Binance coin a native token of the Binance exchange platform. What is Binance, you may ask if you are a complete novice to the world of cryptocurrencies. Binance exchange is the largest centralized cryptocurrency exchange that has recently launched a decentralized platform for trading crypto assets. Binance Coin provides users with access to advanced features on the new decentralized exchange and special exchange rates.
But even the users who use the services of the Binance Exchange may not know that the project has its own token, Binance Coin token (BNB). This coin was released during Binance ICO. Binance Coin was created as a token of the ERC20 standard and used to work on the Ethereum blockchain. Recently, however, the coin has migrated to its own blockchain.
With the growing popularity of the exchange, the price of Binance Mainnet price is also growing. In this article, we will take a closer look at what this coin is and how it works. Despite the fact that Binance Coin is a Binance exchange token, in essence, it is the same currency as, for example, Bitcoin or any other altcoins. It is subjected to volatility and can be exchanged for other crypto assets.
Without a doubt, the launch of its own blockchain was quite a long way for Binance. The team has been working on the network for a long time and is still continuing to perfect Binance Mainnet.
Binance Mainnet was launched in April 2019, which was a new milestone not only for Binance but also for the entire cryptocurrency community.
After April 23 2019, Binance.com stopped supporting BNB output based on the ERC-20 standard. All users who for some reason wanted to keep these tokens had to transfer them to their Ethereum wallets. However, in the end, all Binance Mainnet crypto tokens will be swapped to the Binance Chain network to the new native standard, BEP2.
The migration of the old BNB tokens based on the ERC20 to the new BNB version of BEP2 occurs automatically if the users’ tokens are transferred to the Binance exchange accounts. According to the Binance’s announcement, this will be done automatically during so-called BNB Mainnet Swap.
If you store your BNBs in other cryptocurrency wallets that are not owned by Binance, then you will eventually have to enter them into the wallet on the Binance exchange to get the newly converted tokens in return for the old ones.
High liquidity. Binance Coin cryptocurrency is traded in a pair with more than 400 coins, so it is one of the most liquid coins.
The decrease in supply. Like all coins, BNB is subject to inflation. The creators took it into account even at the stage of creating the BNB white-paper. According to one of its points, every three months, Binance allocate 20% of its income for the subsequent redemption of coins and their burning. As a result, only 100 million BNBs will remain, i.e. half of the originally issued volume. Quarterly burning of the coins, which the Binance team has so far carried out according to the plan, has a positive effect on the growth of the Binance Coin price in the long term. It makes it a good investment option.
Usability. Being BNB holder gives you the possibility of reducing the fees during trading on Binance. BNB coin holders can open and close transactions on the exchange with a fee that is currently 25% lower than that for other users. The discount will be active for the first four years of Binance’s existence. During the first year, the discount amounted to 50%, each next year it is reduced by half.
Good reputation. Binance exchange and its founder Changpen Zhao have a very good reputation. This is one of the important conditions for the success and durability of any project.
Wide adoption. BNB is suitable for paying for goods on sites that accept Binance Coin. In the fall of 2018, Binance team wrote in their blog that BNB is accepted on more than 150 websites.
Observing an increase in trading volumes on the Binance cryptocurrency exchange, it would be fair to conclude that the rate of the BNB token will continue to grow. Also, the price controlling policy of the company (i.e. buying and burning BNB tokens) will contribute to the growth. Developers plan to leave only 100,000 tokens, while the remaining coins will be burned during the next several years. Given all these factors, it is easy to predict an increase in the rate of the BNB token in the short term. To look into the price more closely you can always check out Binance Mainnet CoinMarketCap page.
Since Binance Coin cryptocurrency used to function on the Ethereum blockchain, any wallet that supported ERC20 tokens was be suitable for its storage. if you have no plans of converting your BNB to the tokens of a new standard, you may still use them. The most widely used options are MyEtherWallet for smartphones and Mist, the official desktop wallet from the Ethereum team. Also, for reliable storage of a large number of funds, you can invest in a hardware wallet from proven brands, for example, Ledger or Trezor.
If you have converted your BNB tokens during BNB Mainnet Swap you should look into the wallets that support new BEP2 standard.
In addition to that, Binance Coin can be stored on the Binance exchange itself. However, there is better to keep only small "stocks", as in the crypto world, there is always a risk of hacking and, as a result, loss of funds.
The most obvious and easy option is to buy BNB on Binance exchange itself. The most profitable option would be to buy some crypto coin and proceed to the usual order and exchange from there.
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