What Is Binance Coin BNB?
Binance Coin, or BNB, is a native cryptocurrency of the Binance cryptocurrency exchange that was built on the Ethereum blockchain using the ERC20 standard.
Its primary goal is to support exchanges while providing convenience and affordability to traders who participate in transactions on the platform.
How does it work Binance Coin (BNB)?
Investing in cryptocurrency is a risky investment. One of the biggest risks is exchange risk.
While traders have their favorite exchanges, all cryptocurrency exchanges have a risk of going bankrupt or being hacked and having all their holdings stolen by hackers.
The more popular an exchange is,the higher that risk is. In order to prevent users from these risks, Binance had created its own native token known as BNB for use on its platform and others built on it such as KuCoin Shares (KCS) which are used on Kucoin exchange.
This means that when you trade your coins/tokens at these exchanges, you are not trading with your money directly but with BNB/KCS instead.
So if something happens to those platforms, you still have your original coins/tokens intact since they were never traded directly with your money but through BNB/KCS tokens instead.
It’s like playing a game of chess where your pawns aren’t actually yours but belong to another player who allows you to use them on his board only.
If anything happens to him, you can always get your pawns back safely.
This way, you don’t lose any money even if there’s an issue with one of these exchanges because your funds are always safe and secured in Ethereum blockchain thanks to smart contracts.
That’s why many investors prefer using BNB/KCS tokens over fiat currencies when trading cryptocurrencies. Title: How Does Binance Coin (BNB) Work?
An Explanation For Beginners What is Kyber Network?
KyberNetwork is an on-chain protocol that allows instant exchange and conversion of digital assets (e.g., crypto tokens) and cryptocurrencies (e.g.,
What is the Binance coin BNB digital currency project?
The Binance platform supports dozens of cryptocurrencies in a wide variety of forms, including fiat-to-crypto, crypto-to-crypto, and more complex trading pairs. But it wasn’t always that way.
The native digital currency of Binance is known as BNB (its full name is Binance coin), and it powers much of its network.
Here’s what you need to know about it! Title: What Is Binance Coin?
Beginner's Guide What are some important features of BNB?
One major feature is its daily burn rate—that is, every day, there will be an amount burned based on transactions processed on their exchange over a 24-hour period.
This serves two purposes
1) It reduces supply, thus raising demand
2) It provides additional revenue for each transaction made through their system. This incentivizes users to use Binance because if they don’t have enough BNB, then they have to pay higher fees than those who do.
How can I buy BNB?
Currently, one of the easiest ways to buy BNB is through Changelly or Coinbase Pro. Both exchanges support credit card purchases, so purchasing it with USD or EUR shouldn’t be too difficult.
Keep in mind that buying cryptocurrency with your credit card comes with high fees and interest rates—and no guarantee that you won’t get scammed! How can I store my BNB? : There are several ways to store your Binance coins.
Why was BNB coin invented?
Despite being founded in 2017, Binance has already been a major player in cryptocurrency markets.
The exchange broke its own record on March 6, 2017, when it handled an astonishing 1.4 million transactions within a 24-hour period.
As of April 2018, there were over 100 cryptocurrencies available for trading on Binance’s platform.
As such, it was only natural that they create their own token and launch an ICO (initial coin offering).
This is how they created BNB coin. BNB is primarily used as a utility token. It can be used as payment for any fees incurred by users on the Binance platform.
It also offers discounts on those fees if you pay using BNB coins. Moreover, 20% of all profits generated by BNB will be burned and destroyed every quarter, which should increase demand and thus value over time.
In addition to all these benefits, it's also possible to trade your coins with other users using Ethereum or Bitcoin pairs. The total supply of BNB coins is 200 million, meaning no new tokens will ever be created.
Each year, 10% of that number gets added to circulation through quarterly buybacks conducted by Binance.
After 5 years, no more buybacks will take place, meaning there won't be any new tokens coming onto the market—at least not officially!
There are currently 2 ways to obtain BNB coins.
First, you can use fiat currencies like USD or EUR to purchase them directly from Binance via bank transfer or credit card.
Second, you can use cryptocurrencies like BTC or ETH to buy them from third-party exchanges like KuCoin, Gatecoin, HitBTC, and others.
Keep in mind that buying directly from exchanges tends to be significantly more expensive than purchasing them directly from Binance itself.
Regardless of where you get your coins, though, storing them safely is important.
How does Binance Coin work?
To understand how it works, you first have to understand exchanges. Exchanges are used as a marketplace between buyers and sellers of cryptocurrency.
Buyers put in their money, and sellers provide them with cryptocurrency.
The exchange sits in between each transaction, verifying that everything is legitimate. It’s not easy work, but it’s necessary if you want to trade cryptocurrencies.
In return for providing these services, exchanges charge fees on every trade made by its users. These fees can be quite high, especially for larger trades. That’s where Binance coin comes into play.
Every time a user makes a trade using BNB, they get charged a lower fee than usual (0.1% vs 0.2%).
They also receive an incentive of 50% of that amount back in BNB as well! This incentivizes people to use BNB instead of other currencies on Binance.
As more people use it, demand goes up, and so does price. This creates a virtuous circle where more people start using BNB because others do; more demand leads to higher prices, which leads to even higher demand; etc.,
etc., etc... This leads us to our next point... Title: How Does Buying Cryptocurrency Work?
Why Do I Need a Wallet?
How Do I Transfer Funds Into an Exchange? Why Are Crypto Prices Fluctuating So Much? What Is Gas And Gwei And Why Should I Care About Them When Trading On An Exchange? What Are Margin Trades And Pumps/Dumps And Should I Use Them If I'm A Beginner Trader?
Where Can I Trade Altcoins Like NEO, QTUM, OMG & More Without Using BTC Or ETH?
What are the benefits of Binance BNB Coin?
One of the biggest benefits of using BNB is that it gives you a discount on your trading fees. Trading cryptocurrencies can be expensive, and if you want to buy low but sell high, then you are going to be spending some money in order to take advantage of those price fluctuations.
If you use BNB, however, you will receive a 50% discount on all your trading fees on both your initial purchase and sale – as long as they were conducted within 24 hours.
This means that if you had bought $100 worth of Bitcoin, for example, and sold them for $150 within 24 hours, you would have only paid 0.05 BTC (0.0005) instead of 0.1 BTC (0.001).
This could save you quite a bit of money over time! In addition, there are no limits to how much you can trade with BNB or how many times you can use it.
The more BNB you own, the better deal you get when trading! When should I use Binance Coin?
There’s never really a bad time to use BNB since it always gives you a significant discount on any trades that you conduct.
However, one of its most popular uses is to participate in ICOs. During an ICO, you often need to pay a fee in order to participate
these fees are often quite steep and deter investors who don’t want to spend hundreds or thousands of dollars just so they can invest in an ICO.
Using BNB allows you to pay lower prices than usual while still being able to invest without worrying about costs. What happens after I use my Binance Coins?
Can I buy Binance Coin (BNB) from anywhere?
%20from%20anywhere.jpg "Can I buy Binance Coin (BNB) from anywhere?")
Yes! Binance Coin (BNB) can be purchased on multiple exchanges, including Kucoin and OKEx. It’s important to note that while Binance is based in China, it doesn’t allow citizens of China to buy its coin directly.
However, there are ways around that—if you know what you’re doing. Once you have your hands on some BNB tokens, you can trade them for other cryptocurrencies or even use them as a way to pay for goods and services with merchants who accept cryptocurrency payments.
BNB has grown considerably since its inception; at one point, it was worth $12 USD per token but has since grown to more than $22 USD per token. That means it grew by about 64% within just two weeks.
If you want to learn more about BNB, check out our guide below! The team behind Binance also recently announced their plan to launch a fiat-to-crypto exchange.
They aim to offer cross-border crypto-to-fiat transactions, meaning users will soon be able to purchase crypto assets using government issued money like the U.S. dollars or Euros.
For those interested in learning how they’ll make it work, read up on our recent coverage here!
Is there a way to earn Binance Coin (BNB)?
Binance doesn’t allow you to purchase BNB with fiat currency. So, if you don’t own cryptocurrencies, there are a few other ways to earn it. For one thing, you can complete asks on Binance in exchange for your desired cryptocurrency.
For example, if someone asks for 0.2 ETH in exchange for 10 BNB, you can fulfill that request and get your hands on 10 BNB without having to spend any of your own money.
This is also a good way to increase your holdings of specific coins. If you want more Bitcoin Cash (BCH), for instance, you could ask people who have some to give it to you in exchange for BBN—and then convert those BNB into BCH once they arrive in your wallet.
It’s not an ideal solution by any means, but it is another option if you want more than just what comes from trading on Binance itself.
And remember: Just because you hold BNB doesn’t mean you can only use it to buy or sell other cryptocurrencies.
The platform allows users to withdraw their assets whenever they like; as long as your balance exceeds 2 BTC, 1 LTC, 5 ETH, or 500 Tethers, you can withdraw all funds in a single transaction.
No need to take them off piecemeal! Again, though, we don’t recommend relying on Binance too much. There are far better options out there for earning cryptocurrency passively.
These include sites like Earncrypto and earn.cex, which will pay you in virtually any coin available for completing tasks such as watching videos or answering questions online.
Again, though, we don’t recommend relying on Binance too much. There are far better options out there for earning cryptocurrency passively.
What are the investment opportunities presented by this cryptocurrency BNB?
As a market maker, Binance charges fees of up to 0.1% per trade on both ends of an order and offers a rebate of 50% for trades with its native coin. BNB
This model allows traders that don’t mind paying fees with their own coins to effectively get a 50% discount on all trades, while those who do use their coins receive a 100% discount on transaction fees.
There are other cryptocurrency exchanges that offer similar models, but none is as well-established and reliable as Binance.
The exchange has grown rapidly since its launch in 2017 and now processes more than $1 billion in daily volume.
The platform also supports a number of different fiat currencies, including US dollars (USD), Chinese yuan (CNY), South Korean won (KRW), Japanese yen (JPY) and euro (EUR).
It also features support for tether tokens USDT, which can be used to directly purchase BTC or ETH from Binance without any need for trading at all.
What are some potential risks?: Since Binance only accepts cryptocurrencies in payment for its services, there is no risk of chargebacks like you might see with credit card payments.
However, if your funds aren’t stored securely by Binance itself—or if you lose your login credentials—there is no recourse for recovering them. If you forget your password or PIN code, it’s gone forever.
Also, due to its status as a centralized exchange, it is possible for governments to pressure Binance into closing accounts associated with certain coins that they may deem illegal.
For example, China recently banned initial coin offerings (ICOs) and ordered domestic cryptocurrency exchanges to cease operations immediately.
Final thoughts about buying Binance Coins (BNB)
If you have an active trading portfolio, then you should definitely have a good amount of BNB. If you’re new to crypto trading, then I would wait until you get your feet wet before investing in tokens like these.
Additionally, if you only plan on using their platform once or twice, then it may not be worth it for you.
It all depends on what your goals are and how much you want to spend! This is something you need to decide for yourself
The cryptocurrency market is still very young, and there are lots of changes coming down the line that will continue to shape its evolution.
For example, as regulations come into place in different countries around the world, exchanges will need to make changes so they can continue doing business within those jurisdictions.
These types of situations could lead to dramatic changes within platforms over time, which can directly impact what people own and trade with cryptocurrencies.
As such, it’s important to stay up-to-date on current events and understand how they might affect you personally.
Hopefully, we helped give you some insight into whether or not Binance Coin (BNB) is worth buying at today’s prices! Good luck out there!