25.07.2022
Today it is impossible to be away from cryptocurrencies.All news blogs and conversations are about them. This recently emerged phenomenon among digital assets has captured the entire planet. Financial experts say that buying and dealing with cryptocurrency is one of the promising and successful investments. If we analyze the lists and assets of world businessmen, then the overwhelming majority of them have cryptocurrency in various quantities.
In order to become the owner of a cryptocurrency, you first need to learn and get acquainted with all its varieties. You can read about one of the most popular cryptocurrencies, namely BNB, in this article.
What is BNB?
Binance Coin, or BNB for short, is the base cryptocurrency of the Binance exchange. With the help of this crypto exchange, traders can perform financial transactions, such as trading cryptocurrencies, paying commissions, and others.
At first, BNB was an ERC-20 token based on Ethereum, but during the operation, its own unique and progressive blockchain platform was developed. According to the statistical report for April 2022, the platform's performance is more than one and a half million operations (transactions) per second. It is these indicators that allow it to take first place among all cryptocurrencies. In addition, from April to mid-May 2022, there was a surge in BNB, doubling its value.
How to use BNB?
The Binance crypto exchange provides its clients with a wide range of opportunities, namely:
- BNB cryptocurrency consists of a huge number of currency pairs that are listed on the exchange, which in turn allows you to make various exchanges;
- BNB is often used in futures trading on the exchange;
- BNB cryptocurrency allows you to apply for a loan on the ETHLend service;
- BNB investment (Moeda);
- trading stocks and valuable assets (NAGA);
- buying fiat currencies with BNB (Bitcoin Suisse).
Binance Coin can be used in the following ways:
- To pay commissions and fees on the Binance platform.
- In crypto trading, BNB is one of the leaders among cryptocurrencies.
- To pay various bills in specialized applications, for example, likes dApps or games based on the Binance blockchain.
- For charitable donations.
- When exchanging liquidity on Binance.
- To receive a discount/bonus when the specified trading volume with Binance Coin is reached.Crypto exchange customers are offered a discount on commission payments up to 25% if BNB is used.
- For various kinds of purchases and payments, both online and offline: subscriptions, reservation and purchase of tickets, hotels, purchase of various goods and gifts, etc.
What affects the volatility of the BNB coin cryptocurrency?
As mentioned above, bnb is in great demand and popularity among crypto users. It takes third place and gives place only to such crypto giants as Bitcoin and Ethereum. With such leading positions, the value of one coin was from 660 USD, and the market capitalization itself was more than 99 billion USD. It took 4 years to grow from a start-up crypto asset, the cost of which was only 10 cents to $660. Investors who replenished their crypto portfolios in the early stages of the development of this coin got rich.
Currently, the price of bnb is influenced by the following factors:
- the state of the cryptocurrency market;
- the state and capabilities of the Binance exchange itself, as well as the pool of services that the exchange offers to its customers;
- development of Binance Smart Chain as a platform for smart contracts.
Where and how to store BNB?
Most users store their bnb cryptocurrencies on the «native» Binance platform, but there is the possibility of third-party storage on other wallets. A few of them: Trust Wallet, Ledger Wallet, Enjin Wallet, Coinomi and others.
Advantages and disadvantages of BNB
There are many advantages of bnb cryptocurrency, here are a few of them:
- BNB is the flagship among service tokens. This happened due to the rapid development of the Binance crypto exchange. With its help, you can: make transactions, invest and receive passive income, online purchases of a variety of things and services, etc.
- The original burning method. In order for market volatility not to bring huge losses, as well as to support the stability and development of this digital asset, the company holds regular burning sessions, which in turn allows to reduce the supply of bnb on the market and the growth of the cryptocurrency exchange rate.
- Bonuses for traders. If you use Binance Coin, you can receive discounts on the payment of fees on the Binance platform.
- One of the fastest transactions on the market. In one second, up to one and a half million transactions take place, which, in turn, is even ahead of Bitcoin and Ethereum.
No matter how many advantages there are, there are always disadvantages:
- The pressure of external political factors on the state of the cryptocurrency market. Most experts believe that it is the giants of the United States and China that will be able, with the help of regulatory bodies, to influence the future development of the token.
- Direct dependence on the reputation and rating of the Binance crypto exchange. Precisely because the token is almost completely dependent on the platform, its state directly depends on all the factors that surround Binance.
- No guarantees for the future. There is nothing new here, just like with other cryptocurrencies, it is impossible to predict the development of bnb, since the currency is only 4 years old and it is still considered «young» on the crypto market.
To summarize, BNB is one of the leading and most popular cryptocurrencies on the market today. You can view its current rate and make an exchange with BNB on our website.
