Binance DEX is a decentralized cryptocurrency exchange built on Binance Chain, Binance's proprietary blockchain. Its primary goal, as stated by Binance, is to create a new, alternative platform for launching and trading new cryptocurrencies.
This guide will help you easily create a Binance DEX wallet and start trading on the platform.
Getting Started with Binance DEX
Using Binance DEX with Trezor and Ledger Wallets
To trade securely on Binance DEX, it's recommended to use a hardware wallet instead of relying on keystore files or private keys.
Binance DEX supports both Trezor and Ledger hardware wallets. If you're interested in decentralized exchanges, Ledger Nano S or Ledger Nano X might be better choices as they are supported by many exchanges.
If you already own a Ledger device, you can follow the illustrated guide prepared by Binance to connect your wallet to Binance DEX. If you don't have a hardware wallet, you can create a Binance Chain wallet directly through Binance DEX.
Creating a Binance Chain Address for Binance DEX
To start using Binance DEX, the first step is to visit the main website:
Next, you need to create a wallet on Binance Chain to perform transactions on the decentralized exchange. Click the "Create a wallet" button on the homepage and follow the instructions below.
1. Click "Skip tutorial" to proceed directly to wallet setup, or click next to continue.
2. Choose a password that includes uppercase letters, numbers, and symbols, with a minimum of 8 characters. Then, click "download keystore file" to save the keystore file to your computer.
3. Click "Continue" to proceed.
4. Write down the words displayed in the correct order on a piece of paper or another secure location. You can also click "view my private key" to record your private key.
5. Confirm your recovery phrase by selecting the words one by one, then click "Continue".
6. Your wallet has been created. Click "Unlock the wallet" to access your Binance Chain wallet.
7. You can unlock your wallet using the keystore file and password, recovery phrase, or private key.
You can also follow the instructions in Binance's guide to easily set up Binance Chain on your Ledger Nano S. This allows you to use Binance DEX more securely with your hardware wallet.
How to Trade on Binance DEX
After creating a Binance Chain wallet using the steps above or via your Ledger hardware wallet, you can connect to Binance DEX and start trading with your cryptocurrencies.
Currently, you can view all cryptocurrencies trading on Binance DEX by clicking the "Exchange" section on the main page. Existing tokens are traded against BNB tokens that have been transferred to Binance Chain via swap.
To purchase tokens on Binance DEX, you can send BNB to your Binance Chain address. Since all tokens are traded against BNB, you need BNB to buy tokens.
Additionally, you can send other tokens on Binance Chain to your address and sell them for BNB on Binance DEX.
You can withdraw BNB from your regular Binance account to your Binance Chain address. This way, you can start trading on Binance DEX.
👉 Explore secure trading methods
Binance DEX Fee Structure
As a decentralized exchange, Binance DEX has a more detailed fee schedule. Fees for trading and transfers are as follows:
| Transfer Type | Payment with assets other than BNB | Payment with BNB |
|---|---|---|
| New Order | 0 | 0 |
| Cancel (Unfilled) | Equivalent to 0.00025 BNB | 0.00005 BNB |
| Expired Order (Unfilled) | Equivalent to 0.00025 BNB | 0.00005 BNB |
| IOC (Unfilled) | Equivalent to 0.0001 BNB | 0.000025 BNB |
IOC (Immediate or Cancel): These orders must be filled immediately in the current block, and any remaining amount is canceled.
Trading fees:
| Transfer Type | Payment with assets other than BNB | Payment with BNB |
|---|---|---|
| Trade | 0.1% | 0.04% |
Order Matching Mechanism on Binance DEX
Binance DEX operates as a hybrid decentralized exchange, which means its order matching logic differs from centralized exchanges like Binance. The matching mechanism for blockchain-based trades and orders works as follows:
- Orders with the best bid price are matched with orders at the best ask price;
- If orders at a certain price cannot be fully executed against counter orders, orders from previous blocks at the same price will be prioritized and executed first;
- If orders are at the same price and in the same block and cannot be fully executed, the trade will be executed proportionally based on the amount of each order.
This guide explaining wallet creation, fee rates, and trading logic will help you use Binance DEX easily.
Frequently Asked Questions
What is Binance DEX?
Binance DEX is a decentralized exchange built on Binance Chain. It allows users to trade cryptocurrencies directly from their wallets without depositing funds on a centralized platform, enhancing security and control.
How do I start trading on Binance DEX?
To start trading, you need to create a Binance Chain wallet either via the Binance DEX interface or by connecting a supported hardware wallet like Ledger or Trezor. Once set up, you can deposit BNB and begin trading.
What are the advantages of using Binance DEX?
Key advantages include enhanced security through self-custody, lower trading fees when paying with BNB, support for multiple wallet types, and access to a variety of altcoins.
Can I use a hardware wallet with Binance DEX?
Yes, Binance DEX supports popular hardware wallets including Ledger Nano S, Ledger Nano X, and Trezor models. Using a hardware wallet provides an additional layer of security for your assets.
What cryptocurrencies can I trade on Binance DEX?
Binance DEX primarily features tokens issued on Binance Chain, which are traded against BNB. The available tokens can be viewed in the exchange section of the Binance DEX platform.
How does Binance DEX ensure security?
Security is maintained through decentralized architecture, user-controlled private keys, and support for hardware wallets. Since funds are not held by the exchange, the risk of hacking is significantly reduced.
Binance DEX Overview
Ease of Use
7.4/10
Pros
- Secure (with hardware wallets)
- Low commission rates
- High trading volume
- Wide variety of altcoins
- Multiple wallet options
Cons
- Not suitable for beginners
This guide provides all the essential information you need to understand and start using Binance DEX effectively. Whether you are new to decentralized exchanges or an experienced trader, Binance DEX offers a robust platform for cryptocurrency trading.