Binance BNB Review: Beginners guide
Binance Coin (BNB): The native token of the Binance exchange
Industry type: Exchange trading.
What is Binance Coin? Binance is the world’s second largest crypto exchange and Binance coin is its platforms native cryptocurrency. Binance was launched in 2017 after fundraising with its ICO and is now an international, multi-language exchange that is popular amongst traders particularly for its user interface, comprehensive coin listings, and native cryptocurrency.
What gives it value?:
- It essentially fuels the second largest crypto exchange in the world.
- It is predominantly used to pay for listing and exchange fees.
- Traders who use it for trades receive a discount on fees until 2022.
- It is a deflationary currency as Binance uses 20% of its profits each quarter to buy back coins and destroy them.
- It is an ERC20 token based on the Ethereum network.
- Changpeng Zhao is the CEO of Binance. Zhao had previously founded cloud trading systems services, Beijie technology, and worked on Blockchain.info and co-founded OKcoin.
- Yi He is the co-founder of Binance who also co-founded OKcoin and is one of the most respected and influential people in the Chinese Internet industry.
- Swiss cryptocurrency exchange Monaco supports the use of the BNB token on its platform, mobile app, and Monaco Visa card.
- Video platform Uplive allows its users to purchase and send virtual gifts with BNB tokens.
BNB Review: The Good
- Discounts on transaction fees are particularly useful when trading large amounts of money.
- It is used on platforms other than Binance and may become more widely spread in the future.
- As it is deflationary there is a stronger chance that it will rise in value due to scarcity.
BNB Review: The Not So Good
- The discounted fees only last for the first 5 years and decrease every year until 2022.
- If it doesn’t become more widely adopted on other platforms and for other reasons in the future then it may not be useful to traders and investors without the discounts it currently provides.
- Binance is developing a new decentralised exchange called ‘Binance Chain’. The exchange will focus on the transfer and trading of blockchain assets. The Blockchain will be powered by the BNB token which will newly function from its own mainet.
Currently, Binance coin is predominantly used for paying fees on the Binance exchange. Its discounted fees for users are a popular utility that will no longer be available by the year 2022 which may see it drop in value. On the other hand, Binance coins will be burned over time, which should help to raise value and the it will be a crucial resource in the future Binance chain.
Binance Coin Price:
The current Binance coin price, market cap and charts.
Where to buy it:
Where to store this crypto:
Hardware wallet: www.bitgear.com.au
Desktop wallet: www.exodus.io
Online wallet: www.myetherwallet.com
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