Pros of Binance Coin
- Unlocks discounted trading fees at Binance Exchange
- Can be traded at several cryptocurrency exchanges
- Accepted for consumer purchases at several sites
- Burns ensure that supply continually decreases
Cons of Binance Coin
- Not as widely accepted or recognized as Bitcoin
- Binance has been subject to security breaches
History – The beginning of Binance
Tech entrepreneur Changpeng Zhao founded Binance as a place to buy crypto online in 2017, and it became the world’s largest crypto exchange within its first year of operations. Its market capitalization had reached $1.3 billion by January 2018 and it continued to soar during the ensuing years. Binance was initially based in China, before moving to Japan, then Taiwan, Malta and finally the Cayman Islands.
Binance Coin (BNB) was created in 2017 as the native token for the Binance exchange. The firm initially offered users a tantalizing incentive to buy Binance Coin, as they could enjoy a 50% discount on trading fees when using it to buy and sell crypto on the Binance exchange. That discount was later halved to 25%, but it remained an appealing reason to buy Binance Coin and hold BNB. The discount continues to be halved on an annual basis, and it will soon be reduced to zero.
There have been a few regulatory concerns for Binance since it launched in 2017. Government clampdowns forced it to leave China, Japan and Taiwan. The Malta Financial Services Authority then issued a statement in February 2020 declaring that Binance was most certainly not an authorized Malta-based cryptocurrency, as had been claimed. A Forbes article in October 2020 alleged that Binance and Zhao had created an elaborate corporate structure to deceive regulators in the United States, but it remains the world’s largest crypto spot exchange by a considerable margin, based on traffic, trading volumes and liquidity.
Development – How Binance has evolved over time
Zhao’s team initially developed Binance Coin as an ERC20 token based on the Ethereum blockchain. Binance Coin trading was largely conducted on the Binance exchange among traders that wanted to take advantage of the discounted fees it yielded when conducting Bitcoin trading or Bitcoin Cash trading. BNB has developed significantly since then.
The firm developed its own Binance blockchain and migrated BNB to this native chain in April 2019. The idea was to mimic the role that Ether plays on the Ethereum blockchain. Anyone that is interested in Binance Coin trading and reads Binance Coin trading reviews generally likes Ethereum trading too. Anyone that wants to trade on the dual-chain Binance DEX is advised to buy Binance Coin.
The Binance Chain team is a loosely organized community. It ensures that Binance DEX is one of the fastest on-chain trading engines available, with a large number of client interfaces. Migrating the BNB token to the native Binance Chain coin was seen as a key milestone in Binance’s evolution from a company to a community.
Statistics – All the most important facts about Binance
Anyone that wants to buy Binance Coin, monitor the Binance Coin price and take part in Binance coin trading should be fully armed with the key statistics. All BNB was pre-mined during Binance’s initial offering back in 2017. Binance revealed that it would always use 20% of its profits to buy back a chunk of BNB each quarter. It then destroys them, which serves to decrease supply and make the remaining BNB more valuable for those that buy Binance Coin and hold it.
In the very first quarter, the Binance team bought and burned 986,000 coins, which equated to 0.49% of the overall supply. The burns have ranged from 808,888 BNB to 3,477,388 BNB in the ensuing years, rising and falling in line with Binance’s profits and the value of BNB. The 13th quarterly BNB burn took place in October 2020, when Binance snapped up and burned 2,253,888 BNB, which was equivalent to $68 million at the time.
By that point, the BNB price had increased to a record $30.20. That burn equated to 1.13% of the total remaining supply. The increase in its price can be attributed to a number of factors: the launch of new DeFi use cases such as locking liquidity into Burger or PancakeSwap, the low fees on the Binance Smart Chain, and the launches of initiatives like Binance Liquidity Pool, Launchpool, and Binance Savings.
Security, Features and Uses – How safe is it to buy Binance coin?
The number of real world uses for BNB has spiralled since it was launched in 2017, providing many compelling reasons for people to buy Binance Coin. You can use BNB to pay your credit card bills or travel expenses. It can be used to hire freelancers, send money to friends and family, buy consumer goods or purchase virtual world spaces at sites like Decentraland. You can buy a web server in BNB or even make large purchases like real estate or an airplane.
You can pay crypto trading fees on the Binance exchange and enjoy discount perks. It supports further utilities on the Binance ecosystem, including paying for listing fees and exchange fees, and in-store transactions. It can be used to invest in certain initial coin offerings on Binance Launchpad. Investors can buy Binance Coin and then use it to purchase stocks, Forex and ETFs. Many people also see it as a potential growth investment or an asset to be regularly traded, as it has seen significant price fluctuations over the past few years.
Anyone that wants to buy Binance Coin or take up Binance Coin trading should be aware of the security risks. Binance was hit by a large security breach in May 2019. Hackers snatched 7,000 Bitcoins, which were worth around $40 million at the time. They did not steal BNB, but it made users twitchy.
You have to pay withdrawal fees to move your crypto assets off the Binance exchange to your own wallet, but that is recommended for anyone planning to hold it for a reasonable period of time, as you will enjoy greater security. A cold storage, hard wallet made by Trezor or Ledger is your best bet. You should always remain vigilant to Binance Coin trading scams, and alarm bells should start ringing if anyone offers you Binance Coin trading terms that appear too good to be true.
How to Trade – Where can you buy Binance coin?
First you need to find the best Binance Coin trading sites, which is the key focus of this article. BNB was initially exclusive to the Binance exchange, but you can now buy Binance Coin and sell Binance Coin on numerous cryptocurrency exchanges and investment platforms.
Binance naturally remains the most obvious Binance Coin trading site for most investors. After all, Binance created BNB and it is the native token for the entire Binance ecosystem. The Binance exchange offers further benefits to traders: it offers a huge range of cryptocurrencies, so you can buy Litecoin, buy XRP and buy many more coins alongside BNB; it boasts high liquidity and a large trading volume; security levels have held firm since the 2019 breach; and it has strong development and customer service teams.
However, you have alternative options at your disposal, including eToro and CEX.IO. eToro allows you to trade a wide range of instruments alongside crypto, and it has grown popular by allowing users to automatically copy the trades conducted by high-profile crypto traders. CEX.IO has fewer crypto pairs, but it allows for cryptocurrency staking and margin trading, and offers a wide range of payment options.
You might also consider setting up an external crypto wallet, as it can be risky to keep BNB and other coins on an exchange in the long-term. Holding it on an exchange is more for traders. You can opt for a web wallet, paper wallet, desktop wallet or mobile wallet, but a hard wallet is generally the safest and most attractive option. Once that is in place, head over to Binance or a rival exchange and buy Binance Coin.
If you set up a Binance account and then visit binance.com/en/buy-sell-crypto, you will see a “Buy Crypto” widget to the right of the screen. The first box will automatically be set to US dollars and the second box is set to Bitcoin. Click on the downward facing arrow to trigger a dropdown menu of the long list of cryptocurrencies you can buy. Type in BNB and click on it.
You can then enter the amount you wish to spend in the first box. The initial limits are $15 to $5,000 per transaction. It will tell you the amount of Bitcoin you will receive in the second box. Choose your payment method – it accepts Visa, Mastercard, P2P trading and a few other options – and then click “Buy BNB”. You will need to verify your account and complete a two-factor authentication process, which involves entering codes sent to your email address and phone number.
Once you have verified the transaction, you can check the details and click to complete it. Your account will be then credited. You can conduct Binance Coin trading, or withdraw BNB to your wallet. Enter your wallet address and send either all of your BNB or part of your balance to the wallet. It should arrive within 15 minutes.
Anyone interested in Binance Coin trading can click “Sell Crypto” at the top right of the trading widget. Choose BNB from the dropdown menu, enter the amount you want to sell and choose the currency you wish to receive. It will then tell you the amount you will receive, and you can authenticate and confirm the transaction.
Future Outlook – The future of Binance coin trading
BNB investors should feel reasonably confident in the future of this popular cryptocurrency. Binance will continue to conduct burns until it has halved the initial supply. It is still some way off achieving that target, so the coin will become increasingly scarce in the years ahead, and that should help its value increase. No Binance Coin price prediction can be fool-proof, but many sharp investors are bullish on BNB.
Its fortunes are naturally linked to the future health of the Binance exchange, which remains a lot larger than its closest competitor, Coinbase. Interest in the crypto sector is at record levels, with millions of Americans searching for the best cryptocurrency to invest in, and Binance stands to benefit from this trend.
The Binance team continues to innovate, the overall ecosystem has grown, an international expansion drive has been largely successful and new uses are springing up on a regular basis. Any Binance Coin prediction should factor in wider macro trends, like regulatory headwinds and the performance of the overall crypto market. Yet BNB should flourish if Binance’s Launchpad scheme can help to launch new and popular coins, so it is worth keeping an eye on that project.
Reputation and Customer Feedback – How does Binance fare?
Binance Coin has established itself as one of the top 10 cryptocurrencies by market cap. It has a reputation for relative stability in the crypto space. There were some sharp fluctuations in 2019 and 2020, but overall it has enjoyed steady upward growth and its market cap has increased from $10 million to more than $6 billion since it launched in 2017.
The security breach of 2019 dented Binance’s reputation, and some users rail against its high withdrawal fees for certain cryptocurrencies, but it has still gone on to become the most popular crypto exchange in the world. It is the best Binance Coin trading site, and many people believe it is also the best option for trading Bitcoin, Ether and various other coins. In general, users have been positive in their feedback on BNB. It has evolved in intriguing directions over the past couple of years, and it appears to have a bright future.
Conclusion – Is Binance worth buying?
There are a number of compelling reasons to buy and hold BNB. It offers various perks for anyone trading on the Binance exchange or using the Binance ecosystem, and the number of real world uses have increased in recent years. There may have been some sharp fluctuations, but it has always rallied and traced a broad growth pattern, while its future outlook appears to be pretty positive. You can buy and sell BNB at sites like eToro, but Binance is the best Binance Coin trading site for US investors.