Binance Coin (BNB) is the Binance platform’s native cryptocurrency. Originally BNB was designed to serve an alternate means for traders to pay their fees on the Binance exchange. More recently the Binance Chain has evolved with a decentralised exchange that sits on the blockchain.
What is Binance Coin?
Binance Coin was originally launched as an ERC-20 on the Ethereum blockchain. Since then BNB has migrated to the Binance Chain, which is Binance own proprietary blockchain. Binance is the world’s largest cryptocurrency trading exchange by volume. Over a hundred cryptocurrencies trade through the exchange.
The company was founded in 2017 by CEO Changpeng Zhao. Zhao has extensive experience in the cryptocurrency world. He was the third member of the Blockchain.info team and served as the CTO for OKCoin. Binance was originally based in Shanghai but later moved to Japan after a ban by the government. Binance was forced to move again in March 2018, after the JFSA (Japanese Financial Service Authority) ordered the exchange to shut down. Binance will now have its headquarters in the more cryptocurrency friendly Malta.
The original purpose of Binance Coin was a means for traders to pay for their fees on the exchange. Binance charges both a trading fee and a withdrawal fee. When fees are paid using BNB traders receive a discount. This discount is on a sliding scale; on the first year they receive a 50% discount through to a 6.75% discount in the fourth year.
The consequence of this sliding scale in the discount rate means that Binance Coin can be expected to decrease in value over time. In order to counteract this fall in value Binance Coin has an inbuilt burn. Every quarter a set amount of Binance Coin will be destroyed based on the total trading volume of the Binance platform. In principle this burn should stabilise Binance Coin over time.
Binance Coin was originally launched in 2017 with an offering of 100 million BNB coins. These coins were all minted before the start of the ICO. The entire supply of coins was sold within twenty days. In the process $15 million was raised. The funds raised by the ICO were used to build out the Binance platform and to upgrade the systems. The remainder of the funds were used primarily for marketing and branding activities.
The final supply of Binance Coins has been capped at two hundred million tokens. The founders of Binance Coin were allocated an additional eighty million coins and angel investors received twenty million coins. As noted, Binance Coins will be burned over time.
Where to buy Binance Coin
Binance Coin can of course be purchased on Binance. In addition, it can be bought using any of the platforms below:
How to Buy Binance coin
In order to purchase BINANCE COIN tokens, you first need to purchase ETH. Once you purchase ETH, you can then exchange it for BINANCE COIN. For this example, we will explain how to purchase ETH on Coinbase, one of the most popular cryptocurrency exchanges.
Use the link here or click the image above to get $10 in Bitcoin when you purchase or sell your first $100.Register on Coinbase
Step 1: Create a Coinbase account
Select the “sign up” tab and complete the form by entering the requested information, including:
- Your name (exactly as it appears on your photo identification)
- Email address
Step 2: Verify your account
- Issue your phone number
- Upload an image of your photo ID
- Verify your credit or debit card, or your bank account information
Step 3: Select the “Buy/Sell” option on the menu, once our account is verified
After verification, select the “Buy/Sell” option on the menu
- Choose “Ethereum”
- Input how much you would like to purchase
- Select the “Buy” button
Step 4: Confirm your purchase
- Select the “Confirm Buy” button
Step 5: Open an account on an exchange that accepts Binance coin
For the purposes of this example, we are going to use the Binance exchangeRegister on Binance
Step 6: Register your Binance account
- Enter your email address and a strong password
- Select “Register”
- You’ll receive an email to confirm your account
Step 7: Login to your Binance account
Step 8: Transfer ETH from Coinbase to Binance
- Under the “Wallet” tab, select “Deposits”
- Copy the ETH deposit address you are provided with
- Log back into Coinbase
- Select “Accounts”
- Click “Send”
- Enter your ETH deposit address
- Input the amount of ETH you want to transfer
- Select “Continue”
Step 9: Exchange ETH for Binance coin
- When your ETH has arrived in your Binance account, you can exchange it for BINANCE COIN tokens
- Select ETH currency
- Search for BINANCE COIN in the search box and select it
Select whether you want to “Limit” order (you can choose the amount of BINANCE COIN you want to purchase) or “Market” buy, which will autofill your order at the best price
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Why buy Binance Coin
The success of Binance coin is tied to that of the Binance exchange. Binance is already the world’s biggest cryptocurrency exchange by volume. If it can continue to hold this position as a market leader, then it seems like that Binance coin will likewise perform well.
One unique advantage that Binance coin has over other cryptocurrencies is the discount that is offered for trading fees on the Binance platform. The value for traders in using Binance coin to pay fees is significant. Given the huge amount of trade volume that the Binance platform does, there is almost certainly going to be continued demand for the digital token.
How to sell Binance Coin
Binance coin can be sold on any of the cryptocurrency exchanges which is listed above. Follow these steps to sell your Binance coin:
- Open an account with one the cryptocurrency exchanges listed above
- Transfer your Binance coin to the cryptocurrency exchange
- Exchange your Binance coin for Bitcoin
- Send your Bitcoin to a platform that allows you to exchange it for fiat currency
- Transfer your fiat currency to your bank account
Binance coin does not perhaps offer the compelling vision as some other cryptocurrencies. However, as the native token of the world’s biggest cryptocurrency exchange it does have serious advantages. The discount that is provided for traders who use Binance coin provides consistent demand for the token. Provided that the Binance platform continues to thrive, so too should this digital token.
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