What is Binance Coin ? This is a cryptocurrency with a market capitalization in the top 3 after BTC and ETH. If you are a person who is learning about cryptocurrencies, you should not ignore this coin. So what makes this cryptocurrency so powerful? Let 's learn about Binance coin with TradersViet through this article.
What is Binance Coin?
About Binance Coin
Binance Coin, also denoted as BNB, is a coin of the Binance Exchange exchange. Currently, it is also one of the largest BNB exchanges in the market.
Binance Coin (BNB) was launched through the form of ICO (Initial Coin Offering - This is understood as the first issuance of a virtual currency on the exchange) during the period from June 26 to July 3 / / 2017 (11 days before Binance coins are officially traded on Binance exchange ).
The issue price of 1 ETH at that time was equal to about 2,700 BNB and 1 BTC was equal to 20,000 BNB. So BNB is only worth about $0.15/1 BNB.
How was Binance Coin born?
Binance Coin Development Team
Binance Coin is a cryptocurrency with a very large market capitalization, so it is not surprising that Binance Coin has a strong development team even though they have not been established for a long time.
The factors contributing to the success of Binance Coin cannot but mention Changpeng Zhao. The CEO has a voice in the board of directors who researched and invented this coin first. Besides, Binance Coin also owns a team of experienced legal and financial consultants.
They can solve customer queries at any time even the smallest thing. This has helped them increase their prestige in the eyes of investors.
Total Supply of Binance Coin
The first time Binance Coin was issued as an ERC-20 token. This token is run on the Ethereum blockchain with a supply of around 200 million BNB. As follows:
- 1/2 of the total supply is equivalent to 100 million BNB released to the market during the ICO.
- 2/5 of the total supply equivalent to 80 million BNB is owned by the team of Binance developers.
- 1/10 of the total supply equivalent to 20 million BNB belongs to Angel Investors.
However, now the total supply of Binance coins is seeing more than the original supply. Currently the total supply of Binance Coin is 170,532,785 BNB. The reason for this is that every year Binance regularly burns BNB in its fund. This coin burning process is done regularly by Binance during the year. Binance's goal is to reduce the total supply to 100 million BNB.
Appearances of Binance Coin
Although at the time of release BNB was launched based on Ethereum's blockchain platform, the ERC-20 standard. But after a while BNB switched to the BEP-2 standard with a ratio of 1:1. BEP-2 BNB is a native coin of Binance Chian that was announced on April 18, 2019.
In September 2020, Binance launched Binance Smart Chain (abbreviated as BSC). This is a blockchain network that runs in parallel with Binance Chain. It is understood that investors can find BNB appearing in 3 forms as follows:
- BNB BEP-2 on Binance Chain.
- BNB ERC-20 on Ethereum.
- BNB BEP-1 on BSC.
What are the benefits of Binance Coin?
Some of the benefits of Binance Coin for investors are:
Low transaction costs when trading on Binance exchange
When trading BNB on the Binance exchange, users will receive a discount compared to the normal trading level. Initially, BNB was discounted up to 50% but then this discount has decreased year by year. Currently the fee applied to BNB is 25%. According to the roadmap, this level will be reduced to 12.5% in 2019 and by 2021, this policy will no longer be applied.
However, it can be said that this is one of the attractive policies of the Binance exchange for users as of 2021.
Besides, BNB has been present at many different exchanges such as Komodo, Kyber Network, etc. BNB is currently a cryptocurrency in the top 10 coins with the largest capitalization as well as trading volume. It can be seen that BNB is receiving more interest than ever.
Payment methods for various commercial activities
Binance Coin is not simply a speculative buying and selling coin, but also a payment method for many different products and services. Currently, Binance Coin can be used to pay at Travelbit (This partner of BNB has more than 150 retail locations throughout Australia), PundiX platform, Crypto.com, …
Use to withdraw cash
BNB can also be exchanged for cash at ATMs. Currently, BNB can be used at some ATM locations such as Zelaacoin and is also seen as a method to secure debt in Nexo.
Used for entertainment on social networking platforms
BNB is also used as a method of making gifts or buying and selling through social networking platforms such as Uplive, Adamant, etc.
Can be stored in many different wallets
As a coin that is highly appreciated by experts, BNB is integrated by many e-wallet providers with their wallets. Some names can be mentioned such as Trust Wallet, Trezor, Ledger or Blox, …
Binance Coin is considered as a long-term investment channel
Binance Coin is a coin with a total supply of about 200 million coins and the goal is in 5 years this number will be reduced to 100 million coins by coin burning.
BNB will use about 20% of that quarter's profits to buy back coins and burn. The benefits of this have been mentioned above. It is because of this that the coins do not depreciate and are seen as an option for investors to hold for the long term.
How to buy and sell BNB
BNB can now be traded on many different exchanges such as HiBTC, Gate.io, Kucoin, … and especially on the Binance platform itself. The trading volume of BNB at other exchanges is not significant, this coin is only used for trading mainly on Binance exchange.
To be able to buy and sell Binance Coin, investors should follow these steps:
Sign up for a Binance account
Getting a Binance account is very simple. Investors just need to go to Binance's homepage, Binance.com, and choose to register and fill in the required information.
Buy BNB
How to see what coins Binance allows for conversion
To be able to buy BNB, investors need to use coins that Binance allows to buy. To know which coins are supported by Binance, investors can see here.
Before buying Binance Coin, investors must create a Binance account and then send coins from their own wallet to the exchange's wallet and buy BNB. If the transaction goes through successfully, the amount of Binance Coin will show in your wallet.
Sell BNB
To be able to sell BNB, investors just need to do the opposite when buying. At this point, the investor will choose the currency that he or she wants to exchange BNB in, in which ETH and BTC are the two most used coins for trading.
After successfully selling BNB, investors can withdraw BTC or ETH to their wallets or some exchanges that allow exchanging into VND and then withdrawing to their bank accounts.
How to Store Binance Coin
Investors can store Binance Coin in a variety of ways as follows:
- If investors only want to hold in the short term, they can store it right at the Binance wallet and use it at any time.
- If investors do not want to hold in the short term but want to store it for a long time, they can choose the following wallets such as MetaMask or Trust Wallet for storage. As these wallets have support for ERC-20 tokens.
- If investors want to keep long-term and secure, use a hardware wallet, also known as a cold wallet Ledger Nano S.
What is the Burning Coin Event?
Burning Coin Event
Burning coin or burning this coin will make the burned coin invalid. That is, they will no longer be circulated on the market and not included in the total supply of that coin. This is aimed at keeping inflation to a minimum. All BNB burn events will be announced and publicized. Anyone can easily monitor the process so it's completely transparent and legal.
Any individual can participate in the verification of this coin burning process. As soon as the Coin Burn event takes place, BNB will make a detailed announcement about the number of coins burned. If investors are interested in this event, they can easily follow the news at the website or social media, etc. The burn time on October 17, 2020 burned about 2,253,031 BNB. As of April 2021, Binance has burned 13 times of BNB and the total number of coins burned is 29,467,215 BNB.
The burn on October 17, 2020 burned about 2,253,031 BNB
What is Binance Launchpad?
For those who have learned about Binance since 2019, surely they will know the phrase Binance Launchpad. This is considered a unique product of Binance to help blockchain projects access capital. The trading platform of this takes place on the Initial Exchange Offering (IEO).
Binance Launchpad
Binance Launchpad helps fundraising projects reach more than 10 million people by issuing tokens. If an investor feels this is a potential project, he can buy tokens of those projects, thereby contributing capital to those projects. If the project is successful, the value of the token will increase and investors' profits will also increase from the price difference. In addition, Binance Launchpad also acts as a consultant for these projects.
In a word, these projects only need to focus on product development and Binance will take care of the rest. Thanks to its reputation as well as a large user community, Binance Launchpad has launched quite successful startup projects. The exchange itself can also participate in investments when they feel those projects have potential.
What are some frequently asked questions about Binance Coin?
How to mine Binance Coin?
For the Binance Chain ecosystem, the establishment of a transaction or the creation of a new block will be in charge of the Validators. These Validators can be an organization or an individual. And of course when completing this task they will receive a reward as a transaction fee. Therefore, if it is not possible to mine Binance Coin, investors can also have Binance Coin in many different ways.
How to get Binance Coin?
The simplest way to get Binance Coin is for investors to trade this coin on Binance or some other exchanges such as Huobi, P2P Remitano.
Is Binance Coin Worth the Investment?
This is certainly a difficult question to answer accurately.
Binance Coin has grown rapidly in the past time
The reason is because the price of Binance Coin has skyrocketed continuously over the past months. It even peaked at 637.44/BNB at one point. Just in May 2020, the price of BNB coin was only 15 dollars per 1 BNB. This answer is probably only you who can satisfy yourself because this article simply does not give advice but is only intended to provide information to readers.
What types of wallets help store BNB safely?
BNB is considered as one of the 3 largest coins by market capitalization. That's why Binance Coin has a lot of electronic wallets that support storage such as Coin98, Coinbase, Trust Wallet, etc. In which, Trust Wallet is a component in the ecosystem of Binance.
The Binance ecosystem includes the following: Binance Coin (BNB) exchange token, Trust Wallet, Binance exchange, Binance Dex decentralized exchange, Blockchain Chain, Binance Launchpad,… another part.
There is one outstanding advantage that can be mentioned about the Trust Wallet wallet that we can easily use them on smartphones.
Conclusion
Above is some information about what is Binance Coin . Hopefully through this article, investors can better understand the Binance ecosystem as well as make a decision whether to invest in Binance Coin or not. Cryptobnb wishes investors to have effective transactions!
