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Binance Coin – Introduction
Binance Coin is the cryptocurrency of the Binance platform. It is a trading platform exclusively for cryptocurrencies. The name “Binance” is a combination of binary and finance.
Thus, the startup name shows that only cryptocurrencies can be traded against each other. It is not possible to trade crypto currencies against Fiat. The platform achieved an enormous success within a very short time and is focused on worldwide market with Chinese headquarters. The cryptocurrency currently has a market capital between 180-218 million US dollars, of which 18-35 million US dollars are traded daily.
The Binance Coin
In total, there will only be 200 million BNBs.
Binance uses the ERC 20 token standard from Ethereum. BNB should be distributed as follows. 50% of the coins are sold in an ICO, 40% go to the team and 10% to Angel investors. Angel investors are investors who buy a particularly large number of coins at once. The coin can be used to pay fees on Binance exchange. These include trading fees, transaction fees, listing fees and others.
Binance gives you a big discount when fees are paid in BNB rather than in BTC.
In the first year of use, there is a 50 % discount on all fees, in the second year there is a 25 % discount, in the third year there is a 12.5 % discount, in the fourth year there is a 6.75 % discount, and from the fifth year onwards there is no discount. This structure is used as an incentive for users to buy BNB and do trades in it within the Binance exchange.
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If you’re planning on buying/selling a decent volume on Binance now or in the future, do yourself a favour and buy some BNB (Binance coin) on there first. There are two benefits to this: Your trading fees are paid for in BNB, rather than in the coin that you are trading, so you don’t have to leave the dust there (because binance doesn’t trade in decimals). And secondly you only pay half the trading fee! You can also sell the BNB you don’t use, so there is pretty much no reason not to get some. Just calculate how much you’ll need to cover your impending transactions.
In addition, Binance announced in a buyback plan that it would buy back up to 100 million BNB in Q1 2018. The coins are then burned. This means that they are devaluated to increase the value of the remaining coins. This benefits investors. In the future, the cryptocurrency will remain an asset on the trading platform and will be used as gas. A transaction costs a fee of 0.1% of the trading amount.
The Binance platform
As already mentioned, only cryptocurrency pairs can be traded on the platform. In addition to Bitcoin, Ethereum and Bitcoin Cash, the trading platform can also be used to trade QTUM Coin, NEO Coin or Iconomi and almost 50 other currencie (new ones are added almost daily).
It is striking that many cryptocurrencies from Asia are traded. This is obvious, because the platform is headquartered in China. The platform recently launched the “Community Coin per month” campaign. Users of the platform can vote on which coin can be traded that month without transaction fees.
You can read a full Binance review here.
Conclusion
Technical data about the Binance platform is still unknown. The Binance platform trades exclusively with cryptocurrency pairs, whereby users of the platform can register and trade cryptocurrencies independently. The website also offers the possibility to hold ICOs. Each transaction costs a small fee, which can be paid in BNB. Since the platform is active in China, the website can be translated into several languages, transactions from abroad can take a while.
You can buy it directly for fiat on Binance exchange. Or you can choose the best bitcoin exchange for your region and buy BTC there, then trade it for BNB on Binance exchange. Learn here how you can instantly convert altcoins to bitcoin and vice versa.
Our recommendation is always check if Coinbase is available for your country and buy there – as it is by far the safest and best regulated bitcoin exchange. Coinbase is legit and safe cryptocurrency exchange.
If your country is not available on Coinbase – check for exchanges that are good Coinbase alternatives and buy BTC on one of those exchanges. You can always exchange your coins on Changelly (see our review of Changelly here), instantly and directly to BTC.
Best and safest option to store your coins is to download an official coin wallet and store it on a hardware wallet – our recommendation is just go and buy Ledger Nano S, it is the safest option.You can read our review of Ledger Nano S or check out other best hardware wallets here.
I feel much safer with this coin since it is attached to one of the top exchanges in the world and isn’t just a project. This is a buy and hold for sure. Great management and innovative technology.