Many of our clients who first time enter the cryptocurrency world would ask us: how can I convert fiat money to cryptos? How fast is it and what are the conversion fees? Here we list a few common methods that are related to Binance exchange.
1. Use Debit/credit card on Binance: 3.5% fee, instant. We see this as the fastest, safest and most convenient way.
2. Bank transfer on Binance: free, 2-4 business days. The conversion charge is zero but it takes a few days for the banks to process.
Binance provides fee free purchase of BUSD with Silvergate Bank (SWIFT), 0% fee, 2-4 business days
BUSD is a stablecoin from Binance, fully backed by U.S. dollars: 1 BUSD = $1.00 USD
3. Binance P2P Exchange: ~6% minimal via PayPal international, instant. This method may incur higher fees if you use the common payment channels. Also P2P has a higher risk of scams.
Binance’s peer-to-peer platform allows you to buy cryptos with your local currency. On Binance P2P, you have the freedom to choose your preferred counterparties and payment methods for your trades, with the crypto assets escrowed by Binance.
You will find offers from other users for different payment channels. PayPal, Skrill, bank… Once you find the offer you like, you send the money to the user and the user releases the coins to your wallet. P2P trading is free, but you need still to pay a transaction fee when you send payment, esp. for international transactions.
For example, when sending payment from your PayPal to another PayPal account internationally, you incur below fee charges:
- Transaction fee: 5% fee plus a fixed fee of $0.99-$4.99 (depending on country specifics).
- Bank fee: if the transfer is funded by debit/credit card, 2.9% fee plus a fixed fee (depending on the currency used).
- Currency exchange fee: 3-3.75%
4. Other P2P Exchange:
XanPool allows you to easily buy and sell Bitcoin in Southeast Asian countries using PayMe or PayNow. Funds are not held in custody by XanPool. It directly goes to your wallet in Binance. It charges a network minding fee at around 3% for USDT. The countries are limited and there is a limit of purchase on a daily basis however.
There are many other exchanges such as Paxful. Paxful is a peer-to-peer excchange based in Estonia. Users can trade with each others domestically and use a variety of payment methods including bank wires and deposits, gift cards, Alipay and PayMe.
5. Bitcoin ATMs: 8% fee, instant. If you are living in a city such as Hong Kong where BTC ATMs are available, this is also a quick and convenient method, but the fee is relatively high.
Usually you only need to show the ATM the QR code of your Bitcoin address, insert bank notes and confirm the exchange rate. The process takes less than 30 seconds, is anonymous but can cost up to 8% in fees.
In addition, no matter which method you choose to purchase cryptocurrencies, Binance will always charge a network fee (e.g. USDT20 per transaction for USDT purchase). Try to test out various methods to find your most convenient and cost effective one, which varies by country, by crypto, by network and by applications. Be aware of scams and play safe in purchase cryptos.