This work has examined the advantages of buying the BNB coin today.
BNB ranks among the most traded Cryptocurrencies in the world today. The fact that this coin serves as the native coin to the most popular crypto exchange in the world; has given it so much value and importance. Virtually every crypto trader today is desirous to learn about, and trade the BNB coin. This work has therefore offered useful insights towards understanding the BNB coin as well as the advantages of buying this coin.
What is BNB
The Binance Coin is the native token of the Binance Crypto exchange. This coin ranks as the fifth most valuable Cryptocurrency in the world today based on its market capitalization. BNB has a circulating supply of 161,337,261 while its maximum supply is 200,000,000.
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History of the BNB
BNB was launched in June 2017 just eleven days before the Binance exchange opened for trading in July 2017. The issuing price for this coin was 1 Ethereum for 2700BNB or 1 Bitcoin for 20,000 BNB. This amounted to $0.15 according to the price of Ethereum and Bitcoin at that point.
The BNB coin has witnessed tremendous price surge from its launch till the present moment. The coin attained an all-time high on May 10, 2021, when the price rose to $690.93, marking an over 2466.21% increase from its offering price.
However, the price had fallen lower in 2022 with the bear season that befell the crypto market, bringing the price down to $331.7 as at 8th August 2022.
The influence of the Binance exchange on BNB
Binance Crypto exchange bears so much influence on BNB coin. The fact that it serves as the utility token for this largest crypto exchange has given so much relevance and popularity to this coin. BNB has been designed as the payment coin for all transactions carried on the Binance exchange today. This has increased the demand for the BNB coin over the years. Virtually all crypto traders on the Binance platform tend to use the BNB inevitably for one contract or another on this platform.
What is the use case of the BNB coin?
- Payment for transaction fees: BNB is used for paying transactions fees on the Binance exchange and other BNB Smart Chain projects.
- Gas Fees for DEX: BNB is used for paying gas fees on Binance Decentralized Exchanges (DEX) such as Trust Wallet, Safepal, BNB Beacon Chain, etc.
- Online Payment for Goods and Services: BNB can be used to pay for goods and services for both online using the Binance Card or Binance Pay system.
- Payments for travels and other products at Travala.com: BNB can be used to pay for travels, hotels, and booking flights using Travala.com.
- Utility coin for BNB Chain ecosystem: BNB serves as the utility token for the BNB Chain ecosystem.
- Supporting new Launchpad projects on Binance: BNB is used for supporting new token sales hosted on the Binance Launchpad in the hope of getting some reward.
- Making Donations: BNB is used for making donations to Binance Charity programs.
- Providing Liquidity: BNB is used in providing liquidity on Binance Liquid Swap.
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Advantages of buying BNB today
- Multiple use cases: The BNB has multiple use cases, making it a more reliable investment.
- A large volume of transactions: The large volume of transactions traded on this coin increases its liquidity and reduces slippage.
- Discount for all BNB holders on Binance: Binance offers a 25 percent discount for all spot and margin trading fees to all BNB holders on the exchange.
- Used for international payments: The BNB can be used for making international payments at a low cost.
Where can I buy the BNB coin?
You can Buy BNB (Binance Coin) from various crypto exchanges such as Binance, eToro, Kucoin, Huobi, Gemini etc.
Is BNB a good investment?
Even though all crypto investment bears some risk to the investors, the BNB coin has always ranked as one of the most successful crypto projects so far. The coin has many use cases and a large community of users which have often pushed investors to target a high price level for this coin in the future. Amongst other reasons why investors considered the BNB coin a good crypto project is based on the developmental plan marked out for this coin by its developers. Every quarter of the year, the Binance exchange, who are the owners of this project, dedicates one-fifth of its profits to repurchase the BNB coin and permanently burn some Binance Coin held in its treasury. This adds so much value to the BNB by reducing its circulation quantity creating higher demand for the coin which increases its price value in return.