Binance Coin (BNB) is the native ERC-20 token of the Binance platform, built on the Ethereum blockchain. The maximum amount of BNB that Binance can mine is 200 million. Its primary goal is to power trading and exchange operations on its platform while providing a commodity and an affordable price to traders and cryptocurrency enthusiasts.
The token is currently trading at around $30 at the time of writing.
BNB was launched in July 2017 with an Initial Coin Offering (ICO) that made 20 million BNB tokens available to investors, 80 million to those who contributed to the project, and 100 million to several ICO participants. The proceeds from the BNB token sale were used for exchange development , branding, and marketing. In addition, part of the investment was dedicated to adding necessary updates to Binance.
Binance Coin: What is it?
Binance Coin was created to help the exchange and its operations establish a long-term ecosystem. The token can be used for a variety of purposes, including paying transaction fees , exchange fees, trading fees, and any other fees an individual user may incur on the crypto exchange. Binance initially offered a 50% discount on trading fees , which would be halved annually until the discount expires five years after BNB's launch.
The token can also be used to invest in Binance's Initial Exchange Offerings (IEOs), which can be found in the Launchpad section. The new tokens will then be listed on Binance's crypto exchange , which will provide a comprehensive marketplace for trading. Using a local currency reduces reliance on traditional currency, which can lead to delays and additional costs that ultimately place an additional financial burden on the user .
This trading platform provides users with a seamless trading experience while saving them money on transactions.
How does Binance Coin work, and what is the underlying technology?
The Binance Chain is built on the Ethereum blockchain and adheres to the ERC20 token standards , allowing it to store and preserve value. However, you cannot mine the tokens since they were pre-mined and distributed during the ICO. The tokens in circulation are used for low-cost transactions on the Binance exchange .
In the first year, the discount rate was 50%, but it is expected to decrease by 50% each year.
After the fifth year, there will be no further fee reduction, which should have an impact on the token's value. Binance has been buying back and destroying tokens to counteract the depreciation in value. The exchange plans to eliminate half of the tokens currently in circulation.
What are the advantages of Binance coin?
There are many advantages of Binance coin:
Fast transactions
If you use Binance Coin to trade in the cryptocurrency market , you'll have access to the platform's own engine, which can process up to 1.4 million orders per second. With Binance Coin, you'll always be able to find the right deal , making trading even faster and more secure.
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Securing and leveraging the cryptocurrency market
Binance already has millions of users and crypto traders who rely on the platform and trust the security and protection features of the crypto exchange to participate in the cryptocurrency market . To protect your funds, the exchange uses a system with multiple groups and levels, as well as a Secure User Asset Fund (SAFU).
A wide range of cryptocurrencies are available
With Binance Coin, you can trade over 150 crypto derivatives on the exchange while relying on a fast, secure, and affordable trading system . Additionally, Binance Coin offers its own trading pairs to meet your specific needs. You don't need to look elsewhere.
Market discount
Additionally, you can save 50% on trading fees by using Binance Coin. If you buy $10,000 worth of cryptocurrency, you'll have to pay $10 using traditional payment methods. Instead, if you use Binance Coin, your trading fees will be cut in half, meaning you'll only have to pay $5.
Set aside some Binance tokens
In addition to a positive experience within the Binance ecosystem and lower transaction fees, you can use Binance Coin in many other ways. Many service providers , especially those in the travel and hospitality industries, accept the token. Using Binance Coin, it's possible to buy a meal or a vacation.
Participation in the Binance ICO/IEO
Additionally, Launchpad is hosting several new token sales where you can use your Binance Coins to purchase a new cryptocurrency. These new digital currencies can now be traded on the Binance crypto exchange , providing a complete and seamless trading experience.
Want to learn more about Binance?
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