Binance Trading Rules
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Binance Trading Rules

written by John Murphy | March 6, 2023

Any trade or business without rules will land in hot water sooner or later. Therefore, the success of any business, including cryptocurrency, lies in the chalked-out regulations that apply to all operations. Binance trading rules is a similar document that provides guidelines for operating transactions with the world’s largest crypto exchange – Binance. 

With a daily trading volume of $7.8B, Binance is the world’s largest and most trusted crypto exchange in the U.S. So, it is serving one of the largest client bases and adding a handsome share to the crypto market cap.

Moreover, the platform has diversified operations by adding top cryptocurrencies like Bitcoin and Ethereum and launched its token BNB for hassle-free payments across the exchange.

Although it has faced immense pressure from regulatory departments across major countries, it strives to come out on top and keep marching on.

Its success depends on Binance trading rules, which we will discuss here.

  • Minting Restrictions

Binance has tightened NFT minting on its marketplace. The rule came to prevent scams, misuse and copyright infringements. Thus, from January 20 onwards, there will not happen a low-quality NFT.

The new rule will restrict the issuance of only five NFTs daily for users who have completed identity verification and have at least two followers. Moreover, all NFTs listed before October 2, 2022, with an average daily trading volume under $1K, will no longer become available and will be delisted.

The minting restriction will run across the blockchain to stop scamming and prevent users’ interest. The community wholeheartedly accepts the rule.

  • Periodic Audit 

In addition to limiting minting, Binance has also started periodic audits for NFTs. Although it continues to prevent low-quality NFTs, it will significantly help to highlight anomalies timely.

If any NFT does not meet the ruling, Binance will remove the NFT from its marketplace without prior notice. Thus, users must fully comply with this rule to avoid deleting their NFTs.

Such rules will ensure the safety of both collectors and creators.

  • Trading Fees

Although general investors can trade Bitcoin free of charge with Binance, other cryptocurrencies are charged per transaction.

Spot trading fees range from 0% to 0.6%; however, there are certain variables that Binance takes into account before finalizing trading fees. A few of these variables are discussed below.

  • Different rates for different cryptocurrencies 
  • Trading fees depend on the volume of the trade and transaction
  • Users who pay fees through BNB get a 25% discount
  • It charges an additional 3.75% for debit card transfers
  • Bank wire deposits are free
  • Wire withdrawals cost $10 to $15
  • Registration

Binance trading rules require new users to register with the platform through KYC (Know-Your-Customer). Almost major crypto exchanges, including Binance, have adopted this procedure to keep track of their clients, which is handy if any bad event happens.

While completing the KYC process, users are required to provide the following information.

  • A valid passport
  • Government-issued ID
  • Driver’s license
  • Voter’s ID
  • Social security number
  • Address
  • Phone number
  • Email address

Users can create an account through an app or web portal through simple steps.

  • Insider Trading

To gain confidence, especially after the FTX fall, Binance has recently prohibited insider trading for employees and their immediate family members for 90 days.

The goal is to remain transparent and to avoid the blame for insider benefits. The ruling covers employees of any ranking and expands for short-term and long-term investments. In short, any Binance employee who intends to trade through Binance should have a minimum employment period of 90 days.

The rule is set to avoid conflict of interest and offer confidence to outside investors to keep investing without worrying about in-house favoritism. 

  • Advance Trading Rules

In addition to basic trading, Binance has made significant changes to advanced trading rules. It comes intending to avoid scamming at the portal. Although new rules are not discouraging, they limit trading volumes across all tiers.

For instance, the limit for open conditional orders is ten symbols per user. 

Frequently Asked Questions

What is the minimum trade on Binance?

The following are a few minimum trading pairs on the Binance crypto exchange.

  • LTC/USD 0.001 LTC
  • BNB/USD 0.001BNB
  • ADA/USD 0.1ADA

Does Binance have a daily trade limit?

Binance has a daily trade limit on withdrawal based on BTC value. Users with a basic account can withdraw cryptos valuing up to 0.6 BTC per day. In comparison, KYC-verified customers can withdraw up to 100 BTC per day.

Does Binance change its trading rules?

Binance is the world’s leading cryptocurrency exchange; with the crypto market evolving, the platform keeps updating its trading rules. To get the latest updates regarding trading rules, you can visit Binance’s official website.

Is trading risky on Binance?

Despite offering benefits, Binance has its shortcomings. As mentioned below, risks are associated with trading through a crypto exchange like Binance.

  • Slashing
  • Malicious attacks
  • Spamming 
  • Hacking 

What are the latest Binance rules for NFTs?

In late February, Binance issued a new set of rules for NFTs, which include the following.

  • Limits NFT minting to 5 per day
  • The platform will delete NFTs created earlier than October 2, 2022, with a daily trading volume of less than $1K.
  • It will delete low-quality NFTs

Parting Thoughts

With the increasing customer base on Binance, it is set to keep updating its trading rules as authorities are always looking to point out loopholes. With tipped as the world’s leading crypto exchange, Binance trading rules must always remain up to the industry standards.

Although these rules may look strict on the outlook, these are developed by keeping in mind the safety of digital assets of their valuable clients. Therefore, users must try to comply with all requirements set in the rule book to avoid financial loss.

Similarly, recently, Binance has started delisting inactive, low-quality NFTs with low trading volumes. The step is to free space and get new clients to boost the crypto market cap.

We hope you enjoyed reading this article about Binance trading rules, as we tried to cover the latest regulations set by Binance. Please leave feedback in the comments section.