Binance Coin (BNB) Full Review: Benefits, Drawbacks And Potential
What happens when a cryptocurrency coexists with a platform? This is the case for the cryptocurrency we will talk about in this article: the binance coin. Created at the same time as the Binance exchange platform, it offers remarkable advantages. What is this cryptocurrency? What’s its purpose? What is its relationship with the exchange platform? We’ll see all of this in this article!
Definition of binance coin (BNB)
In order to give you a clear and precise definition of what binance coin (BNB), we must first go through a few other definitions: what is a cryptocurrency, and what is a blockchain?
What is a cryptocurrency?
A cryptocurrency is a currency that has no physical form: everything is digital. To be more precise, it is a virtual currency designed through cryptography, a series of processes used to encrypt information. The first cryptocurrency to put cryptography to work was Bitcoin in 2009.
Cryptocurrencies may have a different purpose. Some, like fiduciary currencies, want to allow purchases, financial transactions, etc.. Others may have other objectives, such as developing exchanges between institutions, developing applications etc.
You should be aware that cryptocurrencies are not governed by an institution. They work thanks to their community, which governs, by the sheer force of their computing power, all transactions and information related to the cryptocurrency they support on a network called a blockchain.
What is the blockchain?
The blockchain is a technology that allows data to be stored and transferred. This process is carried out in a secure and transparent manner, without the intervention of a central control body. It is constantly updated by its community who make their computing power available.
The benefits of the blockchain are innumerable. It allows you to track all information about a cryptocurrency, because it is a register that lists all transactions since its inception. In addition, the blockchain is unfalsifiable. As soon as a transaction is confirmed, it is irreversible. Under no circumstances can you cancel an already approved and confirmed operation. This prevents corruption. It can also be used to develop things like automatic contract execution (called smart contracts).
What is binance coin (BNB)?
Binance coin (BNB) is a digital currency created at the same time as the exchange platform Binance in 2017. At launch, it was deployed on the Ethereum blockchain, a blockchain acclaimed for its versatility, but has since migrated to its own.
This is a currency that was once based on the Ethereum network in the form of ERC20 tokens. Binance Coin guarantees fee reductions on the Binance exchange platform. It should also be noted that it enjoys an evolutionary course. On top of that, the cryptocurrency has many other uses. So whether it’s paying transaction fees on Binance, selling digital assets (tokens) hosted on Binance Launchpad,or just for speculation, the BNB is a very useful cryptocurrency.
History and operation of binance coin
Several platforms offered a variety of cryptocurrency offerings until Binance entered the market. Since its birth, the platform has continued to grow, as evidenced by the growth of its binance coin currency. Today, binance coin is a highly valued and very advantageous cryptocurrency.
The creation of binance coin
Binance coin was created in 2017 as part of a fundraiser. The cryptocurrency was born when Binance, then a start-up, launched its Initial Coin Offering (ICO). Investors exchanged their money for binance coin. Binance coin’s main purpose is to benefit from the reductions in commissions on transactions carried out on the platform. Since its inception, binance coin has consistently attracted investors, contributing to its growth.
What are binance coin’s principles?
Like any other cryptocurrencies, binance coin also has its own principles. This is what makes it unique.
Why was binance coin created?
Binance coin is a cryptocurrency originally created to help investors trade with other cryptos on Binance. By reducing transaction costs, the BNB (binance coin) makes it easier for traders. In fact, they can now carry out transactions without paying too high a price. They can purchase BNB for the purpose of having a stock of change that can allow them to pay part of their transaction fees. The creation of the BNB also aims to allow investors to speculate. Indeed, the cryptocurrency can increase in value over time. This allows investors to make a profit on their bets.
How is binance coin used?
As said previously, the binance coin has as its main goal the reduction of fees on Binance. But over time, the usefulness of binance coin multiplied.
At the time of writing this site, it is possible to use the binance coin in more than 100 ways. For example, like Bitcoin and other electronic currencies, binance coin (BNB) can be used to buy multiple goods and services, from meals to homes. It is even possible to donate your binance coin to Binance Charity to help the most disadvantaged.
Also, if you want to learn more about this cryptocurrency, you can use the Binance Research platform which offers detailed articles.
The goals of binance coin (BNB)
Binance coin was designed with well-defined goals. The main objective of cryptocurrency is first of all to grant discounts on fees. This is the case for transaction fees, withdrawal fees and others. This has greatly contributed to the promoted exchange platform from which it originates.
It should be noted, however, that the discounts granted decrease from year to year until the fifth year. In the first year, the fee discount was 50%. In the second year, it fell to 25%. At the time of writing, we moved to a 12.5% reduction, which is the third year. For the fourth year, the reduction rate will be 6.75%. Finally, from July 2021, which will be the fifth year, it is expected that there will be no further reduction.
In addition, Binance has its own decentralized exchange with binance coin as its core asset. It has been in existence since 23rd April, 2019 and is called Binance DEX.
Where and how to buy the binance coin?
To buy binance coin, just access a dedicated shopping platform. There are several platforms where you can buy your corners. First of all, you can do it on the Binance exchange platform.
To do this, you will have to register beforehand and then create an account. Then you will have to check your identity. For this step, you must provide your personal information (name, first name, gender, etc.). The next step is to deposit funds into your Binance account, whether in fiat currency or cryptocurrency (BTC or ETH for example).
This deposit will allow you to buy your BNB. You can also buy BNB directly by credit card.
The eToro shopping platform also allows you to purchase binance coin. It was born in 2007, its use is simple and proves to be a very good ally for beginners.
To purchase the binance coin on eToro, simply register on the site and provide your personal information. You will need to provide your:
- first name
- email address
- mobile number
Finally, you will have to accept the Terms & Conditions as well as Risk Disclosure that is necessary to read in order to be able to create your account. Once you’ve created your account, don’t hesitate to complete your profile.
To buy your BNB on eToro, you will first need to make a cash deposit. Several means of payment are accepted by the platform, including credit card, bank transfer, PayPal, Neteller or Skrill. Once you’ve deposited funds, all you have to do is buy the cryptocurrency.
Our two tips: Search the platforms before you sign up, as transaction fees and delivery times can vary from broker to broker. Also, secure your account to the maximum, especially by opting for the 2FA when this is proposed by the site.
Summary of the two sites and their characteristics:
|Purchasing and depositing methods||Bank transferCredit cardPayPalSkrillUnionPayNeteller||CryptocurrencyCredit cardBank transferAdvcash WalletPay WalletEpay Wallet|
|Means of sale and withdrawal||Bank transferPayPalSkrillUnionPayNeteller||CryptocurrencyBank transferAdvcash WalletPay WalletEpay WalletPerfect MoneyOkaypay|
|Date of creation||2007||2017|
|Cryptos available||14||More than 100|
|Location||Cyprus||UK branch based in Malta|
|Safety and reputation||Very good||Very good|
|Easy to use||Yes||Yes|
When you’re not using your cryptocurrency, consider storing it in a BNB wallet (or electronic wallet) for later use. In addition, Binance is a complete platform, because it offers its own wallet: Trust Wallet. You can download the wallet to your smartphone, whether it’s Android or iOS.
Why invest in binance coin (BNB)?
Recent Cryptocurrency, the Binance Coin has experienced a strong development since its creation due to its many advantages. And it is no coincidence that more and more traders are interested in this electronic currency. One of the strengths of this cyber library is the reduction of transaction fees and its value.
The benefits of buying binance coin (BNB)
The advantages of binance coin are of course numerous. At first, Binance is a fast-growing company. For those who do not know it yet, the rise of this cryptocurrency is intimately linked to the company that enjoys a great reputation. Indeed, over the years, the value of cryptocurrencies has increased significantly (with some price declines), which does not leave investors indifferent.
In addition, binance coin offers very attractive rates in terms of transactions. Indeed, when you exchange binance coin on Binance, there are no charges. You also have the option to use BNB in your transactions to obtain other cryptocurrencies, which lowers the cost of transactions. In addition, this currency can be used as a utility coin instead of Bitcoin. Moreover, Binance is a simple and easy-to-use platform. Its reliability is no longer to be demonstrated.
Risks of buying binance coin (BNB)
While there are advantages to buying binance coin, there are some risks associated with the purchase of binance coin. First, it is known to all that the cryptocurrency industry is recent. Several events could therefore have negative effects and upset the price of the currency. Instability in the sector is therefore an issue to be taken into account. The latter can result in significant losses in invested capital. Moreover, as we have seen, the reduction in fees decreases each year to the point of being zero in 2021, which could make cryptocurrency increasingly obsolete in view of investors if it fails to prove its usefulness through other features.
In short, binance coin is the cryptocurrency native to the largest crypto exchange platform. It has many advantages that attract a lot of investors. These benefits include discounts on transaction fees. The purchase of binance coin can be done on several platforms such as eToro and of course its original platform, Binance. The latter is accessible in several languages to the delight of traders. It is important to note that the purchase of binance coin also presents certain risks. These include the risk of capital loss and transaction risks. If you’re interested in cryptocurrency, find out how to buy it here!
Just your average global millennial embracing, and interested in, the future of money and finance. Excited by blockchain tech as well as fintech but have a special passion for DeFi and Yield Farming, what will this technological disruption bring next?