What is a crypto referral code and how does it work?

A crypto referral code is an identifier, usually a short string or a link, that connects a new customer to the existing customer who invited them. Exchanges and wallet apps use it to decide who earns a reward when the newcomer signs up and starts using the service. The terms vary widely between companies and change often, so the current rules always sit in the provider's own help pages.

What is a referral code in crypto used for?

The code is a tracking tool. When a friend signs up through your link or types your code during registration, the platform records you as the referrer. Binance, for example, lets users share a referral link, QR code or Referral ID, and its wallet program allows only one referral code per referred user, which cannot be changed once linked.

Timing matters. Many programs expect the code at sign-up. Binance's wallet FAQ says existing users can add a code later only if they have never linked one before.

How do crypto referral programs pay out?

There are two common models.

• Fixed bonus. Kraken's Krak app has paid both people a set reward once the new user verified the account and made a qualifying cash deposit, with rewards delivered within 14 days. As of November 2026, Kraken says the program is ending and accepts new referrals only in the European Economic Area.
• Fee sharing. On Binance the referrer earns a percentage of the friend's trading fees, and can pass part of it back to the friend as a discount. The rates have changed over time, and Binance marks its older rate table as outdated.

Rewards are often capped, paid in the platform's own balance rather than cash, and changeable at any time.

What is an exchange referral bonus not allowed for?

Platforms try to stop people from referring themselves. Kraken disqualifies duplicate accounts, and Binance says self-inviting through multiple accounts cancels the referrals and the rebates. Since opening a crypto account normally requires an identity check, as covered in what is KYC, a second account in your own name is usually spotted.

How does a referral code scam work?

Some schemes use the language of referrals to hide a pyramid. The Federal Trade Commission sued promoters of crypto "chain referral" schemes in which people paid bitcoin or litecoin for the right to recruit others, with no real product behind it. The FTC's warning signs include promises of easy money, models that are hard to explain and pressure to pay in and recruit.

Other scams post a code for a platform that is itself fake. Checking the site first, as described in how to check if a crypto exchange is legit, avoids that trap. A genuine referral code never needs a payment, a seed phrase or remote access to your device. The CFTC, writing about fraud more broadly, notes that legitimate services do not ask for payment before providing anything. More patterns are listed in common crypto scams.