What is Binance DEX
Binance DEX is a decentralized cryptocurrency exchange built on Binance’s own blockchain, Binance Chain. As stated by Binance, the main purpose of Binance DEX and Binance Chain is to create a new, alternative platform for issuing and exchanging cryptocurrencies in a decentralized manner.
In this step-by-step guide, you’ll learn anything you need to know to start trading on Binance DEX: Creating a Binance DEX wallet, trading on Binance DEX, Binance DEX fees, security & using Ledger Nano S and Ledger Nano X with Binance DEX.
How to use Binance DEX – A step-by-step guide
You can use Binance DEX with Ledger Nano S and Ledger Nano X, and Trust Wallet through WalletConnect. Using Ledger Nano S or Ledger Nano X is strongly recommended as your private keys are not exposed and never leave the device when you use Binance DEX. Check out the guide below to learn why Ledger Nano X is a must for traders:
To use your Ledger hardware wallet with Binance DEX, please refer to this guide.
If you don’t have a Ledger hardware wallet, you can create a Binance Chain wallet on Binance DEX following the steps below and use Binance DEX by unlocking your wallet with keystore file.
Creating a Binance Chain address on Binance DEX
You need to create a Binance Chain address to trade on Binance DEX. To create a Binance chain address, go to Binance DEX and click on ”create a wallet” button on the homepage and follow the steps below.
Step 1: Read the information regarding different formats you can use to access your Binance Chain wallet and click on next to finish the tutorial.
Step 2: Set a password which must be at least 8 characters and include an uppercase letter, number and a symbol. Then click on download keystore file button.
Step 3: Click on ”continue” to view mnemonic phrase.
Step 4: Write your mnemonic phrase down on a piece of paper and keep it in a safe place. You can also view your private key by clicking button above ”continue” and make a copy of it.
But, the paper can easily be damaged or lost. Instead, CRYPTOTAG, a crypto backup solution which uses titanium is better choice to keep seed phrases safe.
Step 5: Select the words one by one in the correct order and continue to the next step.
Step 6: Your wallet has been created! Now you can use Binance DEX. Click on ”unlock the wallet” button to open your Binance Chain wallet.
Step 7: You can open your Binance Chain wallet with your keystore file and password. Besides that, you can use Binance DEX with your Ledger Nano S. To install Binance Chain on your Ledger hardware wallet, you can refer to this guide. In this way, you can use Binance DEX safely without exposing your private key.
How to trade on Binance DEX
After creating and unlocking your Binance Chain wallet, you will be redirected to the exchange page where you can see trading pairs, order books etc. and start trading. You can also see your Binance Chain address on the balances page.
To start trading on Binance DEX, you should send Binance Coin (BNB) or other cryptocurrencies that are traded on Binance DEX to your Binance Chain address.
Currently all tokens listed on Binance DEX are traded against BNB, so to buy tokens on Binance DEX, you need BNB in your wallet.
Is Binance DEX safe? Binance DEX security
Binance DEX allows users to connect to the exchange with a variety of wallet options. You can unlock your wallet on Binance DEX with a keystore file or mnemonic phrase.
But, unlocking wallets with a keystore file, private key or a mnemonic phrase is generally not considered safe and does not recommended by decentralized exchanges.
The safest option to trade on Binance DEX is connecting to it with a Ledger wallet. You can connect to Binance DEX with your Ledger hardware wallet by installing Binance Chain on your device. For more information, please refer to Ledger Nano S guide provided by Binance.
The other option is connecting to Binance DEX with a mobile wallet like Trust Wallet and CoolWallet S which supports Binance’s WalletConnect feature allowing users to link their mobile wallets by scanning a QR code. As your private key is stored locally on your device, you can prefer using Binance DEX with Trust Wallet as a relatively safe option if you don’t have a Ledger hardware wallet.
Binance DEX fees
Binance DEX has a more detailed list of fee rates as a decentralized exchange which are also subject to change with governance proposals. Just as in Binance, traders who hold BNB on their wallets while using Binance DEX can take advantage of fee discounts.
Binance DEX fees for trading and transfers are as follows:
|Cancel order||fixed fees||when the |
|Order expire||fixed fees if fully expired, otherwise free||when the scheduled order expiration happenes|
|IOC order cancel||fixed fees if fully canceled, otherwise free||when the IOC order is not fully filled|
|Order execution||rate based fees||when the order matched|
|Transaction Type||Pay in Non-BNB Asset||Pay in BNB||Exchange (DEX) Related|
|Cancel (No Fill)||Equivalent 0.0005 BNB||0.0001 BNB||Y|
|Order Expire (No Fill)||Equivalent 0.0005 BNB||0.0001 BNB||Y|
|IOC (No Fill)||Equivalent 0.00025 BNB||0.00005 BNB||Y|
|Issue Asset||N/A||1000 BNB||N|
|Mint Asset||N/A||200 BNB||N|
|Burn Asset||N/A||1 BNB||N|
|Freeze/Unfreeze Asset||N/A||0.01 BNB||N|
|List Asset||N/A||2000 BNB||N|
|Submit Proposal||N/A||10 BNB||N|
Binance DEX trading fees
According to Binance DEX, you will rather be charged between the rates below per trade due to block-based matching engine used on Binance DEX.
|Transaction Type||Pay in non-BNB Asset||Pay in BNB|
For more detailed and technical information about Binance DEX and Binance Chain, you can read the official Binance DEX documentation.
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