***What is the digital currency project?
Binance Coin, abbreviated as BNB, is a native digital currency of the Binance cryptocurrency trading platform that was created on the Ethereum blockchain using the ERC20 standard. Binance issued a maximum of 200 million BNB. The coin was launched in July 2017, through an initial coin offering (ICO) that allocated 20 million BNB to early investors, 80 million to project contributors, and the remaining 100 million to various individuals who participated in the ICO. The funds raised by selling BNB were used to develop the Binance platform, branding, and marketing. A percentage of the investment was also spent on adding necessary upgrades to the Binance cryptocurrency trading platform.
***Why was BNB created?
BNB was created to empower the Binance cryptocurrency platform and enhance its operations to create a sustainable ecosystem. The currency can be used for multiple purposes including paying for listing fees, exchange fees, trading fees, or any other fees that a user may incur on the platform. In the first year, Binance offered a 50% trading discount which will be halved every subsequent year with the discount ending in the fifth year. The currency can also be used for IEO investments listed in Binance's Launchpad section. These new coins will then be listed on the Binance cryptocurrency trading platform, providing them with a fully-featured market for trading.
***How does Binance Coin work?
BNB is built on the Ethereum blockchain following the ERC20 standard, where it can store and retain value. The BNB cryptocurrency cannot be mined since it was pre-mined and distributed through an ICO. BNB is used for discounted trading on the Binance trading platform. The discount rate started at 50% in the first year but is set to be halved each year. By the fifth year, there will be no discount affecting the value of BNB. To counteract the decline in value, Binance has undertaken to buy back its cryptocurrencies and destroy them to reduce supply.
The Binance cryptocurrency trading platform plans to eliminate half of the circulating BNB coins. As mentioned at the beginning of the article, the main goal of BNB is to support cryptocurrency exchange operations and enable the Binance ecosystem to expand further. Currently, the BNB digital currency can be used for trading discounts and in many stores and entities that accept it as a payment currency.
Binance enjoys significant financial and strategic support, which can help maintain the value of BNB for years to come. This means that the dominant landscape of alternative currencies may change in the coming years. It may be a smart idea to bet on a currency backed by a platform that conducts and trades billions of dollars in transactions.
Since BNB was primarily created for internal exchange use and the cryptocurrencies have already been mined in advance, there are no network fees associated. However, when purchasing Binance cryptocurrencies or making any other trades on the Binance platform, you are required to pay 0.1% of the trading amount. If you pay for your trades with BNB, you will receive a 50% discount.
For example, if you were to buy BNB worth $100 through Binance using any other currency or traditional money, it would cost you $0.10. However, if you pay using BNB, you will only need to pay half, which is $0.05 or 5 cents.
The currency can also be used in various services, especially travel and hospitality services. Service fees or commission fees are determined by the respective sellers or service providers.
***What are the benefits of Binance Coin?
1. Fast Transactions:
If you use BNB for trading on Binance, you will be able to access the platform's matching engine which can support up to 1.4 million orders every second. You can always find the trade you desire, and using BNB makes it faster and more reliable.
2. Security:
Binance already has millions of cryptocurrency users and traders who rely on the platform and trust its security and protection features. Binance uses a multi-cluster and multi-tier framework along with a Secure Asset Fund for Users (SAFU) to keep funds safe.
3. Discount on trading operations:
BNB allows for a 50% discount on trading fees, as we mentioned earlier.
4. Participation in ICOs / IEOs:
Binance Launchpad also hosts new token sales where BNB can be used to purchase a stake in a new upcoming coin for trading on the platform. Previously, many of these new cryptocurrencies were added to the Binance platform.
*** Wallets supporting Binance Coin:
If you wish to securely store your BNB cryptocurrencies, you can use hardware or software wallets. The official wallet for storing BNB coins is Trust Wallet.
**You can also store Binance Coin on:
Enjin Wallet, Ledger Wallet, Trezor Wallet, Jaxx, CoolWallet S, Metal Vault, BRD, Gifto, Request Wallet, Ethos Universal Wallet, WinQ, Atomic Wallet, Clay, Coinomi, Blox.io Wallet.
This was a brief guide on the Binance cryptocurrency, which currently ranks third behind Bitcoin and Ethereum and ahead of Cardano in terms of total market capitalization. It is worth noting that the price of BNB has surged notably, especially after Binance initiated the periodic coin burns it conducts once every quarter.
