Binance Coin (BNB) was launched in China in August 2017. The platform itself experienced a significant rise in popularity over the past months together with the BNB coin. Just like other cryptocurrency exchanges, Binance will match your orders to buy or sell cryptocurrencies with those of other users on its platform in exchange for the relevant fees. As the major characteristics which distinguish one exchange from another are related to the matching engine capacity, fees and the liquidity volume, Binance uses the BNB coin to make the platform more attractive for those who hold it.
What is Binance Coin (BNB)?
1. Who Controls Binance Coin (BNB)?
The team developing Binance, including founder Changpeng Zhao, launched BNB through an initial coin offering (ICO) that ran from June 26 to July 3, 2017. The starting supply was 200 million BNB tokens at a value of about $0.11 each. Of that amount, 100 million were sold through a public auction, 20 million were dispersed to angel investors, and 80 million were distributed to the founding team.
The ICO raised $15 million in Bitcoin (CRYPTO:BTC) and Ethereum. It put 35% toward upgrading Binance’s platform and exchange, 50% for branding and marketing, and 15% in a reserve. The Binance exchange launched on July 14, 2017.
BNB was originally an ERC-20 token built on Ethereum. In April 2019, Binance launched its blockchain, Binance Chain (now called BNB Beacon Chain) with its own BNB as the native token. Holders of ERC-20 BNB tokens were able to swap them for the new BNB tokens at a 1:1 ratio.
2. Who Created Binance Coin (BNB)?
CEO Changpeng Zhao had previously founded Fusion Systems in 2005 in Shanghai; the company built high-frequency trading systems for stockbrokers. In 2013, he joined Blockchain.info as the third member of the cryptocurrency wallet’s team. He also worked at OKCoin as CTO for less than a year, a platform for spot trading between fiat and digital assets.
The company was founded in China but moved its servers and headquarters out of China and into Japan in advance of the Chinese government ban on cryptocurrency trading in September 2017.
Binance coin initially ran on the Ethereum blockchain with ERC 20 standard but has since become the native coin of the Binance chain. It was launched during an initial coin offering (ICO) in July 2017 and has a strict maximum of 200 million BNB tokens. It offered 10%, or 20 million, BNB tokens to angel investors, 40%, or 80 million, tokens to the founding team, and the remaining 50%, or 100 million, to the various participants through the ICO process.2
Almost half the funds raised during the ICO process were intended to be used for Binance branding and marketing, while around one-third were used to build the Binance platform and perform necessary upgrades to the Binance ecosystem.
3. Binance Coin (BNB) Pros and Cons
Binance Coin (BNB) Pros:
- Low fees compared to other exchanges
- 25% trading fee discount if you pay fees using Binance Coin (BNB)
- Educational resources available
- Identity verification process
- Tax statement portal to help prepare crypto taxes
Binance Coin (BNB) Cons:
- Not available in all states
- $10 minimum trade
- Site can be difficult to use
- Lack of information on security
- History of regulatory scrutiny
- Limited customer service options
4. The Difference Between Binance Coin (BNB) and Traditional Currencies
The main difference between them is, the traditional currency is a centralized system and bitcoins are decentralized one and peer-peer systems. Hence there are no central authorities to regulate rules and regulations on a bitcoin transaction. But a traditional currency is strictly regulated by the governmental authorities. Both the bitcoins and fiat currency have values which can be used for buying and selling of goods in the market.
With traditional currency functioning for five days a week and die to transaction restriction, there is a chance of freezing of currency. There is no limit in the number of currencies, being printed, and hence when there is inadequate currency, it will affect the buyers and sellers, resulting in inflation.
- No Fraudulent Activity
If you want to transact with a traditional currency system, the users have to provide personal details like name, address, phone number, and lots more. So, with the internet technology, the malicious user will be able to hack the account details of the traditional currency system easily. Traditional currency can suffer from double-spending, where the same money is used for more than one transaction.
- Reduced Cost
In a traditional banking system, for making a national transaction, it will take 2-3 working days, and the transaction fees will be high. In the case of international transactions, the transaction fee will be very higher, and it will take 15 days to complete the transaction. In a Cryptocurrency system like bitcoins, there is no transaction fee for making a national transaction. The transaction will also take place in seconds or within 24 hours.
5. Is It Safe To Use Binance Coin (BNB)?
Many users hold on to their BNB with the expectation of it increasing in value. You can store your BNB safely on your Binance wallet or on our crypto wallet app Trust Wallet, the most user-friendly and secure mobile wallet.
You can trade BNB for 300+ cryptocurrencies on Binance’s industry-leading, fast, and secure trading platform. Binance offers many trading pairs for BNB trading to meet your needs.
How Does Binance Coin (BNB) Work?
BNB is a crypto asset similar to other digital assets on the market in that it rises and falls in value as people use and trade it. People can hold BNB in compatible wallets off crypto exchanges and send the coin directly to others for payments or otherwise.
One might also wonder how to buy Binance Coin? People can buy BNB via a number of avenues such as Binance’s own crypto exchange, for example. As always, though, be sure to research and abide by any applicable jurisdictional laws.
On a more technical level, the layer-1 blockchain of Binance is merged to form the BNB Chain (previously the Binance Smart Chain and the Binance Chain).
When constructing the BNB chain, Binance tailored the blockchain for optimal performance when it came to trading on-chain, basing Binance DEX, Binance’s decentralized exchange (DEX), on this newly formed chain. Moreover, BNB chain transactions are fueled by a blockchain gas token called BNB, which stands for “Build and Build” (previously known as Binance Coin).
The BNB chain consists of the BNB beacon chain and BNB Smart Chain. The former is focused on BNB Chain governance that allows BNB holders to participate in staking and voting. The latter is a consensus layer, Ethereum Virtual Machine compatible, and has hubs to multi-chains.
How to Make Money with Binance Coin (BNB)?
Here are quite a few approaches for us to make money with Binance Coin (BNB), such as Mining, Buying & Hold Bitcoins, Accept Payments in Binance Coin (BNB), Earning Binance Coin (BNB) by turning into an Affiliate, Lending Binance Coin (BNB), and Micro Earnings, and Trading.
- Binance Coin (BNB) Mining
- Buy & Hold Binance Coin (BNB)
- Accept Payments in Binance Coin (BNB)
- Determine how you’ll use Binance Coin (BNB)
- Find a Binance Coin (BNB) wallet
- Find a Binance Coin (BNB) payment processor
- Accept Binance Coin (BNB) payments
- Becoming an Affiliate
- Lending Binance Coin (BNB)
- Micro Binance Coin (BNB) Earnings (Faucets, Offer Wall, Short Links, Surf Ads……)
- Binance Coin (BNB) Games
- Micro Binance Coin (BNB) Tasks
- Trade Binance Coin (BNB)
How to Buy Binance Coin (BNB)?
1. Things To Know Before You Buy Binance Coin (BNB)
Buying Binance Coin (BNB) and holding onto it in hopes it will appreciate in value, is the most common form of “investing”. As with all investing, you should never invest more than you are willing/able to lose. This is especially true with Binance Coin (BNB), since it’s still a very risky investment.
The most important thing to keep in mind when buying Binance Coin (BNB) is to make sure to buy only from exchanges that have proven their reputation.
Another key tip is to make sure you don’t buy all of your Binance Coin (BNB)s in one trade. Instead use a dollar cost averaging method—buy a fixed amount every month, week or even day throughout the year. This ensures that you buy the most Binance Coin (BNB) when it’s on the rise, and less when it’s going down in price.
2. How to Buy Binance Coin (BNB) on a Crypto Exchange
- Coinbase – Secure online platform for buying, selling, transferring, and storing cryptocurrency.
- eToro – Trade and invest in a diversified portfolio, starting at $10, or practise risk-free with a virtual portfolio.
- Bitfinex – Digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
- Binance – Low trading fees, a generously wide range of leverage, and high liquidity.
- KuCoin – A large cryptocurrency exchange offering the ability to buy, sell, and trade cryptocurrencies
3. How to Buy Binance Coin (BNB) with Cash
- Find a seller in your area who accepts cash.
- Select amount of coins and place an order.
- Receive account number from the seller.
- Deposit cash into the seller’s account.
- Upload your receipt to prove you made the deposit/trade.
- Receive Binance Coin (BNB)!
4. How to Buy Binance Coin (BNB) with Credit Card
Not all platforms will allow you to use a credit card to make your Binance Coin (BNB) purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
5. How to Buy Binance Coin (BNB) with Paypal
- Login to Paypal and Select Cryptocurrency
- Select ‘Binance Coin (BNB)’
- Select ‘Buy’
- Choose How Much You Want to Buy
- Select Payment Method
- Hit the ‘Buy’ button
6. Should I Buy Binance Coin (BNB) In 2022?
Launched by the major crypto exchange of the same name, BNB is designed to serve as the lynchpin of the Binance ecosystem. One of the main attractions lies in how this altcoin can be used to unlock discounted trading fees. BNB also has a starring role in the Binance Smart Chain (now BNB Chain), which is vying to become a rival to Ethereum that offers greater levels of scalability, along with lower transaction fees.
Although CZ stresses that he does not give financial advice, his enthusiasm for Binance coin, the BNB price prediction for 2022 and this cryptocurrency’s potential are clear. He has retweeted posts that describe this altcoin as far superior to ETH – the world’s second-largest cryptocurrency.
Currently, this digital asset has a market capitalisation of almost $38bn, meaning that it has also started to gain ground on Ether, which has a total valuation of almost $154bn. Although talk of a “flippening” may seem rather far-fetched, BNB proponents are adamant that this digital asset has the potential to gain more ground in the future.
CZ has also shared posts that suggest BNB coin price predictions have been wrong over the years, encouraging users and the wider public domain to be cautious when making investments, and reminding them that information provided on the forum is not financial advice.
How to Sell Binance Coin (BNB)?
1. Things to Know Before You Sell Binance Coin (BNB)
To get started with Binance Coin (BNB), you’re going to need three things: an exchange, a wallet and the knowledge of how to buy the cryptocurrency. This last one is easy with our guide on how to buy Binance Coin (BNB), but the other two are still important. The exchange allows you to buy Binance Coin (BNB) from sellers, and the wallet gives you somewhere to store it long term.
When choosing an exchange, you should look for one with many users, good customer support and low fees. Three particularly popular exchanges with newcomers are Coinbase, Robinhood and Binance. However, there’s nothing really tying you to a specific exchange, so you can try new ones and quickly change at any time.
On the other hand, wallets can be much more complex. “Cold wallets” — physical devices holding cryptocurrencies offline — come with a steep up-front cost, but “hot wallets” — pieces of software that hold your coins on a computer — are often less secure. However, since hot wallets are fine for short-term storage and free to set up, it’s a good idea to start with them.
2. Sell Binance Coin (BNB) in Cryptocurrency Exchanges
- Step 1: Set up an exchange account
- Step 2: Transfer your Binance Coin (BNB) to your exchange wallet
- Step 3: Place a sell order
3. Sell Binance Coin (BNB) in P2P Trading
- Step 1: Go to the P2P Trading Page
- Step 2: Choose to Sell and Set Your Currencies
- Step 3: Find a Buyer
- Step 4: Choose How Much You Want to Sell
- Step 5: Send the Offer
- Step 6: Confirm the Release
4. Sell Binance Coin (BNB) in Binance Coin (BNB) ATMs
- Step 1: Choose withdraw cash
- Step 2: Choose Binance Coin (BNB) (these machines normally may support other cryptocurrencies)
- Step 3: Choose amount to withdraw
- Step 4: Send Binance Coin (BNB) to given address QR code
- Step 5: Receive cash immediately as Binance Coin (BNB) transaction is propagated on the network
How to Get Free Binance Coin (BNB)?
Most genuine websites that allow you to earn free Binance Coin (BNB) require you to spend money on other things like buying cloud computer mining power, connecting your CPU for mining, playing a game, or completing micro-tasks.
In other words, they offer free Binance Coin (BNB)s as an advertisement for their services. Otherwise, it takes time and effort to get free Binance Coin (BNB) given its current high value.
- Binance Coin (BNB) Faucet
- Binance Coin (BNB) PTC Sites
- Binance Coin (BNB) Airdrop
- Binance Coin (BNB) GameFi
- Binance Coin (BNB) Bounties
- Learning About Binance Coin (BNB)
- Shopping Reward
- Binance Coin (BNB) Interest
- Owning a Binance Coin (BNB) Faucet
- Write about Binance Coin (BNB)
- Binance Coin (BNB) Affiliate Program
- Free Binance Coin (BNB) Cloud Mining
What is a Binance Coin (BNB) Wallet?
1. Binance Coin (BNB) Wallets for Beginners
At first glance, Binance Chain Wallet looks similar to other extension-based wallets. There are, however, a few features that differentiate Binance Chain Wallet from the rest. If you already have a Binance account, you can easily link it to your wallet with Wallet Direct. This feature saves you from copying and pasting addresses when transferring digital assets between the two.
You can also use your Gmail account to sign up for the wallet through tKey. If you lose access to your wallet, you can recover it by accessing two out of the three following methods:
- Through your Gmail login
- By using your local device
- With your account password created during set-up
Keeping your private keys secure is a big responsibility, so using tKey can be helpful.
These two features make Binance Chain Wallet extremely easy for anyone not too familiar with crypto wallets to get started right away.
2. How To Make A Binance Coin (BNB) Paper Wallet?
Although there are ways to manually generate a private key, the vast majority of paper wallet creators use a private key generator. Once a private and public key have been created, you are able to print a paper wallet, which because it’s not online doubles as a cold storage wallet. This will include the public and private key you’ve generated, usually as both a string of characters and QR codes.
Anyone with a paper wallet’s public key can send crypto to it as often as they like. Using the corresponding private key, you can move the crypto balance of the paper wallet into a software wallet. This transfers the funds to a new private key on your software wallet.
3. Ways To Set Up a Binance Coin (BNB) Wallet
There are many Binance Coin (BNB) wallets out there, and all of them differ in their characteristics. Mobile software wallets are great for day-to-day use, while desktop software wallets bring about a great balance between convenience and security. Lightweight web wallets are the best choice for quick online transactions. Cold encrypted hardware wallets like Ledger or Trezor are the best for long-term storage of bitcoin. However, unlike other options, hardware wallets aren’t free and cost $50 or more.
Set up a Binance Coin (BNB) Software Wallet
- Bread (BRD) wallet
- Bitcoin wallet
Set up a Binance Coin (BNB) Web Wallet
Set up a Binance Coin (BNB) Hardware Wallet
How to Buy and Sell Binance Coin (BNB) In Different Area?
1. How to Buy and Sell Binance Coin (BNB) in India?
You can get Binance Coin (BNB) in India mainly through buying and mining. To buy it, you can use several online exchanges such as WazirX, Coinbase, BuyUcoin, and CoinDCX. Choosing the best online exchange is another task, but here are a few things you should keep in mind while buying the cryptocurrency in India.
- It’s best to go with an exchange that allows you to withdraw cryptocurrency in INR to your personal online wallet for safekeeping
- Make sure that the internet connection is secure. Also, don’t forget to use safe internet practices like two-factor authentication and unique and strong passwords.
- KYC aka Know Your Customer verification is a must, at least in India. For that, you can use a PAN card and valid address proof
- Now, add the bank account that is linked to your PAN card. Verification will take around 2-3 days
After the verification is complete, you can start trading Binance Coin (BNB) in India. Money from your bank accounts can be transferred using NEFT, RTGS, and debit and credit cards. Currently, the value of one Bitcoin is around 27 lakh; however, you don’t have to buy a whole coin to begin investing. You can buy Bitcoin in parts, i.e. small investments for as low as Rs 500. That way, you will own a small percentage of the cryptocurrency.
2. How to Buy and Sell Binance Coin (BNB) in Canada?
- Sign up and get KYC (Know-Your-Customer) verified on a Canadian crypto exchange like Bitbuy.
- Deposit CAD to the exchange directly from your bank account.
- Buy Binance Coin (BNB).
- Store Binance Coin (BNB) on your exchange account or transfer it to a wallet.
3. How To Buy and Sell Binance Coin (BNB) In The UK?
- Create a Coinbase account.
- Complete identity verification to access fiat payment options.
- Navigate to the Accounts and select the GBP wallet.
- Fund your account using Bank Transfer or other methods.
- Once the deposit is complete, go to the Buy/Sell page and select GBP to Binance Coin (BNB).
4. How To Buy Binance Coin (BNB) in the United States?
The best way to buy and sell Binance Coin (BNB) in the USA is through an exchange such as Coinbase, Kraken, Gemini, Coinmama, Binance, or Changelly. There is a plethora of options available, so it is best to look at each of the exchanges’ processes for deposits and withdrawals, fees, and transaction speeds to determine which is best for you.
Binance Coin (BNB) FAQs
1. Binance Coin (BNB) History
BNB is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. BNB is also the cryptocurrency coin that powers the BNB Chain ecosystem. As one of the world’s most popular utility tokens, BNB is useful to users in a wide range of applications and use cases.
BNB was launched through an Initial Coin Offering (or ICO) that took place from June 26th to July 3rd, 2017 – 11 days before the Binance Exchange opened for trading. The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. Although BNB was launched through an ICO, BNB does not provide users with a claim on Binance profits and does not represent an investment in Binance.
BNB has several applications and use cases: Reduced trading fees on the Binance exchange; Pay for trading fees on Binance DEX (Decentralized Exchange); Pay for transaction fees on the BNB Beacon Chain; Pay for transaction fees on the BNB Smart Chain; Pay for goods and services for both online and in-store purchases (e.g., using Binance Card or Binance Pay); Book hotels, flights, and more at Travala.com; Community utility token on the BNB Chain ecosystem (such as games and DApps); Participate in token sales hosted on the Binance Launchpad; Donate on Binance Charity; and Provide liquidity on Binance Liquid Swap.
2. Is BNB a good investment?
BNB is definitely a high-risk, high-reward investment. How much investors value it typically depends on how highly they view the Binance exchange and the BNB Chain.
Although BNB is already one of the largest cryptocurrencies, it’s easy to see how it could keep growing. The Binance exchange has captured a sizable portion of the crypto market, and the BNB Chain ecosystem is massive. Those are both competitive advantages for BNB.
The counterpoint is that there’s also the possibility of Binance and the BNB Chain losing some of their market share. There are more quality crypto exchanges than ever, and they may cut into Binance’s user base, especially if it faces more regulatory issues. BNB Chain faces a similar issue since there are quite a few smart contract blockchains it has to compete with.
If you’re a fan of Binance, then it’s probably worth investing in BNB. You’ll be able to stake it to earn passive income, get discounts on your trading fees, and have access to token sales through Binance Launch Pad.
3. What is Binance coin used for?
BNB is designed to serve as the lynchpin of the Binance cryptocurrency exchange. It is used to pay for goods and services, settle transaction fees on BNB Chain, and participate in exclusive token sales. BNB also has a starring role in the Binance Smart Chain (now BNB Chain), which is vying to become a rival to Ethereum, offering greater levels of scalability along with lower transaction fees.
4. Is Binance coin limited?
Binance executes coin burns every quarter, a key part of BNB’s tokenomics, intended to promote deflation and help sustain BNB’s market value. There is a current circulating supply of 163 million coins (99% of the maximum supply).