Introduction to Binance Coin A.K.A BNB
Learn all there is to know about Binance Coin and how it works with CryptoMeister.
We’re going to teach you how to buy Binance Coin, what you can do with Binance Coin and why Binance Coin exists.
Whether you’re a Binance Coin veteran or a beginner, we’re going to teach you everything there is to know!
Hold onto your hats, this will be a wild ride!
The complete guide to buying Binance Coin (BNB)
Binance Coin (BNB) is the 4th largest cryptocurrency in the world, by market cap, and boasts nearly $2 billion in 24-hour trade volume.
BNB is an exciting cryptocurrency with a bucket load of potential.
It’s the gateway to Binance and its various platforms.
BNB will even net you discounts on your trades when you trade at Binance.
Opting to buy BNB is a wise move and it’s a valuable addition to all crypto portfolios.
But the process of buying BNB can seem scary and daunting, so we’re going to help you every step of the way.
If you’re new to BNB, we’ll teach you everything there is to know.
And for veterans, we’ll drop some cool tips and facts that will blow your mind.
Learn everything about BNB and how to buy BNB with CryptoMeister!
What is Binance Coin and how does it work?
To get us started, we’re going to get down to the basics.
BNB veterans might want to skip this section, but it never hurts to go back over the fundamentals of a top cryptocurrency.
Binance Coin, better known as BNB, was launched through an initial coin offering (ICO) back in July 2017.
BNB started out life as an ERC-20 token on the Ethereum blockchain, but Binance has bigger ideas for the coin.
Eventually, BNB was swapped from Ethereum to the Binance smart Chain, where it gained a whole new lease of life.
The Binance Smart Chain and BNB use a Tendermint BFT consensus mechanism, which allows it to scale faster than other cryptocurrencies.
It also means that network fees remain rock bottom, making BNB perfect for low-cost transactions.
Since BNB was launched, it has significantly increased in value.
It’s currently up 276,949.09% when compared to its ICO price of $0.09.
Despite these huge gains, BNB is still highly affordable and remains cheap to use.
BNB’s primary use case is a method of payment.
What can Binance Coin be used for?
Owning Binance Coin (BNB) is a wise move, especially if you’re going to be using Binance products.
Owning BNB will entitle you to discounted trading fees when using the Binance exchange.
Depending on how much BNB you’ve got and how long you’ve held it for, you’ll also be able to take part in the initial exchange offering (IEOs) at Binance.
The more BNB you have and the longer you’ve held it for, the more IEO coins you’ll be able to get.
You can also use BNB to interact with the Binance Smart Chain (BSC).
The BSC is a powerful blockchain network filled with wonderful gems and excitement.
The most exciting feature of BSC by far is the decentralized finance (DeFi) protocols that exist on it.
Uniswap ushered in the DeFi era, but Ethereum’s gas fees made using Uniswap a financial nightmare.
BSC stepped up to the plate and has so far knocked it out of the park.
Thanks to its low gas fees and fast transaction speeds, BSC allows BNB holders to play the DeFi investment roulette.
Some of the biggest DeFi protocols are running on BSC, including the following:
To use these DeFi swap exchanges and other yield aggregators, you’ll need to have BNB in your wallet.
You then use the BNB to pay for the gas fees so that you can move various tokens in and out of DeFi contracts.
The BSC DeFi world is far more exciting and cheaper to use than the Ethereum version.
As a result, the DeFi boom has helped BNB grow considerably in terms of price.
What is the Binance blockchain?
The Binance Smart Chain (BSC) is Binance’s very own blockchain network.
It’s used to settle BNB transactions and run Binance’s decentralized finance (DeFi) ecosystem.
It’s different to Ethereum owing to the fact that it uses a Tendermint BFT consensus mechanism, as opposed to Proof-of-Work.
This allows BSC to run incredibly efficiently and scale in an instant.
It keeps gas fees as low as possible, meaning that your transactions don’t hurt your wallet.
The BSC is growing in popularity thanks to the DeFi evolution, with more and more contracts coming to life on it.
When you stake, provide liquidity or remove liquidity from DeFi pools, you’ll need to pay for the transaction.
BNB is used to pay for these transactions.
Tokens created on the BSC are known as BEP20 tokens and work in the same way to ERC-20 tokens on the Ethereum blockchain.
In terms of age and development, BSC is still rather young, but has benefitted by learning from the mistakes of other blockchains.
As a result, BSC is a powerful next generation blockchain that powers Binance and its impressive ecosystem.
What is a Binance Coin wallet?
Before you buy Binance Coin (BNB) or any other BEP20 token, you’ll need to make sure you have a Binance Coin wallet.
This will give you a safe and secure place to store your BNB or BEP20 tokens.
You can keep them on the Binance exchange in your wallet there, but it’s not advisable to do this for long periods of time.
We suggest picking and setting up a wallet before you buy BNB simply because there are so many factors you need to think about.
During that time, Binance could get hacked and your funds could get stolen.
This is unlikely, but it has happened before, so you can never be too cautious.
There are dozens of great BNB wallets out there, but they all work in a slightly different way.
Most people that use BNB and BEP20 tokens will use them to interact with the Binance Smart Chain.
This means you’ll likely want a browser extension or mobile wallet as it makes completing transactions quick and easy.
If you plan to buy BNB in large volumes and only use a portion on the Binance Smart Chain, then look at getting 2 wallets.
One wallet can be your hot wallet that you use on a daily basis, and the second can be your cold wallet for the long-term hodl.
The best wallets for BNB on a daily basis are:
MetaMask and TrustWallet are the 2 best options as they can be used to interact with Ethereum and Binance Smart Chain.
This reduces the overall number of hot wallets that you need and consolidates your daily use crypto into one handy wallet.
The Binance Chain Wallet is a good browser extension wallet and is separate from your Binance account.
It works the same way as MetaMask and is a great alternative if you just wish to use Binance’s blockchains or stake your BNB with ease.
If you’re looking for a more long-term solution, you’re going to want to use a cold wallet.
These are a bit more of a pain to use on a daily basis as the extra security layers are present.
The best BNB cold wallets are:
There’s a slight compatibility issue with BEP2 tokens on the Binance blockchain and Trezor wallets.
As it stands, the only Trezor wallet that supports BEP2 tokens is the Trezor T.
The Trezor T also supports BEP20 and ERC-20 tokens, making it the ideal all-round wallet.
You may have to manually add some tokens, however.
Once you’ve picked a wallet to use, you’ll be given a 12-word seed phrase.
Write this down somewhere safe and store it securely.
This is the backup code to get into your wallet should you lose it.
Anyone can recover your wallet if they get this seed phrase, so keep it somewhere safe.
If you want to learn more about crypto wallets, check out CryptoMeister’s guide to the best crypto wallets.
How does a Binance Coin transaction work?
Making your first Binance Coin (BNB) transaction might seem a little daunting and scary, but it’s actually very simple.
To begin, you’ll need to buy BNB from an exchange.
Binance is the obvious choice here, but there are a few other exchanges that let you buy BNB.
Once you’ve made the step to buy BNB, it’s time to make a transaction.
There are 2 types of transactions in the BNB world, so we’ll walk you through them both here.
First up is moving BNB from a wallet you control to another wallet you control.
To do this, you’ll simply head to the send function in your first wallet and input the address of the second wallet.
You can either type this out or paste it in.
Either way, spend 30 seconds triple checking that the address is correct.
Hackers can inject code into computers that changes addresses when pasted.
It’s 30 seconds that will save you a lifetime of heartache, especially if it’s a lot of BNB.
Then, input the amount you wish to send and hit send.
That’s the first type.
The second type is a transaction where BNB is used as a gas fee.
For this transaction, you’ll need to have both your BEP20 token that you’re using and some BNB in the same wallet.
Let’s say that you’re going to add liquidity to a Bunny pool in the Binance Smart Chain decentralized finance (DeFi) platform.
You’ll input the amount of BUNNY that you wish to add to the pool and hit confirm.
A popup in your connected wallet will then ask you to validate the transaction.
Validate the transaction by clicking accept or agree, and the BUNNY will make its way to the pool.
At the same time, BNB will be removed from your wallet to cover the gas fees.
This is an automatic process and only requires the one manual confirmation on your end, which is rolled into the BUNNY token transaction.
The gas fee will be shown in the transaction prompt in your connected wallet, so you can see how much BNB will be deducted.
To use BNB as a payment method for gas fees, you must already have it in your wallet.
So, if you’re going to dabble in DeFi, don’t trade all of your BNB into BEP20 tokens.
Leave some BNB in your wallet to cover the gas fees!
How does a Binance Coin address work?
Binance Coin addresses are fairly confusing, especially if you’re not already into blockchain technology and its fallacies.
The Binance blockchains are complicated bits of tech that are designed to make your life easier.
But in reality, they can make it a lot more confusing.
So, we’re going to help walk you through the Binance Coin (BNB) address system to help you become a pro!
BNB is a BEP2 token, and you’ll use a BEP2 address.
BEP2 addresses start with bnb and are the pure Binance Chain addresses.
You’ll also need to use a MEMO when sending BEP2 BNB, so you won’t mix it up with the other address system.
Binance smart Chain has another token – BEP20.
BEP20 addresses use the exact same parameters as Ethereum does, and the addresses also start with 0x.
This means that you can deposit your ERC-20 tokens into Binance and convert them into BEP20 tokens
These are then known as pegged tokens and will now run on the Binance Smart Chain.
This gives you the power to transact and use these ERC-20 tokens on the Binance Smart Chain, taking full advantage of the lower costs.
TLDR; BNB uses BEP2 while Binance Smart Chain tokens use BEP20 addresses.
Are there any risks with Binance Coin?
Binance coin (BNB) is a volatile cryptocurrency just like all the others out there.
This means that it’s subject to massive price swings, and a 24-hour change of 15% or more is not uncommon.
While BNB does have a lot of use cases and trades independently of Bitcoin’s price movements, it’s still very volatile.
On the other hand, you’ve got security risks with BNB.
Your BNB is only as safe as you are, and you’re only as safe as your weakest security point.
You can bolster your cyber security, and therefore the safety of your BNB, by following a few key steps.
Use a unique password for every single website, app and wallet you use.
You can use LastPass or My Digi Password to manage this for you, making your life a lot simpler.
You should also enable 2-factor authentication (2FA) everywhere.
Use an authentication app such as Google Authenticator or Authy rather than SMS 2FA as SMS 2FA is not secure or safe at all.
Finally, only store BNB that you’re going to use in the near future in hot wallets or on exchanges.
These wallets are more prone to attack and are less secure.
For your larger holdings, use a proper cold wallet.
You can learn more about crypto wallets here.
BNB is the token of the Binance blockchains, and with a big name like Binance behind it, you don’t need to worry about rug pulls.
As far as the long-term hodl goes, BNB is one of the safer coins out there.
Is Binance Coin legal?
Binance Coin (BNB) is in a rather precarious position when it comes to legality.
While it’s not technically illegal or broken any laws, it does have a few major factors that could bring the US Securities and Exchange Commission (SEC) down on it like a ton of bricks.
You see, the SEC evaluates investments and cryptocurrencies with what’s known as the Howey Test.
The Howey Test determines whether a transaction is an investment contract or not.
If a transaction fails the Howey Test, it’s then subject to disclosure and registration requirements.
An investment contract has the following properties:
- An investment of money
- A common enterprise (a company or group of owners)
- Expectation of profit derives from the efforts of others
With BNB coming from an initial coin offering (ICO), this puts BNB in a tricky spot.
To control the value of BNB, Binance buys back and burns BNB every quarter.
As a result, BNB fails the Howey Test.
The only thing that BNB has going for it is that it’s a utility token.
So, while Binance isn’t illegal, the SEC could potentially investigate it and then we’d see some issues arise.
Given that Binance doesn’t have the best history with American regulators, it’s not unlikely that this will happen in the future.
If the SEC rules against BNB and Binance, we will likely see other regulated markets take the same action.
The SEC can’t sue you, but they could sue Binance, which would negatively impact the price of BNB.
So bear this in mind before you buy BNB.
Is it safe to buy Binance Coin?
If you’re worried about whether it’s safe to buy Binance Coin (BNB), we’ve got your back.
Buying BNB is perfectly safe and legal, for the time being.
You can buy BNB at quite a few crypto exchanges, but Binance is the preferred venue of choice for this transaction.
This is simply because it’s the Binance Coin, so it makes most sense to buy it at Binance.
Binance also has the best rates for BNB markets, so you’ll end up saving money, which is a win!
When you do buy BNB, be careful where you store it.
It’s not a good idea to keep cryptocurrencies on an exchange for long periods of time.
So, while it might be perfectly safe to buy BNB from an exchange, you should consider moving it to a wallet that you control sooner rather than later.
Can someone hack me or steal my Binance Coin?
Getting hacked is a real possibility these days, and as technology evolves, so too does the education needed to keep us safe.
The short answer is yes. Yes, you can get hacked and have all your Binance Coin (BNB) stolen.
If you aren’t the savviest person around, it’s easier than you’d expect to get hacked and have your crypto stolen.
But that doesn’t mean that you can’t learn and take your security from poor to excellent.
In fact, it requires very little effort to improve your security, and when your money is on the line, it’s worth taking the time.
First up, make sure you’re using unique passwords on every single website, app and wallet that you use.
Aim for at least 12 characters, including lower case, uppercase, numbers and special characters.
Next, consider a separate email address just for your cryptocurrency adventures.
Use an address that doesn’t contain your name or anything that could be linked back to you, as this makes it easier for hackers to target you.
Then, enable 2-factor authentication (2FA) on every account you use.
Your sim card can be cloned by hackers, meaning they’ll get any 2FA codes sent to your cell number.
Finally, store your crypto in a wallet that you control.
Don’t keep large amounts of crypto on an exchange, move it to your cold wallet.
Hardware wallets are your best bet.
You can learn more about the best crypto wallets here.
When you create your crypto wallet, write down your seed phrase somewhere secure and lock it away.
Never share this with anyone.
If you can do all of these things, then your cyber security will be good enough to prevent hackers from getting into your account.
There are many more things that you can do to boost your security, but this is the minimum.
How to buy Binance Coin
So, you want to buy Binance Coin (BNB) – that’s great!
It’s a powerful cryptocurrency with a bucket load of use cases.
You can currently buy BNB from a handful of exchanges, so picking the right exchange can be tricky.
The best choice to buy BNB is at Binance, seeing as it’s the Binance Coin.
Binance has the best rates and fees when it comes to any BNB trade, so this will be your best bet.
There are a few others, but they’re nowhere near as good as Binance.
Once you’ve created your Binance account, logged in and deposited, head to the markets section.
There, search for BNB.
Pick a BNB market that’s paired with the currency you’ve deposited.
Then, simply input the amount of BNB that you wish to buy and hit buy.
Congratulations, you just bought BNB.
Buying BNB is very quick, easy and simple.
If you wish to buy more BNB, you can then use your existing BNB to cover the fees.
By using BNB to cover the fees at Binance, you can save up to 50% in your first year alone, which is incredible!
How can I pay for Binance Coin?
If you want to buy Binance Coin (BNB) and you’re not sure how to pay, then look no further.
Binance is the largest exchange in the world and the home of BNB, so we recommend using Binance to buy BNB.
You can buy BNB with every cryptocurrency supported at Binance, giving you true freedom to express yourself.
If you’re looking to buy BNB with fiat, then your options are a little more limited.
Currently, you can only buy BNB at Binance with the following fiat currencies:
The most popular way to buy BNB at Binance is with a credit or debit card.
The option to use a card was added back in 2018, so it’s a battle tested payment method.
Card deposits are instant and free at Binance.
To buy BNB with a credit or debit card you simply navigate to the deposits page at Binance.
Pick card, your fiat currency and then enter the amount.
Once the transaction has been completed and the deposit has cleared, you can then buy BNB using the steps above.
However, there are many countries with banking bans in place.
This makes buying BNB with your credit or debit card impossible.
The only way around this would be to buy another cryptocurrency, send it to Binance and then swap that for BNB.
The other deposit method available at Binance is bank transfer.
Bank transfers take up to 3 working days at Binance and are free to make.
You simply select bank transfer as your deposit method, and you’ll be given a list of bank details.
Use these to make the payment from your bank account and the funds will be credited in a maximum of 3 working days.
Once the deposit has cleared, you can then follow the steps above that outline how to buy BNB.
Just as we saw for card deposits, several countries have banking bans or strained relationships with Binance.
This will make it impossible to use a bank transfer to buy BNB from Binance.
In this case you’ll need to deposit at another exchange, buy a cryptocurrency, send it to Binance and then buy BNB with that currency.
Do you have to tax profits from Binance Coin?
If you’re fortunate enough to make profits while trading Binance Coin (BNB) then you’ll likely have to pay taxes.
Crypto taxes are still relatively new and not every country has made them clear.
As a general rule of thumb, if you pay capital gains tax in your country on other investments, then you apply this to BNB profits too.
If you make losses, you can claim back a portion of your losses through capital losses, which makes the pain of a bad trade more bearable.
Some countries will have crypto tax laws in place.
In these countries, follow the specific tax laws as they’re often more favorable than capital gains rules.
For example, in Australia, Germany and Malta you can reduce your crypto tax bill by up to 100% if you hold crypto for a certain length of time.
Countries where tax doesn’t exist are pretty simple – you don’t have to pay taxes.
You can learn more about crypto taxes here.
Is Binance Coin a good or bad investment?
Binance Coin (BNB) is a popular cryptocurrency, and currently ranked 5th by Coin Market Cap.
So, is it a good idea to buy BNB or should you leave it out of your portfolio?
Unfortunately, we don’t know what the future has in store for cryptocurrency.
Prices at the moment are incredibly high and volatility is rife.
This means that we could see the market fade away and enter another bearish cycle for a few years.
But on the other hand, this could be a simple dip and prices will bounce back in a day or so.
Volatility is so high at the moment it’s really hard to tell.
The general rule of thumb for investing in cryptocurrency is that you should aim for long-term investments.
These types of buys tend to pan out slightly better in the long run.
If history is anything to go by, BNB is a top performer.
It’s up 275,488.06% in 4 years, which shows that it has performed well.
Binance is also the biggest exchange in the world, continuously improving and adding new features, for which you need BNB.
As a result, BNB looks like it’s a fantastic addition to any crypto portfolio.
Not only does it have great potential price targets, but it also has unparalleled utility.
The only worry would be the United States Securities and Exchange Commission (SEC) ruling it as a security.
If this happens, we could see the token plunge in price as Binance deals with the fallout.
Think back to what happened when the SEC went after Ripple and XRP.
But, the likelihood of this happening is fairly slim.
Can I trade Binance Coin on leverage?
Leverage trading is popular with pro traders and people looking to make a lot of money very quickly.
However, it’s also very dangerous in that one adverse market movement and your position will get wiped out.
Nonetheless, you can trade Binance Coin (BNB) on leverage at Binance.
You will need to create an account at Binance, a process we detail here.
Once there, you’ll need to fund your Futures account with USDT.
You can swap any coin or token into USDT at Binance.
Then, head on into the leverage trading platform and open a BNB leverage trade.
You can trade BNB up to 50x leverage at Binance, which is a significant amount.
Just be aware that while you can make money quickly, you can also lose it just as fast.
Trade BNB on leverage with care!
Binance Coin day trading
Day trading cryptocurrencies is a popular activity amongst pro traders.
Opening and closing multiple positions every day keeps your heart racing and trade volume increasing.
Many crypto exchanges will offer you discounts for significant trade volume in a monthly period, and day trading is the key to getting there.
But, can you day trade Binance Coin (BNB)?
The answer? You can!
It’s possible to day trade any cryptocurrency out there, but some are more exciting than others.
Cryptocurrencies with higher volatility and big news are the most exciting.
These are the cryptocurrencies that will move the most in a day.
BNB isn’t one of those, but there’s still money to be made.
On an average day, BNB will alter around 6-9% when you take that full 24-hour period into account.
During those times, that change could be far greater or lower, it’s more of a general daily average.
This gives you a lot of wiggle room to open and close several trades to net a tidy profit.
Combine this with leverage trading and you could make a career out of day trading BNB.
Is a long-term investment in Binance Coin wise?
Binance Coin (BNB) has paid out the most money to long-term investors.
Since August 2017, BNB is up 275,488.06%, which is a whole lot of profit.
While we likely won’t see those sorts of gains in the future, BNB could easily reach the lofty heights of $1,000 per coin.
BNB has massive utility and Binance is always working on new ways to integrate BNB into its ecosystem.
This active development coupled with increasing demand and decreasing supply is a recipe for long-term success.
While you might miss out on some potential opportunities to double your stack owing to a long-term hodl approach, your money should be safe with BNB.
BNB has changed the way we look at exchange coins, and it will remain at the forefront of this industry for a long time to come, there’s no doubt about that.
Binance Coin VS. other cryptocurrencies – How does it stack up?
Binance Coin (BNB) is one exchange coin, and there are hundreds of others out there.
In fact, BNB is the premier exchange coin around, and it inspired other exchanges to create their own coins.
As a result, BNB is only really useful if you’re using it at Binance or on one of its 2 blockchains.
So, you cannot compare it to the likes of Bitcoin or XRP as it’s totally unique in its use case.
There is a modicum of controversy around BNB due to the fact that it technically fails the Howey Test, but so too do many other top coins
If you’re comparing BNB to other exchange coins, BNB is miles ahead of the crowd.
The rewards program in place for BNB users, the utility of the token and the Binance ecosystem makes BNB a better coin.
If you’re looking to invest in an exchange coin, or you’re going to pick an exchange based on its coin, Binance and BNB should be at the top of your list.
What does the future look like for Binance Coin’s price development?
Binance Coin (BNB) has come a long way since its initial coin offering (ICO) back in 2017.
It started out life worth around $0.09, which will make you want to cry when you see its value today.
In the beginning, many people scoffed at BNB as a fad and thought that it would vanish into the night.
But how wrong were they – it’s now a top 5 cryptocurrency worth more than $250.
Thanks to quarterly burns, the decentralized finance (DeFi) movement and Binance’s drive to be the best in the world, BNB has developed significantly.
If Binance continues to develop and push BNB as much as it has since 2017, there’s still a very good chance we could see BNB 5x or even 10x in the next 5 years or so.
Binance is still rolling out new platforms all the time, so don’t rule out BNB progressing on to the 4-digit mark.
What’s the supply and demand for Binance Coin like?
Binance Coin (BNB) upsets the regular finance world in many ways.
But the one that draws the most hatred is that it burns a pile of tokens every quarter in order to keep the price stable.
This means that it fails the Howey Test and should be considered a security, but that’s an argument for another day.
What this practice does, however, is reduce the supply of BNB.
Then, as Binance rolls out more incentives, more platforms and more features that need BNB, the price rises.
Binance then burns some more BNB and the supply has shrunk again.
So, unlike other coins where the supply is continuously growing, BNB’s supply is shrinking.
This is fantastic news for hodlers as it means there’s no real ceiling for the price to get capped out at.
There are no dilution fears or worries about the cap not being fixed.
BNB has its supply/demand characteristics set at the perfect point for success and to make a lot of billionaires.
Challenges ahead for Binance Coin
Binance Coin (BNB) is not free of challenges.
It relies heavily on the success of Binance.
As soon as Binance runs into issues and traders are locked out, BNB becomes worthless as it has no utility.
So, let’s run through a few potential challenges that BNB could face in the coming months, years and decades!
Laws and regulations
Binance has repeatedly played fast and loose with the laws, upsetting many governments.
As a result, Binance was banned in the USA and the movement is now sweeping across Europe, with the UK taking the lead.
Binance did eventually get regulated in the USA and reopen there, but it did a lot of damage.
If more governments and regulations take aim at Binance, we could see its user numbers drop.
As a result, BNB would have fewer users and the demand would drop, sinking the price significantly.
If enough governments get together, we could see the end of Binance altogether, which would mean the end of BNB.
This is a bit extreme though.
Controlling bodies semi fall into the previous section in that they could be responsible for BNB’s downfall.
Despite the fact that Binance cleaned up its act in the USA and got regulated, BNB isn’t out of the woods.
It fails the Howey Test which could result in a US Securities and Exchange Commission (SEC) investigation and lawsuit.
As we saw for Ripple and XRP, that’s not a pretty or fun experience.
If this happens, BNB will take a massive hit.
If the outcome is not positive, BNB might not survive.
Binance Coin has its role to play
There’s no denying that Binance Coin (BNB) is a masterpiece of software engineering, economics and marketing.
It’s the perfect cryptocurrency in that it has undeniable use and a loyal following.
It’s the bread and butter of the biggest crypto exchange in the world, which carries it to the lofty heights of the top ranked cryptocurrencies in the world.
BNB gives users impressive discounts and access to market leading blockchain products.
While it does face some potential issues with regulators in the future, BNB should pull through.
It’s delivered some great returns in the past, and if everything remains on track, BNB will eventually break into the top 3 cryptocurrencies!
You heard it at CryptoMeister first!
Why does Binance Coin rise in price?
Binance Coin (BNB) rises in price for several reasons.
The primary reason is that Binance buys back and burns a bunch of BNB every quarter.
This reduces the supply and keeps the price on the rise.
Secondly, Binance also deploys market leading products that require BNB.
This drives up the demand for BNB, which coupled with the reduction in supply helps the price rise.
What can you do with Binance Coin?
Binance Coin (BNB) has a wide range of uses, but it’s primarily used to pay gas fees and trading fees.
Users of the Binance exchange can get a discount on their fees if they use BNB to pay the bill.
BNB is also the currency used to pay fees when using the various Binance blockchains.
Can you buy things with Binance Coin?
There are a few merchants that will accept Binance Coin (BNB) as a method of payment, but they’re few and far between.
BNB is primarily a coin used for payments and to interact with the Binance blockchains.
Binance has created a payment gateway that allows merchants to accept BNB as a payment method, but adoption is slow.
How much can Binance Coin be worth?
Binance Coin (BNB) is a powerful and versatile coin, with a lot of active users.
Given the reducing supply and the increase in demand for BNB, the sky’s the limit.
It would not be unreasonable to suggest that BNB could be worth more than $1,000 in the long run.
Who created Binance Coin?
Binance Coin (BNB) was created by Binance, the world’s largest crypto exchange.
Changpeng Zhao is the CEO of Binance and is the mastermind behind BNB.
However, Zhao did not code and build BNB, this was done by a team of Binance developers.
BNB was launched in the form of an ICO back in 2017.
Will Binance Coin crash?
Binance Coin (BNB) is propped up by the quarterly buy back and burning of tokens by Binance.
This has so far kept BNB afloat and safe from massive dips in the market.
However, if the US Securities and Exchange Commission decides to go after Binance, BNB could tank.
If Binance loses its customer base and people are banned from using it, BNB suddenly loses its utility.
Once its utility goes, its value does as well.
However, this is a very unlikely scenario.