introduction
BNB (Binance Coin) is the native cryptocurrency of Binance, one of the largest and most popular cryptocurrency exchanges in the world. BNB was launched in 2017 as part of an initial coin offering (ICO) and has since become one of the most widely used and valuable coins. In this article, we will review how users can benefit from BNB on Binance, as well as the benefits this coin offers.
1. **Reduction in fees**
One of the biggest benefits of using BNB on Binance is the significant reduction in trading fees it offers. Users are allowed to pay their fees using BNB instead of other currencies, giving them discounts of up to 25% on regular fees.
**For example:**
- If the normal trading fee is 0.1%, and by using BNB, the eligible fee after the reduction can be 0.075%.
- If you trade $100,000 worth of coins, you will save around $25 if you use BNB to pay the fees.
2. **Currency Burning Programs**
Binance has a BNB burning policy, which aims to reduce the supply of the coin and increase its value over time. This happens by burning a certain amount of BNB every quarter based on the trading volume on the platform. In 2021, over 1.3 million BNB were burned, which has contributed to the value of the coin.
**Statistics:**
- In recent years, the supply of BNB has been reduced by over 16 million coins through this process, which has contributed to increased demand and significantly raised the market value of the coin.
3. **Participation in new offerings (IGOs and IEOs)**
BNB holders can participate in Initial Coin Offerings (IEOs) and New Coin Offerings (IGOs) on Binance. When a new project launches, users can use BNB to purchase new coins. A portion of these offerings is often allocated to BNB holders, giving them the opportunity to invest in new projects at a discounted price.
**For example:**
- During an IEO, a minimum amount of BNB is allocated to users, which means that whoever owns more BNB can get larger stakes in new projects.
4. **Trade BNB Effectively**
Users can trade BNB against many other cryptocurrencies on the Binance platform. Hundreds of trading pairs are available, allowing users to take advantage of the volatility in the cryptocurrency market. BNB is a good option for entering and exiting trades.
**Statistics:**
- BNB monthly trading volumes sometimes exceed $1 billion, which shows how popular this coin is and the potential for making profits through trading.
5. **Payments and Business Transactions**
BNB has increasingly been used as a means of payment among merchants and stores that accept cryptocurrencies. Binance also offers services such as Binance Pay that allow users to pay using BNB. This allows BNB holders to use the currency in daily transactions, increasing their chances of using it.
**For example:**
- Individuals can use BNB to pay for goods and services at over 50,000 stores worldwide.
6. **BNB Wallet and How to Manage It**
To protect your BNB, it is advisable to use a reliable wallet. Binance offers a built-in wallet, but it is also important to consider other options such as cold or hot wallets to secure your investments.
**Statistics:**
- There are over 3.5 million wallets holding BNB, which shows the size of the community supporting the currency.
7. **Lending Facilities**
Binance offers lending options, where BNB holders can invest their BNB in crowd loans to earn returns. The return is determined based on the duration of the lending and the percentage of the coin. In some cases, returns can reach 10% per year, providing a good return for investors.
8. **Get rewards via BNB**
Binance offers rewards to BNB holders through programs like the “Binance Launchpool,” where users can earn new coins simply for holding BNB. Rewards are added periodically, increasing the incentive to invest in the coin.
**Statistics:**
- In 2023, over $100 million will be allocated as rewards to BNB holders participating in the new coins.
9. **Future Directions**
With the continued rise in adoption of cryptocurrencies, BNB is expected to continue to grow and evolve. Binance is looking to expand its ecosystem, which will increase the use of BNB in various applications and services.
**Data Analysis:**
- According to market predictions, BNB is expected to reach $500 in the next two years if improvements in its ecosystem continue.
Conclusion
BNB is a powerful tool for crypto investors and traders. By reducing fees, opening up investment opportunities, and providing different ways to use the currency, BNB has proven its ability to attract users and generate sustainable profits. As technology and trends in the crypto industry continue to evolve, BNB will remain one of the vital ways to benefit from Binance’s services. Therefore, every crypto investor should consider including BNB as part of their portfolio to benefit from all the benefits it has to offer.