BNB Coin Review: Everything You Need to Know About Binance Coin
Binance is one of the leading cryptocurrency exchanges in the world, providing traders with access to a wide selection of tokens and coins against multiple fiat and cryptocurrency pairings. It was first launched in 2017 with the aim of becoming the best crypto exchange in the industry. Over the years, Binance has become a large and growing ecosystem of blockchain protocols and trading products, and the platform provides some of the most exclusive tools for crypto enthusiasts and traders. One of the examples of this is the Binance coin or BNB Binance token.
BNB crypto is a token authorized by the Binance exchange that allows crypto holders to pay fees on Binance at discounted rates. In July 2017, the Binance coin release date, BNB began its journey of becoming the world’s largest crypto exchange desk in terms of the pure trading volume. By April 2018, Binance achieved this monumental feat. BNB token is many things wrapped into one – a development protocol for issuing tokens and building decentralized applications (dApps), a utility token used for trading cryptocurrencies, and a rewards coin that incentivizes spending and holding.
Therefore, if you are a market player considering investing in BNB tokens, or just an enthusiast who wants to learn more about this versatile asset, it is crucial to understand every aspect of Binance coin.
We’ve created this post with the help of experts at ChangeNOW. This review of BNB coin will include everything you need to know about Binance coin, answering questions such as: What is BNB? What is BNB credit? What is the best wallet for storing BNB? What is Binance coin’s history? What is a BNB mining pool? And more!
Without further ado, let’s get this review started.
What is BNB?
As noted earlier, BNB can do many things. In essence, it is a token used on the Binance platform. However, because its value fluctuates since it is traded on the open market, it behaves like any traditionally currency, such as the US dollar or Bitcoin. Although it’s fair market value leaves something to be desired, BNB tokens have the potential to be very valuable. Since its launch, the value of the token has continued to increase. This is the reason why industry players and marketers are so hopeful about it.
BNB is an altcoin (a cryptocurrency other than Bitcoin). When BNB Binance was first developed, it was based on the ERC20 standard, utilizing the Ethereum ETH blockchain and network. This simply means that the token follows the same rules and protocols set down by the Ethereum community.
More importantly, however, it allows the token to leverage the safety and stability of the Ethereum ETH network and blockchain for its own use. In other words, you don’t have to worry about your BNB tokens being stolen, or being put under undue governmental scrutiny since it is protected by the security and credibility of the Ethereum network.
In April 2019 all of this changed when BNB Binance was moved to its own mainnet (a blockchain that transfers a digital currency from a sender to a recipient). When this happened, Binance burned down 5 million ERC20 BNB coins and allocated a corresponding amount of native Binance coins to its own wallets. These native tokens were called BEP-2 tokens.
During that time, Binance also encouraged investors and ERC20 BNB token holders to convert to BEP-2 tokens using the BNB currency converter. Nevertheless, the final result of Binance’s actions are unclear as Binance is still supporting ERC20 tokens. And if users want, they can convert to BEP-2 tokens any time. However, Binance has made sure that no one can withdraw the ERC20 tokens anymore.
BNB Burn 2019
Last year, BNB experienced inflation. But its creators had anticipated this eventuality as early as the development of their white paper. All coins are subject to inflation, and BNB is no different. However, the BNB developers found a unique way to deal with inflation. As per the white paper, in every quarter (three months), Binance reduces its income by 20% for the upcoming recovery and burning of tokens, thereby reducing the negative effects of inflation. Consider the given table:
|Coin Burn||BNB Price||BNB Burned||Percentage of Total Supply||Approximate Value (in USD)|
Binance Coin History
As of November 20, 2019, BNB token was considered the eighth largest crypto coin in terms of market capitalization, with a market cap of $2.87 billion. In 2017, a couple of months after its launch, the BNB coin graph witnessed its first low, which turned out to be an all-time low price of $0.096109. The BNB price graph then witnessed its first all-time high just a couple of years later in June 2019 when the coin price reached $39.57.
Since then, the price of BNB tokens has fluctuated. By the end of 2019, the coin price was cut in half to $18. As of April 20, 2020, the exchange rate for BNB is $16.24 with a coinmarketcap rank of number 9.
How to Mine BNB?
Traditionally, you cannot mine BNB as it uses the Byzantine Fault Tolerance (BFT) consensus mechanism. In other words, only those cryptocurrencies that have Proof of Work (PoW) can be mined. Ethereum and Bitcoin are some examples of cryptocurrencies that can be mined. Similar to the mining process, you can take part in the BNB Coin network by becoming a validator.
Although you cannot mine BNB, you can still earn tokens from safeguarding the network. People who safeguard the network are called ‘validators.’ The only difference between validators and miners is that validators do not require any mining equipment. Their job is simply to validate blocks on the Binance blockchain.
At the moment, not everyone can take part in the validation process, however, as Binance only allows its trusted members to be validators. However, as per sources at Binance, the team is looking to broaden the scope of validators in the future in order to further decentralization of BNB.
How to Buy Binance Coin
BNB is the native token of the Binance Exchange. Thus, the first and most obvious place to look for buying BNB tokens is the Binance platform itself. If you own Ethereum, Bitcoin, other altcoins, or even fiat currency, you can simply exchange these assets for the equivalent value of BNB.
Aside from Binance, there are plenty of cryptocurrency exchanges where you can initiate a BNB coin purchase. However, depending on the currency you are going to exchange for BNB, the price may vary. Therefore, it is important to keep tabs on the BNB calculator so that you can make a fully informed decision. The following are the exchanges where you can buy Binance coin:
ChangeNOW is a great option to buy Binance coin as it instantly converts cryptocurrencies or fiat currency into any of your choices. It is a great tool optimized for immediate conversion.
What is the Best BNB Wallet?
If you have decided to invest in Binance tokens, then it is important that you store your coins in the best BNB wallets out there, from the Binance coin paper wallet to hardware wallets, Android and iOS apps, and web wallets.
Here is the list of the best BNB wallets in 2020 for your consideration:
- Ledger Nano X
- Ledger Nano S
- Binance Chain Web Wallet
- CoolWallet S
- Trust Wallet
That’s it! This is our BNB Token review. We hope that you find it informative. Our goal was to provide you with all the information you need to know about Binance coin. We have put in a lot of research to create this post. If you have any questions or concerns regarding the topic, please feel free to contact us. We are happy to help.