Binance Pre-Market: Advantages and Disadvantages

1. What is Binance Pre-Market?

Binance Pre-Market is a feature that allows users to trade tokens that are about to be listed on Binance. These tokens typically come from Binance Launchpool. The main goal of Binance Pre-Market is to expand the application of Binance Launchpool and create a new financial tool for users within the Binance ecosystem.

2. How to Participate in Binance Pre-Market

To participate in Binance Pre-Market, follow these steps:

Step 1: Register for a Binance account.
After registering, users need to complete KYC (identity verification) to qualify.

Step 2: Go to the homepage and select "Trade" at the bottom of the screen.

Step 3: Switch to the “Spot” section and click the arrow at the left corner.

Step 4: Select "Pre-market" to start trading.

3. Binance Pre-Market Trading Process

Trading on Binance Pre-Market applies only to tokens from Binance Launchpool. Here is the specific process:

-Users register tokens using BNB or FDUSD.

-After the Launchpool phase ends, the tokens will be allocated to users’ wallets, but they cannot be withdrawn or used for other services.

-Users can buy additional tokens or sell those received from Binance Launchpool during the Pre-market phase.

-After the Pre-market ends, the assets will be converted 1:1 into Spot assets for trading on Binance Spot.

4. Difference Between Binance Spot and Pre-Market

The key difference between Binance Spot and Binance Pre-Market lies in liquidity and valuation. The value of tokens in the Spot phase depends on multiple factors such as market conditions and the number of tokens available on Binance. In contrast, the value of tokens in Pre-market depends on the community and may experience high volatility due to lower liquidity.

5. Comparing Binance Pre-Market with Other Exchanges

While Binance launched the Pre-market feature later than some other exchanges, it still offers notable advantages:

Low Trading Fees: Fees range from 0.01% to 0.012%, much lower than other exchanges (2% - 2.5%).

Easy Access: Users just need to buy assets in the Pre-market section and wait for Binance to convert them 1:1 when the token is listed on Spot.

Limited Asset Support: The downside of Binance Pre-market is the limited number of supported assets since it only includes tokens from Binance Launchpool.