When using Binance, it’s not only a CEX. There is a whole ecosystem with different apps available for you. For instance, there are many trading options. This includes among others spot, margin, or P2P trading. Another option is Swap Farming.
Binance Swap Farming allows you to ‘swap’ tokens straight away. It’s almost easier than spot trading. The Swap Farming feature uses an AMM model to swap tokens. So, let’s have a look at how this works.
Learn more about the benefits of Swap Farming on #Binance.
P.S. You can get 75% trading fees rebate on certain #BTC and $ETH trading pairs until August 4, 2022! pic.twitter.com/80FQIykFjV
— Binance (@binance) August 3, 2022
What Is Binance Swap Farming?
With the Binance Swap Feature, you can swap tokens in a liquidity pool. For this, it uses the automated market maker (AMM) model. Instead of trading directly with another party, you trade coins from a liquidity pool. The pool determines the price of each token by its ratio. For example, a liquidity provider adds liquidity for both tokens in a BNB – BUSD pool. Another person can now swap between BNB and BUSD for a fee.
So, that sounds the same as any other DEX, right? Well, that’s where Binance has an extra ace up its sleeve. For every swap, you receive a BNB reward. This can be up to 50% of the transaction fee.
As with every liquidity pool, there’s a risk of slippage. This is when you receive a different price than you expect. However, because Binance is such a big exchange with lots of liquidity, this risk is minimal. On top of this, more than 100 trading pairs are on offer. All these liquidity pools have deep liquidity.
How Can You Take Part in Binance Swap Farming?
Website
You can take part in Binance Swap Farming by logging in to your account. The next step is to tap the ‘Trade’ button and, in the dropdown menu, click on ‘Swap Farming’. This brings you to the Swap Farming page.
Source: Binance
Mobile Phone
On your phone, it takes two steps before you get to the Swap Farming page. First, click on the [More] button. This brings you to the next page, here you see [Trade] and [Swap Farming]. Click on ‘Swap Farming’ and you’re on the right page. From now, each step is the same. See the picture below.
Source: Binance support
How to Swap and Get Rewards
The picture below shows the Swap Farming page. Below the picture, there’s an explanation of each number on the picture.
Source: Binance Swap Farm
1. Not every pair qualifies for BNB rewards. So, if you tick this box, it will filter all tokens with rewards.
2. This is the crypto that you have and want to swap for a different cryptocurrency. You can add the amount you want to swap.
3. This is the cryptocurrency that you receive after the swap. There’s a number listed. However, be aware of the following. The pool determines the ultimate price and output of the number of tokens in the pool at the time of your swap.
4. The listed price of the trading pair.
5. This is the slippage you can expect. Due to the deep liquidity on all token pairs, slippage is minimal.
6. The swap fee for your transaction.
7. Your BNB reward. This reward transfers to your Spot Trading account. In the red box, there’s a reminder that this swap qualifies for a BNB reward. Once you reviewed this transaction, you can confirm it by hitting the ‘Swap’ button.
8. After you confirmed the transaction, you can hit the ‘Claim Rewards’ button. This will transfer your BNB rewards to your Spot Trading account.
A confirmation will show up after you complete the swap. In the picture below is a recap of Binance Swap Farming.
Source: Twitter
Conclusion
We showed you the Swap Farming trading option in the Binance ecosystem. It is an easy-to-perform trading option. In particular, it offers a reward in BNB for qualifying swaps. This can add up fast if you keep using this trading option. Due to the deep liquidity in each trading pair, slippage is minimal on each trade.
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Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This article has been sponsored by Binance. Copyright Altcoin Buzz Pte Ltd.
