Black Friday is a frantic and wild day, even in the crypto space. Alongside the staggering retail discounts made possible by crypto gift cards, cryptocurrency exchanges also like to jump in on the action.
Trading platforms like Binance, Coinbase, and KuCoin launch dozens of promotions over the holidays. From sign-up bonuses to Bitcoin Black Friday trading competitions, crypto exchanges bend over backward to attract customers.
What kind of Black Friday/Cyber Monday offers are available for savvy crypto enthusiasts, and how can we access them?
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Crypto Exchange Black Friday Deals
Before you get too excited about the thought of getting a Black Friday discount on crypto assets like Ethereum (ETH), Solana (SOL), or Ripple (XRP), there’s something you need to remember. Rather than being controlled by retailers, the crypto market is driven by supply and demand. As much as I love the idea, you can’t expect a Black Friday Sale on BTC.
Instead, crypto exchanges and blockchain-based businesses offer different benefits and discounts. In the past, we’ve seen generous sign-up bonuses worth hundreds of USD, slashed trading fees, and even boosted cashback rewards on crypto credit cards.
What can we expect from our favorite digital asset exchange platforms this year?
Sign-up bonuses are one of the most common Black Friday promotions in the crypto space. A true win-win, these bonuses give newcomers to the crypto industry generous rewards while helping exchanges bring in new customers.
In most cases, the process is simple. An exchange like Binance will give 100 USDT to anyone who registers with the platform and deposits the required funds into their account. After the deposit has been verified, your crypto will be credited.
In most cases, you need to trade a certain amount of USD value before you can withdraw the tokens to your crypto wallet or exchange them for fiat. Given the huge range of digital currencies provided by top exchanges, you shouldn’t have any trouble finding coins to trade and release the bonus.
Reduced Trading Fees
In case you didn’t know, crypto exchanges make most of their money through trading fees. That means every time you buy or sell crypto, your chosen platform will take a small percentage of your trade.
If you’re trading large amounts or trading often, these fees can eat into your holdings over time. To encourage trading on key dates like Black Friday or Christmas, some exchanges might slash trading fees for a short period of time.
While this does technically give traders more value on their purchases, it’s not a massive saving unless you’re trading seriously big amounts of crypto.
Sign-up bonuses and reduced fees are just the tip of the iceberg. Crypto exchanges are also known to boost their rewards platforms to celebrate Black Friday offers. But what exactly does this look like?
In the past, Binance has given double cash-back rewards on all retail purchases made with the Binance crypto card. At the time, this meant that cash-back rewards went up to 16% on all purchases!
This kind of Black Friday offer is fantastic because it means that crypto enthusiasts could take advantage of third-party sales on retailers while also using their crypto assets on real-world purchases. As an added benefit, they received additional cash back to sweeten the deal on every purchase.
In other cases, exchanges have also been known to increase staking rewards or lending rates briefly. However, this is becoming less common and generally relies on certain market conditions.
Trading Competitions and Rewards
Another common Black Friday event, some exchanges choose to host trading competitions, offering exceptional prizes that add an extra layer of excitement to the holiday season. For example, in 2021, KuCoin put up a colossal prize pool worth $1M USDT.
Trading competitions give users the chance to put their skills to the test and earn their share of enormous prize pools. Moreover, these trading competitions generally aren’t reserved for Bitcoin alone. Most competitions cover all kinds of coins, from classic cryptos like Litecoin (LTC) and BNB to meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB).
As for the rewards, there’s plenty up for grabs. Typically, top performers earn large cash prizes, while some lower-level traders can walk home with crypto-related products, including hardware wallets like a Ledger Nano X or Trezor.
Pros and Cons of Crypto Black Friday Deals
Black Friday is certainly a spectacle, offering a wealth of excitement and value for those with a keen eye for a good deal. That being said, some drawbacks need to be mentioned. Let’s review the pros and cons of Black Friday crypto deals.
- Maximized Profits – With reduced trading fees and enhanced rewards, Black Friday potentially helps crypto enthusiasts see higher returns on their trades and activities.
- Engaging Competitions – Trading competitions are a fun way of putting your skills to the test and winning great prizes.
- Attractive Bonuses – Sign-up bonuses and special Black Friday incentives can help newcomers to the crypto space get started on the right foot.
- Overtrading Risk – Trading competitions and conditional bonuses encourage people to trade more crypto than in normal circumstances.
- Short-Term Offers – Crypto Black Friday deals are short-lived, meaning that users might feel forced to act within time constraints that are counter-productive for their investing goals.
- Unimpressive ‘Benefits’ – Some benefits, like reduced trading fees, are so slight that the average user won’t even notice that anything is different.
On the Flipside
- As much as we wish it were true, the crypto market doesn’t provide Black Friday discounts on digital assets. As such, please avoid any offer that promises you ‘cheap’ Bitcoin or any other cryptocurrency; it’s likely a scam.
Why This Matters
Black Friday is a great opportunity to make those big purchases you’ve been putting off all year. However, because crypto assets are priced based on market value, you shouldn’t expect too much more than reduced trading fees and some small bonuses this Black Friday.
Black Friday 2023 falls on Friday, the 24th of November.
Historically, crypto prices are barely affected by Black Friday. It is generally expected that trading volume drops slightly while people take a day away from the charts to hunt for Black Friday bargains.