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:
Contents
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 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).
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:
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.
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:
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.
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.
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.
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.
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 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.
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.
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.
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:
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