What is Binance coin and how to exchange BNB at the best rates
Binance Coin

Binance Coin

 BNBBSC

Binance is an ecosystem of decentralized networks based on blockchain technology. As of the second quarter of 2022, the exchange is the biggest cryptocurrency exchange globally and with a daily trading volume of $7.6B.

BNB is the exchange’s cryptocurrency, and users receive discounts when they use it to pay for transaction fees on the exchange. You can trade or exchange it for other digital assets like Ethereum, Litecoin, Bitcoin, and more.

Binance Coin Exchange Rate

BNB by TradingView

What Is Binance Coin (BNB)?

Binance Coin is the digital currency that powers the Binance Chain and the Binance Smart Chain (BSC) ecosystems. It has a wide range of use cases and applications, especially as the number of projects launched on the BSC increases.

Binance exchange users can use the token to trade and pay transaction fees. As of press time, it is the 5th ranked cryptocurrency globally by market cap.

History of BNB

Changpeng Zhao, together with He Yi, a co-founder, and current chief marketing officer, created Binance Coin in July 2017. The coin initially operated on the ERC-20 standard on Ethereum before moving to Binance Smart Chain.

BNB’s progress can be separated into three market cycles—the first, second, and third market cycles.

First Market Cycle

Binance Coin’s first market cycle is traceable to 17th November 2017, when it began with a low price of $0.50. However, it took BNB just 67 days to reach a unit price per token of just over $25.

Second Market Cycle

Following its bullish trend, BNB hit its all-time high value of $39.59 on June 22nd, 2019. Almost 200 days from the previous date, the popular token then rallied by a massive 861% in the crypto market.

Third Market Cycle

We are currently well and truly into BNB’s third market cycle, and as of press time, the coin is worth $304.94 with a market cap of $49.78B.

BNB Token Profile

BNB is undoubtedly one of the leaders in the cryptocurrency market. Below is a highlight of the token’s profile explaining the important BNB-related numbers.

Factor BNB
Current Price $304.94
Market Cap $49.78B
Total Supply 163,276,975 BNB
Maximum Supply 165,116,760 BNB
1-year Price Low $261.82
1-Year Price High $654.32
All-Time High $686.31
Markets Binance, Swapzone.io, FTX

BNB Pros and Cons

BNB is an impressive cryptocurrency project that offers holders, investors, and traders several benefits. However, like other crypto projects, it has areas it could improve on. Here are its pros and cons.

Pros

  • It has low fees, and transactions are quite fast
  • The coin has a special burndown policy that helps maintain its scarcity and value
  • Experts consider it a great utility token for its use cases
  • Users get discounts on charged fees

Cons

  • The token’s progress is directly dependent on Binance Exchange’s reputation
  • No guarantee of stability since the coin has only 4 years of experience in the market
  • Crypto experts fear Chinese regulatory bodies can adversely affect the coin in the long-run.

How Does Binance Coin (BNB) Work?

As mentioned, Binance began as an ERC-20 token on the Ethereum blockchain before it went on to introduce its own blockchain. The coin is tradeable across several top crypto exchanges globally.

Being the native token on the BSC network, users of leading decentralized exchanges like Pankcake Swap use it to pay network fees. It’s fair to call it a utility token for most projects, and it can be used for a plethora of functions.

Use Cases of Binance Coin (BNB)

In addition to its blockchain functions, there are so many everyday use cases of BNB, and they include the following:

  • Book Travel Arrangements: Some specific websites currently accept BNB when clients book flights and hotels.
  • Credit Card Payments: On a platform like Crypto.com, you can use BNB as a type of payment for cryptocurrency credit card bills.
  • Entertainment and Leisure: It is a means of paying for lottery tickets, buying digital gifts, and miscellaneous entertainment expenses.
  • Transfers and Loans: It also comes in handy as collateral for loans on some platforms, paying bills, or sending funds to loved ones.
  • Processing Payment: Finance merchants offer BNB as a means of payment, giving payment methods a lot more flexibility.
  • Trading: It is also useful when trading other cryptocurrencies, although it depends on the crypto exchange.
  • Means of Investment: Some online investment platforms permit investors to commit BNB funds to ETFs, stocks, etc.
  • Binance Exchange’s Transaction Fee: The exchange accepts transaction fees paid with BNB from users, and they get a discount.

Binance Coin (BNB) Burning

Each quarter since 2017, Binance has spent one-fifth of its revenues/profits on buying and burning the coins held in its treasury.

The exchange will keep burning tokens each quarter until it finishes re-buying and burning 100 million units or half of the original max supply.

BNB Token Performance

Binance Coin is arguably one of the biggest and most reputable cryptocurrencies within the past year, making it one of crypto investors’ favored coins.

From the chart above, the value of the coin has had an eventful past 12 months, beginning the period at $316.33, hitting a 1-year price high of $654.32 and a low of $261.82.

This points to the fact that BNB is incredibly volatile in the short term. While forecasts and technical analysts say investing in BNB is potentially profitable, short-term investment is very risky.

Binance Bonuses for BNB Holders

Holders of this asset get access to several bonuses that the Binance ecosystem offers, which include

  • Opportunities to qualify for the exchange’s VIP programs to save more.
  • 4% commission in bonuses through a referral program.
  • Save 25% on all margin and spot trading fees.
  • Save 10% on Future trading fees
  • Participate in Initial Exchange Offering to purchase and earn rewards
  • Apply for cryptocurrency loans
  • Earn rewards when staking through the BNB vault

BNB Criticism and Legal Issues

Digital assets projects face lots of criticism and legal issues, and BNB is no different from the lot. Amongst its challenges, volatility, and decentralization are some of the biggest. Below we highlight some.

Volatility

As it is with most cryptocurrencies, BNB is a volatile project. Regardless of how much it puts on in bullish rallies, BNB can lose more than 30% of its capitalization, which is why investors find it risky.

Binance Issues in the US

Binance has been in the news recently for being under investigation by law enforcement agencies in the United States.

The Department of Justice and The US Internal Revenue Service, are investigating Binance Holdings Ltd on suspicion that people use the platform to evade tax and launder money. The company is cooperating with these agencies.

Illegal Use

One of BNB and other major crypto’s biggest problem is that criminal elements usually use them for illegal and devious activities on the darknet. These activities include purchasing illegal artifacts like drugs, stolen properties, weapons, etc.

Should You Buy BNB?

If you are interested in investing in cryptocurrencies, BNB is a good place to start for long-term investors willing to hold the token.

But if you’re after short-term investments and just looking to scalp, know that it and other crypto assets have high volatility, and you could lose your investments in hours or days.

How to Buy Binance Coin (BNB): 3 Steps Algorithm

It might be a good idea to exchange Binance Coin, especially when you can exchange the cryptocurrency at the best rate.

On Swapzone, you can easily convert BNB through a wide range of instant cryptocurrency exchange providers listed, review these supported exchangers, their offers, and the exchange rates they pick.

  1. Go to swapzone.io.
  2. Select Binance Coin (BNBBSC) in the Send section.
  3. Enter the amount you wish to swap.
  4. Choose crypto to get in the Get Up To section.
  5. Review available offers and their providers.
  6. Select an offer to proceed.
  7. Enter your wallet address to receive crypto.
  8. Send your Binance Coin deposit to a generated address.
  9. Rate your exchange provider.

Summary

With lots of cryptocurrencies in the market, it could be hard to keep up. However, BNB is one of the tokens that has posted impressive growth figures since its creation.

It has a strong community and is backed by the Binance Exchange. That being said, if you want to foray into the world of crypto investments, this guide should help you understand the project better.

Popular pairs to convert Binance Coin

Frequently asked questions

Is BNB (Binance Coin) a good investment in 2022?

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If you’re willing to be a crypto investor, it can be a good investment for you in 2022. However, remember that all crypto assets are highly volatile, so analyze the market carefully and make informed decisions given your financial goals and needs.

How many Binance Coins are there?

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At the time of writing, there are 163,276,974.63 BNB in the market,. It has a max supply of 165,116,760 and an initial maximum supply of 200,000,000 coins.

Is Binance Reliable?

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While there are some unreliable crypto projects in the industry, Binance is currently one of the reliable and most reputable ones.

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