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A Beginner Guide to Binance Coin (BNB)

Binance coin is a utility token designed specifically to facilitate discounted trading and was initially propounded by a Binance exchange. Since its inception, it was used as a native currency of the well-known cryptocurrency exchange platform Binance.

Overview of Binance Coin

Binance is a phenomenal cryptocurrency that was initially put forwarded by Binance Exchange and symbolized as BNB. Binance coins unleash the potential of Ethereum blockchain for its operation. The maximum limit of BNB tokens is restricted to 200 million algorithmically.

Explanation of Binance Coin

When the Binance coin was first released, it was expected it paves the way for the tremendous growth of the Binance exchange and its ecosystem.

Binance exchange incentivizes its users for using Binance coin by providing them a hefty discount of 50% on all the trades through Binance coin, but the discount percentage reduces significantly after each year. That means, the second year discount is 25% and this goes on plummeting.

If you have an adequate amount of Binance coins, you have the privilege to invest in different ICOs that are listed with an aid of Binance’s Launchpad Program.

As more cryptocurrencies will list on the Binance exchange in an upcoming future, and the use of Binance will provide you access to a marketplace for trading in a variety of established and globally well-known crypto tokens.

Apart from that, Binance is also supported by the Visa Debit Card of Monaco, the pioneering payment processing, and plenty of cryptocurrency exchange platforms.

What makes Binance coin set apart from other virtual coins is its repurchasing policy whereby it uses 20% of all its profits to buy back BNB tokens, and destroy them. This process keeps on going until 50% or 100 million BNB tokens are purchased back.

This process assists Binance to sustain its considerable value. On mid of April-2018, Binance team disclosed that it has completely dismantled $30 million worth of Binance coin (roughly 2,214,340 BNB)

History of Binance

Binance coin was inaugurated in July 2017 during its first initial coin offering (ICO). During its ICO process, it offered its 10% stake or 20 million BNB tokens to an angel investor, Founding members kept its 40% stake or 80 million BNB tokens and the remaining 50% stake or 100 million BNB tokens is passed to the private individuals.

 

During early April 2018, the market capitalization of Binance surges to $1.4 billion.

Uses of Binance Coin

Once you’ve bought a Binance coin, you can use it for different purposes.

Investment Instrument

Many peoples buy and hold Binance coin with an expectation of capital appreciation. You can easily store your BNB tokens on your Binance account or your crypto wallet app Trust wallet.

Spend BNB Tokens

Apart from being used as a native currency of Binance exchange, it can be used in plenty of other ways predominantly as a medium of exchange for goods and services.

Trade Binance Coin

You can trade Binance against 150+ different cryptocurrencies on the world’s leading, fastest, secure, and industry-leading cryptocurrency platform Binance. To fulfill your needs, Binance provides insurmountable trading pairs for the Binance coin.

Cross-Border Funds Transfer

You can send a Binance coin to your friend who is living in a different geographical location. It is extremely convenient for cross-border payments because the Binance coin takes only a few seconds for transaction validation.

Conclusion

Investment in cryptocurrencies is always prone to risk due to the market volatility and Binance coins are no exception. The information delivered in this article is not meant to be used as a piece of financial advice and we strongly recommend you do extensive research before making any decision or consult with some crypto financial advisor.

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