Binance Coin is a token of the largest cryptocurrency exchange Binance, created in the ERC20 format.
Cryptocurrency pair BNB USD quote rate Binance Coin to the US dollar on the foreign exchange market, such as forex and futures, cryptocurrency, stock, options, currency exchanges of the world, determining how much BNB is worth in US dollars. For example, if the rate on the chart is 28.89, then BNB = $28.89.
Selecting the best indicators for forecasting the BNB USD rate
An important factor influencing the Binance Coin rate is the accumulation of real orders from market makers. Below is a chart from the closed forum of the Masterforex-V Academy with the levels that are given daily for cryptocurrencies, currency pairs and futures.
In addition, it is recommended to install FREE proprietary indicators AO_ZOTIK and WPR_VSMARK. Example:
Already this minimal set of tools gives an understanding of the logic of Binance Coin movements; the remaining more than 30 tools are given during training at the MasterForex-V Academy.
In which countries is the use of Binance Coin prohibited?
Despite significant differences between countries around the world, financial regulators usually set themselves the same goals. They strive, through the use of regulatory mechanisms, to make the sphere of fiat money circulation (in electronic and material form) as safe as possible, as well as to protect the population from all kinds of scammers and dubious projects. To achieve these goals, financial authorities use a more or less standard set of methods, including the introduction of bans.
Regulators in many countries perceive cryptocurrencies in general and Binance Coin in particular with understandable caution . All virtual means of payment are monetary units, the value of which has no real equivalent. Some experts call Binance Coin’s attachment to a specific cryptocurrency exchange an additional risk factor. The legislation of a number of these states partially or completely prohibits citizens and financial organizations from using digital money in their activities:
- in Muslim countries (Nepal, Algeria, Morocco and Iran) virtual currencies are completely prohibited . Ordinary residents of these countries and organizations of various types of activities do not have the right to use cryptocurrency means of payment for settlements and exchange transactions. The use of money that is clearly speculative in nature is contrary to religious canons;
- Residents of Lebanon, Russia, Iceland, India, Indonesia and Bangladesh can use cryptocurrencies only in certain cases determined by law. The leadership of these countries believes that to resolve most issues that arise in the lives of people and the activities of organizations, national currency units, which are issued by the state, are quite sufficient;
- The legislation of China and Vietnam establishes a distinction between citizens and organizations . Only residents of these countries have the right to use cryptocurrency monetary units for payment transactions and other purposes. Financial institutions (trust management companies, banks, investment funds, insurance organizations, hedge funds, and other types of companies) are prohibited from using digital currency or exchanging it for fiat money.
Details are provided in the publication In which countries are cryptocurrencies prohibited?
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.
Which governments allow the use of Binance Coin?
Officials from a number of other countries, when determining their position on the issue of virtual means of payment, decided to abandon the practice of applying bans . Financial regulators of these states believe that the development of clear rules of circulation and a mechanism for managing the cryptocurrency segment of the global market is a more progressive approach that will bring more benefits to the population and the country as a whole.
Legislators and financial authorities in many economically developed countries and popular offshore jurisdictions have formed regulatory mechanisms to give citizens and entrepreneurs the opportunity to earn additional income from the use of cryptocurrencies, including Binance Coin. Practice shows that the development of appropriate legislation brings more benefits than the introduction of bans.
Digital means of payment have been legalized and are quite actively used in many countries. A prerequisite for this is obtaining a license from the relevant regulator. The use of cryptographic money is allowed in the following countries: USA (SEC and CFTC), Germany (BaFin), Israel (ISA), Estonia (EFSA), Hong Kong (SFC), Switzerland (FINMA), Belize (IFSC), Malta (FSC Mauritius) , Spain (CNMV), Singapore (MAS), Australia (ASIC), New Zealand (FSCL), Mauritius (FSC), Canada (IIROC), Botswana (Botswana IFSC), South Africa (FSB) and several other jurisdictions.
More detailed information about the rules for using virtual means of payment in these countries can be found in the Masterforex-V wiki – In which countries are cryptocurrencies allowed?
Which asset is more promising for investment: ETH or BNB?
Which altcoin should be considered as the best investment option for ETH or BNB? Of course, only time can definitely answer this question, but it is already obvious that the degree of practical application of BNB is growing at a much faster rate than ETH, and the speed and most importantly the cost of transactions in the Binance Chain blockchain cannot be compared with Ether.
In addition, the Binance ecosystem has a BNB token burn that takes place every three months, with the volume of tokens burned depending on the trading volume on the exchange. Regular burning of some tokens certainly has a positive effect on the price of the token, especially considering that the maximum emission of BNB is strictly limited. This distinguishes BNB from ETH, which does not have a token burning mechanism and the emission limit is not set, i.e. in fact, the total number of ETH tokens is unlimited.
As a result, the question arises, which cryptocurrency has the greatest potential for growth? If Binance maintains the given pace of implementation and popularization of its services, then BNB will clearly emerge as the winner of this duel. But of course, ETH should not be discounted, especially after the full transition of the Ethereum blockchain to version 2.0. And Ethereum is still the largest platform for decentralized finance, with 9.2 million ETH locked in the DeFi ecosystem, which is about 8.2% of the total altcoin supply.
Like the entire cryptocurrency market, ETH and BNB are extremely dependent on the general trend set by Bitcoin, so their movement cannot be considered in isolation from the general situation on the market.
Recently, the head of the Binance crypto exchange, Changpeng Zhao, spoke quite harshly about Ethereum on Twitter. He wrote that he likes Ethereum, but he no longer uses it. And also that everyone who continues to work with this blockchain will very soon become poor. This was a direct reference to extremely high transaction fees.
Here are some statistics: in February, Ethereum miners earned $1.36 billion, exactly the same as Bitcoin miners. Moreover, half of this money came from commissions, the average value today is $13, and at the end of February they immediately grew to $38:
It turns out that Changpeng Zhao is right and it’s time to look for a new cryptocurrency to take second place after Bitcoin? But in fact, things are not so bad for Ethereum; do not forget about such important factors as the accumulation of Ethereum by the Grayscale crypto fund, this is their second largest trust after Bitcoin. And the continuation of the rapid development of the ecosystem of DeFi projects on the Ethereum blockchain.
Although here it is worth making a reservation that now many DeFi projects already prefer to launch not on Ethereum, but on faster blockchains with cheap commissions. This is where the potential of Binance Smart Chain can be fully revealed, which will certainly cause a new surge in the growth of BNB quotes.
Advantages and disadvantages of Binance Coin cryptocurrency
In 2022, the popular exchange Binance released its own token. The BNB coin was created on the Ethereum blockchain with support for the ERC20 standard . The supply volume of BNB is 197,192,382 coins. At the time of the launch of the project, representatives of the Binance exchange stated that they planned to use 20 percent of the profits received quarterly for the redemption and subsequent burning of coins until up to half of the total emission volume is destroyed. The remaining coins will remain in circulation.
Virtual payment experts call the BNB token “the gas that powers the exchange ecosystem.” In the first year of trading, by using these tokens, users had the opportunity to reduce the commission by half . The Binance exchange allowed clients to make any payments on the platform using BNB and receive a discount on the commission. Every year the discount amount decreases.
Why is the potential value of BNB higher than its current price?
Many are accustomed to perceiving the BNB token as other tokens of crypto exchanges, the only use of which is to receive a discount on transactions. This was essentially the case at first, but in recent years Binance has created an entire ecosystem, as a result of which BNB has evolved into a utility token with many use cases.
“BNB has long grown from the status of a “discount coupon” of a centralized exchange and has become a full-fledged native coin on two blockchains. Its use cases have expanded to hundreds of applications across numerous platforms and projects in the crypto ecosystem. This determines its rising price ,” Binance CEO Changpeng Zhao.
Thus, the BNB token has significantly expanded its potential, since it began to perform a much larger number of functions, since it is involved and in demand within the entire Binance ecosystem. In addition to the crypto exchange itself, the Binance ecosystem includes the Binance Smart Chain (BSC) blockchain, DeFi and CeFi services, the Binance Pay payment system, Binance Visa Card crypto payment cards and other projects that use the BNB token.
This obviously affected the price of the token, which is growing much faster than the rest of the crypto market:
It is also worth noting that there is a large and diverse community within the Binance ecosystem that continues to innovate in finding strong use cases for BNB.
Why Binance Coin can hardly be called a promising market instrument
At the launch stage of the project, Binance representatives announced the creation of a decentralized trading platform where BNB will be used as one of the underlying assets. In April 2022, the Binance Chain network was launched, to which all BNB tokens were moved.
The developers identified the main goal of the project as attracting investments for the development of a cryptocurrency exchange . The goal was achieved - at the initial stage, the authors attracted investments in the amount of $15 million. Most of their funds were invested by investors from China, who were interested in the opportunity to take part in the development of a working business with popular products.
About half of the raised capital was spent on advertising and brand promotion, 35 percent of investments were used to develop and modernize the platform, as well as improve security. The remaining 15 percent is allocated to the reserve fund. The measures taken allowed the Binance exchange to take first position in terms of trading volume using digital money.
Statistics show that in the fall of 2022, the number of trading platform clients increased by a million people weekly . At the beginning of 2022, the exchange even stopped registering new traders for some time. The active development of the exchange affected the value of Binance Coin. During the ICO, tokens were sold at a price of $0.1; at the beginning of April 2022, the price was $12. After information appeared about the launch of its own blockchain network, the cost of the coin rose to $22.
It should be noted that BNB tokens can only be purchased on the Binance exchange itself and in several exchange offices . To find the best offers from cryptocurrency exchangers, experts advise using special monitoring services. One of such resources is the website www.bestchange.ru, which contains information on current exchange rates and data on how to purchase Binance Coin using various payment methods - Visa/MasterCard, QIWI, Yandex.Money, WMZ, Skrill USD, etc. .d
The Binance marketplace offers users BNB pairs with 57 different virtual means of payment . Those wishing to purchase coins can choose one of the available tools and buy Binance Coin, for example, for litecoins using the BNB/LTC pair. Statistics show that about 80 percent of trading volume comes from BNB/BTC and BNB/USDT pairs. Only cryptocurrencies are used as a means of payment for purchases, since the service does not work with fiat money.
It is also noteworthy that the Binance Coin concept does not include the possibility of mining . Therefore, the best option for purchasing this type of token is to make a purchase on the exchange with the aim of subsequently using them to pay the commission fee for the trading platform service at a discount.
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The material was prepared by the Masterforex-V wiki and our Masterforex-V school and professional training courses.
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.
