Everything you need to know about Binance Coin (BNB)

In the cryptocurrency market we can find thousands of them, but only a few really stand out. One of best cryptos to trade today is the Binance coin (BNB). This is a coin created by Binance to serve as “engine” from its Binance Chain (BC) network.

BNB, in simple terms, is a crypto asset similar to other digital assets on the market. Its value also rises and falls as individuals use and trade it.

Holders can store BNB holdings in compatible wallets outside of crypto exchanges. They can also send the coin directly to other people for payments and other transactions.

Even if it is not one of the coins with the highest value or the highest market capitalization. It's a really solid project. Today we're going to delve a little deeper into what BNB is.

Let's go

???? A brief history of Binance Coin

Binance Coin was launched in July 2017 via an Initial Coin Offering (ICO). BNB coins were dispersed among several participants, including the Binance founding team and angel investors.

Additionally, 100 million BNB was made available to the crypto community through public auction. During the ICO, the 100 million tokens were sold for 15 cents each, and Binance raised a total of $15 million in Bitcoin (BTC) and Ethereum (ETH).

35% of the total $15 million raised was used to upgrade the Binance platform and exchange system, 50% was used for marketing and branding, and the remaining 15% was used for been set aside as reserve tokens. BNB was an ERC-20 token built in top of the Ethereum blockchain during its ICO and debut.

???? What is Binance Coin?

BNB is an ERC-20 type token which runs on the Ethereum network and was launched in 2017. The project had an initial sale of 200 million BNB in ​​an effort to create what is now Binance. Subsequently, the platform decided that it had to launch its own network and this is how the Binance Chain was born.

This cryptocurrency, unlike others in the market, cannot be mined and that is because all BNB tokens have already been issued. To balance its price, its management team switched to burn half of total supply. In this way, the currency of BNB will be 100 million, which will allow the price of the currency to remain stable in the long term.

Binance's BNB token is used for several things. It is used to collect funds for trading, transaction fees on Binance Exchange, payment processing, loans and transfers, etc.

Binance also spends a portion of its earnings each quarter to redeem and burn BNB and has continuously held these burn events since 2017.

???? How do investors get BNB?

For users to purchase BNB, they need to search for a crypto exchange such as Binance, Binance.US, or Coinbase. If a user does not have an account with one of these exchangers, they will need to create one.

To buy BNB:

• Select your crypto exchange.
• Create an account.
• End it KYC process.
• Deposit fiat currency by bank transfer, credit/debit card or mobile money. These payment methods are available depending on your geographical area.
• Start negotiating.
• Withdraw your BNB to a wallet.

???? What to do with Binance coins?

One of the keys to the success of a crypto project is that it has a utility. Fortunately, BNB has a lot of utility both within the Binance Chain and Binance Smart Chain. Among the main uses that are currently given to Binance Coin, we can mention the following:

Trading. Binance Coin can be traded against other cryptocurrencies on various exchanges, depending on exchange regulations.

Binance Exchange Transaction Fees. Users can use BNB to pay for trades on Binance Exchange and get a rebate.

Payments by credit card. On Crypto.com, BNB can be used to pay crypto credit card bills.

Payment processing. Merchants can accept BNB as a form of payment, giving customers more options in terms of payment methods.

Reservation of travel arrangements. BNB can also be used to book hotels and flights on certain websites.

Entertainment. BNB is used for a variety of purposes in the entertainment industry, from paying virtual gifts to buying lottery tickets.

Investments. Binance Coin can be used to invest in stocks, ETFs, and other assets across various platforms.

Loans and transfers. BNB can be used as collateral for loans on some platforms. Some apps allow users to pay friends and family and split costs using Binance Coin.

???? Advantages and disadvantages of Binance Coin

As is the case with any cryptocurrency, it is essential to consider all the pros and cons before investing. This is no different if you are looking to invest in Binance Coin (BNB).

✔️ Benefits

Binance is one of the best utility tokens. You can use BNB in ​​a variety of ways, in addition to having a smooth experience within the Binance ecosystem and receiving transaction fee discounts. Several service providers accept it, especially in the travel and hospitality sectors. By using BNB you can buy a dinner or a new house.

Binance Exchange is very popular. Using fast, secure and inexpensive transaction matching technology, you can trade over 150 cryptocurrencies on the exchange with BNB. In addition to this, BNB has its own trading pairs to suit your individual trading needs. No need to look elsewhere.

Binance offers low fees. With traditional payment methods, if you purchase $10 worth of coins, you will be charged $10. If you use BNB, however, the trading fees are cut in half, so you'll only have to spend $5.

Fast transactions. BNB gives you access to the platform's internal matching engine, which can process up to 1,4 million orders per second when trading on the exchange. Finding the right transaction is always possible, and BNB makes it even easier and more reliable.

✔️ Drawbacks

• Binance Coin is centralized. Contrary to decentralized platforms, centralized platforms operate completely differently.
• Binance is constantly in the crosshairs of regulators around the world.
• Binance's platform is a major target for hackers.
• Strong competition from other smart contract projects.

FAQ

Of course, here is an FAQ about Binance Coin (BNB)

Q: What is Binance Coin (BNB)?

A: Binance Coin (BNB) is a cryptocurrency created by Binance in 2017. It is used to pay transaction fees on the Binance cryptocurrency exchange, as well as to participate in token sales on the Binance Launchpad platform. .

Q: What is Binance Coin (BNB) used for?

A: Binance Coin (BNB) is primarily used to pay transaction fees on the Binance cryptocurrency exchange. Users who pay their transaction fees in BNB receive a 25% discount.

Additionally, Binance Coin (BNB) is used to participate in token sales on Binance's Launchpad platform. Users can purchase tokens with BNB and receive discounts on transaction fees.

Q: How much Binance Coin (BNB) is in circulation?

A: According to the Binance website, there are currently approximately 170 million Binance Coin (BNB) in circulation.

Q: How to buy Binance Coin (BNB)?

A: Users can purchase Binance Coin (BNB) on the Binance cryptocurrency exchange in exchange for other cryptocurrencies such as Bitcoin or Ethereum.

Q: Where to store Binance Coin (BNB)?

A: Users can store Binance Coin (BNB) in an e-wallet compatible with ERC-20 tokens, such as MyEtherWallet or Ledger Nano S.

Q: Are Binance Coin (BNB) a good investment option?

A: As with any form of investment, it is important to do your own research and evaluate the potential risks and rewards before investing in Binance Coin (BNB).

However, some investors see Binance Coin (BNB) as having growth potential due to its increasing use on the Binance cryptocurrency exchange and Binance Launchpad.

???? Conclusion

In this tutorial, you learned about Binance and its concepts such as “ All about Binance Coin », BNB Coin and how it works. BNB is a very interesting coin with a great future, as well as a fairly acceptable price if you want to invest.

As well as being backed by one of the largest cryptocurrency related companies in the world. It's a very solid project worth checking out if you're looking to expand your portfolio.

It is therefore wise to invest in BNB. If buyers joined in and sold at the right time, it is conceivable that past price growth has generated profits. However, only time can tell where the price of BNB will go in the future.

Do you have questions for us? Feel free to drop them in the comments section of this article. Our experts will answer you as soon as possible.