Binance Coin, or BNB, is constantly making headlines in the cryptocurrency world. Logically linked to the ecosystem of the Binance trading platform itself considered one of the best cryptocurrency platforms, this asset is one of the largest in the world in terms of capitalization. Launched in 2017, it quickly became popular thanks to its various functions, particularly those related to the obvious use of the platform just mentioned. However, BNB is continuing, and its future looks interesting to analyze.
Follow our guide to Binance Coin staking and much more.
What is Binance Coin Crypto?
Most cryptocurrency users are familiar with the Binance platform, and owners of assets on the same platform are bound to consider Binance Coin’s existence. The latter was born in 2017, just eleven days before the official opening of the platform. For its arrival on the market, BNB was the fruit of an ICO (initial coin offering) and was then based on the Ethereum network blockchain.
Since April 2019, the leading Binance Chain network has been launched within the Binance ecosystem, and it’s only logical that this asset should now take part on this same blockchain.
Usable in many ways, with the possibility of using it as a payment currency or as a utility token available on the Binance platform, BNB looks interesting to follow in the future as it also takes service within Binance DEX, the decentralized platform of the eponymous ecosystem. The world’s fourth-largest cryptocurrency in terms of capitalization, the Binance Coin asset is highly appreciated by cryptocurrency users, not least for its real utility, unlike hundreds of other tokens. Logically, however, the value of Binance coin is correlated to the health of the Binance platform.
The history of Binance Coin is inevitably linked to the history of the Binance platform, considered within many categories to be one of the most important in the cryptocurrency world since its creation in 2017 and still to this day. Changpeng Zhao -Binance Coin founder- was initially based in China before new laws concerning cryptocurrencies prompted the company to relocate. However, it should be noted that concerning the entire Binance ecosystem and, therefore, its token, news has sometimes been rocky. As a result of various security breaches and fraudulent accusations, the platform has been banned from operating in the USA and the UK. Moreover, the company’s founder is currently the subject of legal proceedings in the USA.
Naturally, the same key figures are involved in creating the linked token, notably Changpeng Zhao. As announced in the introduction, BNB first found itself active as an ERC-20 token before migrating to the Binance Smart Chain (BSC) in September 2020, which a few months later became the BNB Chain.
The crypto became popular very quickly, particularly during its time on the BNB Chain. Lately, it has fluctuated a lot, which may have an obvious link with its founder’s growing legal worries. However, it remains popular with a high value that proves the solidity of this project from the outset, also highlighted by some exciting and practical features.
Why was Binance Coin created?
Unsurprisingly, Binance Coin was created with the Binance platform, so its purpose is simple. Very quickly, the owners of the Binance platform wanted to offer a token capable of providing numerous functions directly within the ecosystem. We’ll take a closer look at all these functions below, but in practical terms, the BNB also has a real-world cryptocurrency usage objective. While it’s difficult to understand the main purpose of some tokens and even tokens native to major exchange platforms, this is not the case with BNB.
In fact, BNB has all the means to become an almost habitual currency of exchange for its users. Linked to numerous applications and other services, BNB has a wealth of resources.
Of course, its main use today is directed towards actions carried out on the Binance platform since owners of cryptos present on this same platform can benefit from significant discounts and other advantages when they own assets of this type.
How does Binance Coin (BNB) work?
While the history of Binance Coin is nothing extraordinary, as it remains closely linked to the ecosystem in general, the way it works is far more interesting. The number of use cases for this BNB asset continues to grow. Although the majority of investors still use it up to date to take advantage of Binance’s benefits and promotions, the list of functionalities is very long.
Lower transaction fees on Binance
Users of cryptocurrency platforms know better than anyone: the fees racked up by transfers tend to be a drag on certain transactions. So it’s always possible to look for a ploy or take advantage of benefits to lower those same fees. This is what Binance offers to owners of BNB, the ecosystem’s currency.
Frequent traders can benefit from one of the VIP ranks and thus enjoy reduced fees based on the number of BNB they hold rather than their value.
All in all, spot and margin trading fees can include savings of 25%, while futures trading fees can be discounted by 10%.
As well as participating in the launch of tokens hosted on the Binance Launchpad, another mode available within the ecosystem, the BNB can also serve as a utility token for the Binance Smart Chain. In constant development, the latter is very active in terms of dApps.
Use in purchasing
Of course, this remains only a small part of the general uses of this token, but Binance is very proud of it and has no hesitation in highlighting it on its platform. The BNB aims to be a revolutionary, forward-looking currency. As such, the asset can be used directly on specific platforms that usually require payments in fiat currency.
A growing number of platforms and other businesses accept payment in BNB. Travel, leisure, services, finance: the business sectors are numerous, and several leading companies are inclined to accept these assets. These include HTC, Travala.com, and PureVPN.
Other features within the ecosystem
As you can see, BNB’s reach is extensive. It should also be noted that BNB has a philanthropic approach within the Binance Charity.
Where to buy Binance Coin?
As one of the most popular cryptocurrencies today, it’s very easy to acquire Binance Coin. There are many platforms where you can buy or sell BNB assets. These include Kraken and crypto.com, two companies becoming increasingly important players in cryptocurrency trading.
As a matter of course, however, it is also possible to buy Binance Coin on the platform of the same company and name, Binance. Knowing that acquiring and owning this asset can allow owners to benefit from significant advantages on the platform and also fee reductions, it goes without saying that we advise you to operate through Binance to obtain BNB. How do I buy Binance Coin on Binance?
Log in or open an account
The first and most obvious step is to open an account with Binance to access over 350 cryptos and exchange BNB. Initially, you can sign up for a Binance account using several options: a Gmail account, a standard email, a cell phone, or even your Apple login. In all cases, a password is required, as is acceptance of the general terms and conditions of use.
Email validation and identity verification (KYC)
Once this first stage has been validated, you’ll need to proceed with the administrative validation of the email by clicking on the link received a few minutes after registration. You will then need to enter the verification code and proceed with identity verification. This procedure is customary on crypto platforms and is designed to protect the platform and the user, following the directives of the financial market authorities. To do this, you’ll need to make sure of a few things:
Download the Binance app on your phone (identity verification is performed this way only).
Make sure you have the latest version of this application.
Once you’ve taken these steps, you can verify your identity. You’ll be asked for several personal details and need to scan a QR code with your cell phone. In the same way, a scan of your ID will be requested from the application, enabling the platform to verify the accuracy of your information.
Connecting to Binance and purchasing BNB
After taking a selfie and verifying your telephone number, the platform will take a few hours or even a few days to validate the creation of your account. If so, you’ll receive an email and can proceed with your first connection and exchanges.
Getting BNB couldn’t be easier! Go to the “buy cryptos” tab to deposit money using the method of your choice, then use the “trade” function to exchange a certain value with BNB assets. That’s all there is to it!
What investors think about the prevailing market conditions determines the price of an asset. For example, higher interest rates will raise bond yields and vice versa. However, crypto markets don’t have a centralized market, so we rely on the Fear and Greed index to indicate investors’ sentiment.
The index marks periods in the market when investors are hungry to buy more cryptocurrencies and vice versa depending on the market conditions. When this happens, you should consider buying the token when the index indicates fear and selling when investors are greedy.
When looking at a price chart of BNB, for instance, you see that its price fluctuates in tandem with the fear and greed index. The Fear and Greed index peaked above 80%following a bull run and BNB prices followed suit as the coin surged above $315 from a low of about $205 in September 2023 when the index was around 31%.
Knowing this, you must consider what the Fear and Greed index shows about the crypto market before opening a position. Not only does it provide a general direction of the market trend, but it can also be used to confirm any analysis you may have done on the price charts.
Is buying Binance Coin a good investment?
A central asset in the Binance ecosystem, particularly in the BNB Chain, i.e., one of the world’s three most widely used public blockchains, BNB is correlated with activity on the Binance platform. Over the past few months, the latter has continued attracting more users and curious onlookers. Given the gradual democratization of, and growing general interest in, crypto-currencies and Web3, there’s no doubt that this asset will continue to prove attractive in the future.
Beware, however, of Binance’s recent legal difficulties, which could break the progress and positive buzz surrounding this BNB token. The ban on the platform in the United States and the United Kingdom is undoubtedly a brake on progress.
However, it’s enough to follow the asset’s capitalization and evolution over the last few months to understand just how important its potential is for investors and users of the Binance platform.
Binance coin forecast
What is the price of Binance Coin today? Binance coin stock price to USD is around 200$ with a current market cap of $ 31.84B USD. BNB remains highly volatile for the reasons cited throughout this article.
Will Binance coin recover? Superbly kept afloat during the market price slump, the crypto derives its popularity from its action across the Web3. For the Binance coin prediction for the future, this resilience is something to bear in mind.
Our tips for buying BNB
Binance’s native token can be purchased from online brokers such as eToro. As well as streaming the BNB price in real-time, you can trade it with leverage via CFDs.
In addition to the crypto-currency market, online brokers also offer other financial instruments.
Online brokers are generally more regulated by market regulators such as the CFTC in the US.
They also offer more payment options, such as credit cards.
Our final opinion on Binance Coin (BNB)
Will Binance coin go up? The importance of the Binance chart -and its ecosystem in general- within the cryptocurrency world should not be underestimated. In this sense, the action of the BNB asset is also worth highlighting, and while crypto investing can be risky, it can also carry great interest and profitability.
So, what about Binance coin future? BNB’s strength comes from a strong blockchain and major advantages. This asset is modern and forward-looking, with uses beyond the typical speculative or low-cost platform (although this is also the case with BNB). The many companies already offering payment by BNB are proof of just how interesting the development of this token will be in the future.
Questions asked about the BNB token
Can I buy BNB elsewhere than on Binance?
Yes, it’s entirely possible to acquire this cryptocurrency elsewhere than on Binance.
What is the value of a BNB?
You can find the price of the coin on this page.
How long has the BNB token been around?
It has been around since 2017 but has been running on its own channel since 2019.