BNB Is Becoming Unusable For Small Transactions

in #leofinance3 years ago

One of the things I loved about Binance back in the day was that it was able to handle small transactions including withdrawals and deposits unlike many of the other centralized exchanges.

Heck, probably my favorite feature was their ability to convert dust into BNB. Things have certainly changed a lot with the recent 10x increase in price to the $500 range.

Conversions

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I recently tried to convert some altcoins back to BNB or BUSD in order to bring it over to Cub Finance. At current BNB prices of around $500, that works out to a $25 minimum trade.

Withdrawals

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The pain isn't just limited to the trading. Even withdrawals require a minimum of $25. Back when BNB was hovering in the $30 range, the same 0.05 minimum withdrawal was present. That's only $1.50.

Possible workaround

If the objective is to move the funds to Cub, then one possible workaround is to get it in via Hive, where the withdrawal requirements are only 0.02 Hive. Still, I believe Binance should update their minimums to keep it accessible to the masses.

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Hmmm good to know, yes it has gone up considerably since the start of Feb, 10x

Posted Using LeoFinance Beta

Yeah, they haven't made any adjustments with the sudden run up.

If they did that they would have to accept losses from transactions that are not worth it and worse open themselves up to a spamming attack!

It’s unfortunate but if you want to play in this realm you have to foot the bill

I don’t see it as a bad thing I jusy see it as something you should factor into your trading strategy

If you want to trade for free then you have to accept the terms and conditions of centralized tools like robinhood!

Isn't Binance / BNB centralized? Maybe I'm remembering wrongly.

I thought the fees would be enough to deter spam attacks and cover costs. Seems like BNB is going the way of ETH even though the fees will never go as high with the bigger block size.

Yes it is centralized but even so that doesn’t mean running a node and having validators is free. The more BNB grows the more value in it the more security threats the more they need to improve the service! Binance isn’t a charity they here to make money lol

BNB will be an ETH because it’s the same tech so they’ll hit the wall soon, the scaling trilemma for on-chain computation has not been fixed

You can had zk roll ups, sharding and proof of stake along with side chains like ETH is doing but the main chain will always be gobbling up resources because of all the back data too

It’s not an easy problem to solve abs eveyeone is waiting for ETh to solve it so they can copy it

BCH has also released a ETH/BSC chain to try and get in on the action and TRON have set up a bridge with BSC to help too

I'm happy to pay the fees... what i'm not happy with is the minimum amounts. So in my case, i wanted to convert 100 TRX to use for fees on cub. I probably have to check this Tron bridge out because what used to be a simple process has come to require way too many steps.

Alternatively, it seems like TRX->BNB->BUSD works for a $10+ withdrawal, before converting it back to BNB.

Yay! 🤗
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