Binance Rewards: Between Theoretical Benefit and Practical Application

Binance Rewards is one of the ways Binance encourages users to increase their trading activity. Among these rewards are cashback vouchers that are given as an incentive to users based on their trading expenses.

How coupons work

Cash vouchers are offered as an alternative to real money directly, so that the user can redeem the value of the voucher and use it within the platform for trading. Although these vouchers add value to users by reducing the actual cost of trading, they have limitations that make some prefer rewards of a direct cash nature.

Advantages

1. Encouraging users to increase their activity: Coupons act as an incentive to trade more to achieve higher returns.

2. Reduce trading costs: Vouchers can be considered a form of cashback that offsets part of the fees charged for trading.

3. Boosting Loyalty: Offering rewards in this way increases users’ loyalty to the platform.

Challenges and Observations

1. Use Restrictions: Vouchers are not actual cash, and cannot be withdrawn or used freely, which limits their immediate usefulness.

2. Redemption conditions: Some coupons require completing a certain number of transactions or meeting specific conditions to benefit from them.

3. Preference for cash amounts: Many users prefer to receive real cash rewards even if they are not directly withdrawable, as long as it adds more flexibility in use.

Proposed alternative

To provide a more engaging experience for users, Binance could explore different reward models, such as:

1. Real cash amounts are not withdrawable immediately: withdrawal is restricted after achieving a minimum number of trades.

2. Instant Fee Discounts: Instead of coupons, fees are reduced directly upon trading.

3. Various reward options: giving the user the freedom to choose between vouchers or cash.

4. Deducting the bonus amount when purchasing currencies on Binance, for example, if the bonus is one dollar when the customer purchases 10 digital dollars, the platform transfers this dollar to the customer’s account when he receives the 10 dollars.

Conclusion

Binance rewards add value to users, but they are not without challenges. Improving the rewards delivery mechanism to be more flexible and more widely usable could boost user satisfaction and increase its effectiveness as a long-term motivation tool.