Top Cryptocurrencies

Introduction to BNB coin, the official coin of Binance exchange

What is Binance coin?

BNB coin is a cryptocurrency that’s distributed by the Binance exchange platform. Binance coi like many others runs on the Ethereum blockchain and is represented by the symbol BNB.

Binance coin is mainly used by traders to make payments for fees charged when using the Binance exchange. Some of the typical fees charged include; trading fees, listing fees, and exchange fees among others. The coin can also be used to trade on other exchanges that support it but.

It is important for traders to note that when they use BNB coin for trades on the Binance exchange, they get a discounted fee of up to 25%.

Brief introduction to Binance exchange

Binance exchange, the issuer of BinanceNB coin was founded in the year 2017 by Changpeng Zhao and Roger Wang. Changpeng Zhao who is the Binance CEO has also worked with OKCoin and BijieTech.

The exchange had its original headquarters located in Shanghai, China, but after Chinese scrutiny on the exchange, it moved its headquarters to Japan but it was just a matter of time before they also received scrutiny from the Japanese government.

The exchange is now headquatered in Malta, coinsidered as one of the most safe countries to run a cryptocurrency company, Malta welcomed Binance with open arms. The exchange also has operations in Uganda.

Binance exchange has been performing quite well in the market with it being declared one of the largest cryptocurrency exchanges in terms of trading volume. The exchange has been able to mint a total of 200 million BNB coins that will be distributed into the market for potential investors.

BNB Coin price history

The year 2018 saw Bitcoin and many altcoins suffer greatly with Bitcoin dropping from over $19,000 to about $4,0000. This also saw other cryptocurrencies like Ethereum, Litecoin and many others close over 70% of their value.

However, this market decline had minimal impact on BNB coin when compared to other altcoins. This was attributed to its business model which encourages its investors to continually use the BNB coin for trading, by providing them with trading incentives.

The initial value of the BNB coin was $0.10 before rapidly fluctuating to $2.80 in 2017.

It is during the same year that the token attained its all-time high of $24. The price of BNB coin has since dropped to less than $10 before accumulating gains to its current price of about $17.90 as of writing time.

Regardless of the drop, those who invested in BNB coin when it was just launched still get to enjoy profits with the current market value. 

Binance Vs other coins?

Unlike other cryptocurrencies like Bitcoin, the functionality of BNB coin is not limited to peer to peer payments.

The currency also plays a significant role within the Binance ecosystem where it is used as a means to collect revenue for the Binance exchange platform.

BNB coin provides its users with special benefits when used on the Binance exchange platform.

Investors using BNB coin get to enjoy extra discount rates that are not offered on any other exchange platform. For new investors using BNB coin to make payments on the Binance platform, they receive a 50% discount during the first year.

binance coin discount rate

With each subsequent year, the discount rate drops and finally during the fourth year of trading, the investors do not get to receive any discounts.

How to buy BNB coin (Binance coin)?

It is important to draw your attention to the fact that unlike many other cryptocurrencies, investors and traders cannot obtain BNB coin through mining because all the tokens have already been pre-mined by Binance.

Traders and Investors can only invest and trade in BNB coin via Binance exhcnage or trade the BNB tokens on other exchange platforms such as Bancor network, Trade Satoshi, IDEX and Gate.io.

On Binance exchange, BNB coin is paired with over 70 cryptocurrencies for enhanced trading.

It is advisable to compare the prices BNB coin on different exchanges before trading it. By doing so, an traders can trade on the best rates in the market.

How to store BNB coin

Similar to other cryptocurrencies, investors can store their BNB coin with the cryptocurrency’s official wallet or several other wallets available in the market.

Trust wallet is the official Binance wallet acquired in July 2018 and is a mobile wallet for storing Ethereum-based tokens.

Other wallets where BNB coins can be stored in includ;

MyEtherWallet

This wallet is referred to as the ‘original’ Ethereum wallet but also support the storage of BNB coins. It allows traders and investors in BNB coin and other ERC-20 tokens to safely store their coins.

The team behind this wallet also provide support for hardware wallets such as Trezor. The wallet also allows investors to swap fiat currency with cryptocurrencies such as Ethereum and bitcoin.

Metamask

Metamask is an Ethereum wallet that allows investors to connect with the Ethereum blockchain.

Being an Ethereum wallet makes it viable for interacting with ERC-20 powered tokens such as BNB coin. This wallet has a simple UI, supports different languages and is also an HD wallet meaning that you don’t have to make backups of the security keys.

Ledger Nano S

This is a hardware wallet that’s used by most cryptocurrency investors. It is relatively expensive to acquire this wallet but if you are planning on investing in a huge amount of BNB coins, the Ledger Nano is one of the best wallets to go for as it provides high security.

Trezor

This is also a hardware wallet. There are two models of the Trezor wallet; the Trezor one and the Trezor Model T. Investors in BNB coin are at liberty of choosing which of the wallets he/she finds best.

Final words

Binance coin is the official coin used on the Binance exchange for the payment of trading fees. When the coin used, traders get a discount on the trading fee.

The coin has been seen by many as a smart business module by the exchange as it was one of the only cryptocurrencies that was not hit hard by the drop in prices.

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coinmag

Daniel is a determined and experienced writer with a keen eye on emerging technologies. Daniel aims at educating the crypto community on the developments within the space.

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