Noob or pro, everyone who wanted to dip their toes in the cryptocurrency market, have heard about Binance, a name resulted from blending Bitcoin and Finance. Yet even if you haven’t used Binance, Most probably you know what is Binance Coin (BNB). A prominent name currently standing as the 3rd largest cryptocurrency ranked behind Ethereum and Bitcoin.
The Binance Coin has conquered the altcoins standing as the second in the ranks and is considered as a solid cryptocurrency with great potential and many use cases that will only expand in the future. At first glance, one could hold Binance`s tremendous popularity as the sole reason for BNB`s success, yet it would be unfair to neglect all the constructive efforts that have been made to refine and improve Binance Coin as a dependable cryptocurrency that will not only keep on growing, but provide a better alternative for finance.
As of today, BNB is much more than an investment or a trading asset since you can use it to make credit card payments, book for your next trip or even donate to charity. So if you want to know what Binance Coin is, hopefully this article will answer your question.
Having implemented clever solutions, competitive exchange fees and an intuitive user interface, Binance stands tall as the foremost cryptocurrency exchange in the world with an extensive and thorough ecosystem that provides the user with everything they need for investment and trading alike.
Such actions from Binance Exchange has provided a solid trust and background for BNB coin that it has climbed all the way to the 3rd place in cryptocurrency ranking.
We’ve got everything about Binance Coin (BNB) covered for you in this article. The following article contains information about:
- Binance Exchange History
- What is Binance Coin (BNB)
- Binance Coin Burning
- What is BNB Used For
- Binance Coin Legal Issues in the U.S
- What Does the Future Hold for BNB?
- Should I Buy BNB?
- How to exchange BNB to PayPal and Webmoney
How Binance Exchange Came into Existence
Initially found in China, Binance began as an online cryptocurrency exchange with a strong emphasis on altcoin trading. It didn’t take long for Binance to be crowned as the number one exchange in the world. Amongst the numerous motivating factors and reasons for this profound success, the primary one were high liquidity, low transaction fees and additional discounts for users who made payments by its native coin, BNB. The massive platform has a staggering capacity to process approximately 1.4 million orders per second, offering trading for more than 500 cryptocurrencies and virtual tokens.
As for trading, Binance offers seven trade orders of Limit order, Market order, stop limit order, stop market order, Trailing stop order, Post only order and Limit TP/SL order. Despite the varying transaction fees for withdrawal based on the currency and its amount, there is no transaction fee for deposits.
Despite providing excellent trading and exchange services, tools and platforms such as Binance Labs that provides funding for promising cryptocurrency projects and the website named LaunchPad that hosts emerging blockchain projects and API interfaces make sure Binance does not neglect the big picture that is the overall development of the blockchain ecosystem.
As of right now the Binance headquarters have been moved to Cayman Island due to growing concerns over possible restrictions on cryptocurrencies in China.
At the time of writing this article, Binance is limited for U.S. customers, with fewer available coins and tokens to trade. Furthermore, 22 U.S. states are not yet supported by Binance US as of 2021, the most notable of which is New York.
yes, Binance s a great Cryptocurrency exchange with some limitations. But let’s talk about one of the most debating coins in the cryptocurrency market. Let’s dig deeper to see what is BNB and how it became one of the top 5 coins in a very short time.
What is Binance Coin (BNB)
Initially introduced as an ERC20 Ethereum based cryptocurrency in 2017, BNB has now moved on to Binance’s own blockchain named Binance chain. As the native coin for Binance exchange, BNB was primarily a utility token to motivate users for transaction fee discounts. However, the applications for Binance coin have now expanded dramatically since you can now use Binance Coin for financial services, entertainment, online services and many more.
With all this development happening in a short time period, the 344,893% overall price increase (correct at the time of writing this article) since being introduced in 2017 is well justified. As of June 4th 2021 BNB has a market cap of $58.13 billion dollars and is only ranked behind Bitcoin and Ethereum.
Binance Coin Burning history
Taking a look at the total supply of BNB, you will see that it has decreased from $170,532,825 to $169,432,937. That is due to 15 burning events so far. Each quarter, Binance uses a fifth of the acquired profit to re-purchase and permanently destroy coins in their treasury. It is a common practice that reduces the total supply of coins in circulation, hence slowing down the inflation rates.
The 15th quarterly BNB burn was the largest one ever with the amount of $595,314,380 worth of U.S dollars burned.
What is BNB Used for?
Other than paying transaction and trading fees, BNB has evolved into a valid cryptocurrency that can be utilized for many applications such as making credit card payments, making investments, making loans and transfers, processing payments etc. However, financial services are not the only applications for Binance coin since you can now pay BNB for travel services, virtual gifts and even donations to charity. These applications are expected to expand as there are many collaborations and partnerships planned for the future.
Legal Issues in the U.S
It has been reported by Bloomberg that the Binance holding is under investigation by the Justice Department and Internal Revenue Service for the suspicion of money laundering and tax evasion. However, the investigation is still in progress and there has been no official decision made about the validity of the allegations.
What does the Future Hold for BNB?
Overshadowed by the open investigation case in the U.S, BNB experienced a sharp fall from $678 to $240 in the second and third weeks of May, yet has managed to climb back to $378 until June 4th at the time of writing this article. With the legal case still in action, it is quite a tough pill to swallow when it comes to investing in Binance coin.
On one hand, should Binance be held responsible for the allegations, the negative publicity and possible fines will definitely have negative effects on the price. However, since Binance is based in Cayman Islands, even in the worst case scenario, Binance will halt services for U.S based users which are already limited and the users from other countries will not be affected.
On the other hand, Binance’s excellent services and continued developments all indicate a great potential for the future that will surely increase BNB value overtime. Despite the perplexity of the situation, Binance Coin is considered to be a good investment for holders according to market analysts yet scalpers should remain vigilant of the possible outcome of the legal battle.
Should I Buy BNB?
As for the long run, financial experts believe that 2021 will be the breakout year for BNB with a possible target of $1000. However, the legal case has added a complex twist to the case that wouldn’t necessarily be a make it or break it, but has the capacity to slow down to inevitable growth. In any case, waiting for the trial results is a wise decision.
How can I cash out BNB?
You can either cash out BNB through Binance or any other exchanges you are holding your Binance Coins in. If you are facing KYC problems with your exchange for cashing out your BNB or other coins, you can easily exchange your BNB for PayPal or Webmoney here at HiExchange.
Conclusion
It is an impossible task to be able to secure the number one spot as the best online exchange platform in the super competitive cryptocurrency market and at the same time introduce a native cryptocurrency that is placed 3rd in the ranks amongst giants such as Bitcoin and Ethereum, all in an unbelievably short period of time. But somehow or another, Binance has surpassed expectations, proving to be a capable platform that can handle 1.4 million orders per second and stand way above competition by utilizing creative methods to further develop not only its platform but also the blockchain network. BNB, as the 3rd cryptocurrency, has proven its significance in the market and is expected to have a bright future ahead. The investigation carried out in the U.S seems to be another challenge amongst many others that must be dealt with. Yet taking a look at Binance’s history, we find numerous challenges on an even greater scale that have been successfully overcome.
Disclaimer
Generally speaking, investing in cryptocurrencies, decentralized financial tokens and finance are high-risk trades since there is no reassurance of absolute success, make sure to be aware of possible hazards and generate tolerance for the possible loss of investments.
Do not forget that fluctuations are an inherent part of the market, therefore your investments can go up and down at any rate. At HiExchange we’re ready to exchange your cryptocurrency assets at any time and we do our best to educate users on different subjects. As always, try not to invest in something you do not have sufficient knowledge for. Also, make investments with an amount of money that there is no urgency for.
