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What is Binance Coin(BNB)? – Explanation, Pros and Cons, History, Buying guide, Team, Wallets, Price prediction

Binance Coin – The Cryptocurrency That Pays You to Trade

Binance Coin is the cryptocurrency that you can use for buying other cryptos on Binance with very low fees. You also get paid in BNB when you invite your friends to trade on the platform, or if they decide to make their first crypto exchange. At the current value of Bitcoin, it’s not a bad deal — and one that could have an interesting future ahead as more traders are incentivized to use Binance.

Binance is one of the most successful exchanges. We’ve put together a post to answer all your questions about this major player in crypto: what it is, who’s behind it, where you can trade it, how to buy and store it…get ready to dive into this comprehensive guide!

What is Binance Coin? Why does anyone need a coin like that? How do you buy and store it? What are its pros and cons? Is there any good reason not to invest in Binance Coin? Read on for an explanation of this fast-growing project.

What is Binance Coin

Binance Coin (BNB) is a utility token that allows traders to save money on transaction fees on the Binance exchange. It’s basically a rebate system, something like if you bought $0.50 off of a $1 chocolate bar.

In order to buy cryptocurrencies on the Binance exchange, you need to pay what are called “transaction fees”. These fees can range from 0.1% to 0.5% of your total transaction amount, and they’re usually calculated as a percentage of the total value of all the coins you’re buying: so if you’re buying BTC, ETH and LTC worth $1000 USD in total, your fee will be anywhere between 1 and 5 USD.

How do I buy and store it?

Buying BNB in the open market is very easy. The easiest way to purchase it is via trading pairs with other cryptocurrencies. You can find out the latest buying prices for BNB via CoinMarketCap .

You can also easily purchase it from exchanges that list Binance Coin. For example, if you’re trading BTC with another currency on Coinbase, you can buy BNB in-app: just go to “Listings” and search for “Binance Coin”, or look for “BTC/BNB”.

What are its pros?

  • Since the Binance exchange lists all the top cryptocurrencies in the world, they offer all of them at once to their users via trading pairs. This basically means that traders can easily and quickly transact funds across a ton of different crypto coins with one simple transaction: thus creating an instant and seamless user experience.
  • Moreover, BNB is a respectable coin, it’s been growing steadily and has already given back more than 100x the initial investment to investors who bought BNB during the ICO.
  • In the first year, Binance offered a 50% trade discount, and in the second year it offered a 25% discount, so the entire ICO was basically a 100% growth rate. This is a very rare occurrence for a cryptocurrency project that has only existed for 2 years!
  • Quick Transactions: Binance is very quick, and transactions can be settled in as little as three seconds (time shown in the transaction information window).

What are its cons?

  • Aside from transaction fees, there’s one additional caveat about Binance Coin. Since the demand is so high for this coin, it’s very hard for newbie traders to buy any of it in the open market. This is because the more people who try to buy BNB to save on transaction fees, the higher its price goes: which makes it harder for new traders to buy some of their own.
  • However, there are ways around this. For example, if you want to invest in BNB, you could wait until the price goes down after a good period of appreciation. Or, if you’re really enthusiastic about Binance Coin, you could also go to their website and ask for an allocation directly from the team. They’re very active and available on social media channels like Twitter and Reddit.
  • Binance was hacked in 2019, and there was an amount  7.000 Bitcoin missing that the company claims to have recovered. So if you’re an investor, keep this in mind before you invest in anything.
  • Moreover, Binance is still operating in a legal grey area in the US, Canada and many other countries. If you live in one of these regions, you may want to ask your lawyer whether it’s safe for you to invest in Binance Coin.

Where and how to Buy Binance Coin?

You can Binance Coin through Binance, which is the largest and most successful exchange in the world. In fact, it’s such a popular project that they’re heading into the first few rounds of an ICO to raise money for their business. If you don’t want to trade through Binance, there are other exchanges that list BNB as well. If you only want to buy it for investment purposes you can use eToro.

How to store Binance Coin?

If you’re buying BNB for investment purposes, you should buy through a crypto exchange or by setting up a BNB wallet. You can use the same wallets that Bitcoin and Ethereum are stored in: like the Ledger Nano S or Trezor Wallet.

Price Prediction – Should I invest in Binance Coin?

BNB is one of the most successful cryptocurrencies in the world. It started as a utility token but now it’s used as a valuable coin on Binance Exchanges. If you want to buy BNB for investment purposes, we recommend that you wait until the price goes down after one of the significant price rises that occur about once every two months.

We predict there won’t be more than 2-3 price hikes in the next year, so if you want to buy BNB for investment purposes, this might be a good time to do it! Currently, we predict that the price will start rising around January, and then keep rising until May or June. Then after it goes down again in July or August by 20-30%.

Disclaimer: the content in this article is personal opinion and should not be taken as investment advice. Please do your own research and invest at your own risk. The information in this article should not be used to actually make or trade any kind of transaction on any cryptocurrency exchange. Just as with any other type of marketplace, you will want to do your own research and due diligence before making any investments using fiat currency. It should also be noted that things can change quickly.

The team behind Binance

The CEO and founder of Binance is known as Changpeng Zhao. His Twitter account can be found here: https://twitter.com/cz_binance

If you would like to learn more about the team that works day in and day out to make sure that the platform runs smoothly, we recommend you take a look at their website. Here, you will find a quick project roadmap as well as bios for each member of Binance’s team.

History

In 2017, Binance was launched by Changpeng Zhao. The ICO was held earlier this year (the exact date has not yet been disclosed). The ICO ended in July and raised over 15 million USD. This amount made it the most successful cryptocurrency in terms of ICO fundraising history.
In August, Binance started beta testing and was subsequently launched in September. In the period between the end of July and September, the price of Binance Coin increased by over 170% since the ICO had ended.

Binance was hacked in 2019, and there was an amount  7.000 Bitcoin missing that the company claims to have recovered.

Binance has recently announced that they are going to support many more major cryptocurrencies (by which we can assume they will add other trading pairs to their exchange). These cryptocurrencies include Dogecoin, NEM, NEO, EOS and GAS. It is also expected that new cryptocurrency projects will apply for listing on Binance as well. Binance is currently the biggest and most popular cryptocurrency exchange in the world, based on trading volume.

Conclusion – What is the future of Binance Coin? Is it worth an investment?

There is no doubt that Binance Coin is having a great time with the surge of Binance, as well as the overall positive sentiment in the cryptocurrency markets. The future looks bright for BNB, although it remains to be seen whether the coin will remain at this level in the future.

If we compare Binance Coin to other popular cryptocurrencies like Ethereum and Ripple, then it clearly stands out as a pure utility token (much like NEO or Steem) which is needed for using the Binance platform. This means that its value should be determined by supply and demand rather than general hype or positive attention towards it.

Speculators should not be disappointed if its value does not rise at an exponential rate. However, it is possible that BNB, as a currency, will be adopted by more companies. This is still a long way off but it is certainly something worth keeping an eye on. Overall, we recommend that investors buy BNB if they are excited about Binance, as this is where its future lies.

What do you think of BNB? Could it be the answer to your cryptocurrency prayers? Let us know how you feel by posting a comment below!

Key Takeaways:

  • Binance Coin is a cryptocurrency exchange that has rapidly gained popularity and fame because of its new user-friendly interface as well as its plethora of trading pairs.
  • Binance Coin is a utility token that gives users the chance to save on transaction fees by paying for them in BNB.
  • Binance has recently announced the addition of many more major cryptocurrencies to their exchange, so we predict that this will have a positive impact on its price in the future.
  • Binance is growing very fast and it will surely stay at this level for some time to come. This means that it’s definitely worth keeping an eye on (but don’t expect an exponential rise).
  • You can easily buy Binance Coin by trading or purchasing it directly from the Binance platform.
  • The best advice we can give you is to wait until the price goes down after one of the big price hikes (about one a month) and then buy some of it if you want to invest in it for the long term.
  • Binance is the biggest cryptocurrency exchange in the world right now, based on trading volume.

References

  • https://coinmarketcap.com/currencies/binance-coin/
  • https://en.wikipedia.org/wiki/Binance_(company)
  • https://www.reddit. com/r/binanceexchange/
  • https://www.investopedia.com/terms/b/bnb.asp
  • https://www.facebook.com/binanceexchange
  • https://twitter.com/_Binance?lang=en
  • http://coinmarketcap.com/currencies/binance-coin/#charts
  • https://steemit.com/binance/@hackernoon/how-to-buy-bnb-on-binance
  • https://www.reddit. com/r/CryptoMarkets/comments/7d3m7c/what_are_the_xlm_and_bnb_strategies/?st=j1r1tsvl&sh=0bdc6732


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