What is Binance Coin (BNB)?

Binance Coin (BNB) is the cryptocurrency of the giant Malta-based cryptocurrency exchange Binance. BNB, which is behind Binance, a cryptocurrency exchange, has recently made a rapid rise and this rise seems to continue with Binance’s future breakthroughs.

Binance was founded in 2017 and over time has grown to become the world’s largest cryptocurrency exchange. Its CEO is Changpeng Zhao, known as CZ, and over time has ceased to be known only as of the stock market. Binance, which has been useful for users since 2017, over time provides users with the flexibility to make the transaction they want with products such as Binance Smart Chain, Binance Labs, Binance Launchpad, Binance Loans, Binance DEX, and Binance Margin.

Binance Coin

Thanks to their products and ease of use, Binance has easily brought cryptocurrency exchanges to even the most remote parts of the world. It can become a monopoly on popularity, especially thanks to Binance’s growth and the launch of unique products in many areas.

The performance of BNB, which has not regretted its investors until now, has attracted the attention of many investors.

BNB entered the market at a price of $0.11 and was changing hands at $32.74 at the time of writing this guide. The all-time high seen by BNB is $342.88.

The total BNB supply amount is 170.532.785. The amount of BNB in ​​circulation is 154,532,785. Let us underline that the total amount of supply may be reorganized (such as increasing or decreasing) by Binance in the future. Total value of BNB is near $50 Billion, as of writing.

Why is Binance Coin so popular?

Binance Coin is used due to its great advantage in Binance, a digital stock exchange. With BNB, you pay 50 per cent less commission on transactions we make on Binance. With a simple example, let’s imagine that you are making a transaction in the stock market. If you do not have BNB in ​​your stock exchange account, you will pay 1 dollar for this transaction. If you have BNB in ​​your account, your Binance Coin of $0.75 will be used for this transaction with a 25 per cent advantage.

Of course, to take advantage of this advantage, you should have some BNB in ​​your Binance account. In addition, after purchasing Binance Coin, you should remember to enable the Using “BNB to pay for fees(25% discount) option on Binance’s settings page.

In addition to the commission advantage in Binance, BNB can also be used as an investment tool like other alternative cryptocurrencies (altcoins). When you invest in BNB, you are investing in Binance in a way. Every positive development in the stock market reflects on BNB and naturally, you have the chance to fold your investment.

In particular, Binance’s commission advantage on BNB makes it possible for more and more people to turn to cryptocurrency. Thus, the BNB price is increasing steadily and will increase. Of course, this is not investment advice.

How to Buy BNB?

There are two different ways to have BNB, Binance Coin: one by staking and the other by utilizing mining operations. If you are going to mine, you can mine BNB using an ASIC device. The amount you will get in BNBs you will extract on your ASIC device usually depends on the hash power of your device.

Staking, which is the second method of extracting BNB, is that you can transfer a certain amount of your BNB via Binance Launchpool. The BNBs you transfer is delivered for staking and you can receive a certain percentage of interest per year in return. However, you can pay a certain percentage of the amount you will receive for staking transactions through Launchpool.

What is BNB Burning Process?

Binance burns and receives a certain amount of BNB each year as per their plans. Binance, which spends 20% of its profits on the purchase of BNB, will continue to burn and buy until 100 million BNB remains. Binance records every transaction they make on the blockchain, enabling users to view transactions whenever they want.

Why Does Binance Use a BNB Burn Process?

BNB burning operations can be called the process of increasing the value of BNBs circulating in the market by reducing the supply. Binance, the world’s largest exchange, aims to increase both its market value and BNB value by both buying BNB from users and burning BNBs in the market.

How Does BNB Burning Affect the Price?

Token burning aims to increase value by reducing supply. The token, whose value rises well before the burning process, decreases after the transaction is completed. However, before it is cremated, its value has increased considerably. Many cryptocurrency projects use token burning to increase their market value. But in order for incineration to occur, the supply limit should not be determined and it should be specified by the company in advance.

Where to Buy Binance Coin (BNB)?

You can use Binance directly to purchase Binance Coin. It is possible to buy BNB with many of the local currencies. To buy BNB, you can deposit your currency to your account through various options. The most popular option is to buy BNB via credit card. But if you buy it with a credit card, you pay 2% commission. BNB can be conveniently purchased only on Binance, FTX and KuCoin. 

Is Binance Safe?

Since Binance Coin was launched, its value has increased significantly as a result of its effective use on the stock market. Even though the limited supply of BNB was effective in many aspects, especially the decrease in Launchpad, Labs and commission fees added value in many ways. In addition, the fact that it is the token of the world’s most used stock exchange can be seen as a reason why BNB is used very often.

What Is Binance Coin Used For?

Reducing Commission Fees

Binance, like other cryptocurrency exchanges, makes certain discounts on commission fees if you hold tokens. Therefore, the commission to be charged according to the tokens you hold at VIP levels can go down to 1 / 10,000. However, you need to have at least 11,000 BNB or extremely high monthly trading volume to reach the highest level.

Funding for Launchpad Projects

Binance Launchpad plays an important role in the supply of listed cryptocurrencies to the stock exchange. If you want, you can fund the projects you like in other currencies or through your BNBs via Launchpad.

Using as an Investment Tool

BNBs can be used as solid investment tools if you wish. In this way, you can reduce your commission fees and increase your returns to much higher levels. In addition, by funding different projects through Launchpad, you can attract your investments to many different places and make a profit from there.

Use as a Payment Tool

If you want, you can use your BNBs as payment instruments. You can use it as an effective means of payment, both by obtaining funds and providing funds, especially in the lending and borrowing section. Finally, if you transfer your BNBs from your account via Binance TrustWallet, you can use them as a payment method in transactions.

Reservation Procedures

Binance can be used for tourism reservations through contracted sites. In this way, you both pay your fee and create a new usage area for BNB. Most importantly, organizations that accept BNBs gain profit as a result of the valuation of their BNBs.

SEE ALSO: What is Ripple?

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