Binance coin is a cryptocurrency that is used within the ecosystem of the Binance trading platform. Binance coin works on the Ethereum Blockchain and has 200mil coins in circulation.
Binance.com has indicated that it uses 20% of its profits each quarter to buy back BNB and to destroy it. This will continue until 100mil are in circulation.
Binance coin is a currency that gives users access to all kinds of functions and benefits within the trading platform. One of the largest is a discount on transaction costs. Partly because of its potential and the popularity of the platform it is used in, the coin has made great leaps in value in recent weeks.
- 1 Buy BNB
- 2 What is Binance
- 3 What is Binance Coin (BNB)
- 4 Whether or not to invest in BNB
There is currently no way to buy BNB directly. So the only way to buy BNB is to purchase BTC to use on an exchange, and then switch it to BNB.
Step 1: Choose Your Trading Platform
Firstly you will need to decide on your cryptocurrency trading platform and create an account there. The choice of platform isn’t very important as a beginner, what really matters is a trading platform that you are comfortable using..
Choose one of these platforms and complete the follow steps to get started:
Once your account has been confirmed, log in to your Binance account and click on funds at the top right, then “Deposits Withdrawal”.
Look in the “Bitcoin” list and click the Bitcoin deposit button. Then a series of numbers appears in the “BTC Deposit Address:” field. You must copy this series for the next step. This is your bitcoin wallet address.
In the Balances page you will to search for Bitcoin in the list. If all goes well, you will find it at the top.
Next click on the option of Bitcoin and then on the next page copy the Deposit Bitcoin (BTC) address, which the set of numbers and letters.
You’re told that you’ll need a trade password, you can create it and then go back to your Balance.
You need this address for the next step.
STEP 2: BUY BTC
The second step is to get your Bitcoin, you can do that at a broker such as BTCdirect .
If you’re buying BTC for the first time from these brokers, you will be asked to confirm your bank account.
Upon payment you will be asked to enter a bitcoin address. You must fill in the address that you have copied at Binance.
STEP 3: WAIT UNTIL YOUR BTC HAS ARRIVED
Once you have purchased Bitcoin and entered the correct BTC deposit address with the payment, you have to wait until the BTC arrives in your wallet.
This process can take up to ½ hour, so don’t worry if it’s not immediately visible on the exchange.
STEP 4: BUY BNB
Once your Bitcoin has arrived at your trading platform, it’s time to buy some BNB.
Once on the BNB/BTC trade page you can look in the left box marked with Buy BNB. Here you can decide how much BNB you want to buy using your Bitcoin.
If you then press Buy BNB your order will be placed. When the order is filled you will see your number of BNBs on the right-hand box or on your balance page.
Once on the BNB/BTC trading page you can indicate in the left box marked with buy BNB. Here you can decide how much BNB you want to buy.
If you then press Buy BNB, and enter your trade password that you created earlier, your order will be placed. Once the order is filled you will see your number of BNBs on the right-hand box or in your balance page.
Congratulations you’re now the proud owner of BNB.
What is Binance
Binance is a new trading platform launched on 14 July 2017 and based in Shanghai. The trading platform was founded by Changpeng Zhao, known for his work at OKCoin. Binance immediately left a huge impression in the crypto world, because of its enormous speed, low transaction costs and that it is the only exchange that gives GAS rewards to its NEO holders.
In August 2017 Binance announced that Yi He, the co-founder of OKcoin, would also be part of the board of Binance. Yi He is known as one of the most respected and influential people when it comes to the Chinese online economy.
In addition to Yi He, other big names can be found that work together with Binance, such as Hongfei Da, the founding of NEO (Antshares).
In addition, Binance has its own cryptocurrency BNB (= Binance coin) that can perform many useful tasks within the trading platform.
The transaction costs that Binance settles for each order is only 0.1%, which is 50% cheaper than most competitors. The trading platform can handle up to 1.4 million orders per second in capacity!
What is Binance Coin (BNB)
Binance Coin (BNB) is the currency of the ecosystem that Binance wants to create.
50% REDUCTION ON TRANSACTION COSTS
BNB can be used to pay the transaction costs when placing an order. If you choose to pay transaction costs with BNB, you will receive a 50% reduction on your transaction costs.
This alone makes this crypto enormously attractive! Every experienced trader can tell you that the transaction costs can quickly hit. A savings of 50% is therefore immediately a huge saving. There is simply no reason not to use Binance Coin as a trader, if that is an option.
A trader who traded 1 BTC per week (= 3500 euro) in volume, would
lose EUR 21 in 6 transactions of 0.1% (purchase and sale). By paying with BNB you would only be 10.50 euros.
THE GAS OF THE FUTURE PLATFORM
The fact that Binance Coin already has a function is quite unique in the crypto world. Most currencies are initially only used as a means of payment, but BNB is already functional as transaction costs savings currency.
The idea of Binance is to further expand the function of BNB in the future. The underlying philosophy is that BNB will work for Binance, just like how GAS works for NEO.
BNB will also be used to participate in future Binance exclusive ICOs. A good example of this is TRON.
Whether or not to invest in BNB
It is a personal choice whether or not you want to invest in Binance Coin. No one dares to say with certainty that the value of this cryptocurrency will go up or down.
However, it is more likely that BNB will rise much further in its value in the coming months.
IT’S MORE ADVANTAGEOUS TO TRADE ON BNB
A trader benefits more if he buys and sells his cryptos on Binance with the help of BNB. The only time this is not possible is if the currency that he or she wants to trade is not available on Binance.
In the coming months, Binance will add more cryptocurrencies, and this problem will increasingly be applicable.
A STRONG TEAM
Binance and so Binance Coin has a formidable team behind them that have started successful projects in the past. With prominent members such as Changpeng Zhao, Yi He and Hongfei Da in their board, the chances of success are higher than normal.