If you use Binance, you know it is not just a regular exchange. It is a whole ecosystem consisting of many different exciting products. One of them is Binance Swap Farming, which we will focus on in this guide. We will explain what exactly it is, how it works, what advantages and risks it has, and how to use it step by step. So, here we go!
What is Swap Farming From Binance?
Swap Farming from Binance is a feature that allows you to instantly “swap” tokens. Its undoubted advantage is its simplicity. Exchanging tokens from one to another takes just a few seconds and comes down to a few mouse clicks. However, that is not all.
You could say that you get the same thing using any other DEX. Nothing could be more wrong. This is because, in the case of Binance Swap Farming, you are rewarded with a Binance Coin (BNB) for every exchange of the appropriate tokens. This means that you earn extra money by performing an action you would have done anyway!
What Advantages and Disadvantages Does Swap Farming Have?
Like everything in this world, Swap Farming has both advantages and disadvantages. Nevertheless, there are more benefits. Here they are:
Speed and simplicity: Swapping tokens using Swap Farming is instantaneous. It takes just a few seconds and comes down to a single click.
Arbitrage: Prices in Swap Farming are set differently than in the spot market. This means that under the right conditions, you can conduct arbitrage.
BNB Rewards: When trading on Swap Farming, you earn BNB rewards of up to 50% of the transaction fee.
High Liquidity: Binance is the largest cryptocurrency exchange on earth and supports high volumes. This, in turn, translates into high liquidity and thus security.
Safety: Swap Farming is safer than DeFi exchanges. Binance is a trusted platform with an impeccable reputation. DEXs, on the other hand, often fall victim to hackers. That is why it is the best gateway to DeFi world for new users.
BNB Discount: With BNB tokens in your account, you can enjoy a 50% discount on fees.
Large number of pairs: Binance Swap Farming offers support for more than 180 token pairs.
Low slippage: Swap Farming provides low slippage due to its high liquidity.
VIP level: The trading volume of Swap Farming counts towards the volume needed to advance to the next Binance VIP level.
As you can see, Swap Farming has a lot of benefits. However, there are also some risks involved. This is because sometimes there may be so-called “slippage”. What does this mean? That the transaction’s final price will be different from what was expected due to low liquidity. However, as we already mentioned, Binance is the largest exchange in the world, so the risk of slippage is undoubtedly lower than on other platforms.
How to use Swap Farming on Binance?
Swapping tokens on Swap Farming is very simple (even more straightforward than on the spot market) and comes down to following a few simple steps. However, you first need to have a Binance account. If you don’t already have one, you can create it here by following the on-screen instructions. Also, note that to use Binance, you must pass KYC verification. If you already have an account. Follow the steps below.
Step 1: Log into your account.
Step 2: Hover over “Trade” at the top of the screen and then click on “Swap Farming”. You can also go straight to the appropriate place by clicking on this link.
Step 3: Select the token you want to swap and the target token.
Step 4: On the right-hand side, you will see the price, slippage, commission, and BNB reward information. If everything is correct, click “Swap,” and that’s it.
As you can see, the process is straightforward, and the swap is just a few clicks away. The whole thing is even simpler than trading on the spot market. The situation is similar in the mobile application.
All you have to do is click “More” on the main screen.
Then “Swap Farming,” and that’s it.
The rest looks the same as with the desktop version.
It is also worth mentioning that Binance often organizes special events for traders. This includes contests, promotions, and often even competitions where you can take part and compete for extra prizes!