Binance Coin (BNB) is Binance’s own coin. Binance is a giant infrastructure that provides users with a wide range of services in the cryptocurrency industry: cryptocurrency exchange, futures trading, stacking, safekeeping, and other investment products.
BNB cryptocurrency is the digital fuel for the whole Binance ecosystem, which allows you to save on commissions, earn money on storing the asset, participate in investments etc.
200 million BNB coins were issued, of which 100 million were put up for sale, 20 million BNB went to early investors, and the exchange kept the rest. The purpose of issuing these tokens was to ensure the steady growth of the platform and provide additional support to its development.
Binance distributed its tokens:
– 50% for educational blockchain software and brand promotion;
– 35% for technical upgrades to the exchange;
– 15% for emergencies.
With such a structured distribution plan, Binance managed to become one of the most renowned cryptocurrency exchanges in 2021.
BNB as fuel for Binance
BNB is not only a way to fund the launch of an exchange; the crypto also provides an opportunity to save on trading fees. For customers who use BNB Coin, there is a discount plan for 4 years (50% in the first year, 25% the next year, etc.). If it sounds good enough, you may always swap your eth to bnb and become a part of this big crypto community.
Another interesting detail is that Binance regularly “burns” coins on the market. Every quarter, the exchange spends 20% of its revenue on buying back its own cryptocurrency from the market and then literally destroys it. This reduces the total number of coins in circulation and raises the value of the remaining tokens.
Things You Can Do With BNB Right Now
You can do a variety of activities with BNB. It is primarily used for trading cryptocurrencies on the Binance Exchange. It can also be used to purchase goods and services on partner sites, such as buying airline tickets and hotel stays with Travala. Other avenues include exchanging BNB for gift cards and participating in fundraising initiatives with different partners.
In addition, customers who hold more than 500 BNB per quarter are eligible to receive discounted fees when making trades on the exchange. This allows users to pay lower fees when compared to traditional exchanges and make their trading more lucrative over time.
Furthermore, holding a certain amount of tokens allows customers to gain access to additional products and services that are tailored specifically to their needs, allowing them to reap maximum benefit from their holdings.
In summary, you can:
- Use Binance Coin to buy and sell cryptocurrency on the Binance Exchange.
- Exchange BNB for goods and services on partner sites such as Travala, where users can book airline tickets and hotel stays.
- Exchange BNB for gift cards from Flexa.
- Participate in fundraising initiatives with partners using BNB tokens.
- Receive discounted fees when making trades on the exchange with 500 or more tokens held per quarter.
Benefits Offered by BNB Compared to Other Cryptocurrencies
BNB offers a number of advantages when compared to other cryptocurrencies.
BNB has a faster transaction speed than many other cryptocurrencies due to its block size limit of 40MB. This means that it is able to process more transactions with fewer blocks than its competitors, resulting in faster transaction speeds and reduced transaction fees.
Moreover, Binance also offers users bonuses for holding higher amounts of BNB tokens. Holding 500 or more tokens grants access to discounted trading fees – meaning greater profits for serious traders – as well as exclusive products and services tailored to their needs.
Customers who hold larger amounts of BNB tokens receive additional benefits such as discounts on travel expenses (hotels and flights) through bookings with Travala, discounted gift cards from Flexa, and the ability to take part in fundraising activities with different partners.
BNB takes extra steps in order to ensure user security by utilizing Secure Socket Layer (SSL) encryption technology as well as two-factor authentication using an email address and personal computer or mobile device. These features help protect users’ finances while providing them with peace of mind regarding the security of their investments.
The Potential of BNB
After Binance, quite a few exchanges decided to create their own cryptocurrency (e.g., KuCoin, Bibox, Huobi). But BNB was the first token issued by a cryptocurrency exchange, and today it is the leader in terms of capitalization compared to similar assets.
This is significantly helped by the fact that Binance is top 1 in the world in terms of daily trading volumes. Also, reverse token issuance works well, due to which the number of BNB decreases, which indirectly stimulates the growth of value in the long term.