Buy Binance Coin (BNB)
Crypto-optimists continue to invest in bitcoin, while experimenters believe in a bright future. But which cryptocurrencies will grow in the second half of 2021, and which altcoins are an excellent time to invest in? Binance Coin is one of the most promising cryptocurrencies.
What is Binance Coin?
First, let's remember the history of cryptocurrency. Binance Coin is the token of one of the most extensive cryptocurrency exchanges, Binance. As a result, BNB has become a vital element of the ecosystem. One of its most important features is that the coin can reduce fees on the Binance exchange. In addition, BNB is part of Binance's blockchain, which competes with Ethereum. As a result, the exchange's coin has a higher level of scalability and lower transaction fees.
One of BNB's most ardent supporters is Changpeng Zhao, CEO of Binance. In a recent tweet, he stated:
"Binance Smart Chain is not trying to replace Ethereum, but overtake it. Lower fees allow for more transactions, allowing for a more inclusive Defi ecosystem".
Changpeng is undoubtedly not predicting Binance coin cryptocurrency - it is too close to be objective. But, at the same time, nothing is stopping him from actively retweeting statements about the altcoin's advantages over ETH, the world's second most capitalised cryptocurrency.
If you are going to invest in Binance Coin, there are clear advantages to doing so.
How was BNB created?
BNB was launched through an initial coin offering (ICO) held from 26 June to 3 July 2017 - eleven days before trading on Binance. During the ICO, 2,700 BNB could be purchased for 1 ETH and 20,000 BNB for 1 BTC. BNB was initially issued on the Ethereum blockchain as an ERC20 token with a total issue size of 200 million tokens.
One hundred million tokens were offered in an ICO. The remaining BNB is now below 200 million - this is the result of quarterly BNB burns by the exchange.
Subsequently, BNB's ERC20 tokens were exchanged for BEP2 tokens in Binance's blockchain at a rate of 1 to 1.
How can BNB be used?
If you want to buy Binance Coin, you must have a clear understanding of cryptocurrency.
BNB has many application scenarios in the Binance ecosystem. The company estimates that millions of BNB have been spent on travel, payment for goods and services, credit, remunerations, smart contracts and other transactions. Here are the main applications of BNB:
- Paying commissions on the Binance exchange. It is estimated that over two million users have paid commissions on BNB and spent over 40 million BNB in over 127 billion transactions this way.
When trading on Binance, a standard commission of 0.1% is applied to each transaction. It can be lower for users who have reached specific monthly trading volume targets. Commissions can be paid either in the asset with which you trade or in BNB. In the latter case, the exchange offers an adjustment. So, if you are actively trading on Binance, it makes sense to buy BNB to pay your commissions:
- Paying commissions on the Binance DEX decentralised exchange;
- Paying commissions on the Binance Chain blockchain;
- Paying commissions on the Binance Smart Chain blockchain;
- Payment for goods and services, both online and in the real world, using Binance Pay and Binance Card;
- Booking hotels, plane tickets and so on at Travala.com;
- Utility token in the Binance Smart Chain ecosystem, such as in games and decentralised applications;
- Participating in token sales on Binance Launchpad;
- Sending donations to Binance Charity;
- Providing liquidity in the Binance Liquid Swap service.
Different sides of the same coin
If you are going to buy BNB, understand the pros and cons of cryptocurrency. A savvy investor will not rush headlong into the deep end.
Benefits of Binance Coin
The main benefits BNB brings to those who trade on Binance. This is because BNB holders receive discounts when making transactions on the exchange.
With the Binance Smart Chain (BSC) launch, BNB has gained additional benefits over what the token had to offer in the beginning. For example, on the Ethereum network, users need ether (ETH) to make transactions, while in BSC, BNB performs the same function. Therefore, whether receiving rewards from the Defi-protocol, exchanging assets, or interacting with a smart contract, you will need BNB to pay the transaction processing fee. That said, the fees in BSC are significantly lower, contributing to its superiority over Ethereum in terms of the number of transactions. As a result, the demand for BNB.
In addition, BNB is a deflationary asset. Each quarter, Binance takes a portion of the fees collected and burns them off, thereby reducing the supply of the token. As no new BNB issuance is made, this means that the number of BNBs available falls over time.
Disadvantages of BNB
The main disadvantage of BNB is the centralisation of management. The development of the blockchain and the ecosystem is dependent mainly on Binance itself. If Binance is shut down for some reason, this will have the most negative impact on BNB.
Coin burning
Unused tokens will be phased out of circulation. 20% of each quarter's profits are spent on this activity. This will continue until 100 million tokens remain. Deletion records are kept.
BNB cryptocurrency - forecast
An exciting feature of the exchange is its work in several directions - introducing promising assets, developing trading modules for other companies. For example, in March 2018, Binance added a new cryptocurrency token, Nem, which confidently takes place in the TOP 25 virtual currencies and stays on 10 to 15.
Since users like the platform - BNB addresses are registered with 300,000 people and are actively developing, the company's profits are increasing. If we analyse the chart for the BNB cryptocurrency, it becomes clear why the token chart is different from most other virtual coins. A growth spurt follows each token burn:
- BNB's long-term exchange rate is stubbornly climbing;
- Volatility is moderate compared to other cryptocurrencies;
- Capitalisation is increasing.
Growth prospects for Binance coin
If you are looking to buy Binance Coin, you will want to know the growth prospects.
BNB's developers plan to secure its finances and transition to a decentralised trading platform.
If the targets are met, the token will become a valuable asset.
The number of visitors to the crypto exchange, according to public data, exceeds 100,000 daily, and the number of customers is already more than 3 million. These are impressive figures, considering that the site launched in the spring of 2017.
The owners' plan for the tokens:
35% of the issue will remain at Binance's disposal and will be used to promote the platform. For new product development, marketing, creating educational resources and attracting investors.
How to invest in Binance Coin in Qatar?
How do I start investing in Binance Coin in Qatar? Start by registering on the website. To register, you will have to provide some personal information. This is so that you can be identified.
Demo account
If you wish to buy Binance Coin in Qatar, we recommend you use the demo account. With a demo account, you can experiment and try trading without any risk of loss.
Real account
Are you more experienced and feel empowered to try real trading? Then you're in for a treat! Just make a minimum deposit and start trading.
Remember, a man can do anything he can imagine. Good Luck!
Conclusion
Who are you - a novice trader or a private investor? Let's break down the definition and try to find out.
So, a trader is a financial/stock market trader who seeks to make a profit. But, at the same time, the trader works directly on the market: he analyses the situation and concludes trading deals.
A private investor is an individual who invests (invests) their savings and savings to make a profit. An investor can be passive (work through a broker or buy currency, metals, antiques or securities and wait for the best time to sell) or active (analyse markets and make transactions).
Either way, however, Binance Coin is an option to make money.
The exchange mainly uses BNB to reduce trading fees, while within the Binance Smart Chain network, it serves as an investment vehicle. This combination of functions is rare in the crypto market.
In the summer of 2021, Binance received more attention from regulators, but the exchange continues to gain momentum and is preparing for an IPO. Therefore, there is a chance for growth.
The most promising direction for BNB is precisely Binance Smart Chain. There are many Defi projects deployed, allowing the network to compete with Ethereum, and in some moments, even to exceed it. It also includes Binance SmartPool and the venture capital arm and incubator Binance Lab, which are also quite successful.
In addition, BNB renewed its all-time high at $675 in May 2021 but soon went into a correction, like the rest of the crypto market. However, there is no doubt that Binance Coin will regain its position and maybe even surpass it.