Fees You Can Trust. Trust Wallet & Binance Smart Chain’s Fee Structure
Fees play an essential role in the crypto ecosystem as they make up a large proportion of the industry’s company revenues. Crypto exchanges, wallet providers, payment services typically all charge fees to generate revenues.
In this guide, you will learn about the comparatively low fees charged by Trust Wallet and Binance Smart Chain (BSC).
Why Fees Matter
While it may sound obvious, it doesn’t hurt to reiterate why fees matter for crypto users.
It’s simple: the more fees you pay, the lower your returns will be.
If you actively trade crypto (without trading discounts), your trading revenues will be affected by trading fees and exchange withdrawal fees.
If you regularly spend digital currency on everyday purchases, wallet fees and crypto payment provider fees will increase your transaction costs.
If you cash out crypto for fiat currency, you will pay exchange transaction fees that will affect the final amount of cash you will receive.
Fees keep the crypto industry going and are, therefore, a necessity. But high fees are harmful to users and hinder mass adoption.
Fortunately, there are service providers and crypto networks focused on delivering the best possible user experience at the lowest possible fees. Two examples of that would be Trust Wallet and the recently launched Binance Smart Chain (BSC).
What Fees Does Trust Wallet Charge?
Trust Wallet is a market-leading multi-cryptocurrency wallet that enables 5+ million users to securely store dozens of digital assets, interact with Web 3.0 applications via a DApp Browser, and make in-app crypto purchases.
Despite offering such an extensive array of services, Trust Wallet does not charge any wallet fees.
No Wallet Fees
Crypto wallets typically charge a small fee every time you make a transaction. If you are using Trust Wallet, you will not be charged anything for using the wallet.
No Swapping or DApp Fees
Additionally, Trust Wallet does not charge any additional fees for swapping one crypto for another on the in-app DEX or when a user utilizes the DApp Browser to interact with decentralized applications.
Blockchain Network Fees
However, that does not mean using crypto within Trust Wallet is entirely free because cryptocurrencies incur blockchain transaction fees that are paid to the miners (or validators).
Fees vary greatly from blockchain to blockchain.
For example, during times of heightened usage of the Bitcoin blockchain — as we are currently experiencing as a result of the ongoing bull market — transaction fees can be as high as $5 to $10, especially for small transactions.
The same goes for the Ethereum blockchain, which experienced an unprecedented level of usage during the yield farming boom this summer. At some point, Ethereum “gas” fees exceed $10 per transaction, making the network effectively unusable for users in many parts of the world.
So if you are using Trust Wallet to make a payment with bitcoin, interact with an Ethereum DApp, or send a CryptoKitty to a friend, you will incur (unavoidable) network fees.
The good news is that Trust Wallet allows you to set your own network fees for Bitcoin and Ethereum. So for urgent transactions, you can set a higher network fee and for less urgent transactions a lower fee.
Crypto Purchase Fees
Trust Wallet also allows users to buy digital currency using the wallet’s in-app purchase option that connects directly to third-party fiat-to-crypto onramps, MoonPay and Simplex.
For example, to buy bitcoin using Trust Wallet, you access your bitcoin wallet and click the ‘Buy’ button on the top right of the app.
Next, you type in the amount of bitcoin you want to buy (in fiat currency). At this point, the app will choose a suitable third-party provider for the transaction.
When you click ‘Next,’ a web browser will open where you will find the third-party’s crypto purchase service. Follow the instructions and finalize your purchase using your credit or debit card.
Regardless of whether you’re using MoonPay or Simplex to buy crypto, Trust Wallet will not charge any additional fees on top of what the third-party provider charges. While most wallets typically add a fee for credit card bitcoin purchases, Trust Wallet does not profit off its users.
Binance Smart Chain Is Winning on Speed & Fees
Binance Smart Chain (BSC) is a recently launched parallel blockchain to Binance Chain that allows for the seamless creation and interaction with decentralized applications.
As an EVM-compatible blockchain, its primary goal is to provide a much-needed alternative to the increasingly slow and expensive Ethereum blockchain for the burgeoning DeFi market.
Transactions on Binance Smart Chain are processed within seconds (thanks to 5-second block times), while transaction fees are typically in the $0.01 to $0.03 range, making it one of the most competitive smart contract networks in the market.
The reason why BSC’s transaction fees are so much lower than on the Bitcoin and Ethereum networks is because of the consensus mechanism it deploys.
Bitcoin (and Ethereum still) utilize a Proof-of-Work (PoW) consensus protocol that involves miners deploying computing power to solve mathematical equations to secure the network and process transactions.
To maximize transaction fee returns, miners are incentivized to validate transactions with high fees first which creates a scenario where fees start to increase as blockchain usage increases. In some cases, transactions with fees that are too low end up stuck in the mempool for days or are canceled automatically after a period of time.
Conversely, Binance Smart Chain deploys a Proof of Staked Authority (PoSA) consensus mechanism, which involves a system of 21 validators that validate blocks and process transactions. As a result, BSC can achieve much higher transaction speeds at a much lower cost per transaction.
In light of BSC’s low transaction fees, it is not surprising that several DeFi protocols have already launched on BSC while others are considered a move over to the new chain from Ethereum.
The BSC “Fee Holiday”
In addition to Binance Smart Chain’s ultra-low fees, Binance has decided to provide a “fee holiday” for promising projects in the BSC Accelerator Fund.
As part of its newly-launched BUIDL Reward Program for developers building decentralized applications on Binance Smart Chain, the leading crypto company has committed $5 million worth of BNB to the rewards program.
The rewards will be distributed in the form of transaction fee rebates for eligible smart contracts deployed on the BSC network.
Trust Wallet stands out among its peers because of its zero-fee model that empowers users to reap the full rewards of using cryptocurrency and blockchain applications.
What’s more, Binance is taking a very active approach to ensuring that fees will not hamper the development of a burgeoning DApp ecosystem on its newly launched Binance Smart Chain.