Let's clear up a common confusion that arises with the "coupons" that Binance gives us. It's easy to think that they all work the same way, but that's not the case! Recently, I received a "Trading Fee Discount Coupon (Spot)" for 5 USDC with a validity of 10 days, and my first reaction was: "Great! They deduct $5 from my crypto purchase." Mistake! And I know I'm not the only one with this idea.
Let's clarify the fundamental difference between the two most common types of coupons and how to take advantage of them.
1. Trading Fee Discount Coupon (Spot)
This is the type of coupon I talked about at the beginning.
What is NOT?
It does NOT deduct money from the total purchase of a cryptocurrency. That is, if you are going to buy 100 USDC in BTC, they do not deduct 5 USDC from the total payment.
What is YES?
It's a credit to cover your trading fees in the Spot market (instant buy/sell of crypto assets).
How do you use it?
* Go to your "Rewards Portal" on Binance (click on your profile).
* Look for the section "My Coupons" or "Vouchers."
* Activate it before it expires. This is crucial!
* Once activated, every time you make a buy or sell operation in the Spot market and generate a fee (the standard fee is 0.1% of your operation), Binance will use the balance of your coupon to pay that fee. This continues until the coupon is exhausted or expires.
Here's the key point! 🤔
If the standard trading fee on Spot is 0.1%, to spend 5 USDC on fees, you need a total trading volume of $5,000 USDC!
* A $100 operation generates $0.1 in fees.
* A $1,000 operation generates $1 in fees.
* You would need to make trades totaling $5,000 to spend the $5 from the coupon.
2. Spot Token Coupon (e.g., 3 USDC Spot Token Coupon)
This is the type of coupon that is generally obtained in the Rewards Center for points and is different.
What is YES?
This coupon DOES grant you a specific amount of tokens (for example, 3 USDC) directly to your Spot wallet once you redeem it. It's as if you were gifted those tokens.
How do you use it?
* Go to your "Rewards Portal".
* Find the token coupon section or "Vouchers".
* Redeem it. Once redeemed, the tokens will be credited to your Spot wallet. You do not need to trade to "spend them"; they are yours.
Key difference:
Unlike the commission coupon, this is a direct credit in tokens, not to cover fees. Therefore, its cost in points in the Rewards Center is usually higher, as it represents a value in crypto directly usable.
The truth behind coupons: What is Binance looking for with this?
With only 10 days to use the commission coupon, and the amount needed to consume it, it is clear that Binance is looking for something more than just giving you a "gift":
* Encourage Active Trading: Fee coupons are gold for "day traders" or "swing traders" who move large volumes of money. For them, 5 USDC in fees are spent in the blink of an eye.
* Encourage Activity: It's a strategy to push users to trade more. If you have a coupon that expires, you will feel more inclined to make more transactions than you normally would to "take advantage of it."
* Benefit for Large Volumes: In reality, the biggest benefit is obtained by those who make trades of thousands of dollars at once or on a few occasions.
On the other hand, Spot Token Coupons are designed to provide direct value, and they are ideal for users who do not trade in high volumes, or who simply want a small boost in their portfolio without the pressure of spending fees.
My personal conclusion:
* For an average investor or someone who only makes occasional purchases and holds, a 5 USDC fee coupon with a 10-day expiration is a minor incentive, and you are very likely not to use it completely. If you receive one, activate it and use it if you are going to trade, but don't get frustrated if you don't use it all! It's a small advantage designed primarily for those with a higher trading pace.
* If your points allow, and you do not trade high volumes, a Spot Token Coupon (for example, 3 USDC in tokens) could be a more tangible and direct reward for you.
Have you received these types of coupons? Which one have you preferred to use and why? Share your experiences in the comments!
Quote of the day: "I prefer to bother with the truth than to please with flattery." – Seneca
