Binance Coin BNB - cryptocurrency of the Binance exchange, review and prospects in 2022

Binance Coin (BNB) is a digital asset of the Binance exchange, which performs a wide range of functions within the platform, and also serves as a trading and investment asset, being the third largest cryptocurrency by capitalization. Accordingly, the question arises of where you can most safely and conveniently store BNB. The editors of Profinvestment.com offer an overview of various wallets for Binance Coin, each of which has its own characteristics.

Binance Coin is a multi-purpose cryptocurrency

Initially, the Binance Coin token was conceived as a highly specialized cryptocurrency to solve financial issues of paying commissions directly on Binance. When creating the project, the developers set themselves 2 fundamental tasks:

• Back up assets with your own BNB cryptocurrency and increase the number and volume of trading;
• In the future, develop a unique blockchain asset exchange based on the exchange and add the coin to other markets for trading, both with crypto and fiat.

Today, the coin can be used to carry out settlement transactions, and over time it is promised that super functions and privileges will become available to BNB owners. I think that among such bonus offers, the administration will offer preferential commission rates, and perhaps even conditions for depositing and withdrawing funds.

Binance Coin is often called the fuel of the exchange of the same name, which has good forecasts to expand its basic functionality by the end of 2022.

conclusions

There are various models of wallets for Binance Coin on the market, among which every user can find a suitable option.

An effective solution can be a combination of different approaches to storing cryptocurrencies. For example, BNB for everyday spending can be kept in a convenient mobile or browser wallet. Hardware versions are suitable for long-term storage.

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BNB History

The idea to create a coin appeared at the end of last year, and today, in fact, it is not so much a cryptocurrency as a BNB token, which allows you to get a further discount on paying commissions only within the site, but even that is good.

During the creation of Binance Coin, the main emphasis was placed directly on one of the most popular ERC20 algorithms, and according to insider information, for a long time the developers could not come to a common denominator regarding whether to provide for independent or cloud mining or not. The history of the BNB token of the Binance exchange has already experienced several phenomenal leaps in value, and I would like to believe that this will not be the last time.

ICO

The ISO implementation for the BNB token has been quite successful. Last summer, they managed to attract about $15 million, and the token itself added to the popularity of the Hong Kong Binance platform. In addition to the fact that the token became, in a way, a good PR move, it became a way to save costs for professional and novice traders, who came to the site.

If traditionally the payment for a transaction on Binance is 0.1% of the amount, then if you pay with the branded cryptocurrency binance coin it will cost exactly half as much.

But what surprised not only me, but also many partners, was that binance coin, in fact, with each new year on the exchange, will only offer a reduction in the discount on the purchase of BNB according to this scenario:

• 1 year - 50%;
• 2 year - 25%;
• 3 year - 12.5%;
• Year 4 6.75% and until the indicator approaches zero.

A competent emphasis on human psychology: what will soon disappear must be bought today.

How to create a wallet on Binance

By registering on the Binance platform, the user automatically becomes the owner of several cryptocurrency wallets combined into one. To become a full user of the trading platform, you must:

1. Visit the website binance.com and in the upper right corner of the main page click on the “Registration” button.

1. Next, the registration form becomes available for filling out. To begin, the user selects the registration method by “Email” or “mobile phone”. You will also need to come up with a password, agree to the terms of use of the exchange and click on the “Register” button.

1. After registration, an authentication form appears. This is a simple picture with a slider. It needs to be moved until the puzzle piece matches. Thus, the platform verifies that a real person, and not a robot, has registered.

1. After registration, you must confirm your email address or specified phone number. It all depends on the choice of registration method at the very beginning. An email will be sent to you with a confirmation link. An SMS with a 6-digit code is sent to your phone.

This completes the simple registration. Now the user has access to a personal account with all the settings. But remember that Binance is a trading platform, so the main requirement is to verify the user's identity.

Account verification is required for daily withdrawals of more than 100 BTC. For verification you need:

1. Log in to the User Center. This page is available in your personal menu.

1. Set up 3 account protection options. These settings will require confirmation of your mobile number, linking your Google account and API. The last setting will generate a code that will be required to confirm the withdrawal operation.

1. The last point of verification is sending scanned copies of documents. The user will need to fill out a simple application form, send a scan of their passport, and a photo with the passport in their hands. Verification is carried out only once. It takes from 1 to 3 days.

Before creating a wallet on Binance, remember that the scanned copies of documents you prepare must be of high quality. A photo with a passport in hand should be easy to view and not dark or blurry. The face and passport information must be clearly visible and photographed at close range.

After verification, the full functionality of the cryptocurrency exchange becomes available to the user.

Capitalization of Binance Coin

Binance is often called the “exchange unicorn”, which managed to turn ISO into a real successful situation and continues to develop it. If we talk about the capitalization of her personal BNB token, then literally in 3 months after the end of the ISO it increased from 15 million to $176 million, which is a very solid indicator.

Plus, this indicator may be affected by the announced Margin Lending Fees - a commission on margin loans, and, as a result, margin trading itself. Although today in the crypto world there are still discussions about what size of the token’s capitalization is realistic (and whether it is connected with fake transactions on the home platform to heat up the situation) and whether there is a future for the cardano cryptocurrency. As of this writing, the total market cap is $138 million.

BNB to dollar exchange rate

As soon as the ISO was completed, Binance Coin could be purchased for 10 cents, and literally in September the price began to rise. For example, from the end of September to the end of November, the rate increased from 0.9 to 2.5 dollars per BNB coin. The reason for this is not only the entry of cryptocurrency into the arena and an active advertising campaign to support it, but also the fact that the number of users of the exchange itself has rapidly increased.

Last fall, the Binance exchange was among the top 5 cryptocurrency trading platforms with the highest daily turnover.

The most significant month was January for BNB with a rate of $24 per token, which can be explained by the following factors:

• “Golden period” for all tokens;
• Rapid increase in capitalization.

The growing popularity of the exchange itself is also associated with the growing popularity of the crypto industry, and in addition, the popularity of sites for making money on the Internet is rapidly increasing, because the office scenario is gradually becoming a thing of the past.

• Bans on the activities of Chinese exchanges and expansion of opportunities for Hong Kong ones.

At the time of writing, you can buy Binance Coin for an average of $12.01 - $12.48

Withdrawing funds from a cryptocurrency exchange

Unlike similar trading platforms, withdrawal of money from your Binance account is available to any wallets and cards specified on the site. You can withdraw to MasterCard and Visa, MIR, Payeer, Advanced Cash, Yu.Money (formerly Yandex.Money). You simply select a recipient based on the fees of each available emitter. When withdrawing to a bank card, you will need to enter the cardholder’s data, mobile number, email, and finally confirm the operation with the code from the SMS message. Funds from the cryptocurrency exchange are withdrawn instantly, in exceptional cases from 1 to 3 days, as specified in the rules of the exchange.

The main nuance that must be taken into account when creating a withdrawal request is the size of the commission. It can range from 0.1 to 3% of the amount. Each issuer sets its own commission percentage threshold. The Binance website has direct information about commissions. The platform itself does not charge interest for the operation.

Where to buy Binance Coin

I think I won’t surprise you if I say that BNB can be bought on Binance itself and without any difficulties. On its native platform, the token is traded in pairs with more than 50 popular crypto coins, including the EOS cryptocurrency. For comparison, there were only 5 of them at the time they were added to this platform.

You can also buy the BNB token on EtherDelta, which specializes in trading tokens issued on the Ethereum standard. A distinctive feature of working with the site is that you do not need to register, and the service provided is very convenient and understandable. Interestingly, anyone can add currency for transactions. And if you have already decided that the token is interesting for you in the future or today you want to master cryptocurrency trading, the finished material on my blog is full of valuable and practical recommendations.

Exchange Binance

Over time, the strict role of the BNB fee payment medium should change and transform into:

1. Futures trading;
2. Adding leverage trading;
3. Launch of a service that allows you to instantly exchange assets.

This suggests that the binance exchange has solid plans for development, and the Binance Coin roadmap is spelled out quite competently and taking into account all strategic parameters, which will allow the exchange to become a full-fledged decentralized blockchain platform. Today, the Binance exchange official website continues to collect positive reviews about the ease of operation, registration and daily trading of cryptocurrencies, including the branded Binance Coin.

Exchange EtherDelta

The very name of the site already suggests that it works with smart contracts and coins issued on the Ethereum standard. Founded last year by Zach Coburn, the exchange has gained significant popularity due to the fact that its decentralized scheme protects the platform from hacking. So far, the Russian language has not been added to the exchange website, but with the help of automatic browser translation you can trade quite well. The uniqueness is that you do not have to wait to trade until the coins appear on the exchange listing. Despite the fact that it offers many coins for work, the stellar cryptocurrency has not been added, but you can buy it on Binance.

Refill

After completing the registration and account verification procedures, the user will be able to top up his account balance.

To do this, you need to go to the “Asset” tab and select the “replenishment” function. A window will open with available options for depositing money.

Top up QIWI

Having chosen to top up your account using a QIWI wallet, you need to:

1. In the funds transfer form, enter an amount of at least 5,000 rubles and the email address specified during registration.
2. Click on the “Continue” button.
3. Please enter your phone number in the following form.
4. Next, enter the password for your current wallet.
5. In the last form you need to enter the code from the SMS sent to your mobile phone.
6. Confirm the action to withdraw money.
7. The balance will be transferred to the spot wallet.

Next, the user will have access to a choice of wallets for transferring funds from the main balance.

Top up Advanced Cash

Topping up your balance via Advanced Cash is available by direct transfer to a Bitcoin wallet.

To do this you need to do the following:

1. Follow the link “Replenishment and transfer of funds”.
2. Select the “To electronic currency” function.
3. Select from the list the currency into which the funds will be converted.
4. Next, you need to copy the address of the selected wallet.
5. This address must be inserted into the form under the Advanced Cash tab.
6. Confirm the action on the site.

Received funds can be re-converted into any available currency assets. The Advanced Cash system allows you to replenish funds in RUR, EUR and USD. When choosing a cryptocurrency wallet, you need to take into account the current price of the asset.

Replenishment by bank card

The Binance cryptocurrency exchange provides the opportunity to replenish your account with MasterCard and Visa payment cards. It is available in rubles, dollars and euros.

To deposit funds you must:

1. Enter the “Bank Card” replenishment tab, then select a card and select a payment currency. It is better to choose the currency in which your bank account is opened - otherwise, when automatically converting funds, you will spend additional money.
2. Enter the amount to top up.
3. In the next tab you need to enter your credit or debit card details and the recipient's address.
4. After the user clicks on the “Continue” button, the system will automatically redirect to the payment page, where you need to confirm the operation by entering the code from SMS.
5. After receiving funds, they can be transferred to any of the available currencies.

Also, using this method, you can directly receive the necessary cryptocurrency at the current rate. To do this, you just need to select an asset and click on the “Buy” button. Afterwards, a purchase form will become available, where you will need to enter the amount, select a card and payment currency. All subsequent actions are similar to direct replenishment of the account with a plastic card.

Where to store Binance Coin

The Binance coin developers have not yet resolved the issue of creating a branded wallet for cryptocurrency, but since the ERC20 standard is quite popular, we can use the following as the main wallets:

• MyEtherWallet;
• Mist;
• MetaMask;
• Mobile ImToken;
• Hardware wallets.

Please note: for most wallets, BNB is not added automatically, so before working with it (sending funds to the exchange or withdrawing), the token is added manually./div>

This needs to be done, because when studying investor reviews after withdrawing funds from sites, you may encounter indignation that the money was lost. In fact, they have arrived, but the user simply does not see them automatically.

ERC20 standard

This is not to say that this is surprising, but the BNB developers have relied on working with the popular Ethereum algorithm, which will allow the network to be expanded in the future and work with smart contracts. As in the case of Bitcoin Binance, the coin has a strict emission, which is quite important for success when introducing a currency to the market, the size of which is 200 million.

And the officials themselves, representing the Hong Kong company, have already clarified that although the standard provides for an increase in emission, this will never happen with the BNB coin. On the contrary, over time, most of the binance coin will be destroyed, but smoothly and gradually. According to the developers, 20% of the profits are regularly spent to systematically buy back 50% of all tokens that are already stored in the hands of investors, and this will continue until the total emission in circulation reaches 100 million. So such investments on the Internet today are more popular than ever, while the coin is just being promoted and offers a good rate for work.

How to choose a wallet to store BNB

The optimal wallet option for any cryptocurrency is considered to be non-custodial - one that does not store private keys. This can be a cold hardware wallet, such as Ledger, or a software wallet, which is more convenient but less secure. The software service must support account protection functions: multi-signature, two-factor authentication, biometric login (for mobile services).

If you do not store more than the amount, then it is quite optimal to choose a convenient and time-tested software wallet. But to maintain long-term large investments, professionals definitely choose hardware options.

Mining BNB

If cryptocurrency exchanges launch their own coin, they usually do not provide for its mining. It is quite logical that you can have absolute control over emissions and distribute them at your discretion. The advantage of not mining binance coin is that the platform thus ensures constant internal movement of the platform token, on the one hand allowing its owners to increase capital, and on the other, allowing traders to enjoy discounts on payments.

The binance coin token has good prospects not only from a technical but also a financial point of view, and the fact that the developers openly specified that they would eventually buy out half of the issue is an extra plus in warming up the rate. Perhaps, over time, BNB will compete with the vechain cryptocurrency, which was conceived as an internal one for the logistics platform, and gradually entered the global market.

Including due to the fact that the Wichain team has established cooperation with commercial giants. Traditionally, I wish you that the purchased tokens will bring profit and simplify your life, in particular, by providing a discount on the payment of exchange commissions. Perhaps, using such positive experience, bitrix will become the next on the list of exchanges with its own cryptocurrency.

Author Ganesa K.

A professional investor with 5 years of experience working with various financial instruments, runs his own blog and advises investors. Own effective methods and information support for investments.

How is BNB involved in the Binance Chain and Binance Smart Chain blockchains?

BNB is the digital “fuel” for BSC, a blockchain that was launched specifically for comfortable interaction with decentralized applications. Features of the chain are the presence of all the necessary options for creating and working with dApps, compatibility with Ethereum, high throughput (a block is created every five seconds).

Binance Chain network was launched in 2022 to issue and exchange tokens. The digital fuel of the blockchain is the BNB cryptocurrency. Binance Chain has high throughput but is not suitable for dApps development. Therefore, Binance specialists launched a new network, Binance Smart Chain . It runs parallel to the main blockchain, is completely autonomous and is compatible with the Ethereum virtual machine.

Unlike the core network, Binance Smart Chain provides a complete production environment for issuing decentralized applications while maintaining high throughput and reliability. The time to create a block in the new network is approximately 5 seconds , which ensures efficient trading for users.

Programmers can migrate their already released applications from the Ethereum blockchain. Even if all projects do this at the same time, they will not be able to significantly slow down the ecosystem, which is very important when performing financial transactions. Thanks to cross-chain compatibility, the new network allows the transfer of assets between chains. To pay fees when running smart contracts and dApps, the internal Smart Chain token BNB .

BNB runs on BSC the same way ETH runs on Ethereum, so it will remain the “native token” of both BSC and BC. Clients can use internal BNB for:

• Fees for deploying smart contracts on BSC;
• Bets on selected validators;
• Perform cross-chain operations.

When a new branch was launched, a certain amount of BNB was burned on BC and then minted on BSC. This is how a start-up fund to support the network was created. The assets are used to pay transaction fees to redistribute BNB between the BC and BSC networks using a cross-chain mechanism.

BSC the Proof of Staked Authority consensus algorithm . Validators stake BNB tokens to participate in block creation. The protocol does not provide for block subsidization of BNB, that is, when creating new blocks, trusted nodes do not receive a penny, content only with transaction processing fees. To prevent inflation, the Binance team regularly buys back and burns coins.

BSC can work with the Ethereum blockchain and ERC 20 tokens, which are designated BEP2E . BSC and BC work synchronously so that one token can be used in both formats. On Binance Chain, there are “pietokens” backed by BTC, LTC, ETH, EOS or Ripple crypto assets. The extensive functionality of Binance Smart Chain allows you not only to exchange crypto coins, but also to invest them in defi projects or use them in voting.

Repayment of commission at a discount

Like most other crypto exchanges, Binance charges a certain commission for using its services, albeit a very small one - only 0.1%.

However, those who have the BNB token in their account can pay with it for transactions, receiving a 50% discount. This feature is very beneficial for traders who make many transactions with cryptocurrency every day. And in order for them to get the maximum benefit from each purchase/sale of crypto coins, they can use the BNB token and pay 2 times less for the commission. This is very easy to do. You just need to buy Binance coin on this exchange, and then go to the main page of your personal account and next to the inscription “Pay commissions using BNB” switch the button to the “ON” position.

How to enable discount when owning Binance Coin

After this, you will receive a 50% discount on the exchange commission. This will give maximum benefit from trading transactions on the exchange.

Binance Trading Fees

First of all, do you know how much trading commissions you are currently paying?

Binance is one of the few exchanges where users can earn very low trading fees. They follow a maker/taker model, and the commission rate is divided into ten levels according to your 30-day trading volume and/or BNB balance.

Therefore, the commission amount depends on your VIP level.

The commission rate shown below is for spot trading.

Apart from spot trading, Binance also offers USDT Margined Futures and Coin Margined Futures where you can trade perpetually and quarterly with up to 125x leverage.

Again, trading fees on this platform are based on your 30-day trading volume and/or BNB balance, as you can see in the table below.

By default, your VIP level will be 0, and depending on your 30-day trading volume and BNB balance, your VIP level will increase.

You can check trading commission rates for all platforms here: https://www.binance.com/en/fee/trading

Comparison Table: BNB vs ETH

Launchpad section.

In this section, each user of the Binance exchange can exchange their Binance coins for tokens of various Blockchain ICO projects.

Launchpad on Binance

The topic of investing in ICOs is one of the hottest and most popular among the cryptocurrency community. An investor, having invested in the right project, can receive very large profits and increase his capital hundreds of times. However, there is one problem. To do this, you need to find a really high-quality ICO. Due to such demand, a lot of scammers have appeared who create failed projects in advance. And the number of such ICOs is gradually approaching 100%. The risk of losing your funds will also be great. This is why it is necessary to carefully select all ICOs before investing your hard-earned money in them, otherwise you may be left with nothing.

Read the full Binance review

Go to Binance website

However, the Binance exchange easily solves this problem with global fraud. The team of this trading platform very carefully selects all ICO projects before announcing them in a special section of LaunchPad. And you can be 100% sure that these are not scammers, but truly promising startups. The selection criteria are very strict, and the selection is carried out by highly qualified analysts. The exchange cannot afford to make a mistake and set up its investors who trust Binance. Reputation in this case is priceless.

Almost every project in this section will provide investors with the opportunity to earn good money, increasing their wealth at least several times. Evidence of this is the fact that all ICOs in this section are closed within seconds after the start of trading . And in order to get your piece of shares in the form of tokens of a particular company, you will have to try hard, since the competition here is very strong. And not everyone will be able to participate in even one ICO project.