What is Binance Coin?
Binance Coin is a cryptocurrency created by Binance, the largest cryptocurrency exchange in the world. It can be used in various functions such as for launch pads and defi on the Binance Exchange, and also plays a critical role in the Binance Exchange platform network chain. Therefore, as the Binance Exchange grows, naturally, the value of the coin goes up even more.
Because the Binance Exchange is the world’s largest user exchange, the demand for Binance Coin is generated by a wide variety of services. Typically, Binance Coin is used by the Binance Exchange to pay for commissions. The spot transaction fee on the Binance Exchange is 0.1% of the transaction price, but if the user utilizes Binance Coin for payment of the corresponding fee, he/she will receive a 25% discount. The user can get a 10% discount for the Binance Futures Market transaction fee as well. The coin is also used as a currency to exchange with other cryptocurrencies through the Binance Exchange BNB Market.
Binance Coin Potential and Features
Binance Coin’s outlook can be evaluated through the growth of the Binance Exchange and the expansion of Binance Coin’s usage. The Binance Exchange has grown to be the world’s largest consumer cryptocurrency exchange, and the decentralized Binance DEX among the DiFi ecosystem has also proven to be a success. Binance Coin’s demand is expected to continue to grow as the coin provides discounted fees for each of the Binance Exchanges.
Furthermore, Binance Coins are used in various other functions as well. In addition to the exchange, Binance Coin can be used in the blockchain DApp Store, as a form of hotel reservation service payment, and in DiFi finance, with the number of applications for usage continuously increasing as we speak. Also, Binance Coin has constructed an automatic retirement process. Binance Coin, which issued a total of 200 million units, is automatically retired according to the Binance network process until the total number reaches 100 million.
Company and Developer Information of Binance Coin
Binance Coin was developed by Changpeng Zhao. He is a Chinese Canadian and was always thirsty for new challenges while developing Japan’s stock trading system as a young adult. He was already living a successful life in Japan, but he decided to give up everything to go back to China to develop a new trading system. Subsequently in 2014, he sold his house in Shanghai to start investing in Bitcoin, gaining further experience in cryptocurrency. Three years later, in 2017, Binance was established directly in Hong Kong, and the rest is history as it has grown into a large exchange.
What is the Purpose of Binance Coin?
Binance was launched to raise funds for the exchange platform but gained significant traction under the Binance umbrella. The primary purpose of Binance Coin, BNB, is to help operators and users of a platform with simplicity and affordability in regular operations, including payment of transaction fees, trading fees, or stock investing purposes.
But with its further expansions and new launches, BNB can be used to put funds in ICO introduced in Binance Launchpad, and as collateral for loans. The startup launcher helps in launching virtual assets that are traded through Binance. Moreover, when compared to Bitcoin, Binance Coin ensures 180x faster speed.
BNB is a cryptocurrency that, like certain other available virtual assets, fluctuates in worth as individuals utilize and trade it. Individuals may store BNB in suitable wallets obtained from cryptocurrency exchanges and directly send it to other individuals for transactions or other purposes.
One may also inquire how to purchase Binance Coin. Individuals can buy BNB through various channels, including Binance’s cryptocurrency exchanges. But, as always, investigate and follow any relevant territorial regulations. On a technological level, the blockchain Binance layer-1 is merged to create the blockchain or BNB Chain (formerly the Binance Chain and the Binance Smart Chain.)
Binance designed the blockchain for the most outstanding performance when dealing on-chain once building the BNB chain, and Binance DEX, Binance’s decentralized exchange (DEX), is built on this recently created chain. Furthermore, BNB chain transfers are powered by the BNB gas token, which refers to “Build and Build,” formerly called Binance Coin.
The BNB chain comprises the BNB Smart chain and the BNB beacon Chain. The earlier is concerned with BNB Chain management, which lets BNB owners engage in voting and taking. The other is a consensus-level compliant with the Virtual Machine for Ethereum and includes multi-chain hubs.
How Is Binance Coin Used?
The blockchain platform, Binance Smart Chain, uses BNB as a native asset. However, there are several ways to use Binance Coin.
Discounts on trading fee
BNB was initially designed to offer Binance holders trading fee discounts. Currently, BNB holders enjoy a 25% discount on Binance trading charges. However, the deal gets reduced every year, and it will ultimately reach 12.5%.
Find innovative features
If you hold Binance Coin, you can easily avail of special services of the Binance cryptocurrency exchange. Try to have enough cryptocurrency to leverage token sales benefits and generate more profits. Furthermore, you can also rely on Launchpool programs to stake your cryptocurrency on Binance.
Purchase goods or services
As Binance Coin is a cryptocurrency with high liquidity, several wallet providers and crypto businesses accept it. You can easily purchase, store, sell, and transact this crypto asset. So, like Bitcoin, Binance Coin enables you to make payments.
Binance Smart Chain
Binance Coin has gained high popularity in the blockchain platform.
Moreover, the growing DeFi of the platform has introduced protocols for lending and swapping tokens. Smart Chain is known for optimized performance, and you can enjoy faster transactions.
Although Binance Chain is not compatible with smart contracts, Binance Chain deals with the non-custodial cryptocurrency exchange, Binance DEX. You can directly perform trading on-chain. Use BNB for paying charges on Binance Chain. Besides, the fifth-anniversary offer of Binance is available until July 13, 2023, when you could save 25% on Binance trading costs for a specified duration by using BNB.
Credit Card Payments
Binance coins may be used to settle credit card payments. Therefore, you can use it as a payment option. Businesses may accept Binance as payment from consumers, giving them extra payment options.
Numerous sites let investors use Binance Coin for ETFs, stock investment, and other assets.
On some networks, Binance can be a loan collateral. Also, some applications enable people to utilize Binance Coin to make payments and share bills.
BNB performs numerous functions in the entertainment sector, from purchasing lottery tickets to paying for digital gifts.
On specific platforms, BNB may be used to book flights and hotels. Binance has newly collaborated with VISA for their Binance crypto card, which functions similarly to a debit card. For payments, you must load the card with Binance coins and use it where a VISA card is acceptable.
How to buy Binance Coin?
Binance coin was created, among several other things, to cover trading, exchange, and listing fees as well as any additional costs consumers may incur while using the Binance crypto exchange. By driving operations, the BNB coin is crucial to the Binance ecosystem. The initial Binance Coin supply was about 200 million tokens. Here are two methods to buy Binance coins:
Binance offers you multiple options for buying BNB at the most affordable rate. It is safe to use the Binance app for the purchase.
Step 1- Create your account
Before buying BNB, you should create your Binance account. Go through the registration process using
- Binance App
- Binance website (provide your email or mobile number)
Step 2- Choose the way to buy the asset-
Access the Binance website and hit the link- Buy Crypto. You will find the options available in your country. To ensure coin compatibility, you can purchase stable coins (such as BUSD or USDT). Then, use these coins to buy BNB.
Step 3- Decide on the payment method
Check some payment options before making a deal.
- Credit and Debit Card- Use MasterCard, Visa, and other credit/debit cards.
- Bank transfer- Transfer fiat currency from your bank account to Binance, and use the amount to buy BNB (BNB). Transfer fiat currency to Binance from your bank account and use it for purchasing BNB.
- P2P- Use peer-to-peer service to buy BNB from other cryptocurrency users.
Step 4- Confirm order
It takes a minute to confirm. The order is also recalculated depending on the current price.
Step 5- Store your BNB
As you have already bought BNB, you can use your crypto wallet to store it securely.
To purchase BNB, you will require a computer or smartphone with an internet connection, an identification source, and a payment method.
Step 1- Compare cryptocurrency exchanges.
The simplest method to get BNB is through a crypto exchange. Comparing the platforms allows you to pick one with the attributes you need, such as affordable fees, convenient usage, and 24-hour customer service.
Step 2- Creating your profile.
You must validate your email ID and identification to open a marketplace or exchange account. Prepare your photo identification and your mobile device.
Step 3- Making a deposit.
Once validated, you may deposit money using your preferred payment option – Cryptos, Simplex, XanPool, and Banxa are all frequently supported.
Step 4- Purchasing Binance coin
You can now convert your cash to Binance coin. It is as easy as entering the BNB or INR amount you wish to acquire and hitting “buy” on newcomer exchanges. You can then transfer your BNB to a private wallet.
Store your BNB
Your responsibility is to protect your investment, regardless of whether you purchase BNB or another digital coin. Numerous storage choices are available, including the following:
Hardware wallets are discrete physical devices typically the safest storage method. They are considered offline “cold storage” since they may be cut off from the web or any other network node.
Paper or hardware wallets are less practical than software wallets. They are mobile applications or downloaded programs that keep your cryptocurrency safe on your hardware. They are “hot wallets” since they have internet access. Although they are less protected than paper or hardware wallets, they make selling or exchanging your tokens easier.
It’s straightforward to store your tokens on a cryptocurrency exchange, which makes token exchange simple. A few crypto exchanges will keep your tokens in the storage on your account, but in the concern of security risks breach, it is preferable as a temporary fix.
Paper wallets are a very safe alternative, as are hardware wallets. Your secret keys are put on a paper piece or a QR code that may be downloaded using this method. But keep in mind to store your paper securely where you can find it again. You won’t be able to view your cryptocurrencies otherwise.
Is Binance Coin available in the US?
The USA banned Binance in 2019 on regulatory grounds. So US citizens cannot directly access it. However, there is a collaboration between Binance and Binance.US (a separate exchange). Although Binance.US is legitimate, it is not accessible in some US states.
Binance Coin Comparison
Bitcoin vs. Binance Coin
Although Bitcoin is a highly popular cryptocurrency, Binance Coin has started gaining attention. Bitcoin is a blockchain-based payment network and uses a Proof of Work consensus mechanism. Like Bitcoin, Binance Coin is a cryptocurrency. But it has no miners. Its consensus system is known as Delegated Byzantine Fault Tolerance.
You can use Bitcoin to buy things almost anywhere. On the contrary, only the Binance Exchange accepts BNB. You can use BNB to replace Tether, ETH, and Bitcoin as an exchange currency for other coins sold on Binance. As BNB is Binance’s coin, you can get discounts on trading fees.
Ethereum vs. Binance Coin
The primary reason behind the popularity of Ethereum is the high market cap.
Being a native of Binance, BNB has attracted users. There are currently more than 315,000 BNB holders. The Ethereum community includes over 140 million addresses.
Mining is one of the problems of Ethereum. As it is not easy to mine Ethereum, there is a transition from Proof-of-work to a Proof-of-stake consensus algorithm. On the contrary, the BNB system is compatible with Ethereum. So, users can leverage benefits from both of these cryptocurrencies.
DApps related to Ethereum are used mainly in the gambling and video gaming industry. But, BNB’s tokens are useful for various purposes, from fundraising to staking.
Binance USD (BUSD) vs. Binance Coin (BNB)
The significant similarity between BNB and BUSD is in their trading pairs. However, as a stablecoin, BUSD has pegged its value to $1. BNB has a more fluctuating price due to Binance Smart Chain’s various projects like Pancakeswap.
Two advantages of holding BNB long-term are that you will find a hike in the price of BNB, and Binance Smart Chain and the Binance Exchange use BNB as their utility token. You can use it for obtaining discounts and processing transactions. Also, by using Binance Card Visa, you can win cashback.
Comparison Table of 3 Cryptocurrencies
|Binance Coin||Bitcoin||Binance USD|
|Definition||A utility token||Cryptocurrency||A stablecoin|
|Availability on different platforms||AAX, Gate.io, AscendEx, Huobi, FTX, Cex.io, and Kucoin||Crypto.com, Bitstamp, Pionex, Crypto.com, and Bybit||AAX, Gate.io, and FTX|
|Networks to withdraw crypto||BEP2 and BEP20||Gemini, Cashapp, Strike, and Binance||BEP20, ERC20, and BEP2|
Binance Coin Basics
Here are some factors that investors should consider before investing in Binance Coin.
|Cryptocurrency Features||Binance Coin (BNB)|
|Publisher or Developers||Binance|
|Headquarters (Registration Number)||Malta Island|
|Published Date (CMC Registration)||2017-07-25|
|Max Supply||No limit|
Reliability Score of Binance Coin in 2023
These are indexes mesuring the investment reliability of Binance Coin conducted by Coin-Labs.
|Investment Reliability Rating Items||Scores and Current Status|
|Company Activation Rate||9.8 / 10.0 CAR|
|Communication Rate||9.5 / 10.0 CR|
|Technology Transparency Rate||8.4 / 10.0 TTR|
|Development Participation Rate||7.2 / 10.0 DPR|
|Listing Status on the World's Top 10 Exchanges||Listed on 6 Exchanges|
|Number of Available Pairs Worldwide||1,218 Pairs|
|Market Cap of the Cryptocurrency||69,761,549,713,208 KRW (Rank #4)|
Binance Coin Price
Here are the price and recent trading volume of Binance Coin. (Data of 2023-03-22 14:43:25)
|Price Items||Price and Trading Volume of Binance Coin|
|Binance Coin Price||441,834.577 KRW|
|Price Change 24h||1.09%|
|Price Change 7d||7.92%|
|Trading Volume 24h||894,173,140,541 KRW|
|Trading Volume Change 24h||4.44%|
You can check the development status and social media information of Binance Coin through the links in the table below.
|🌎 Official Website||https://bnbchain.org/en|
|📖 White Paper|
|🛰️ Source Code (GitHub)||https://github.com/bnb-chain|
|🎺 Message Board|
Where to Buy Binance Coin
Here are the top ten world crypto exchanges where traders can buy Binance Coin in 2023.
|Top10 Exchanges||Listed Status||Page URL|
Frequently Asked Questions
What is the current price of Binance Coin?
Binance Coin price today is 441,834.577 KRW. Furthermore, the price of Binance Coin has fluctuated by 1.09% from 24 hours ago, and by 7.92% from a week ago.
Where is Binance Coin listed?
Currently, it is listed on a total of 6 among the world top 10 exchanges.
What is the market cap of Binance Coin now?
Currently, Binance Coin has a market cap of 69,761,549,713,208 KRW, which is ranking 4 among cryptocurrencies worldwide.
How much is the trade volume of Binance Coin?
Currently, 157,890,652 BNB coins are circulating through 1,218 market pairs. As a result, in the last 24 hours, 894,173,140,541 KRW of BNB coins were traded in the market.