Binance has become the world’s largest cryptocurrency exchange after impressing millions of customers with its competitive fees and fast processing times. It launched Binance Coin as its native cryptocurrency back in 2017.
Binance Coin is used to fuel transactions on the Binance Chain and for token sales hosted on the Binance Launchpad, but an increasing number of vendors now accept it as a payment method too.
- Offers discounted fees on the Binance Exchange
- BNB burns ensure the supply is constantly diminishing
- Can be spent as a cryptocurrency at several sites
- Not as widely accepted as Bitcoin or Ethereum
- Binance has had security and regulatory issues
Changpeng Zhao founded Binance in 2017. It launched Binance Coin in July 2017 as an ERC20 token based on the Ethereum blockchain. You cannot mine Binance Coin. Supply was capped at 200 million coins, and half of them were sold in an initial coin offering that raised $15 million for the new company. Binance Coin was designed to pay for services and fees for traders using the Binance exchange. The coin is known as BNB. Visitors were offered a compelling incentive to trade Binance-Coin, as they could benefit from a 50% discount on trading fees when using it on the Binance exchange. The discount has since been halved to 25% when using it to trade.
By 2018, Binance had established itself as the world’s leading crypto trading exchange by volume. It was initially based in China, but it moved to Japan and then Taiwan after the Chinese government introduced a ban on crypto trading in September 2017. Taiwan then clamped down on crypto trading too, so Binance moved to Malta. In February 2020, Malta’s financial regulator announced that Binance was not authorised to trade there, and the newspaper Malta Today revealed that the firm was actually headquartered in the Cayman Islands. It has had a tumultuous few years, but Binance remains extremely popular, and you can now buy and sell Binance-Coin at many third-party vendors.
Binance Coin was initially designed to provide discounted fees on the exchange. It has since evolved and it now offers various alternative uses for holders. In 2018, Binance revealed that it was developing its own Binance Chain, and warned that it would shift its BNB token to this native chain. BNB made the switch from the Ethereum blockchain to the Binance Chain in April 2019.
“Binance Coin on the Binance Chain is the same as the Ethereum coin on the Ethereum network,” said Zhao at the time. “You will have to use it to pay for network transactions, as gas.” You would require to operate with Binance-Coin if you wish to trade on the Binance DEX. It can also now be spent as a cryptocurrency outside the exchange, and holders have used it to pay for flights, hotel rooms and virtual gifts. By 2020, Binance Coin was the eighth largest cryptocurrency in the world, with a market cap north of $2.5 billion.
There is no need to download crypto mining software or visit cloud mining sites if you want to hold BNB. It was all pre-mined during Binance’s initial offering in 2017.
Binance announced that it would use 20% of its profits to buy back BNB each quarter and destroy them. This decreases the supply and makes BNB more valuable for holders. In the first quarter, it bought back 986,000 coins and burned them. That was equivalent to 0.49% of the total supply, and it had a fiat value of $1.5 million.
The 11th Binance Coin burn took place in April 2020, and it saw Binance snap up 3,373,988 coins. That was 1.69% of the total supply, worth almost $52.5 million, and it reduced the total number of coins in circulation to around 180 million. Binance will keep conducting Binance Coin burns until the total supply reaches 100 million in a bid to give people that like to trade crypto online and incentive to invest in Binance-Coin.
Security, Features and Use Cases
Binance was historically viewed as one of the most secure crypto trading exchanges in the world. However, it revealed in May 2019 that it had fallen victim to a large-scale security breach. Hackers stole 7,000 Bitcoin, which was worth around $40 million at the time. Binance Coins were not stolen during the hack, but the incident has somewhat tarnished Binance’s reputation for being a rock solid trading exchange. Yet millions of global crypto users still invest in Binance-Coin, enjoy Binance-Coin trading and trust Binance’s account protection features. It has a multi-tier and multi-cluster system architecture and a secure assets fund for users. The site also has a raft of information about how to avoid Binance Coin trading scams.
The Binance-Coin price has remained uncharacteristically stable since Binance launched the coin in 2017. It has been prone to some fluctuations, but they have been less severe than most rival cryptocurrencies. The list of use cases has also continued to increase with each passing year. You can pay trading fees, travel expenses and credit card bills. You can even by aircrafts using BNB at the pilot shop powered by Aeron. BNB is a payment method on DENT apps and at stores that use the XPOS device, while it can also be used to purchase virtual gifts.
You can use BNB as collateral for loans. It can be used at auction for virtual world spaces on Decentraland and to obtain land at Axie Infinity. Some private nightclubs accept BNB. You can invest in Binance-Coin and use it for purchasing a real estate property via Propy. It can also be used to hire freelancers, trade stocks, split bills with friends and family, and create smart contracts at MyWish, among many other uses.
How to Trade
Binance-Coin trading primarily takes place at the Binance exchange. Head to binance.com webpage and you will be able to buy and sell BNB, as well as other cryptocurrencies. The limit per BNB transaction when it comes to obtaining Binance-Coin is $5,000. Binance will tell you the amount you will receive in BNB after you enter your spend. You can then choose to use a bank card, P2P Exchange or other payments. You have to sign up for a Binance account and be logged in to complete the purchase.
A toolbar menu also allows you to switch to selling crypto. BNB is the second option after BTC on the dropdown menu. Enter the amount you wish to sell, choose your fiat currency, and it will tell you how much you stand to receive. The maximum limit per transaction when selling at the Binance-Coin trading section is $20,000. Please take in consideration that we are not recommending either buying or selling the cryptocurrency, but the previous paragraphs are just an explanation of the buying and selling processes.
Binance-Coin trading also allows you to exchange BNB with other cryptocurrencies. Visit binance.com/en/trade/BNB_BTC to trade it with Bitcoin. You will be presented with a raft of analytical data, and you can choose the amount you wish to trade, while placing limits or stop-limits if you so desire. Visit binance.com/en/trade/BNB_ETH to trade BNB with Ethereum. Various other cryptocurrencies are available for Binance Coin-trading here.
There is also a P2P (C2C) crypto exchange that allows you to buy and sell Binance-Coin and facilitates Binance-Coin trading at the Binance exchange, directly at the Binance site. You will see BNB as one of the options at the top of the page, alongside BTC and ETH. You can switch between “I Want to Buy” and “I Want to Sell”. Enter your amount, fiat currency and payment method to get started. There are also advertisers pitching at you on this page. You must fill in an application form if you would like to become a merchant and trade BNB here.
BNB is native to Binance, but you can enjoy Binance-Coin trading at third-party trading apps and marketplaces, such as Bancor, Gate.io and IDEX. You can also trade Binance-Coin on the eToro platform. This is one of the best Binance Coin trading sites, alongside the Binance exchange itself. If you Google “best Binance Coin trading”, you will find several smaller sites now offering Binance-Coin trading, but it is best to stick to safe, reputable sites, and ultimately the best place to trade Binance-Coin has to be binance.com.
You can also earn BNB by completing surveys and tasks at StormPay, and you can earn BNB rewards in VIBE’s blockchain-based first-person shooter video game. There are Binance Coin derivatives to check out too. You can engage in perpetual swaps and futures on BNB. Binance runs its own derivative exchange, but you can find BNB futures trading on third-party sites like FTX.
Binance will continue to conduct Binance Coin burns until it has halved the initial BNB supply. The firm enjoyed a record Q1 in 2020, allowing it to buy back a record 1.69% of the total supply, despite the USD value of BNB rising. By that point, it had burned 10% of BNB’s supply of 200 million coins. Future BNB burns could well be larger, diminishing the total supply, making the coin scarcer and potentially increasing the value of each one.
Anyone interested in a Binance-Coin price prediction has to focus on Binance’s performance, as BNB is inextricably linked to the exchange. There are regulatory headwinds in some countries, but Binance has significantly ramped up its overall blockchain strategy in several major systems and grown the ecosystem country by country. Binance Coin is an unusual and intriguing cryptocurrency, and several market analysts are bullish when offering a Binance-Coin prediction. You have to factor in macro elements, such as the general price of cryptocurrencies, alongside the success of bespoke initiatives from Binance, but BNB’s future outlook is pretty positive.
Reputation and Customer Feedback
Binance Coin has a reputation as one of the safer and more stable currencies on the market. It has enjoyed a steady rise to prominence since the ICO in 2017 and it sits comfortably within the top 10 largest cryptocurrencies by market cap. Its reputation has been largely unaffected by Binance’s security breach, which saw hackers steal BTC rather than BNB, and Binance Coin retains a reputation for stability and reliability in a volatile sector. Binance Coin trading reviews have been largely positive among holders.
That has sparked a rise in the number of people using BNB to pay for goods and services, not just at the Binance exchange but on a large and growing number of third-party sites too. The team behind Binance Coin has worked hard to tie up partnerships with several retailers, which has helped significantly broaden the use cases. Customers appear broadly positive about BNB, as they like the repurchase plan and the discounts it offers when trading at the world’s largest cryptocurrency exchange. For many crypto traders, it is a must-have coin, and it regularly features in lists of the top coins to hold aside from BTC.
It is essential that you invest in Binance-Coin if you wish to trade on the Binance DEX, the world’s largest exchange. You will receive discounted trading fees and you can also benefit from additional discounts and perks if you have a BNB account and achieve VIP status. BNB is also increasingly being used as a cryptocurrency at third-party sites, and its list of use cases continues to rise, so it is well worth holding this coin.
Many holders like the fact that it cannot be mined and that the BNB burn scheme results in a continually dwindling supply. There are a lot more Binance Coins in circulation than Bitcoins, but BNB appears to be reasonably stable compared to some alternative digital tokens. The likes of BTC and ETH have far more uses and they are more prominent, but BNB can happily coexist alongside them. The Binance exchange continues to go from strength to strength, and Binance Coin plays a central role in its fortunes, so Binance Coin stays as an interesting cryptocurrencies to follow in the news.
Disclaimer: This review does not amount to investment advice and should not be construed as such.