Binance U.S. Challenges Competition by Erasing Bitcoin (BTC) Trading Fees

New doors open for Bitcoin traders in the United States

As the crypto industry continues to lick its wounds after a harsh crypto winter, Binance U.S., the subsidiary of Binance in the United States, just announced they will offer their customers fee-free Bitcoin (BTC) trading.

For now, the zero-fee trading will be available on four Bitcoin (BTC) spot market pairs. The no-fee market pairs are as follows:

  • BTC/USD
  • BTC/USDT
  • BTC/USDC
  • BTC/BUSD

Later on, the company also plans to introduce zero-fee trading on other cryptocurrencies as well. Binance U.S. CEO Brian Shroder wants to see this kind of a pricing model being adopted in the industry: “We hope our pricing model sees broader industry adoption over time, because that would have a positive impact on the ecosystem and market participants overall. We are happy to lead the race to zero fees everywhere.”

Are Crypto Exchanges Becoming Less Greedy?

As the Fear & Greed Index still illustrates that the crypto community is in extreme fear, a bold move like this might shape the future of the crypto industry. From a trader’s perspective, zero-fee Bitcoin trading is great news and might lead the general public sentiment from bearish to bullish, as the opportunity to trade without any fees wouldn’t probably occur in stable market conditions.

Crypto Competition Benefits the User

For competitors of Binance U.S., this sets a challenging barrier. For instance, Coinbase charges up to 0.50%, FTX.US charges 0.20%, and Kraken charges 0.26%. Now, with Binance U.S. erasing BTC trading fees, some of their rivals might do the same. However, Coinbase’s situation is deeply controversial, as rumors surfaced on social media that the company might be heading to bankruptcy. Moreover, Coinbase’s shares dropped by nearly 10% this Wednesday.

Brian Shroder also explained that “this is an opportunity to revolutionize the way fees are approached in our industry, increase accessibility to crypto, and better support our market and customers in a time of need.”

Will better accessibility and lower fees help the crypto industry switch from these volatile times into a more positive, bullish market? Binance U.S. used the opportunity to shine, but we are still yet to see if the idea of zero BTC trading fees will have a positive long-term impact on the market.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.