Binance is the most widely used exchange platform in the crypto ecosystem. It has more than 25 million users all around the globe.
The wallet section in Binance allows its users to connect with the other crypto blockchains and enables its users to send their fiat currencies to their external wallet address.
Recently, Binance has merged the P2P wallet and the funding wallet(newly added). Are you looking forward to knowing more about the funding wallet in Binance?
You have come to the right place. In this blog, we will give you a brief overview of the two major wallets of Binance, how we can use them and if they are safe for your digital funds.
What Is Spot Wallet?
Spot wallet is the wallet in your Binance account where you store your funds for trading or buying/selling any crypto coins.
A spot wallet in Binance is not the same as a cash wallet, a spot only keeps funds for the trading of digital coins, and cash wallets are connected to fiat gateways.
In addition, generally, a spot wallet is a non-custodial wallet that gives the user the sole right over their crypto coins and ensures the safety of their funds.
What Is Funding Wallet?
The Funding wallet in Binance shows the total value of crypto balance that a user has gained from buying or selling their cryptos over the P2P network, from Binance Pay and Binance Card.
In simpler terms, a funding wallet is a wallet that has all details of all your cryptos coins(trading) that have been sent over the peer-to-peer network.
You get to exchange your crypto coins with a local currency. Binance has enabled its users who can deposit or withdraw their crypto coins from the funding wallet.
Spot Wallet Vs. Funding Wallet Binance
|Spot Wallet||Funding Wallet|
|Spot Wallet is a trading wallet where you don’t directly buy the crypto coins but trade the money for the prevailing market rate.||Funding Wallet holds all details related to the buying and selling that you have done over the P2P network.|
|Spot Wallet holds fiat cryptocurrencies like USD, GBP, EUR, BRL HKD, AUD, and many more.||Funding Wallet holds no currencies. For that, you need to transfer the amount from your spot wallet to your funding wallet in Binance.|
|Spot Wallet is a non-custodial wallet. However, it does. that does not show your Binance card and Binance pay balance.||A funding wallet is a non-custodial wallet Which shows you your Binance pay and Binance card balance.|
|Spot wallet is one of the two major wallets in Binance when it comes to transferring the fiat amount to your external wallets.||Both Spot wallet and funding wallet are the two significant wallets of the Binance exchange platform.|
- As we have mentioned earlier, a spot wallet is a trading wallet that allows you to trade crypto coins and NFTS, whereas a funding wallet carries all the details of your trade over the P2P network.
- To use a funding wallet, you have to transfer your cryptos or balance from the spot wallet in Binance, spot wallet contains many local fiat currencies.
- Funding wallet enables users to see their Binance pay and Binance card’s balance, whereas spot wallet does not provide any such feature.
- To send your fiat currencies, you have to paste the external wallet’s address in either of the wallets as both the wallets(spot and funding wallet) support this feature.
How To Use Funding Wallet Balance?
Steps To Use Funding Wallet Balance:
Step 1: Launch The Binance Wallet App.
On your mobile phone, tap on the Binance app icon to open and then look for the wallet icon on your main screen.
Step 2: Tap On Funding Wallet
Next, tap on the wallet icon section, and near the spot wallet, you will see the funding wallet, click on it.
Step 3: Choose The Coin
Now; you will have to choose the coin that you wish to transfer and then add the amount that you wish to transfer. When done, tap on the transfer option.
Step 4: Confirm The Transfer
Once done, choose the crypto coin you want to transfer and choose the amount and then tap on the yellow “confirm” tab; you will be able to successfully transfer the crypto coin, which you can then buy or sell to/from your P2P network.
Furthermore, the funding wallet has other main options like “Pay Page” and “Gift Cards” pay page can only be viewed when you have bought/sold, or transferred any amount via the P2P network. It contains the details of the transactions the sender/buyers pay ID
Gift cards have been added by Binance which allows you to send gift cards to your friends and family members who are using the Binance app.
You only have to select the Crypto coin type and amount that you want to send and then tap on “create” to send the gift cards. You can also receive gift cards from this feature of the funding wallet.
How To Use Spot Wallet Binance?
Steps To Use Spot Wallet Binance:
Step 1: Launch The Binance Application.
From your home screen, tap on the Binance icon to open it and log in to your Binance app.
Step 2: Click On Wallets.
After that, click on “wallets” present at the bottom right of the screen and then go to the “overview” section and then click on “transfer.”
Step 3: Tap On Funding
Next, click on the second option on the page that is ” funding” to transfer your crypto or funds to your funding wallet, as the funding wallet has recently migrated to the P2P network.
Step 4: Enter The Type Of Crypto
Once you have clicked on Funding wallet, you will be taken to the page where you have to fill in the amount and choose the crypto you want to transfer in the given fields.
Step 5: Click On The Confirm Transfer Tab
Lastly, you have to click on the “confirm transfer” tab given below the page. If you want to check whether the amount has been transferred or not, you have to click on the clock icon on the right top corner of the page, which is known as the “transfer history” tab.
Click on it to see if your cryptos or funds have been transferred successfully.
Also Read: Fix: Binance System Abnormality
Is Binance Spot Wallet Safe?
Yes, the Binance spot wallet is safe to store your crypto coins and NFTs. Most of us are familiar with the Binance 2FA(two-factor authentication ) security feature that is linked through the google authenticator. This feature is used to keep all your funds and digital wallets safely in Binance.
In addition, Binance uses device management and address whitelisting which provides another security layer for your crypts and NFTs.
A user’s account security is one of the major priorities for Binance. They can’t risk any of the users’ funds and cryptos for mal use; therefore, they have also provided insurance on all the dollar balances.
Is Binance Funding Wallet Safe?
Yes, the Binance funding wallet is fully safe. Whenever you purchase a crypto coin, it is transferred to your Binance funding wallet, and the amount is neither increased nor changed.
Your funds will remain safe whenever you have to use the funding wallet. The “Binance tech team” will handle every operation during the migration over the P2P network.
The Binance funding wallet plays a key role in Binance. Therefore it has a high-security policy and technicalities to safeguard your funds.
Spot wallet is the non-custodial wallet in the Binance exchange platform, and the funding wallet is the recently added feature(wallet) in place of the P2P wallet in Binance.
There is nothing to be confused about when it comes to how to transfer your digital assets and funds from the funding wallet. It’s the same as the P2P network. In addition, the funding wallet has three more new features: a pay page and gift cards sections.
Both the spot wallet and the funding wallet work pretty similarly, and they are essential features that you cannot skip using, especially whenever you have to transfer your fiat currencies to any external digital wallet.
And if you are having doubts or you are insecure about the safety of your funds, then don’t worry. They are safe and secure with the Binance spot wallet and funding wallet.