your trading fees in BNB, you get an additional 25% discount on the trading fees.
Not only the trading fees are low on Binance Liquid Swap but also the slippage is very low, especially if you compare it to the Liquidity Pools from Decentralized Exchanges like PancakeSwap or Uniswap. Compared to such DEXs, the slippage is substantially lower.
Additionally, you can get up to 50% of the swapping fee returned in BNB when you swap specific tokens. The Swap Rewards are actually transaction fee rebates that are paid back in BNB.
You can set a filter to see only token swaps with Swap rewards in BNB. The swap rewards are updated every hour.
How to use Binance Liquid Swap for Beginners?
Binance Liquid Swap is ideal for beginners and new crypto traders because it is so simple. Here is how it works.
You can use the Binance Liquidity Swap either on desktop or on mobile. Of course, you need to be a registered user on Binance.
If you are on the desktop, log in to your Binance account and click on "Trade" in the upper bar, and then on "Swap Farming".
If you prefer using the Binance mobile app, then click on the "More" button, go to "Trade" and then "Swap Farming".
Now on the Binance Liquid Swap page, it is very simple. Simply choose the two tokens that you want to swap and enter the exact amount. Confirm the tokens as well as the amount. You can also set a filter to only see token pairs with swap rewards in BNB. Then the system will display the current market price and automatically calculate the slippage and fee. Finally, click the yellow "Swap" button to proceed.
The system will also automatically calculate the estimated Swap Rewards in BNB. The Binance Liquid Swap Rewards will be calculated by the swap rate of your order and the rebate will be swapped to a BNB reward that will be credited directly to your Spot Wallet.
After your token swap is completed, you will see such a confirmation. Here you can click on "View Swap History" to review the order or you can click on "Back to Swap" to place another liquid swap order.
How to use Binance Liquid Swap for Professional Traders?
The Binance Liquid Swap is not only interesting for beginners but also for professional traders. For high-frequency traders, Binance Liquid Swap offers API support for arbitrage trading. Furthermore, you are also able to trade between swap and spot.
My Final Words
I suppose that most of you are already using Binance for trading as it is one of the most popular cryptocurrency exchanges. However, I suppose that most of you are not aware of this new way of trading on Binance and I hope that I could provide you with some new and useful information.
At the end of my post, I also like to remind you that my intention in this post is to raise your awareness of Binance Liquid Swap and my intention is not to replace your own research. However, this post really reflects my own opinion.
If you are not registered on Binance yet, you can use my referral link with the invitation code E3PGAJCE for signing up. When you use it, it will save you trading fees each time you perform a trade on Binance. Don't forget about this possibility when you introduce a friend to cryptocurrency as it will save both of you some money.
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