What is Binance DEX? How to Use It & Fee Rates Explained

·

Binance DEX is a decentralized cryptocurrency exchange built on Binance Chain, Binance’s proprietary blockchain. Its primary goal is to provide an alternative platform for launching and trading new cryptocurrencies, as outlined by Binance.

This guide will walk you through creating a Binance DEX wallet and executing trades seamlessly.


How to Use Binance DEX

Using Binance DEX with Trezor and Ledger Wallets

For enhanced security, avoid keystore files or private keys—opt for a hardware wallet like:

👉 Step-by-step Ledger setup guide

Creating a Binance Chain Wallet

  1. Visit Binance DEX → Click "Create a Wallet".
  2. Set a strong password (8+ characters with symbols/numbers) and download the keystore file.
  3. Securely note your 12-word recovery phrase and private key.
  4. Confirm the phrase to unlock your wallet.

Trading on Binance DEX

  1. Deposit BNB tokens (required for trading pairs).
  2. Navigate to Exchange → Select your trading pair (e.g., BNB/XYZ).
  3. Place limit/market orders with real-time matching:

    • Orders prioritize best bid/ask prices.
    • Partial fills follow blockchain’s proportional logic.

Binance DEX Fee Structure

| Transaction Type | Non-BNB Payment | BNB Discount Rate |
|---------------------------|-----------------|--------------------|
| New Order | Free | Free |
| Order Cancellation | 0.00025 BNB | 0.00005 BNB |
| Trade Execution | 0.1% | 0.04% |

IOC (Immediate or Cancel) orders incur lower fees.


Pros and Cons of Binance DEX

Pros

Cons


FAQ Section

1. Is Binance DEX safer than centralized exchanges?

Yes—it eliminates single-point failures by leveraging decentralized infrastructure.

2. Can I use Binance DEX without a hardware wallet?

Absolutely, but hardware wallets (e.g., Ledger) significantly boost security.

3. Why are BNB tokens required for trading?

BNB powers Binance Chain transactions and reduces fees by 60% when used for payments.

4. How long do withdrawals take?

Transactions settle within 1-2 minutes due to Binance Chain’s high throughput.

👉 Explore advanced trading strategies


Final Rating: 7.4/10 for usability | Best for: Intermediate traders prioritizing security and low costs.