What is Binance Coin?
If you’re reading this, you’ve probably heard about Binance Coin. But what exactly is it? Binance Coin (BNB) is a digital token created by the world’s largest cryptocurrency exchange by trading volume, Binance. Essentially, it is a utility token used to pay for fees on the Binance exchange, as well as other services offered by Binance.
Brief history of Binance Coin
Binance Coin was first created in 2017 as part of an initial coin offering (ICO) to raise funds for the development of the Binance exchange. The ICO was highly successful, raising over $15 million in just a few minutes. Since then, Binance Coin has become one of the most popular utility tokens in the cryptocurrency market, with a market capitalization of over $60 billion as of August 2021.
Technical features of Binance Coin
Binance Coin is built on the Ethereum blockchain, which means it is an ERC-20 token. It has a total supply of 170 million tokens, with around 153 million currently in circulation. Binance has also announced plans to burn a portion of Binance Coin every quarter, reducing the total supply over time.
One of the unique features of Binance Coin is its use case for paying trading fees on the Binance exchange. When you make a trade on Binance, you can choose to pay the trading fee in Binance Coin instead of the cryptocurrency you’re trading. By doing so, you receive a discount on the trading fee.
Stay tuned to learn more about the use cases for Binance Coin in the next section.
What are the use cases for Binance Coin?
While Binance Coin is primarily used for paying fees on the Binance exchange, it has other use cases as well. Here are some of the most notable ones:
Payment method on Binance exchange
As mentioned earlier, Binance Coin can be used to pay for trading fees on the Binance exchange. But it can also be used to pay for other services offered by Binance, such as margin trading and lending.
Trading fees discount
One of the most significant use cases for Binance Coin is the discount it provides on trading fees. Binance offers a tiered fee structure based on the user’s trading volume, with the highest tier offering a 25% discount on trading fees when paid in Binance Coin.
Participation in Binance Launchpad
Binance Launchpad is an exclusive platform for launching new cryptocurrency projects on the Binance exchange. To participate in Launchpad sales, users must hold a certain amount of Binance Coin. This has led to a surge in demand for Binance Coin during Launchpad events.
Other use cases
Binance has also announced plans to expand the use cases for Binance Coin in the future. Some of the potential use cases include:
- Payment method for Binance’s upcoming decentralized exchange (DEX)
- Participation in Binance’s upcoming blockchain project, Binance Smart Chain
- Use as collateral for loans on Binance’s lending platform
How to buy and store Binance Coin?
If you’re interested in buying Binance Coin, there are several steps you can follow:
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Create a Binance account: Before you can buy Binance Coin, you need to create an account on the Binance exchange.
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Verify your account: To comply with Know Your Customer (KYC) regulations, you’ll need to verify your account by providing personal information and identification documents.
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Deposit funds: Once your account is verified, you can deposit funds into your Binance account using a variety of payment methods.
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Buy Binance Coin: With funds in your account, you can now buy Binance Coin on the Binance exchange.
As for storing Binance Coin, it’s generally recommended to use a hardware wallet such as a Ledger Nano S or Trezor. These wallets provide a higher level of security than software wallets, as they store your private keys offline.
Binance Coin price and market performance
Binance Coin has seen significant growth in value since its creation. In July 2017, the price of Binance Coin was just $0.10. By December of that year, it had reached $3.50. In 2018, Binance Coin experienced a significant drop in value along with the rest of the cryptocurrency market, but it has since recovered and surpassed its previous all-time high.
There are several factors that can affect the price of Binance Coin, including market demand, adoption by other exchanges and businesses, and overall market sentiment. In addition, Binance’s quarterly token burn has the potential to increase the value of Binance Coin over time by reducing the total supply.
As of August 2021, Binance Coin has a market capitalization of over $60 billion and a daily trading volume of over $5 billion. These numbers demonstrate the significant demand for Binance Coin in the cryptocurrency market, and its growing popularity among traders and investors.
Conclusion
In conclusion, Binance Coin is a utility token created by Binance that has become a key player in the cryptocurrency market. It is used to pay for fees on the Binance exchange, as well as other services offered by Binance. Binance Coin has seen significant growth in value since its creation, and its unique features make it an attractive investment for traders and investors.
Binance’s quarterly token burn has the potential to increase the value of Binance Coin over time, and its growing adoption by other exchanges and businesses could further drive demand. Overall, Binance Coin has a bright future ahead, and it’s worth keeping an eye on for anyone interested in the cryptocurrency market.
*Disclaimer: The opinions expressed in this article are those of the author and do not reflect the views of Rich News. Rich News is not responsible for the accuracy of any information contained in this article.
