Crypto

Binance-Peg ADA vs ADA – What’s The Difference?

Binance Peg ADA vs ADA

Last updated on March 1st, 2022

While you are interacting with the crypto world, you may have noticed that there are 2 versions of ADA: Binance-Peg ADA and ADA.

What exactly is the difference between them, and how can you convert among these 2?

Here’s what you need to know:

Is Binance-Peg ADA the same as ADA?

ADA is a native token that exists on the Cardano blockchain. Meanwhile, Binance-Peg ADA is an ADA token that exists on either the Binance Smart Chain (BEP20) or Binance Chain (BEP2). This means that the value of both Binance-Peg ADA and ADA will be the same, just that these tokens exist on different blockchain networks.

If you search for Cardano on Trust Wallet, you will notice that there are 2 separate tokens:

Trust Wallet ADA Receive

Trust Wallet does not support the Cardano blockchain, so you can’t send native ADA to this wallet. This is similar to other wallets like Metamask.

Instead, you will need to send ADA to a wallet like Nami or Yoroi as both of them support native ADA tokens.

Binance-Peg ADA should be 1:1 with ADA

For every Binance-Peg ADA that is on the Binance Smart Chain or Binance Chain, Binance will store 1 ADA in a public address.

You can access Binance’s ‘Proof of Assets‘ page to show the amount of ADA that is being kept in the reserves for the different versions of ADA (BEP20 and BEP2).

Binance Peg ADA Proof Of Assets

Transaction fees are lower on Binance Smart Chain compared to the Cardano network

If you are sending and receiving ADA via the Cardano network, the transaction fees can be quite high. However, if you choose to send ADA via the Binance Smart Chain (BEP20) or Binance Chain (BEP2), the fees are actually much lower.

Here are the transaction fees you’ll need to pay on Binance when withdrawing ADA using these different networks:

Binance ADA Network Withdrawals

The transaction fees on BEP2 and BEP20 are lower compared to the native Cardano network.

While it is advantageous to send Binance-Peg ADA compared to ADA, you may want to double-check that the wallet or application that you’re using supports the BEP20 version of ADA.

If they do not support the BEP20 version of ADA, then you should only be sending native ADA to that wallet or platform. Otherwise, your funds may be lost!

One example would be sending ADA to Celsius or Nexo, where they only accept Cardano network deposits and not the BEP20 version of ADA.

Is ADA a BEP20 token?

The Binance-Peg ADA token is a representation of native ADA on the Binance Smart Chain (BEP20), and can be converted 1:1 for a native ADA token.

How To Add ADA To Your Metamask Wal...
How To Add ADA To Your Metamask Wallet
Can you send ADA to Binance Smart Chain?

You are able to send ADA via the Binance Smart Chain (BEP20) to any wallet that supports the Binance Smart Chain. However, you will need to send ADA from a platform that supports BEP20 withdrawals of ADA, such as Binance or Crypto.com.

Even though there are quite a few platforms that list ADA, most of them will only allow withdrawals of ADA via the native Cardano network.

3 platforms that allow Binance Smart Chain withdrawals of ADA include:

  1. Binance
  2. Crypto.com
  3. SafePal

What is the difference between the BEP20 and BEP2 versions of ADA?

There are 2 versions of Binance-Peg ADA which exist on different blockchains, where the BEP20 version exists on the Binance Smart Chain, while the BEP2 version exists on the Binance Chain.

The Binance Smart Chain and Binance Chain are 2 separate networks, so you can’t send BEP20 ADA to a BEP2 address!

How do I convert Binance-Peg ADA (BEP20) to ADA?

To convert Binance-Peg ADA from BEP20 to native ADA, you will need to send ADA to a platform that supports both Binance-Peg (BEP20) ADA and native ADA.

Here are some platforms that you can use:

How to convert ADA from BEP20 to native ADA on Binance

If you would like to convert ADA from BEP20 to native ADA, you will need to send the BEP20 version of ADA from your wallet to Binance using the BEP20 network.

First, you will need to obtain the ADA (BEP20) deposit address on Binance.

Binance ADA BEP20 Deposit Address

This address should start with ‘0x‘. You may also want to note that your ERC20 network address will be the same.

After that, you can copy this BEP20 address to your Metamask wallet which holds ADA on the Binance Smart Chain.

Metamask Send ADA Binance Smart Chain

If you have not added Binance-Peg ADA to your Metamask wallet, you can check out this guide here.

After processing the transaction, you will receive ADA in my Binance account.

Binance does not separate out the different versions of ADA based on the network you’ve used to send to Binance. As such, it does not matter whether you send native ADA or Binance-Peg ADA to your Binance account.

Ultimately, all of them will be aggregated into one account balance.

Binance ADA Balance

If you would like to send ADA to another wallet (such as Yoroi), you can withdraw ADA from your Binance account using the native Cardano network.

Binance Send ADA Native

How to convert Binance-Peg ADA to native ADA on Crypto.com

Similar to the method for Binance, you will be able to convert Binance-Peg ADA to native ADA by sending ADA to Crypto.com.

Once you have sent ADA to the Crypto.com App via the BEP20 network,

Crypto.com Deposit ADA BSC

Crypto.com will aggregate both the BEP20 and native ADA balances together.

If you want to send native ADA to another wallet, you can withdraw from Crypto.com using the native Cardano network.

Crypto.com Withdraw ADA Native

How to convert Binance-Peg ADA to native ADA on SafePal

Another option to convert Binance-Peg ADA to native ADA is on your SafePal wallet. You can send Binance-Peg ADA to your SafePal wallet via the BEP20 deposit address.

SafePal Deposit ADA BEP20

Once you have deposited ADA (BEP20) to your SafePal wallet, you can go to the ‘Swap‘ feature and swap from ADA (BEP20) to native ADA.

SafePal Swap BEP20 ADA To ADA

You will have to pay a transaction fee for each swap that you make.

Conclusion

Binance-Peg ADA is a BEP20 or BEP2 version of ADA, which represents ADA on either the Binance Smart Chain or Binance Chain. This is similar to how BTCB is a Binance-Peg token of BTC.

There are only a few ways that you can convert between Binance-Peg ADA (BEP20) and native ADA, which include:

  1. Binance
  2. Crypto.com
  3. SafePal

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