Binance Coin (BNB) is a utility cryptocurrency that powers the Binance Ecosystem and is the native currency of Binance Chain.
Binance is the biggest cryptocurrency exchange in the world, with over $7 billion trading volume daily. BNB as the native currency of the ecosystem benefits from network effects and the growth of Binance.
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Quick facts about Binance Coin – BNB
- Name: Binance Coin
- Ticker/Symbol: BNB
- Max supply: 200,000,00 BNB* (coin burns)
- Blockchain: Binance Chain (native)
- Established: July 2017
Origins of Binance Coin – BNB
In 2017, Binance, a new cryptocurrency exchange at that time, launched an Initial Coin Offering (ICO) for Binance Coin (BNB). The ICO happened from June 26th to July 3rd, before the Binance exchange was launched.
Initially, Binance Coin (BNB) was built on the Ethereum blockchain as an ERC20 token. Binance Coin later moved to a blockchain of its own – Binance Chain. Coins on the old chain were swapped for the new chain at a ratio of 1:1. During the ICO, 100 million BNBs were offered out of the total supply of 200 million BNB.
What is the utility of Binance Coin – BNB?
Binance Coin has several use cases as the main currency of the Binance Ecosystem and Binance Chain. Users of the Binance exchange can use BNB to pay for trading fees. The difference between this and the regular method is that using BNB gives the trader a 25% discount on fees.
What’s more, BNB can be used on Binance exchange as collateral for futures trading and decentralized finance (DeFi) applications.
Beyond the exchange and Binance Chain, BNB has seen massive adoption by merchants and businesses. You can use the cryptocurrency to pay for hotels, air tickets, purchase virtual gifts, and more.
What is Binance Coin (BNB) coin burn?
The supply of Binance Coin (BNB) is reduced through a process called coin burn. This process removes coins from existence permanently.
Coin burns are used by crypto projects to reduce inflation. The decrease in supply through burning coins coupled with demand pressure may cause an increase in value. Binance Coin (BNB) coin burn happens every quarter until 100,000,000 BNB are destroyed.
At the end of each quarter, Binance burns BNB. The amount of BNB burnt is dependent on the total trading volume on Binance with a 3-months period.
How to buy Binance Coin?
The best option for buying Binance Coin (BNB) is via the Binance exchange. The exchange allows you to purchase BNB with traditional currencies and other cryptocurrencies. To get started, you need to sign up on Binance exchange. Deposit fiat or another cryptocurrency to make your purchase.
You can deposit traditional currencies via credit or debit card, bank transfer, or several other options via Binance P2P.
Get 20% discount on trading fees when you use our link to sign up on Binance exchange.
How to store Binance Coin?
Several cryptocurrency wallets support BNB. These wallets allow you to store, receive, and send BNB. One of the most popular wallets that support BNB and Binance Chain is Trust Wallet. You can use Trust Wallet on mobile and desktop.
More articles on Binance you should read:
- Binance P2P Reviewed For Nigeria (Ultimate How-To Guide)
- Binance In South Africa Review – How-To Guide, Fees, and Limits
- How To Use Binance In Nigeria In 2020
The post What is Binance Coin (BNB)? – Definition, How To Buy and Store BNB appeared first on BlockNewsAfrica.
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