With the continuous development of the crypto market, exchanges are increasingly innovating to meet the needs of users. Among them, the Binance Pre-Market feature, launched in October 2024, has attracted great attention from the community, especially supporters of this world’s leading CEX exchange.
What is Binance Pre-Market?
Binance Pre-Market is a product that allows users to buy and sell tokens before they are officially listed on Binance’s Spot market.
Unlike other pre-market platforms that require users to collateralize assets, Binance Pre-Market is designed as a complement to the Spot and Launchpool features, providing more flexibility in trading and investing.
How does Binance Pre-Market work?
This feature operates through 4 main stages. Launched on Launchpool. Assets from potential projects that have been carefully vetted by Binance will appear on Launchpool, Scroll is the first project to be listed on Binance Pre-Market after its launch on Launchpool.
Farm tokens on Launchpool
Users can lock BNB or FDUSD to farm tokens from the project. The farmed tokens will be added directly to the user’s account when the event ends, but cannot be deposited, withdrawn, or traded immediately.
Listing on Binance Pre-Market
Farmed tokens from Launchpool will be listed on Binance Pre-Market for trading before the official listing on the Spot market. This helps create early liquidity for these assets.
Official launch
Once the token is officially listed on Spot, users can freely buy, sell, deposit, or withdraw assets to other wallets.
Benefits of Binance Pre-Market
Binance Pre-Market offers many advantages over other pre-market exchanges, including:
Early Liquidity
Users can trade assets even before they are officially listed, increasing liquidity.
Access to Quality Projects
All projects on Binance Pre-Market are carefully selected through Binance’s rigorous review process, providing safer investment opportunities.
Simple Trading
Users can trade on Pre-Market as easily as on Spot without collateralizing assets.
No Additional Fees
Binance only charges regular Spot trading fees, without additional fees like other exchanges (which can be up to 2%).
Useful Price Indicators
The token price on Pre-Market helps predict the fair valuation of assets when they are officially listed.
Compare Binance Pre-Market with Other Exchanges
- Listed Assets
Binance Pre-Market: Only lists assets that have met the Launchpool requirements. This ensures that only high-quality and well-vetted projects are listed on the Pre-Market.
Other Exchanges: Often focus on “hot” assets in the market, which can bring great investment opportunities but comes with high risks due to lack of thorough vetting.
Review: Binance Pre-Market is suitable for investors who want to prioritize safety and quality, while Other Exchanges are attractive to those who like to speculate on high-risk assets.
- Duration
Binance Pre-Market: Trading time lasts from when the asset is launched on Launchpool until before listing on Spot (usually around 5-10 days).
Other Exchanges: There is no fixed time, leading to a lack of transparency in the Pre-Market trading stages.
Review: Binance Pre-Market offers more clarity on trading times, making it easier for investors to plan.
- Price volatility risk
Binance Pre-Market: Low price volatility risk due to tokens that have been thoroughly tested for quality and tokenomics.
Other exchanges: Higher risk because prices depend on non-transparent factors such as news, unclear tokenomics, or speculative activities.
Review: Binance Pre-Market is suitable for investors who want to minimize risk, while other exchanges will be more attractive to those who accept high risks in search of large profits.
- Liquidity
Binance Pre-Market: Liquidity depends on the number of tokens farmed from Launchpool, helping to limit the situation of manipulated or excessive trading.
Other exchanges: Liquidity is often based on the collateral of buyers and sellers, leading to many restrictions on trading.
Review: Binance Pre-Market has a big advantage in liquidity because it does not require collateral, making trading easier.
- Accessibility
Binance Pre-Market: Users can easily trade on Pre-Market similar to Spot, without requiring collateral.
Other exchanges: Users have to mortgage assets to be able to trade, which makes it difficult for many investors.
Review: Binance Pre-Market is superior in providing flexible and accessible trading, even for retail users.
FAQ
Who can use Binance Pre-Market?
All users who have registered a Binance account and completed KYC level 1 or higher.
What is the trading limit?
Binance limits the number of unlisted assets that each user can hold. If you exceed this limit, you will not be able to buy more on Pre-Market.
Is trading on Binance Pre-Market risky?
While this feature helps reduce some risks, the crypto market is always volatile. Investors should be cautious before trading.
What should I do when the token is officially listed?
Without any additional steps, Binance will automatically convert the token to your account.
Conclusion
Binance Pre-Market is a groundbreaking feature that gives users access to potential assets before they are officially listed. With outstanding advantages such as high liquidity, flexible transactions and no additional fees, this feature has created a great advantage over other pre-market exchanges.
