- Binance has brought the pre-market spot trading service, enabling users to trade new tokens before their public listing.
- While rivals rely on derivatives, the exchange provides users with actual tokens for trading.
- Being linked to Binance Launchpool, this new pre-market trading service ensures users can exchange tokens from any preferred project.
Operating as the world’s largest crypto exchange, Binance always tries to introduce innovative user-centric solutions. It is now the first exchange offering the trading of soon-to-be-listed tokens before their entry into the regular spot market.
Crypto enthusiasts can use this new feature to access newly introduced tokens early. It will also help them improvise their trading tactics. While Binance’s rivals still use derivatives, this exchange is the first to offer real “non-listed” tokens for trading.
Keep reading to learn some crucial facts about Binance’s pre-market trading service.
How is Binance’s Pre-market Trading Service Unique?
Crypto users across the globe consider Binance a reliable platform for trading crypto assets. Its pre-market trading solution is quite beneficial for users because they trade actual tokens. This exchange’s competitors, such as Coinbase and Bybit, provide derivatives, not the actual token.
Pre-market trading service offered by Bybit requires USDT collateral and uses derivatives. Coinbase provides a similar service by using perpetual future contracts, which turn into standard futures after the tokens’ listing.
Conversely, Binance provides actual tokens to boost the real market activities and user experience. That, in turn, improves real market activities and user experience.
This new service will also allow users to gain new tokens by staking other crypto assets, as it will be integrated with Binance Launchpool. Before the market opens, users can trade tokens from any chosen Launchpool.
Users can trade tokens during this period. However, withdrawals, deposits, or transfers won’t be possible until the official listing of tokens.
For Launchpool Project, Binance Offering Early Trading Service
Binance launches Pre-Market trading service to provide more value and extend the life of the project on the platform.
Launchpool issues some tokens before its official listing with certain limitations but this new service helps users to trade these tokens. Binance will inform the arrival of pre-market trading and the dates of each eligible project under this service.
Every user of Binance will be allowed to trade the tokens labeled as “pre-market”, once the pre-market trading period starts. The pre-market trading is supposed to end at least 4 hours before the opening of the spot market. After the closure of the pre-market trading period, Binance will notify users.
The purpose of the service is to give users access to a particular trading environment that enhances flexibility and strategy. Limitations on withdrawal and transfer are put in place to safeguard the market at the pre-market stage.
Compared to other exchanges’ derivatives-based services, Binance is far more dependable and practical because of its genuine tokens.
Binance Extends Offerings Despite Regional Trading Restrictions
Due to the legal factors in some countries, Binance’s pre-market trading service cannot be accessed as its new feature. The United States of America, Canada, Dubai, Japan, the Netherlands, Russia, and Spain are among these regions. Therefore, it must abide by national rules; Binance is unable to provide pre-market trading in some areas.
Binance is currently in the process of extending its services to additional regions where it is legal to do so. This is a result of the exchange adopting the compliance regime and providing users with a safe environment. Due to the early trading of actual tokens, Binance can draw users from all over the world despite certain limitations.
In a different case, Binance assisted the Enforcement Directorate of India in recovering money from a $47.6 Million gaming scam. This scam involved the Fiewin app. The scam planned to lure victims into online betting operations so that money could be stolen.
By participating, Binance demonstrates that both the exchange and its CEO are committed to making the cryptocurrency world a safer place. They are dedicated to assisting in the fight against fraud.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.