Binance pre-market allows users to trade tokens before their official listing on the Binance exchange. These tokens originate from the Binance Launchpool, offering early trading access. This innovative product aims to enhance the utility of Binance Launchpool and provide users with another financial tool within the Binance ecosystem.
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Launched on September 25, 2024, Binance pre-market is a relatively new feature. While it doesn’t currently support any assets for trading, its potential impact on the cryptocurrency landscape is significant. For a broader understanding of pre-market trading in general, you can refer to our comprehensive guide: What is Pre-Market Trading?
Participating in Binance Pre-Market: A Step-by-Step Guide
Here’s how to participate in Binance pre-market trading:
Step 1: Binance Account Registration
Begin by registering for a Binance account.
REGISTER FOR A BINANCE ACCOUNT HERE
Note: KYC verification is required after successful account registration.
For detailed instructions on account creation and KYC, please consult our guide: Binance Account Creation and KYC Guide.
Step 2: Navigating to the Trade Section
On the Binance homepage, locate and select the “Trade” option at the bottom of the screen.
Step 3: Accessing the Spot Market
Within the Trade section, navigate to the “Spot” market and click on the arrow in the left corner.
Step 4: Selecting Pre-Market
Finally, choose the “Pre-market” option to access this feature.
Accessing the Binance Pre-Market Feature.
Binance Pre-Market Process: A Detailed Overview
The Binance pre-market process is intricately linked to the Binance Launchpool. Here’s a breakdown of the complete cycle:
- Subscription: Users subscribe to a Launchpool project using BNB or FDUSD.
- Token Allocation: Tokens are distributed based on the subscribed amount.
- Post-Launchpool Restrictions: Received tokens are initially locked for trading outside of Binance or use in other services like Earn, Futures, or Margin.
- Pre-Market Commencement: The pre-market trading phase begins.
- Trading Activities: Users can buy or sell allocated tokens.
- Pre-Market Conclusion and Spot Listing: At the end of the pre-market phase, assets are converted 1:1 to spot market assets, enabling trading on the Binance Spot market. All pre-market orders are automatically canceled at this point.
Essentially, Binance pre-market trading mirrors Binance Spot trading, even maintaining a 1:1 asset conversion ratio.
Binance Spot vs. Pre-Market: Key Distinctions
The primary difference lies in liquidity. Spot market prices depend on market conditions, token supply on the exchange, and various other factors. Conversely, pre-market prices are community-driven, potentially leading to significant price discrepancies compared to the spot market. Pre-market trading is often characterized by lower liquidity, resulting in higher price volatility.
so sánh binance pre-market và spotComparing Binance Pre-Market and Spot Trading.
Binance Pre-Market vs. Competitors: A Comparative Analysis
While Binance entered the pre-market arena later than competitors like Whales Market, Aevo, and Bybit, it offers distinct advantages:
- Lower Fees: Binance pre-market trading fees align with its spot trading fees (0.012% – 0.01%), significantly lower than competitors who often charge 2% – 2.5%.
- Simplified Access: Binance pre-market participation only requires purchasing tokens and awaiting the 1:1 conversion upon spot listing. Other platforms might involve asset collateralization or futures contracts for pre-market trading.
This simplification stems from Binance’s control over token supply through the Launchpool. Other platforms lacking this control often require collateralization to guarantee settlement or utilize futures contracts to manage risk.
However, a drawback of Binance pre-market is its limited asset selection, directly tied to Binance Launchpool projects. In September 2024, only three projects were listed on Launchpool, highlighting a potential constraint compared to platforms with more extensive offerings. For further insights, explore our analysis of leading pre-market platforms: Top 5 Pre-Market Platforms in Crypto.
