Buy and Sell Binance Coin (BNB)
The Binance Coin (BNB) is the native ERC-20 token of the Binance platform that was built on the Ethereum blockchain. Binance has mined a maximum of 200 million BNB tokens. Its primary goal is to power forex and trading operations on its platform while offering convenience and affordability to traders and crypto-currency enthusiasts. At the time of writing, the token is trading around $30.
BNB launched in July 2017 through an Initial Coin Offering (ICO) that made 20 million BNB tokens available to angel investors, 80 million to those who contributed to the project, and 100 million to several individuals who participated in the ICO. The funds raised from the sale of BNB tokens were used for exchange development, branding and marketing. A percentage of the investment was also spent on adding necessary updates to the Binance crypto exchange.
- Binance Coin$476.82-2.19%
Why was Binance Coin invented?
Binance Coin was created to allow the exchange platform and its operations to establish a sustainable ecosystem. The token can be used for a multitude of purposes, including paying listing fees, exchange fees, trading fees, or any other fees a user may incur on the crypto exchange. In the first year, Binance offered a 50% discount on trading fees, which would halve each year so that eventually the discount would end 5 years after the launch of BNB.
The token can also be used for IEO, or Initial Exchange Offering, investments that are listed in the Launchpad section of Binance. These new currencies will then be listed on the Binance crypto exchange, providing them with a full market for trading. Having a native currency will reduce the reliance on traditional currency, which can lead to delays and additional fees that place an additional financial burden on the end user. This token provides a seamless experience while saving users money on trades.
General information about Binance Coin
- Binance Coin$476.82-2.19%
How does Binance Coin work and what is the technology behind it?
The Binance chain is built on the Ethereum blockchain and adheres to the ERC20 token standards that can store and hold value. However, you cannot mine the tokens as they have been pre-mined and distributed via the ICO. The outstanding tokens are used for discounted transactions on the Binance exchange platform. The discount rate started at 50% in the first year, but is expected to decrease by half each year.
In the fifth year, there will be no more fee discounts, which should affect the value of the token. To counter the depreciation in value, Binance has been buying back tokens and destroying them to reduce supply. The exchange platform plans to eliminate half of the tokens in circulation.
Is Binance Coin real money?
The main purpose of BNB is to fuel crypto-currency trading operations and strengthen the Binance ecosystem. Currently, the token can also be used to enjoy cheaper trading fees. However, the promotion will be gone in the next few years. The Binance token can also be used to pay in BNB for services or goods, especially in the travel world. However, its acceptance as a viable currency is low. Therefore, the token cannot really be considered as real money – at least not yet.
The Binance exchange platform has many financial and strategic backers that can keep the token afloat for years to come. This means that the landscape of dominant alternative currencies may change in the next few years.
So it wouldn’t be a good idea to bet against a token that is backed by a crypto exchange that does billions of dollars of crypto-transactions per month. Right now, Binance Coin is a viable alternative currency. But it’s not even close to Bitcoin or Ripple in terms of market acceptance. If you’re looking for great liquidity for your trading or for any other reason, you can get another digital currency.
Binance Coin fees and charges
Since Binance Coin was primarily created for internal trading and the coins have already been mined, there are no fees associated with using the network. However, when you buy Binance Coin tokens or make any other trade on the Binance exchange platform, you are charged 0.1% of the trade amount.
If you pay for your trades with NBBs, you will receive a 50% discount. For example, if you buy $100 worth of BNB on the Binance exchange platform using another token or traditional currency, it will cost you $0.10. On the other hand, if you pay with BNB tokens, you will only have to pay half, i.e. $0.05 or 5 cents. You can also use the token for various services, including paying for travel.
- Binance Coin$476.82-2.19%
What are the advantages of Binance Coin
If you use Binance Coin to make trades on the crypto exchange, you will have access to the platform’s proprietary engine that can handle up to 1.4 million orders per second. You can always find the right trade and using Binance Coin makes it even faster and more reliable.
Safe and reliable crypto exchange
Binance already has millions of users and crypto-currency traders who rely on the platform and trust the security and protection features of the crypto exchange to participate in the crypto-currency market. The exchange uses a multi-group, multi-tiered system and a secure user asset fund (SAFU) to protect your funds.
Many crypto-currencies available
With Binance Coin, you can trade over 150 crypto-currencies on the exchange with the help of a fast, secure and affordable trading match system. In addition, Binance Coin has its own trading pairs to meet your specific needs. You don’t need to look anywhere else.
Discount on trades
Binance Coin also allows you to get a 50% discount on trading fees. If you buy crypto-currencies for $10,000, you will have to pay $10 with traditional payment methods. On the other hand, if you use Binance Coin, the transaction fee will be cut in half, meaning you will only have to pay $5.
Spending Binance Tokens
Apart from a seamless experience within the Binance ecosystem and reduced trading fees, you can also use Binance Coin in many other ways. The token is accepted by many service providers, including the travel and hospitality industry. So buying your meal or your next trip using Binance Coin is possible.
Participate in ICO/IEO
Binance Launchpad is also hosting new token sales where you can use your Binance Coin tokens to buy a stake in a new crypto-currency. Subsequently, these new digital currencies are added to the Binance crypto exchange where you can trade them, providing a complete and seamless experience.
Can Binance Coin be used anonymously?
It is difficult to remain anonymous when using Binance Coin. Since the token is primarily used in the Binance ecosystem, you need a verified account on the crypto exchange to use the currency.
This is because Binance complies with Know Your Customer (KYC) and Anti Money Laundering (AML) regulations, which means the platform will ask you to provide personal information to verify your identity before creating your account. You cannot use NBB on the platform without a verified account. If you are concerned about your privacy, you should try other crypto-currencies like ZCash that use deliberate methods to hide your identity on the blockchain and your transaction details.
Furthermore, any digital activity using Binance Coin can be traced by the Binance exchange itself, the government or any competent hacker. The fact is that if you leave a digital footprint behind, there is always a chance that people who want to find you will find you, especially if you are a frequent crypto-currency trader.
How safe is Binance Coin?
Binance Coin relies on the Ethereum network, which uses encryption to prevent data breaches and interception. Since the blockchain is decentralized, there is no single central body that can be hacked to compromise the data.
Apart from that, the Binance cryptocurrency exchange platform is a trusted name in the industry due to its security features that add layers of security to protect your personal information and funds. These include two-factor authentication and SSL certified encryption. You can also use wallets to secure your Binance Coin.
Who is working on the development of Binance Coin?
Binance was founded in China by Changpeng, former CTO of OKCoin. After the launch, Yi He also joined the Binance team. He was one of the co-founders of OKCoin. Both of them have grown Binance exponentially since then. Binance is currently the second largest crypto exchange in the world in terms of trading volume. Since BNB is a derivative crypto-currency that has been pre-mined and is now being burned in large quantities to limit supply, there is no current team working on developing the token itself.
Which financial institutions are using Binance Coin?
Binance has always been very successful when it comes to attracting investors, as the founders have already demonstrated their ability to create a fully functional and successful crypto-currency platform.
This is why Binance and the Binance Coin ICO have attracted many top investors and financial institutions, including Vertex Ventures, Plutus21, Black Hole Capital, Funcity Capital, Sequoia Capital, Limitless Crypto Investments, Fundamental Labs, and many more. However, today, Binance is facing increased competition that may prevent it from getting more funding.
In addition, Binance Coin has also been able to establish relationships with many vendors, service providers and merchants to allow its users to be able to use their BNB tokens to make small to large purchases. Currently, Binance has partnerships in place with over 100 different service providers, including travel, real estate and restaurant brands.
Mining Binance Coin
Binance Coin is pre-mined, which means that all 200 million BNB tokens have already been created. BNB came into existence as part of a fundraising in the form of an Initial Coin Offering (ICO) taking place from June 26 to July 3, 2017, 11 days before Binance opened. Since all the tokens are already in circulation, there are no more tokens to mine:
- 50% or 100 million NBB tokens for ICO participants
- 40% or 80 million BNB tokens for the founding team
- 10% or 20 million BNB tokens for angel investors
In order to preserve the value of the token, as the trading fee discount decreases each year, Binance has been burning tokens to limit the supply. To date, nearly 10 million BNB tokens have been destroyed.
Binance Coin Wallets
If you want to store your BNB tokens safely, you can use hardware or software wallets to do so. The easiest way to hold them is to have a Binance account. Binance DEX, a new decentralized exchange (DEX) aims to take the features you love about Binance.com and the security of a decentralized platform. Users can now manage their private keys and funds, and trade directly from their Trust Wallet. The official wallet for storing NBB coins is called the Trust Wallet. However, you can also store Binance tokens in Enjin, Ledger, Trezor, Jaxx, CoolWallet S, Metal Vault, BRD, Gifto, Request Wallet, Ethos Universal Wallet, WinQ, Atomic Wallet, Clay, Coinomi and Blox.io Wallet.
Is it worth investing in Binance Coin?
At the time of writing, Binance Coin was trading around $18. One of the most promising aspects of BNB tokens is that while they are not a viable monetary alternative, their success does not depend on that alone. They can still be used within the Binance exchange platform to pay for transactions and trading of digital assets, providing a seamless experience for platform users. This is one of those coins that has an inherent use.
That being said, the crypto-currency space can be quite unpredictable, especially when it comes to price movements. If you’re considering investing in BNB, or any other crypto-currency, do so with a lot of thought and caution to ensure that you’re not risking too much of your investment capital. You should not underestimate the importance of risk management.
- Binance Coin$476.82-2.19%
- How can I buy BNB (Binance Coin)?
Binance Coin can be easily purchased on the Binance exchange platform using a debit or credit card.
- What is the safest wallet to store BNB tokens?
The official wallet approved by the Binance exchange platform for storing BNB tokens is the Trust Wallet. Binance tokens can also be secured on Enjin Wallet, Ledger Wallet, Trezor Wallet, Jaxx, Metal Vault, BRD, Request Wallet, Ethos Universal Wallet, Atomic Wallet, Clay, Blox.io Wallet and more.
- How can I mine NBBs?
You can’t. Binance Coin tokens have been pre-mined and are already distributed. All tokens are in circulation. 50% of the tokens have been reserved for ICO participants, 40% for the team behind the creation of the BNB tokens and 10% for angel investors.
- Should I invest in Binance Coin?
Crypto-currency prices are volatile. They depend on multiple unpredictable factors, which can lead to unexpected price increases and decreases, making it a difficult investment vehicle. Therefore, it is necessary to be cautious and minimize your risk by investing in safer options.
- How much are the transaction fees for Binance Coin?
If you buy BNB tokens from Binance, the standard commission is 0.1% of the trade volume. Using BNB tokens entitles you to a 50% discount.
- Can I use Binance Coin to make regular purchases?
You don’t have as much versatility and accessibility as some other crypto-currencies like Bitcoin, but depending on what you want to buy and your region, it is possible to use your BNBs.
- Is Binance Coin a decentralized blockchain?
It was built on the Ethereum blockchain, which is decentralized. However, Binance has some control over the currency to ensure smooth operations within the crypto exchange.
- How is Binance Coin different from other crypto-currencies?
It was created explicitly to provide a seamless experience for the trading platform and its traders.
- Binance Coin$476.82-2.19%