How VIP Programmes on Cryptocurrency Exchanges Work. Who Benefits and How?

Cryptocurrency exchanges Binance recorded a 116% increase in the number of VIP customers over the year.

Maintaining large customers is one of the priorities for cryptocurrency exchanges.
Cryptocurrency exchanges are no longer just platforms for digital asset transactions, but true ecosystems. To distinguish themselves from their competitors, they aim to attract and retain users, especially those who make large transactions. VIP programmes are one of the key tools to achieve this goal.

Vip programmes are aimed at users with large assets and significant trading volumes.
Typically, participants in these programmes are professional traders, who can be either individuals or representatives of companies that handle large-volume transactions on a daily basis.

Institutional investors, such as funds and corporations, who use exchanges to manage capital and diversify assets, are also among the customers at this level. In addition, VIP status also appeals to individual investors with large capital, often called 'whales', who have the ability to influence the market. Market makers, i.e., companies or users that provide liquidity to the platform, often join such programmes.

For exchanges, the presence of VIP customers is a strategically important aspect.

These users generate high trading volumes, increasing the exchange's commission income. In addition, their activities improve the liquidity of the platform, making transactions faster and less susceptible to market fluctuations. Attracting large players enhances the reputation of the exchange and increases its competitiveness. VIP programmes help retain these customers by offering them exclusive terms and reducing the risk of them migrating to other platforms.

For users, participation in VIP programmes offers numerous benefits, making their work on the exchange more convenient and profitable.
Reduced trading commissions are one of the main benefits for those who execute significant transaction volumes. Participants in the programmes have access to personal managers, ready to quickly solve any problems.

Enhanced margin trading conditions, such as reduced lending rates and higher limits, are another benefit. Exclusive products, such as reserved investment instruments or early access to new tokens, are an added bonus. VIP customers also receive professional analysis to help them make more informed decisions, as well as higher withdrawal limits and accelerated transactions.

Exchanges design their VIP programmes with the needs of the target audience in mind.
For example, OKX offers 8 VIP levels, each with unique benefits. Participants receive reduced commissions, access to restricted token sales, customised API settings, dedicated support, and the opportunity to participate in exclusive events with exchange partners such as TradingView, McLaren or Manchester City.

Comparison of VIP Programmes: Binance, Coinbase and Kraken

Binance offers nine VIP levels, each of which grants progressive commission discounts and access to exclusive bonuses.
Coinbase's VIP programme is aimed at institutional clients, offering specialised advice and dedicated products. Kraken, on the other hand, provides its VIP customers with improved conditions for margin trading and personalised support.

Participation in these programmes comes with its own limitations and risks.
One of the main obstacles is the high entry threshold, as obtaining VIP status requires significant trading volumes or large deposits. Some exchanges set minimum activity requirements to maintain status, which can be burdensome for customers. Moreover, in some countries, large transactions may attract the attention of regulators, creating additional legal risks. VIP status can also increase a customer's vulnerability to cyber-attacks due to the disclosure of information about their assets.

Vip programmes are a beneficial tool for both exchanges and users.
Exchanges have the opportunity to increase revenues and strengthen their market position, while customers can reduce costs and benefit from unique services. This model stimulates the development of the entire cryptocurrency industry. As a result, VIP programmes become an integral part of the ecosystem of cryptocurrency exchanges, contributing to the achievement of the goals of both professional participants and platforms.