Pros of Binance Coin
- Used to get better trades at the Binance exchange
- Fast transactions due to accelerator node technology
- Proof-of-stake model ensures security of payments
- Relatively stable compared to other cryptos
Cons of Binance Coin
- Binance Coin can’t be exchanged for FIAT currencies
History – How Binance Coin trading came into being
You can’t talk about Binance Coin trading without talking about the main Binance exchange. Binance is well known for being one of the most popular places to buy crypto online. In fact, Binance is thought to be the largest crypto exchange by trading volume anywhere in the world.
Binance realised that it could speed up transactions on its site by introducing its own coin – the Binance Coin (BNB). This meant that people could buy Binance Coin and then use it to pay for trading fees at the exchange. Doing so also gave users the advantage of getting a discount on these exchange costs.
To begin with, Binance Coin trading took place on the Ethereum network. But you don’t need to buy Ethereum to enjoy Binance Coin trading. This is because in recent years Binance has consolidated its approach to make sure that the coins are all used on the brand’s own blockchain.
There were 100 million coins that were available to buy on the initial coin offering in 2017. This is half the amount of the total number of coins, and there will never be more than 200 million Binance Coin tokens. Binance keeps this number down by operating a repurchase plan. This sees Binance making an effort to buy back Binance Coin and then destroy the coin tokens. All of which is hoped to maintain demand and make this the best crypto to invest in.
Development – Why so many people want to buy Binance Coin
Binance simply gives you a great way to limit whatever fees that you pay for making trades on the Binance exchange. But this doesn’t necessarily mean that you can’t enjoy Binance Coin trading just like you’d sell and buy XRP. This is because Binance Coin is starting to be used as a regular payment method at an increasing number of online vendors.
As Binance Coin trading has increased, it has witnessed a steady growth in its market cap value. The fact that there are relatively few options for those looking for the best Binance Coin trading sites means that it has enjoyed a price stability that few other cryptos experience.
Ultimately, the Binance Coin is inextricably tied up with the Binance exchange. As long as this continues to be one of the world’s largest crypto exchanges, we can expect to see more people wishing to buy Binance Coin to keep those all-important trading costs down.
Statistics to know for your Binance Coin prediction
Looking for the best Binance Coin trading sites? We’ve identified the key points that there will never be more than 200 million Binance Coin tokens in circulation. You should also know that you can’t ‘mine’ Binance Coin tokens. So while you can mine and buy Bitcoin, it seems that Binance Coin trading has a few more important limitations.
Despite this, the fact that Binance hosts regular ‘burnings’ of these tokens means that demand for the coin should stay constant. While burnings aim to bring down the overall number of Binance Coins, they are being carried out in a way that should give you a chance to buy Binance Coin to get lower trading fees.
Apart from the discount on fees, many people will use Binance Coin to trade against a variety of other cryptocurrencies. This means that you can buy Litecoin with BNB and you can also use Binance Coin on the Binance decentralised exchange. Just remember that Binance Coin cannot be exchanged for regular currencies such as Indian rupees.
The best Binance Coin trading uses
So why would you actually want to buy Binance Coin? The primary reason has to be to get a discount on your fees at the Binance exchange. Normally you’d be expecting to pay at least 0.1% on each trade. Such an amount may not initially seem too significant, but if you’re executing lots of trades, these fees could have a big impact on the returns that you’re getting.
The kind of discounts that you get depend on what level of Binance Coin trading you’re involved with. If you’re regularly using the exchange and have a significant monthly trading volume, you’ll find that the fees can get quite large.
But we’ve seen Binance putting on some promotions that gave customers up to 50% off their trading fees when using BNB for a certain amount of time. Such deals should give you plenty of good reasons to buy Binance Coin.
It doesn’t stop there as the Binance Coin can also be used in other ways. You might know about the Binance Launchpad. This basically gives you a chance to use the exclusive token launch platform to invest in crypto startups. There are fewer simpler ways to get involved with this other than using Binance Coin. BNB also is the most efficient way that you can start trading on the brand’s DEX platform.
We have also seen how Binance Coin has started to gain traction outside of the Binance exchange. For example, you can use the coin to do things like pay for content on top video streaming providers such as Uplive. We’ve also seen how certain card providers like Visa are getting keen on implementing Binance Coin in certain locations such as Monaco. All of which shows that BNB can be used for so much more than just keeping your trading costs to a minimum.
How to buy Binance Coin
You’ll find it very easy to get ahead with your Binance Coin trading. This is because Binance has made sure that its website is packed full of helpful articles that clearly explain the best ways of using this coin to cut down your trading costs. But just to help you out, we thought that we’d prepare this handy walkthrough guide that can give you a simple way to get started with Binance Coin.
Register your Binance account
The first thing that you have to do is to sign up to Binance. There’s no point in shopping around at different exchanges or broker sites as Binance is the only place that you’re going to get to trade BNB. So just load up the Binance site and then tap on the yellow Register button. Here you’ll get some prompts that state what kinds of personal information you have to provide. You’ll start off by supplying your email address and then you’ll have to come up with a secure password.
From here, you just have to verify your account. This means registering your account via the mobile number that you entered in the signing up procedure. You may also be asked to provide further personal details like your full name, date or birth and so on.
Adding money to your Binance account
Binance makes it nicely easy to add funds to your account. Once your account has been verified, you’ll simply be able to make a deposit either with a fiat currency or with another cryptocurrency. The good news is that Binance allows you to deposit with Indian rupees. There will be further security prompts that will then allow you to make payments via a card. Things are thankfully much more straightforward to send a payment to Binance from your crypto wallet.
Making your crypto trades
Once you’ve made your deposits, you can simply head over to the Markets tab on the Binance site. Here you’ll get to see all of the different trading options for dozens of different cryptocurrencies like Bitcoin, XRP and so on. Binance will also display a wealth of statistics regarding how each crypto has been performing. This means that you can examine important data regarding things like market cap and what the highs and lows there have been over the past 24-hour period.
To start trading, you’ll just have to click on one of the Trade buttons. From here you should probably start off with the Classic Trade option rather than Advanced Trade for now. Then it’s up to you as to whether you use BNB to trade with other cryptos or just use it to pay off some of your trading fees.
Our Binance Coin price prediction
We think that there are plenty of reasons to buy Binance Coin. The biggest of these reasons is the fact that BNB has shown some commendable stability since its unveiling in 2017. While many major cryptos are notorious for their price volatility, Binance Coin has proven to be a much more stable form of investment.
Not that buying Binance Coin is exactly like buying gold. For example, if you wanted to buy Binance Coin in the past three years, you’ll have seen its overall value rise over $5 billion as a whole. At the time of writing this guide, BNB was very close to hitting the $7 billion market cap mark.
Ultimately, our Binance Coin price prediction is tied into how cryptocurrencies start to enter the mainstream. As long as Bitcoin keeps generating headlines, then people will continue to visit major exchanges like Binance to buy Bitcoin Cash, Ether, XRP and other cryptos. With BNB helping to reduce transaction costs on every trade, it seems that now could be a very good time to buy Binance Coin.
Are there any Binance Coin trading scams?
All good Binance Coin trading reviews will see how the brand’s reputation has fared in regards to online security. Unfortunately Binance was hit by a massive hack in August 2019. This saw thieves making off with well over $40 million in Bitcoin. While such an attack will have harmed the reputation of Binance, it seems as though Binance Coin managed to come through relatively unscathed.
This is because the attack merely highlighted the security flaws of many ‘hot wallets’ that use relatively little in the way of authentication to allow the user to access their details. But Binance Coin managed to come through this security scare thanks to the fact that it uses a robust proof-of-stake consensus model. This is the same kind of consensus model that you get with Ethereum coins and means that Binance Coin should continue to be seen as a safe option.
Why you should buy Binance Coin
OK first things first, and that’s that we aren’t authorised to give financial investment advice, and investing in cryptocurrencies is a risky decision. But if you were determined to buy any cryptocurrency, then Binance Coin could be a relatively safe option. This is because BNB is a fairly stable crypto. You might not get those soaring highs that we’ve seen with other cryptocurrencies, but you’ll also avoid some of those crushing lows if you decide to invest in Binance Coin.
This is because Binance Coin is inherently linked to the Binance exchange. As long as people continue to make Binance one of the world’s most popular crypto exchanges, then BNB will almost certainly continue to grow in popularity. This is because Binance has been smart to make sure that using the coin helps customers to reduce their trading fees, and the regular ‘burnings’ of Binance Coin have helped to maintain its demand.
Of course, there will be many people who simply want to buy a regular cryptocurrency like Bitcoin. But we think that an investment in Binance Coin could be a good alternative.