Whether you’re new to cryptocurrencies or you’re a seasoned trader by now, you’ve probably heard of one of the most popular platforms for crypto trading – the Binance exchange. Shortly after the creation of the exchange, the platform launched its own token called Binance Coin.
In February 2022 it was announced that Binance Coin will be now renamed to its former ticker symbol – BNB. According to the platform, BNB stands for “Build and Build”, meaning build the community and let the community build. Since the native token of the exchange is still more widely popular as its initial name, for the purpose of this article, we’ll be using Binance Coin and BNB interchangeably.
Keep reading to find out what this popular cryptocurrency is, what is its current price, how to buy and store it, and more essential things you should know about it.
What Is Binance Coin (BNB)?
As mentioned, Binance Coin (BNB) is the native token of the Binance exchange, through which it is possible to pay a commission for transactions directly on the exchange. Furthermore, by paying commissions on Binance through Binance Coin, it is possible to receive substantial discounts on yearly bases and on different services, offered by the exchange.
How Does BNB Work?
Binance Coin was first launched as a ERC-20 token, meaning it used the Ethereum network. Since then, however, the developers of BNB created their own blockchain – the Binance chain. When Binance Coin got officially renamed to BNB, so did its blockchain and it’s now called BNB Chain. BNB supports smart contracts and relies on a new consensus mechanism: Proof-of-Staked Authority (PoSA) consensus (“Parlia”). This mechanism incorporates elements from both Proof-of-Stake and Proof-of-Authority. That’s why BNB is used for delegated staking on the authority validator, leading to staking rewards for users and validators.
What is the Binance Coin Burning?
The current total supply of BNB coins is lower than the initial, offered in the ICO. That’s due to the fact that every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy (also known as burning) Binance coins held in its treasury. Why is this done? To make BNB scarcer and increase the demand for it.
The Current Binance Coin Price
The Binance Coin price has been intriguing for investors, since the token is related to one of the biggest crypto exchanges. However, its price started really growing once it got listed on other trading platforms as well. In the first bull run of 2021, BNB reached its current all-time high of $690.93. Since it has fallen in value but remains in the top 5 cryptocurrencies by market capitalization, meaning the interest towards the crypto is still very high.
If you’re wondering what is the Binance Coin price at the moment, you can check it out on the graph below.
Where to Buy Binance Coin (BNB)
If you’re wondering where to buy BNB, we’ll start with pointing the obvious – on the Binance exchange (or Binance.US if you’re in the States). Since this is the native token of the platform, it’d be the easiest to find it there first. Additionally, you’ll be able to take advantage of the perks BNB provides on the Binance exchange if you buy and use the token there.
However, if you’re interested in what are the other ways to buy Binance Coin, the answer will again be that you can do it the easiest on a platform for crypto trading. You can now find BNB listed on many other crypto exchanges, other than its native one. If you want to buy Binance Coin on another centralized exchange, meaning a third party will be monitoring your transactions, you could find the token at places like Gate.io, FTX and KuCoin.
If, however, you want to buy your BNB coins without someone else beside buyer and seller involved in the transactions, or you want to skip the account verification part, you can also buy BNB at a decentralized exchange, for example PancakeSwap. Luckily for you, the Binance ecosystem also provides their own decentralized exchange where you can swap your BNB coins as well.
The other option for a trading platform to buy your BNB is online brokers. Some brokers allow for crypto trading but they also provide other investment assets, such as stocks or fiat currencies for exchange. You could easily find this crypto for trading on bigger brokerages, eToro, for example, and buy it there.
What Is the Best Wallet for Binance Coin (BNB)
You have a couple of options when it comes to storing your BNB coins. One of the quickest would be to store your assets on the platform you’ve bought them, if it provides a built-in wallet for you. Binance has its own wallet you can use, as well as other platforms like Coinbase, for example. There you can take advantage of using a single service for all your trading needs – buying, storing, and selling your BNB coins.
In case you want to use another wallet, you have two options, based on where your private key and coins are stored. Hot storage wallets are always connected to the internet and cold storage ones are plugged to your device only for transactions, so that’s what you can pick from. Let’s cover both now.
If you want to have access to your Binance Coins from anywhere with online connection, you can opt for a hot wallet. Storage options from this kind that support BNB are Coinomi Wallet, Trust Wallet, and Exodus. For this type of wallets, you can use them on your desktop, browser, or phone, depending on the services they provide, and many come with no to low prices.
However, if you’re looking for a more safe storage, regarding online malicious attacks, you may want to look into cold storage wallets, also known as hardware wallets. Popular options like Ledger or Trezor support BNB. You only have to connect these wallets to your computer and the internet when you’re doing transactions with your crypto and in that way, you’re more protected from potential hacker attacks.
Since BNB is a very popular cryptocurrency by now, you’ll be able to easily find wallets that support it. Choosing the best one will be based on your own needs as a trader.
How to Make Money With Binance Coin
Since Binance Coin is connected with an established exchange, many experts have provided positive predictions for its future. That has made investors wonder about the ways how you can make money with BNB. You can do it in the two main ways, by investing in the coin in the long term and by trading the assets.
If you have the patience to wait for the Binance Coin price to rise in the future and bring you considerable returns, as plenty of people hope it will, then buying and hodling (holding) the asset is the way to go for you. In this method of making money with Binance Coin, you’ll potentially buy the digital asset at a lower price, taking advantage of a crypto market ruled by fear, and hold it until its price rises enough to have made your investment grow. Here you’ll have to have the control over your emotions to not give in when prices start dropping and hope that they’ll rise substantially enough after, to make your waiting worth it.
Although investing with a long term outlook is a great way of securing income with volatile assets such as cryptocurrencies, if patience is not your virtue, then this method isn’t for you. Then you can trade the coin, taking advantage of its low and high prices in the short term, and try earning that way. If you decide to trade BNB, you’ll have to follow closely its price movements, and the whole market’s too, when you’re buying and selling the asset in short periods of time.
You can’t make money out of BNB through mining, though, as we mentioned that it doesn’t use the Proof-of-Work mechanism that cryptos that can be mined use. However, you can make money out of staking Binance coin, as well as using it on its native exchange for various things.
What Are the Pros and Cons of Binance Coin (BNB)
Pros of Binance Coin
✔️ BNB is a utility token, which allows you to use it for various services on the Binance exchange, as well as get rewards for doing it
✔️ The future forecasts for the Binance Coin price expect the token to perform well again and remain a top currency by market cap
Cons of Binance Coin
❌ The Binance exchange has had regulatory issues in the past which may affect its token negatively as well
❌ BNB is heavily centralized, as the majority of the coins are held by Binance in several wallets
Is Binance Coin Worth Following?
Binance Coin, now renamed to BNB, is the native utility token of one of the most popular cryptocurrency exchanges the Binance exchange. This connection works in both ways for BNB, as people can benefit from using the coin on its exchange and ecosystem and get discounts or rewards for different services. The popularity of token and exchange has also brought more interest in it, as its price grew in the first half of 2021 and still continues to trade relatively high.
However, the Binance exchange has had its issues with regulations before, it’s even banned in the US where Binance.US was created as an alternative. Additionally the company is holding a big amount of BNB tokens, meaning the decentralization is a bit lost in this aspect. This issues with the whole company may affect the token negatively in the future.
Considering the ways where BNB can do, we can expect it to either continue on its way up, or get dragged down if the exchange behind it loses its ground. It’s worth mentioning, though, that despite the hardships, Binance exchange remains to this day one of the most popular and used crypto platforms. Its issues were local and overcome so far, and the bigger control over the asset from the organization may provide comfort for some users, meaning there are always two sides of each coin. Even the Binance Coin.
As a top 5 cryptocurrency, the BNB coin is definitely worth following in the future, whether you decide to buy it, or are just curious how the project of the popular platform will withhold the test of time and side factors.
FAQs About Binance Coin (BNB)
As mentioned in the text, no, you can’t mine BNB. Since BNB is a newer cryptocurrency, with more advanced technology than Bitcoin and Litecoin, for example, it doesn’t use the Proof-of-Work mechanism that is now considered outdated and that’s why you can’t mine the crypto.
You can use your BNB tokens just as any other digital asset – for investing and trading. Additionally, you can use this cryptocurrency in its native ecosystem, Binance, to get discounts and rewards with it.
Binance Coin (BNB) may be an asset worth holding, considering its potential and so far performance. Though its price may not be easy to predict, the utility of the token, as well as the platform behind it, are some of the reasons why you may want to hold you BNB coins if you’ve got them.
👉Want the latest news on Blockchain & Crypto🪙Subscribe to the @egorithms Telegram