In the world of cryptocurrencies, various coins and tokens, and even stocks have risen to prominence. Among these, Binance Coin (BNB) stands tall, carving out a unique space for itself. Let’s take a look at BNB’s origin and its distinctive technological features. It is the coin of the Binance crypto exchange, launched in 2017.
What is Binance Coin (BNB)?
Binance Coin, commonly referred to as BNB or Binance Chain Native Token, serves as the cryptocurrency for the Binance ecosystem, and it was the vision of the Binance founding team. Binance coin was launched in July 2017 by Changpeng Zhao (CZ as often reffered in the media), the founder of the top cryptocurrency exchange.
Binance held a public sale, or ICO (Initial Coin Offering) for BNB and raised a total of $15 million during that time. At the start, they made 15 million BNB tokens available for public divided equally among ICO investors, at an initial value of 15 cents.
However Binance Coin has launched as an ERC-20 token on the Ethereum blockchain it transitioned to the BNB Chain in 2019 when the chain started.
Technology Features of Binance Coin (BNB)
When venturing into the technology behind Binance coins, it’s important to understand what they’re for. BNB is more than just digit numbers and code, it’s a token where traditional financial structures meet the decentralized systems. Let’s explore what makes BNB a standout cryptos and how to use BNB as an investment.
Dual-Chain System
Binance Coin doesn’t just based on a blockchain, it’s backed by the world’s largest cryptocurrency exchange. BNB chain consists of multiple layers for efficiency – they are the Binance Chain and the BNB Smart Chain. Think of it as two separate but interlinked systems, like Binance’s platform and exchange, each with a unique purpose.
The Binance chain is all about speed. It facilitates instant transactions and trades. The Binance Smart Chain can run smart contracts. Smart contracts are contracts declared in pre-written code, which is automatically executes when the conditions between the parties meet. So there is no for intermediaries. The dual chain offers both fast transactions on the Binance exchange and complex contract design. This makes BNB flexible for both traders and developers.
Controlled Coin Supply Through Quarterly Burns
Picture a limited edition item, the rarer the more expensive. Binance makes it happen with its burn mechanism. Binance holds such events every quarter, where a predetermined amount of BNB coins are permanently burned. This reduction boosts the rarity of the remaining coins. With a lower supply, and assuming a constant demand, the value of the coin will increase. It’s a strategic move by Binance to reinforce BNB’s value in the long run.
Seamless Cross-Chain Collaborations
Binance Coin’s trading volume and structure allow it to function as a bridge-builder. It’s designed to interact with different blockchains, making sure that BNB can be connected to other networks. This makes BNB a universal crypto player.
The Power of Decentralized Trading
Centralization means that the control is concentrated in one hand. Binance challenges this with its Decentralized Exchange (DEX). Built on the Binance Chain, this DEX lets the users to have full control over their assets. Trading becomes direct, fast, and secure, reducing risks like potential hacks. Binance DEX is a reflection of Binance’s vision to decentralize trading, and a place where people can trade directly with each other.
Binance Coin as an Investment
After understanding BNB’s technological foundation, it’s time read about its investment potential. In the digital gold rush, BNB shines not just as a coin but as a key to unlock various benefits within the Binance ecosystem, like enjoying discounted transaction fees on the Binance Exchange.
At the date of writing, BNB can be used in various platforms and has a market capitalization over $35 billilion with the price of $231 per token. Binance raised a total supply of over 151 million BNB tokens, making it the fourth-largest cryptocurrency by market capitalization, according to CoinMarketCap.com. And of course, Bitcoin is still the leading one.
BNB is also considerable as an investment. Let’s see the various ways how it’s possible!
Day Trading and BNB Staking
Day trading with BNB is a game where every move counts. This strategy is all about making quick buy-sell decisions based on market volatility. It’s thrilling, fast-paced, and requires a combination of strong analysis and instinct. If you are new to this, it’s wise to start with a learning mindset. And after you think you learned enough you can try your fresh skills by using demo platforms.
If day trading is a sprint, staking is a marathon. By ‘staking’ or locking your BNB in the Binance platform, you help the platfrom to validate transactions and secure the network. Its benefits are that you can make money from transaction fees or vote on platform decisions.
Binance Launchpad and Its NFT Marketplace
Positioned as a launchpad, this platform propels emerging crypto projects into the limelight. Investing your BNB here is somewhat like backing a startup or tokens avaible for public sale, banking on its potential success. The allure of ground-floor opportunities can be strong, but it’s imperative for beginners to meticulously assess each project, understanding its vision, team, and feasibility.
Picture a digital art exhibition where every piece is unique. That’s the essence of the Binance NFT Marketplace, showcasing digital collectibles, each run through blockchain. While investing in NFTs can be a combination of art appreciation and financial foresight, novices should take time to understand the fine points and make sure investing in value instead of hype.
How to Buy Binance Coin (BNB)?
If you’re considering acquiring BNB, here’s a detailed guide to assist you:
- Pick a Credible Exchange: The first step is identifying an exchange that lists BNB. Naturally, Binance is the go-to option, and it’s available also on crypto exchange like Kraken or KuCoin.
- Registration: On your selected platform, initiate the registration process. Generally, this involves providing an email, creating a password, and verifying your identity.
- Account Security: Always enable two-factor authentication (2FA) on your account. Think of it as a protective shield, safeguarding your crypto assets.
- Deposit Your Funds: To buy BNB, you need to have funds in your exchange account. Most platforms offer BNB and support multiple deposit methods, including bank transfers, credit cards, and other cryptocurrencies.
- Acquire BNB: Within the exchange, go to the trading interface, pick Binance Coin, determine how much you want to buy, and seal the deal.
- Choose Safe Storage: For peace of mind, transfer your BNB holdings to a private crypto wallet. These wallets, be it software apps or tangible hardware devices, serve as fortified repositories for your Binance Coins. You can find a more detailed discussion about wallets in this article.
