Below are the Pros and Cons of HODLing (holding long-term) $BNB (Binance Coin) on Binance.
** Benefits **
Price hike possibility
Since BNB is Binance's main token, its value may increase with Binance's growth.
Previously, BNB had risen several times in a few years.
Usefulness to the Binance Ecosystem
You can enjoy benefits such as reduced trading fees on Binance, the ability to purchase tokens on Launchpad, and the ability to use Binance Pay.
Staking and Passive Income
You can earn APY (Annual Percentage Yield) by staking (locking in interest) BNB on Binance.
Token Burns (Cancellation)
Binance regularly burns BNB tokens, which can lead to scarcity in the long run and increase in value.
** Side effects**
Price risk
The crypto market is extremely volatile. The value of BNB could drop.
Binance's Regulatory Risk
Binance is facing international regulations, so any future issues could impact the BNB market.
Centralized Exchange Risk
Since BNB is a Binance token, any problem with Binance (e.g. hack, liquidity issue) could affect the value of BNB.
Competition with Alternative Coins
BNB is competing with Ethereum (ETH), Solana (SOL), and other smart contract platforms, and if other coins become more successful, BNB's share may decrease.
Suggestion
Must Read Stay up to date with BNB and the Binance Ecosystem.
Diversify Hold with other Stablecoins (USDT, USDC) and Crypto (BTC, ETH).
Sell if necessary Be prepared to consider selling if bad news comes out.
While HODLing is a good thing, you need to be careful as Crypto is a very volatile market.
Now coming new holderairdrop
