Binance Coin (BNB) — token of the Binance exchange (website: binance.com). Used to pay exchange fees and trade with 57 cryptocurrencies: BTC/BNB, USDT/BNB, LTC/BNB, XEM/BNB, etc. According to the Whitepaper, Binance Coin holders have a discount on exchange trading fees : 50% - in the first year; 25% - in the second; 12.5% - in the third; 6.75% - in the fourth year and without discount in the fifth year. Also, purchasing Binance Coin will allow you to participate in IEO, Launchpad and Launchpool, receive increased affiliate rewards, etc.
What is Binance Coin
BNB (Binance Coin) is a local cryptocurrency that was released by Binance in 2022. It was used as a utility token to allow users to receive discounts on trading fees by using the currency. However, due to the growing popularity of the site, attention to BNB also grew. As a result, this cryptocurrency has entered the global market and can compete in liquidity with such large cryptocurrencies as Bitcoin and Ethereum.
How does it work
BNB has several uses:
- Traders use the Binance exchange to receive a discount on commissions when concluding transactions. In the first year, the rate was 50%, from 2022 to 07/14/2022 - 25%, then it is planned to reduce it to 6.75%.
- The currency is used during the initial sale of tokens by the IEO exchange.
- BNB can be used to pay for certain categories of goods and services whose sellers accept this currency.
- Using Binance Coin tokens, the platform supports the operation of the Decentralized Exchange.
For example, with BNB you can book accommodation on Travala.com, play games, buy virtual land, purchase music copyrights, book hotels on Trip.io or air tickets on TravelbyBit, get a dedicated cloud or web server, create your own smart contracts, hiring people, subscribing to BitTorrent and using currency in many other areas.
Buy at a profit
History of appearance
Initially, the token was issued according to the ERC20 standard based on the Ethereum blockchain. However, as of April 23, 2022, Binance Coin moved to the main Binance Chain blockchain and became its native token.
The tokens were issued once, during which 200 million coins were released into circulation.
Today it is one of the globally significant currencies of the crypto market. BNB is now not only used to trade and reduce fees on the Binance exchange, but is also used to pay for goods and services for a growing number of organizations.
general information
| Name | Binance Coin |
| Ticker | BNB |
| Token type | BEP2 (Binance Chain Network), BEP20 (Binance Smart Chain Network), ERC20 (Ethereum Network) |
| Blockchain | Ethereum, Binance Chain, Binance Smart Chain |
| Launch year | 2017 |
| Reviewers | https://explorer.binance.org/, https://etherscan.io/; https://bscscan.com/; |
| In circulation as of 12/14/2021 | 168,137,035 BNB |
| Total emissions | 168,137,035 BNB |
| Capitalization as of December 14, 2021 | 87 113 791 383 $ |
| Official site | https://www.binance.com/ru |
| Whitepaper | https://whitepaper.io/document/10/binance-whitepaper |
| Social media | https://www.binance.com/ru/community, https://twitter.com/binance, https://vk.com/binance, https://www.youtube.com/binanceyoutube, https:// www.instagram.com/Binance/ |
| Exchanges | Binance, FTX and others |
BNB price
The value has changed over time and moved at approximately the same pace as Bitcoin (BTC, the most popular cryptocurrency). After its creation in 2022, the price increased significantly by the end of the year, however, like many other cryptocurrencies, it fell in price by more than 2 times in the winter of 2022. By the winter of 2022, the price decreased slightly, after which active growth began and by June of the same year the price was more than $36.
With the increasingly active popularization of cryptocurrencies, their value began to grow significantly. To date, the price of BNB has increased more than 10 times, and the market capitalization is $64.3 billion. The all-time high was recorded on May 10, 2021. On that day, BNB cost $686.31.
To control inflation, Binance conducts a quarterly BNB burn. To date, more than 31.8 million tokens have been destroyed as a result of this operation.
Exchange rate to dollar
The cryptocurrency rate depends on the situation in the fiat market.
Relative to the dollar, the value of BNB has risen over time. From July 2022 to August 2022, the price increased 20 times (from $19 to $417).
Currently, the BNB rate against the dollar is 1:415.53 and continues to rise (August 2021). The price is not constant and fluctuates daily within $2-3.
Exchange rate to ruble
In relation to the ruble, the cost of the BNB cryptocurrency is 30,450 rubles. It is also not stable and varies between 100 – 150 rubles per token.
It is impossible to say unambiguously whether the rate is in a state of increasing or decreasing, since the situation changes every day and throughout the month there can be both sharp jumps in growth and rapid drops in value. However, despite this, we can state with complete confidence that this cryptocurrency is one of the most expensive in this market.
Burning BNB
In order to constantly maintain the increase in the value of BNB due to a decrease in supply, as well as to control inflation, the owners of the Binance exchange carry out a scheduled quarterly burning of tokens.
The user independently decides how many tokens he is ready to destroy. However, the implementation of this procedure every quarter is mandatory. Its mechanism is as follows:
- The BNB holder calls the smart contract function, stating that they want to burn a certain amount of tokens.
- The contract confirms that the trader has a sufficient number of coins on his balance and the burning can take place.
- If the value of the tokens in the account is 0 or a negative number, the burn function is not available and will not be implemented.
- If the quantity is a positive number (greater than 0), the smart contract function will successfully burn the coins, after which the profile balance will be updated and the displayed number will become smaller.
All token burning operations are public and regularly recorded on the blockchain, allowing any user to check the transaction history at any time. This solution allows for transparency of activities and a guarantee of security.
The number of destroyed tokens is calculated based on the total quarterly trading volume on the Binance exchange.
Burning tokens is also beneficial to BNB owners themselves, since this increases their value. Therefore, all users approach this issue responsibly and carry out the process correctly. For example, over the 3 quarters of 2022, more than 6 million BNB were destroyed as a result of burning, of which a larger amount was burned in the 1st quarter (3.62 million). About 11 million tokens are burned per year.
This procedure will be carried out until the number of destroyed tokens reaches 100 million, which is equal to half of the total supply. Currently, the burn has removed 31,862,964 tokens, which is 31.8% of the final goal.
History of the emergence and creation of cryptocurrency
Binance is a Chinese company that was originally established in Shanghai in July 2022 and later moved to Malta. Its founder, Changpeng Zhao, is the former CTO of OKCoin, another well-known Chinese cryptocurrency exchange. Beiji Technology became the owner and operator of Binance.
Binance got its name from the combination of two English words binary and finance.
Between July 14 and July 27, 2022, Binance conducted an ICO, releasing its own BNB coin into circulation. During the sale, investors purchased 100 million BNB. Since then, the exchange administration has bought and destroyed about 5 million coins. In total, it is planned to “burn” all 100 million tokens initially sold. Up to 20% of the profits of the Binance exchange will be allocated for these purposes every quarter.
BNB is built on the ERC20 Ethereum standard. The terms of its issue provide for a limitation on the issue of coins. After 200 million tokens enter circulation, their creation will be suspended.
How to buy BNB on Binance
It is most profitable to buy BNB directly on the exchange, since the rate offered on Binance is the most attractive. This is due to the fact that BNB is a local currency that was originally released to popularize the site and provide privileges to coin holders.
When registering, do not forget to indicate your referral ID: AHJUCEJW . With it you will receive a discount of up to 40% on all transactions within the exchange for life.
Registration with benefits
You can purchase local tokens in several ways. To choose how to buy BNB on the Binance exchange, you need to consider each option.
Purchasing tokens is possible via bank transfer. In this case, stablecoins will be used, which are a group of cryptocurrencies that imitate the properties of fiat currency (traditional). The user transfers money to stablecoin providers, and then buys BNB tokens with them.
You can also purchase directly using a Visa or MasterCard debit or credit card.
You can also get BNB by converting the so-called “cryptocurrency dust” (non-withdrawable account balances on Binance). The main condition is that the price of the balances should not be higher than 0.001 Bitcoin.
However, the most profitable solution would be to buy BNB through a P2P exchange. This is a platform where people directly trade cryptocurrency with each other. The main advantage of this option is the absence of commission for purchasing tokens. Here you can buy and sell cryptocurrencies USDT, BTC, BUSD, BNB, ETH, DOGE and DAI.
To purchase BNB on a P2P exchange, you must:
- Open offers from makers on the Binance P2P platform.
- Each of them contains information about the trader himself (the number of orders and the percentage of execution), the price that is offered, the number of available tokens and the limit and payment option (by card transfer, WeChat, AliPay, depositing cash into the account, fiat balance in rubles and PayAll ).
- Choose the offer that suits you best. For ease of search and selection, filters by amount, fiat and payment method are available. The most common ones are transfer by card, WeChat and AliPay.
- In the line of the selected offer, click the green Buy button.
- BNB tokens have been purchased and are on the user's balance.
Using a P2P exchange has several significant advantages, including the absence of commissions for takers (buyers) and low interest rates for makers (cryptocurrency sellers), a wide variety of payment methods, which includes the most popular payment systems, as well as the ability for Maker to set the desired price , and for Taker to choose the most advantageous offer. In addition, a very important advantage is the protection of confidential data, since, unlike credit and bank transfers, information about trading participants is not collected here.
Marketing promotions backed by BNB
Binance often hosts various competitions and promotions, the prizes of which are the BNB token. Which you can exchange on the Binance exchange for fiat money or pay with it using the Binance Visa Card (like regular money).
Promotions are constantly changing and updated, so keep an eye on them on the main page of the Binance website.
Let's take a look at the current promotion: Raffle of 700,000 rubles: top up your balance with 5,000 rubles and win guaranteed prizes!
Dear Binance community members, Binance is running an exclusive promotion for its users from Russia. To participate in the promotion, you need to top up your balance or buy cryptocurrencies using fiat gateways on Binance. The prize fund of the promotion will be 700,000 RUB. A prize fund of 400,000 rubles will be distributed among 133 winners (3,000 rubles in BNB each).
As we can see, 133 winners receive 3,000 rubles in BNB.
Or, an example of a promotion: STAKE WARS . And the distribution of the prize fund in BNB.
Mining Binance Coin
Cryptocurrency mining involves extracting cryptocurrency from the digital space by generating special keys.
Blockchain technology is used to build a digital network. This is a huge database that does not have a specific base, data center or other place where all the information is stored. The level of performance of the block chain depends on the computing power of the computers that are connected to it.
Digital currency is stored on blockchains. It can only be accessed with a special digital key. Each key is available in a single copy and it is impossible to make another one. This guarantees the safety and security of the existing currency for its owner. It is thanks to this technology that fraud and theft of funds are impossible in the blockchain. All transactions and transactions with each coin can be tracked in public history and, if it is not authorized, other network participants will not confirm its implementation.
The essence of mining is to generate and create keys and digital signatures that provide access to blocks of digital currency. To carry out this operation, powerful equipment is required, which costs a lot of money.
As for Binance Coin, it is impossible to mine this cryptocurrency, since the entire amount of tokens was issued once. Thus, the cryptocurrency is not stored in network blocks, but is in circulation.
Pros and cons of BNB
Like any other cryptocurrency, BNB has its pros and cons.
- High level of liquidity due to support for pair trading with more than 400 coins
- Possibility of receiving 25% commission discounts when making transactions on Binance on the spot and margin market and 10% on futures trading by paying for it in BNB tokens
- Maintain high value and protect against inflation by regularly destroying a certain number of tokens
- A high level of reliability and reputation of the cryptocurrency, which allows it to be among the top 3 most expensive currencies in the crypto market
- Versatility and the ability to pay for a large number of goods and services, as well as receive loans
- Impossibility of mining due to the simultaneous release of all coins into circulation
- About 40% of the total supply of tokens released into circulation is in the hands of the founders, which provides them with the opportunity to manipulate the price in favor of a certain company and set the price at a price that is beneficial to them.
It is clearly seen that the BNB cryptocurrency has many more advantages, and in each of the listed disadvantages you can find its advantages. For example, the simultaneous release of all tokens eliminates the possibility of speculation and fraud.
The Binance exchange is one of the thoroughly established platforms in the crypto market, and the forecast for the local currency issued by the company is clearly positive and rosy. Owning Binance Coin tokens can be called a fairly promising, profitable and enterprising investment for any trader. However, it is important to remember that the acquisition and storage of any currency, incl. and digital, has its risks.
