Who benefits from your money when you sell on Binance?

3 answers

• Dec 29, 2021 · 3 years ago
  When you sell your digital assets on Binance, the primary party that benefits from your money is Binance itself. As a cryptocurrency exchange, Binance charges a trading fee for each transaction, which contributes to their revenue. The trading fee is usually a small percentage of the transaction amount and varies depending on the trading volume and user's VIP level. Additionally, Binance may also benefit from the price spread between the buying and selling prices of the digital assets. Other parties that may benefit indirectly from your money when you sell on Binance include market makers and liquidity providers. Market makers help maintain liquidity on the exchange by continuously providing buy and sell orders, and they may earn profits from the spread between the bid and ask prices. Liquidity providers, on the other hand, contribute to the depth of the order book by depositing funds into the exchange, and they may receive incentives or rewards for their participation. Overall, the profit distribution when you sell on Binance involves Binance itself, market makers, and liquidity providers, each playing a role in facilitating the trading process and contributing to the exchange's ecosystem.
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• Dec 29, 2021 · 3 years ago
  Selling your digital assets on Binance benefits multiple parties in the cryptocurrency ecosystem. Firstly, Binance, as the exchange platform, earns revenue through trading fees. These fees are typically a small percentage of the transaction value and are used to cover operational costs and generate profits for the exchange. Additionally, Binance may also benefit from the price volatility of the digital assets, as they can potentially buy low and sell high, generating additional profits. Apart from Binance, traders who provide liquidity on the platform also benefit when you sell on Binance. By placing buy and sell orders, these traders contribute to the overall liquidity of the market, making it easier for other traders to execute their trades. In return, they may earn profits from the bid-ask spread or receive incentives from Binance for their participation. In summary, when you sell on Binance, the exchange itself and liquidity-providing traders are the main beneficiaries of your money, with each party playing a crucial role in the functioning of the cryptocurrency market.
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• Dec 29, 2021 · 3 years ago
  When you sell your digital assets on Binance, the profit is primarily distributed to Binance, the leading cryptocurrency exchange. Binance charges a trading fee for each transaction, which serves as their main source of revenue. The trading fee is a small percentage of the transaction amount and varies depending on factors such as trading volume and user's VIP level. This fee contributes to Binance's operational costs and helps them generate profits. It's important to note that Binance is not the only party that benefits from your money. Market makers and liquidity providers also play a role in the profit distribution. Market makers help maintain liquidity on the exchange by continuously providing buy and sell orders. They earn profits from the spread between the bid and ask prices. Liquidity providers, on the other hand, deposit funds into the exchange to enhance the depth of the order book. They may receive incentives or rewards for their contribution to the platform's liquidity. In conclusion, when you sell on Binance, the profit is distributed among Binance, market makers, and liquidity providers, each playing a vital role in the smooth operation of the exchange and the cryptocurrency market as a whole.
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