Whenever it comes to using a crypto exchange or any asset exchange for that matter, there’s going to be some little balance left behind after trades. These are minuscule amounts that are not included in trades intentionally or otherwise and cannot be traded in separate transactions.
What happens to these balances in most exchanges is that they are left to sit in your wallet at least until you can top up the account with a similar asset. These balances can accumulate to substantial sums for some traders depending on whether they are actively entering and exiting multiple positions regularly. However, Binance, one of the leading cryptocurrency exchanges, has a solution to this problem. It offers a convenient option to sweep your tiny balance and convert them into the platform’s native crypto asset BNB (Binance Coin).
Intermediate Traders and Investors
What is a small balance?
Transfer costs vary from network to network, and this means that different assets will have a different threshold for what is considered dust.
However, Binance provides that an amount has to be less than 0.001 BTC to be considered dust. The value of this threshold changes often, but it is a good measure for what accounts as dust.
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Benefits of converting your small balance to BNB
Before we look at how to convert dust to BNB, let’s consider why you may want to consider it in the first place.
Converting dust to BNB has several advantages, which adds to the appeal that makes Binance a great trading platform. Here are some of them:
- Utility – converting your small balance into BNB makes them more useful to you, especially on Binance. The exchange currently allows its users to pay trading fees using BNB at a discount. This means that any converted dust balances will be better used as BNB instead of being stuck unusable as dust.
- Security – in crypto, there is a security attack called ‘dusting’ in which malicious attackers send these tiny amounts to random wallets intending to track their movement. This is a security risk since the hackers may be able to link two or more wallets controlled by their target victim. With this knowledge, they can employ other techniques such as phishing to infiltrate the target’s system and install ransomware. By converting dust to BNB, you effectively cut the link to the hackers.
- Liquidity – dust amounts are considered illiquid since they cannot be traded or transferred to another wallet. They cannot be sold off, and if left unused, they could be lost due to some coins getting unsupported by the exchange or the team behind the coin. By converting the dust to BNB, you trade your illiquid assets into a highly liquid BNB asset that can easily be traded, transferred, or used to pay for trading fees.
How to convert the small balance to BNB (4 steps)
The process of converting small balance to BNB is simple and straightforward. It takes four steps to conclude. These are:
Step 1. Navigate to the Account Balance (Fiat and Spot) page
To do this, log into your Binance account, then hover over the Wallet drop-down menu on the far right of the top navigation bar. Click on the ‘Fiat and Spot’ option.
This page shows all your balances, including any Fiat funds and crypto coins and tokens held within your account. You can also see the performance of your assets over the last 24 hours through the ‘Yesterday’s PNL’ card.
Step 2. Navigate to the ‘Convert to BNB’ page
Locate the ‘Convert to BNB’ link on the ‘Fiat and Spot’ balances page. The link is not hard to locate. It is right below the balance overview card.
The ‘Convert Small Balances to BNB’ has a list of all assets with balances that qualify as dust, i.e., they are less than 0.001 BTC in value. If you do not see a coin listed here, it is because Binance does not consider your balance in that coin or token as small enough to be converted to BNB.
Step 3. Select the coins/tokens
Pick the coins/tokens whose balances you wish to convert to BNB.
You do not have to convert all your small balances. It is more convenient and arguably could be cheaper (over the long term) to avoid converting small balances of coins or tokens that you frequently trade.
Step 4. Convert the coins/tokens
Now that you have selected the balances of coins you wish to convert, scroll back up (if you have a long list of coins to choose from) and click on the orange button just above the coin list table to the far right. The button is labeled ‘Convert.’
Binance will prompt you to confirm the conversion through a dialogue box. Within the dialogue box will be the approximate amount you will receive upon conversion in BNB. The amount is approximated because the value of assets fluctuates. There is unexpectedly a variance between the quoted figure and the actual figure, which will be determined at the time of conversion.
Confirm the conversion and return to the ‘Fiat and Spot’ balances page. You can also opt to visit the conversions history page to view your previous conversions.
Watch the video: Here’s a simple video we have crafted to make it even more explanatory
Several features make Binance a great cryptocurrency exchange, but a hugely underrated one is the capability to salvage any dust balances in your account. There is so much you can do with these seemingly small balances.
If you haven’t converted yours, give it a try. The process is simple and quick.
Intermediate Traders and Investors