Binance is a blending of the words “binary” and “finance.” Binance is one of the most popular cryptocurrency exchanges and has been around for quite some time.
In July 2017, Binance launched its own cryptocurrency naming it “Binance Coin.” Binance Coin (BNB) is a cryptocurrency specifically designed for use in the Binance platform. It initially started as an ERC20 token on the Ethereum blockchain, but it was upgraded to be able to process transactions and handle high volumes of trading in September 2017. It is now a top 5 cryptocurrency according to market capitalization and currently ranked number #2 on some popular platforms.
Binance spends one-fifth of its revenues every quarter to repurchase and permanently destroy Binance coins held in its treasury, a process known as “burning.” Binance coin started as a utility token for lower trading fees, but it’s now used for various things, including facilitating transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
Who Are the Founders of Binance (BNB)?
The founders of Binance Coin, Changpeng Zhao, and Wei Dai, are also the two co-founders of one of the largest and fastest-growing cryptocurrency exchanges in the world – Binance.
Backed by a team with over 20 years of experience in financial services, fintech, and security, they aim to provide everyone around the world with a fair chance to invest in mother nature’s best project. A project that has been called many things but often referred to as ‘the next Internet’.
However, there is a man behind the entire project, Changpeng Zhao. He is known in the crypto community as ‘CZ.’ This individual put in a lot of effort to achieve his goals. According to Forbes, Zhao worked as a McDonald’s employee before becoming one of the wealthiest people in the crypto space.
CZ began his career on the stock exchange shortly after graduating from McGill University in Canada, where he received a bachelor’s degree in information technology. Shortly after, he began working as a programmer with Bloomers Tradebook, where he created computer systems tailored to the demands of the Tokyo stock exchange. He moved to Shanghai in 2005 and established Fushion Systems, a high-frequency transactional system for brokers.
He has been involved with many crypto ventures since 2013, including Blockchain.info. He also joined OKCoin as a technology director. In 2017, he was laid off, but he claims he resigned himself. That was when he decided to start his own cryptocurrency exchange, Binance. During the ICO, he raised $15 million for the project’s development. As a result, Binance became one of the largest platforms in terms of turnover in less than eight months.
What is Binance (BNB) Used for?
Binance, like some other cryptocurrencies, began as a utility token for reduced trading fees in 2017, but its usage has now extended to include a wide range of applications. BNB can be used in a variety of ways both within the Binance ecosystem and outside of it, so it is up to you to figure out what you want to do with it. You can, for example, use BNB to pay for travel expenditures, purchase virtual presents, and much more. According to our estimates, users had spent millions of BNB on travel expenditures, products payment, lending, rewards, smart contract creation, and other transactions. The following shows you how functional this currency is.
- Trading: Binance Coin may be exchanged for other cryptocurrencies on a number of exchanges, depending on the limits imposed by the exchange.
- Transaction fees on the Binance Exchange: BNB is also widely used to pay transaction fees. Approximately two million customers have utilized BNB to pay for trading costs of over 40 million BNB on more than 127 billion trades on the trading platform alone. So let’s look at how BNB can help you save money on trading fees.
Each trade on the Binance Exchange will be charged a standard cost of 0.1 percent (trading fees are calculated by your monthly trading volume and BNB holdings). You can pay your trading fees with BNB or with the assets you’re trading.
- Credit card payments: BNB proves to be useful in settling crypto credit card bills on various exchanges.
- Payment operations: BNB presents a cheaper and effective approach to settle payments to merchants and service providers.
- Booking arrangements: BNB can be used to book hotels and flights on certain websites.
- Entertainment: BNB is used in the entertainment sector for a range of activities, from paying for virtual gifts to purchasing lottery tickets.
- Investment: Binance Coin may be used to invest in stocks, ETFs, and other assets on a variety of platforms.
- Loans and transfers: On some platforms, BNB can be used as collateral for loans. Some apps allow users to use Binance Coin to split expenses and pay friends and relatives.
What is the Unique Point of Binance (BNB) Coin?
Binance Coin entitles users to several benefits. This includes reduced fees on all transactions and priority coin listings on the exchange. How much are these benefits worth? A lot – more than $1,000 per token according to CoinMarketCap.
Binance has been able to successfully pull off something that many other cryptocurrency exchanges have failed: they’ve created a decentralized coin with a clear purpose and a brand new platform in which it operates. By providing benefits to its holders, Binance has created an incentive for users to hold the coin. When investors hold onto a currency rather than converting it into another currency, that currency becomes more valuable due to its scarcity.
The majority of the volume on Binance is guaranteed by the fact that Binance rewards users for holding their coins in multiple ways. Trading fees are reduced as long as the user holds their coins on the platform, reducing trading costs and allowing them to earn money from their holdings while they trade. By encouraging users to store their investment on their platform, Binance has given itself a significant competitive advantage in terms of attracting traders over other exchanges.
How many Binance (BNB) Coins are there in Circulation?
There are currently 2.8 million Binance coins in circulation out of a total of 199.6 billion coins minted for release.
Is Binance (BNB) Coin Network Secure?
The Binance Coin network is highly secure and has never had any security issues in the past. The security of BNB is tied to the mechanisms used to protect every token in the Binance exchange.
Binance has been providing a secure platform for trading cryptocurrencies for more than two years. The anti-cheat technology they use, known as the “Bounty Hunter,” effectively has eliminated all sorts of scams from their exchanges and other platforms such as social media. Beyond that, they also use state-of-the-art encryption tools to keep hackers out of sensitive user information.
All deposits and withdrawals are done through multi-signature cold storage wallets with multiple private keys to further minimize risk by eliminating one single point of attack or breach on your account’s security.
How do I buy Binance (BNB) Coin?
The best option to purchase Binance currency is directly from the Binance exchange or Indexpairs.com. After you have created an account on binance.com, go to money and add funds with a credit card or debit card.
- To begin, fund your Binance account with BTC or other currency.
- After depositing the coins into your Binance account, go to the trade area and select the BTC/BNB trading pair on the right-hand side of the screen.
- The order book and the rates at which buying and selling are taking place can be found on the left-hand side. You can choose your buy price from the order book on the left and submit your order by entering the amount of BNB coin you want to acquire.
Which Cryptocurrency Wallet Supports Binance (BNB) Coin?
The PTPWallet platform supports many cryptocurrencies simultaneously such as Binance (BNB). Because of its vast use case, it has grown to become one of the most used platforms as it serves as an exchange and an engine to discover other cryptocurrencies. Additionally, users can easily use PTPWallet as their Binance wallet because offers a simple and interactive interface making it easy for people to navigate its system.