Binance Coin: Everything one should know

By Sakshi Srivastava - 04 Mar 2022 Last Updated: 04 Jul 2022
Binance Coin: Everything one should know

Cryptocurrency is a form of money that is used for investment all over the world as well as it is accepted as a mode of payment by some and does not rely on governments or central banks to function. As a result, these currencies are distributed. More individuals are adopting this new kind of money since its value is protected, and it may be used as an alternative to gold and regular fiat currencies.

The emergence of Cryptocurrency was followed by the birth of numerous other types of it like Bitcoins, Ethereum, Dogecoin and many others. Binance Coin is also such type of digital currency which took world by a storm and secured a sizeable share in the market value. So without any delay let’s clear our concepts about Binance Coin.

What is Binance Coin?

Binance Coin is a cryptocurrency that was created by the Binance exchange and is traded under the symbol BNB. It was originally based on the Ethereum blockchain and followed the ERC 20 standard, but it has subsequently become the Binance chain's native token. A total of 200 million BNB tokens are available in the Binance coin.

The Binance currency is expected to help the Binance exchange and its ecosystem run more smoothly. It supports a variety of services on the Binance exchange, including trading fees, exchange fees, listing costs, and any other expenses. The Binance cryptocurrency has received backing from a number of collaborations, which has aided in its adoption.

The Initial Coin Offering (ICO) of Binance (BNB)

An overview on how Binance Coin started-

Zhao and his colleagues created a coin and gathered funds through an Initial Coin Offering to support the establishment of the trading platform. The initial coin offering (ICO) lasted roughly a month and raised roughly $15 million. This was enough to cover initial costs such as recruiting new developers, marketing, and improving the exchange servers' security. The BNB token can be used to pay transaction costs associated with trading digital currency. If you wish to convert your Litecoins to Bitcoin, for example, you'll have to pay a transaction fee (by receiving a slightly less amount of BTC than expected).

The Binance Token was a game-changer. Users that purchased the token and used it to pay transaction fees were eligible for a 50 percent discount. The majority of users would utilize the tokens to buy more Bitcoin or other big altcoins and profit handsomely. The exchange platform's outstanding administration assisted in attracting millions of customers. The cryptocurrency exchange business was very competitive, but Binance has risen to become one of the top three. Most days, it is the world's largest exchange by volume traded.

Before you Invest, there are a few things to think about.

  • Binance coins can be used to invest in specific ICOs that are listed on Binance's launch pad platform.
  • The Binance exchange will publish new cryptocurrencies, and the use of Binance coins will provide a seamless marketplace for trading a range of virtual tokens.
  • Binance will eventually become the decentralized Binance exchange's principal currency.

What are the several uses of Binance Coin?

The Binance Coin, like other developing cryptocurrencies, has a variety of applications outside of the Binance exchange, which are enumerated below for a better understanding-

LOANS AND TRANSFERS

On some platforms, BNB can be used as collateral for loans. There are also apps that allow users to use Binance Coin to split expenses and pay friends and relatives.

INVESTMENT

Binance Coin may be used to invest in stocks, ETFs, and other assets on a variety of platforms.

ENTERTAINMENT

BNB is used for a variety of things in the entertainment industry, from paying for virtual gifts to purchasing lottery tickets.

TRADING

Binance Coin can be exchanged for other cryptocurrencies on a variety of exchanges, depending on the exchange's regulations.

TRANSACTION FEES ON BINANCE EXCHANGE

Users can use BNB to pay for transactions on the Binance Exchange, and they will receive a discount.

How can you buy the Binance Coin?

If you want to buy Binance (BNB) Tokens, there are two situations to consider.

  • How do I get BNB tokens if I already have another cryptocurrency?
  • If you have never owned any crypto coins before, this is the procedure to follow.

Situation- 1. If you already own a Cryptocurrency

Your approach would be straightforward: simply trade your coins for BNB of equal value. Here's how to do it. Assume you own Cardano (ADA) or Ripple (XRP).

CREATE AN ACCOUNT ON BINANCE

To create an account, go to page on the official website of Binance and fill out the form. You'll require:

  • Your electronic mail address (to an email client that you can access).
  • A strong password is required.

You fill out the registration form and then complete a simple task to prove that you are human. You're ready to go. You will receive an email confirmation. You can proceed to the next step after clicking it. The following step is to log in and begin using the account. You'll need to read some additional account management advice.

ENABLE THE 2 FACTOR AUTHENTICATION

The 2FA is a means of ensuring that only you, the account owner, may access it at any time. It aids in the protection of your account against hackers, internet con artists, and scammers. Binance is a cryptocurrency exchange that maintains assets for you and millions of other users and takes security extremely seriously. Fortunately, setting 2FA is simple; all you have to do is download an app to your phone that will create a code for you every time you enter into your account.

VERIFICATION OF ACCOUNT

If you wish to withdraw coins later, you should authenticate yourself first. Verification entails delivering a time stamped photo of yourself together with proof of identification. You have the option of skipping this step and going straight to depositing coins.

DEPOSITING YOUR COIN BALANCE

The next step will be depositing the coin balance after your account has gone through the verification process.

EXCHANGING COINS

After you have successfully deposited your coin, you can start exchanging them for Binance Coins.

Situation. 2- If you don’t have any kind of Cryptocurrency

Because Binance does not take “real world” or fiat money such as the US dollar or the Emirati Dirham, you must first purchase cryptocurrency. It is advised that you acquire the most liquid and stable Cryptocurrencies available such as the Bitcoin,  Ethereum, Litecoin etc, which ever you may prefer. You'll need to get them from a crypto exchange that's legal in your jurisdiction to do so. You can use Coinbase whether you live in the United States, Australia, Singapore, or Europe, for example. If you are a resident of UAE, you can use BitOasis.

Why you should Invest in Binance Coins?

Here are some excellent reasons to purchase Binance Coins-

LESS COST

Because it is so cheap, BNB is a good option for buying other cryptocurrencies instead of Bitcoin. On the Binance platform, you can freely trade BNB currency.

SUPPLY AND DEMAND

The rise of a currency's value in a digital exchange is determined by supply and demand. The 21 million supply limit on Bitcoin has increased its value. Similarly, 99 million BNB coins are now in circulation, and as the currency's popularity grows, so does its supply. This will be beneficial to the coin's future.

GROWTH

BNB currency grows in value in lockstep with the Binance platform. It has infrastructure that rivals Bitcoin's protocol in terms of strength.

TRUST IN THE COMMUNITY

Due to its ease of use and a large withdrawal limit of $30,000, Binance is clearly one of the most reputable cryptocurrencies out there. BNB is gaining popularity among investors because to its low security risk. It was created using the ERC 20 principles, and its connection to the NEO coin has a direct impact on BNB's growth.

By Sakshi Srivastava

04-Mar, 2022

Cryptocurrency Related FAQ

Frequently Asked Questions

  • What do you mean by Blockchain?

    Blockchains are meant to use cryptocurrencies as "ink" for recording transactions on the network. Cryptocurrencies are so distinct from blockchain, yet remain an essential component of the technology.

  • Is it possible to exchange Cryptocurrency for Cash?

    This is one of the simplest methods for converting Cryptocurrency to cash. For example Bitcoin users can sell the digital currency and withdraw money directly from an account using platforms like coinbase and kraken.

  • What concerns the government about the use of Cryptocurrencies?

    The government is concerned about two things. Firstly the use of cryptocurrencies for illegal purposes like as tax evasion, money laundering, and terrorism financing and secondly the loss of control over monetary policy and capital flight abroad.

  • Why do Cryptocurrency prices fluctuate?

    The crypto market functions similarly to the stock market. The latter has its ups and downs as well. The crypto market, on the other hand, is new and more volatile. As a result, it reacts more quickly to changes, resulting in increased fluctuation.

  • Is Cryptocurrency a legitimate mode of money?

    Cryptocurrency is a type of digital money that is based on software. Based on the current market value, your token represents a certain quantity of cryptocurrency you hold. You can either sell or cash out that token at market value.

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