Binance Coin (BNB) is the cryptocurrency launched on the market by the popular crypto platform Binance. The Exchange created BNB with the aim of facilitating operations carried out within its system, and, in addition, developing a cryptographic ecosystem through its own cryptocurrency. Users and investors who acquire Binance coins can use the currency in various situations such as in the payment of commissions per operation within the platform.
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This time we will talk about BNB, the native token of the popular Binance exchange platform, we hope it will be useful to you.
Table of Contents
What is Binance Coin or BNB?
Binance Coin is the native token of the Binance trading platform and is based on the Ethereum blockchain. In its beginnings, it used the ERC-20 token standard and its main objective was to provide users and investors of the platform with affordability and convenience in operations.
As the leading exchange continues to expand and grow in reach, many financial market experts view BNB’s future as bright. Binance also encourages investment in BNB with lower rewards and fees within its exchange platform.
History of BNB Binance Coin
Binance coin was put on the market in July 2017 through an ICO offering 20 million of the cryptocurrency for investors, 80 million for a group of project stakeholders and 100 million for retail investors who had been participants in the ICO. The money raised was spent on branding, marketing, and the exchange platform.
BNB is generated by consensus of Byzantine Fault Tolerance BFT in which validators participate who obtain the tokens by verifying blocks within the Binance Chain.
There are currently a total of 144 million cryptocurrencies. Initially, 200 million were procured, however, around 12% were burned to offset the depreciation of the value. Later they burned another 32 million coins as a control system.
Invest in Binance coin BNB
The main reason for the development of BNB was to empower the cryptocurrency exchange in addition to facilitating commercial operations for investors of the platform. The token can be used to pay for travel and accommodation services, but the acceptance of the cryptocurrency compared to many others has been a bit unsatisfactory.
Binance coin is a native token of the Binance platform so it adheres to all laws and regulations. As cryptocurrency is used within the exchange, you can’t really argue about the legality of the currency. This is because as an exchange platform it already complies with the KYC and AML regulations to guarantee the security of investors’ personal and financial information, along with the protection of their funds.
KYC is a company’s process for identifying and verifying the identity of customers. This term is also used as a reference to banking regulations and the prevention of money laundering.
AML is related to the KYC process and is used for the prevention of money laundering.
Uses of Binance Coin or BNB
Apart from short and long-term investment, the Binance coin includes popular uses such as:
- Method to obtain passive income through investment, taking advantage of the popular volatility of cryptocurrencies. However, we must bear in mind that being a native currency of the popular Binance exchange, it has support and resources to maintain a stable price, or at least greatly reduce its volatility.
- BNB can be used as a currency for payment of trade fees or charges within the Binance exchange. This is interesting because of the savings that the platform offers you when using its native currency.
- To make ICO investments in tokens that are entering the market using the Binance Launchpad feature.
- Place bets with BNB tokens to earn passive income and get pitches by using Launchpad.
In addition, the platform has strengthened links and agreements with different providers around the world that have allowed Binance coin to be used as a bargaining chip in different shops and points of sale. Some of the points of sale that we can highlight are:
TravelbyBit: this company allows you to pay with BNB tokens for the service to travel around the world, and exchange Binance coins in shops in Australia.
Crypto.com: You can pay your credit card bill with Binance’s cryptocurrency.
Gifto: This live video streaming platform allows you to use cryptocurrency to make virtual gifts.
Pundi X: Any store that uses a Pundi X XPOS device will accept BNB as a payment method.
AERON: this company allows you to exchange Binance coins for airplanes in the pilot store.
Binance Coin BNB Technology
Binance coin started its journey within the Ethereum blockchain and initially relied on ERC-20 tokens. However, these have been replaced by BEP2 BNB tokens due to the exchange launching its own network in 2019 known as the Binance Chain.
This blockchain does not have the ability to mine tokens through proof of work or proof of stake protocols. This is because all the coins have been previously mined and distributed at the time of the ICO. The cryptocurrencies that are currently circulating are used mainly for trading on the exchange obtaining discounts. The discount rate in the first year of the launch was 50%, but each year it decreases by 50%.
Where to buy Binance Coin
BNB is available on multiple cryptocurrency exchanges. Clearly, the best place to access the token is the native Binance platform. However, if you have a preference for other fees, the usability of another platform, customer support, or reputation, you can purchase them elsewhere such as Cex.io.
Once you acquire this cryptocurrency, we recommend not keeping them in the account for a long time as it is insecure. The use of wallets will always be recommended to secure cryptocurrencies. BNB is supported by a wide variety of wallets, and the platform officially recommends Trust Wallet. However, Binance’s cryptocurrency can be stored in Enjin Wallet, Ledger Nano, Trezor, Jaxx, Metal Vault, Request Wallet, and Atomic Wallet among others.
Conclusion
Binance coin was born with the security and backing of being the native cryptocurrency of one of the most popular exchanges on the market.
The project started on Ethereum and ended up developing its own decentralized chain.
BNB offers advantages in exchanges within its platform, and allows the purchase of products and services with different companies through the use of cryptocurrency.
If you want to make investments in the cryptocurrency of Binance, you should take into account that the volatility of the currency is lower than that of other digital assets, however, it will provide you with rewards when it comes to trading with it within your exchange.
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