The internal cryptocurrency of the Binance exchange, Binance Coin (BNB), recorded significant gains in its history. Cryptocurrency BNB reached and hold high position according to the CoinMarketCap capitalization ranking. The reason for BNB’s profits is the excellent Binance exchange series, which goes from one success to another. At the beginning of the year, the opening of the company Binance Jersey was announced, thanks to which the possibility of buying cryptocurrencies with transfer money in Euro or pounds was opened. Then, the cryptocurrency market, Binance, hosted the ICO BitTorrent token, which ended … sold out in 14 minutes. Finally, Binance recently announced the capability of accepting deposits using credit and debit cards, bringing cryptocurrency closer to the ordinary people. Therefore, the investors’ very positive sentiment towards BNB is not surprising, even considering the weak situation of the broad market. How will it continue?
Binance Coin (BNB) is an internal cryptocurrency of the Binance exchange, operating on the Ethereum chain. Not much more is known about technical details (apart from the name of Binance = binary + finance). During the ICO, millions of BNB were issued, and the final number of tokens is estimated at 200 million – 50% was sold on ICO, 40% went to the team for the development of the exchange market, and 10% to early investors. The most important incentive to buy Binance Coin in the initial coin offering was the (fulfilled) promise of a 50% discount on transaction fees, discounted commissions for trading, discounted fees for participation in ICO on Binance Launchpad or lower fees for admission to the stock exchange.
The discount for transaction fees works as follows: in the first year (2018) it is 50% of the fee, in the second (2019) 25%, in the third (2020) 12.5%, in the fourth (2021) 6.75% – from the fifth year the discount ends. An additional incentive is certainly the fact that the BNB fee does not leave small amounts of cryptocurrencies (so called dust) after the transaction, which later is difficult to monetize.
What are the additional benefits of having a BNB? The main benefits are lower, negotiable fees for using exchanges and futures. The considerable advantages also include early access to issues taking place on the Binance Launchpad platform. The last bonus worth mentioning is the possibility of executing smart contracts and validating payments in systems such as Binance DEX.
Is it worth investing in Binance Coin? If you are a trader or you are going to speculate on cryptocurrencies, you should definitely do so (create an account on Binance and pay the lowest commissions thanks to BNB). There are also certain messages from the market about exchange making a BNB tokens buyback for some amount of the profits from charges, to later destroy them and raising the value of the rest. As you see there are many factors that are base for investor’s hopes for profits from BNB trade.
Are these real advantages or opportunities available only to advanced users? Is it enough just to believe that the development of the Binance exchange itself is a good prognosis for its utility BNB tokens? This is a strategy worth considering and trying.
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