When it comes to trading cryptocurrencies, Binance presents two different options: Binance Spot and Binance Convert. Ultimately, both allow you to carry out trades, exchanging one amount of currency (fiat or digital) for another. 

But, do you know how these two tools work?

In this article we will present some peculiarities of each of these two modalities and, as a bonus, we will also help you find which would be ideal for your use. To make the path easier, we will use screenshots taken from the iOS app - take into consideration the items that appear, not the quotes you see. 

Let's go!

Binance Convert: Faster and Initial

Binance Convert is Binance's trading mechanism that involves direct conversions based on current market prices in the short term. And by “direct conversions,” understand: you choose one currency and exchange it for another, without considering any other intermediate paths.

To find this function, simply click on the Trade item, which is on the bottom bar. By clicking on this item, this is the screen you should find:

Note that at the top you will find both Converter and Spot. By clicking on Converter, you will see this screen here:

At this point, there will be two options: Market and Limit. They both do the same thing, which is to exchange a certain amount of currency (fiat or digital) for another, but with a time difference.

Calm down, we’ll explain what this means!

The Market option means that the conversion will be done the moment you click convert and, in the background, the exchange will be made with the value at that moment. In a simulation of conversion between Ethereum (ETH) and Bitcoin (BTC), you should come across this screen here:

In addition to receiving the information that you need to have funds of the first currency (in this case, ETH) before making the transaction (see the highlighted message just above Deposit), you also check, before making the conversion, the type of transaction, the source of funds, the exchange ratio and the information that, in this modality, there are no fees.

If you choose the Limit option, the screen you will see is this one:

The exchange will continue to be direct (between one currency and another) and without fees, but the difference is that you place an order in play. An order, in simple terms, is a “triggered” transaction, which will only be carried out depending on a price condition from one of the two parties.

In even more direct terms, the order is something like “only exchange ETH for BTC in this amount if the BTC price reaches a certain point”.

This order is not infinite, it is available for 30 days. If the desired price occurs within this period, the conversion will also occur - and if this price is not reached, the conversion will not occur.

Binance Spot: More complex and detailed

Returning to the starting point of the Trade screen, as seen in the first screen, you are taken directly to Spot right away. There you can also perform conversions, but with some additional items of complexity and analysis:

  1. You need to choose the currency pair and, after doing so, you will see the summarized order book (which are the purchase and sale prices of the last transactions made); for example, see this summarized order book that appears for the pair CAKE/BNB;

  1. The set of information available so that you can make the decision of whether or not to carry out this trade is broad and is divided into two parts:

    1. it is possible to observe the information on the graphs of that pair (which would be an even more direct view of the book) and;

    2. It is also possible to see various details of specific data for each of the currencies; to do this, simply click on the first of the two icons that appear on the Spot screen; the two icons are these here:

After that, this is the information you will come across when clicking on that icon, in sequence: price chart, information about the cryptos involved, money flow related to them and even updates from Square about these projects:

  1. The third difference: in this modality, there are fees involved in each transaction; the possibilities are the same as those of Converter, allowing both Market and Limit conversions (i.e., it is possible to trade with current prices or by placing future orders), but the fees exist because the amount allowed for each operation is greater.

So, between the two, which one is better for me?

If you want to make more direct trades, in smaller quantities, more quickly and without wanting to go into more detailed details of the projects, make trades through Binance Convert.

In fact, Binance Convert is an excellent starting point for those who are still familiarizing themselves with the crypto universe.

If your idea is to trade with an eye on more detailed aspects and larger quantities, use Binance Spot.

So, which of the two do you intend to use to carry out your trades on Binance?

Risk Warning: Prices of digital assets can be volatile and the value of your investment may fall as well as rise, and your potential losses may not be limited to the amount invested. You are solely responsible for your investment decisions and Binance is not responsible for any losses you may incur. For more information, please refer to our Terms of Use and Risk Warning.