What is Binance Coin?
Binance Coin is a cryptocurrency issued by the Binance exchange and trades with the symbol BNB. Binance Exchange is the world’s largest cryptocurrency exchange, with over 1.4 million transactions per second from June 2021.
BNB is the native currency of Binance’s blockchain, the Binance chain. It initially was based on the Ethereum network. Binance Coin users receive a reduction on transaction costs on the Binance Exchange as an incentive. BNB also traded for other cryptocurrencies like Bitcoin, Ethereum, Litecoin, and others.
Binance Coin spends 20% of its annual profit each quarter to buy back and burn BNB Coins, destroying them — BNB burning.
The date for BNB burning was July 18, 2021, and it is determined to continue this process until it has consumed 50% of the total supply. This process assists the Binance exchange in maintaining its scarcity and value in the cryptocurrency market.
Binance Coin Applications
The Binance Coin, like other growing cryptocurrencies, has a variety of applications outside of the Binance exchange, including:
- Transaction fees on the Binance Exchange:
Binance users can use BNB to pay for transactions on the Binance Exchange, and they also receive discounts.
- Trading:
By adhering to the Binance exchange’s restrictions, investors can trade the Binance Coin for any other cryptocurrency on exchange programmes.
- Credit card payments:
On Crypto.com, you can pay your crypto credit card bills with BNB.
- Payment Mode:
Customers can pay using Binance Coin now that various merchants have begun to accept this digital payment option to provide greater flexibility in financial transactions.
- Booking travel arrangements:
Binance Coin is a well-known cryptocurrency used to book hotels and flights on certain websites.
- Investment:
With Binance Coin, users can invest in stocks, ETFs, and other assets.
- Loans and transfers:
On specific platforms, you can use BNB as collateral for loans. Some apps enable users to split expenses and pay friends and family with Binance Coin.
- Cryptocurrency availability:
Binance exchange provides investors with access to over a hundred cryptocurrencies, including Ethereum, CyberMiles, ZCoin, and many others.
Factors to consider before you invest
- In some cases, you can use the Binance coins to buy Initial Coin Offerings (ICOs) listed on Binance’s launchpad.
- The Binance exchange will list new cryptocurrencies, and the usage of Binance coins will provide a seamless marketplace for trading a range of virtual tokens.
- Binance will eventually become the decentralised Binance exchange’s main currency.
- The VISA debit card of Monaco, the pioneering payments, cryptocurrency platform and the mobile app all support Binance coin.
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