If you are a pro cryptocurrency trader or a cryptocurrency novice, you are likely to have met the name Binance, with good reason, because it is the biggest trading volume cryptocurrency exchange. The term Binary is two words: Binary and Finance. Two terms. If you’ve ever used the app, you know its cryptocurrency, the Binance Coin.
What is Binance Coin?
The coin is a digital currency distributed by the Binance for the exchange of cryptocurrencies. The BNB symbol signifies the cryptocurrency. The BNB token also powers all Binance.com activities on the Ethereum network and identical to Ether.
Binance coin is used by consumers to pay the fees paid for the usage of services by Binance exchange. These fees include, but are not limited to, trading, exchange, and listing charges. Also, BNB can be exchanged on funded cryptocurrency exchanges like any other cryptocurrency.
Binance Coin Development
Binance was founded with co-founder and CTO Roger Wang in 2017 by its CEO Changpeng Zhao. Changpeng has been founded and served as the CEO of BijieTech, a cloud-based Exchange Provider for Exchange Operators, as well as CZ, in the crypto community. Moreover, Changpeng was alsoOKCoin’s co-founder and CTO.
Binance was originally headquartered in Shanghai, China, but it relocated to Japan following a ban by the Chinese Government. In March 2018, the Japanese Financial Services Authority (JFSA) officially ordered Binance to shut down its operations in Japan. The cryptocurrency exchange has been confirmed to be scheduled to take place in Malta.
A total of BNB 200 million tokens were minted for use by Binance. Between 14 to 27 July 2017, the company kept its initial coin offer (ICO). The total supply of tokens was distributed to various individuals in a certain proportion.
- BNB tokens were reserved for the ICO for 100 million (50%).
- The founding team was issued 80 million (40%) BNB tokens.
- Angel investors have reserved 20 million (10%) tokens.
What is Binance Coin used for?
Binance Technology & Features
Binance Coin resides on the Ethereum network as of August 2018. In March 2018, the organization revealed that Binance would be moved to its evolving blockchain. Binance is upgraded to the decentralized exchange with its blockchain, thus transferring the ERC-20 BNB token into the existing network.
Order matching: Firstly, it is important to note that cryptocurrency exchanges only act as facilitators for buying or selling orders from customers. Users depend on exchanges to comply with the cryptocurrency orders of other users who sell the same cryptocurrency. It is incredibly necessary for exchanges to be able to handle as many trading pairs as possible. Binance has a powerful matching engine capable of handling 1400,000 orders per second. Binance is also one of the fastest cryptocurrency exchanges on the market.
Liquidity: The trading of cryptocurrencies can not succeed without ample liquidity. In August 2018, Binance is trading approximately 380 cryptocurrencies, so it has the busiest crypto-market order book. The exchange consists of highly competitive cryptocurrencies which allow the exchange to process a trading order quickly.
Binance is a website available in 13 languages, including English, Chinese, Japanese, Spanish, French, German, Italian, Russian, Korean, Vietnamese, Portuguese and Türk. This allows people from all over the world to join Binance.
Device coverage: Binance is available on multiple platforms to allow users to easily share information. It can be used in two modes: a basic mode and an advanced mode to explore cryptocurrencies in more detail. On the following platforms Binance is available:
- Windows native client
- Web-based trading client
- HTML5 client on mobile
- A native Android client
- REST API
Fee Model: Binance uses a BNB token to collect different fees paid for the site, for example, trading, withdrawal, listing, etc. It provides an enticing user fee model. The platform charges a trading fee of 0.1 percent for each company since August 2018, but if users pay BNB fees, they can claim an extra discount on the trading fees. The exchange has fixed annual discount rates beginning from the exchange’s starting year. For more specific information on discount rates see the table below.
|Year||1st Year||2nd Year||3rd Year||4th Year||5th Year|
How to buy and store Binance Coin?
BNB can not be acquired by BNB mining, as at the beginning of all tokens Binance had been pre-mined. Users who wish to own BNB will purchase it on a cryptocurrency exchange.
Since Binance itself is a cryptocurrency exchange, it enables BNB to trade with over 70 cryptocurrencies together. Binance Coin can be exchanged other than domestic exchanges on the Bancor network, Gate.io, IDEX, Trade Satoshi, and so on.
BNB Token Storage
Similar to other cryptocurrency exchanges, Binance also offers a wallet that can be used to store BNB or any other Binance cryptocurrency. In July 2018, Binance purchased Trust Wallet, an Ethereum-based mobile wallet. Trust Wallet is now branded as the official wallet of Binance. BNB can be stored on another compatible wallet apart from the official wallet. There are some common options: Ledger Nano, Trezor
What is the future of Binance Coin?
Binance Coin has a market cap of over $875 million since August 2018. It makes it the 17th largest cryptocurrency in the global cryptocurrency industry by market capitalization.
Each quarter, the management decided to use 20% of its income to buy BNB Tokens and to burn them. The tokens will continue to be burnt until only 100 million BNB tokens remain.
Four token burning activities have taken place so far, the last one in July 2018. This reduces the total availability of BNB tokens to 192,443,301 by August 2018, leaving more than 95,51 million tokens.
On 25 July 2017, BNB traded in the cryptocurrency market for $0.115203. Initially, the crypto-currency showed slow growth, which increased exponentially from the middle of December 2017.
In 2018, the cryptocurrency price of the Binance was more volatile relative to 2017. Price rose significantly in January 2018, with BNB’s all-time high of $24.91 and a sudden crash. As of 14 August 2018, the market level was about $9, which was around 22 percent lower than the day before.
How is Binance Coin different from other cryptocurrencies?
Contrary to Bitcoin. The use of Binance Coin is not limited to peer-to-peer payments only. This is an important part of the environment of the Binance. BNB token is mainly a way of generating network revenue.
BNB token has certain important advantages for its network use. Users of BNB are entitled to special discount rates that do not exist in other cryptocurrencies.
Binance also has a Binance Labs forum for the investment and incubation of blockchain ventures, in addition to a cryptocurrency exchange. As stated on the website “Binance Labs are a fund of social impact and an initiative to incubate, invest and empower entrepreneurs, projects, and communities in blockchain and crypto-monetary systems.”
Binance Coin Price Prediction 2020
There are proposals this year for the Binance Chain Mainnet with Binance DEX as the main service. The BNB blockchain will be controlled by the dPoS consensus of 11 nodes, similar to the NEO blockchain, that will achieve “decentralization” by pBFT. There are also strong plans to switch the Binance coin from the Ethereum blockchain and eventually move to the mainnet after DEX was released a few days ago. Binance Coin would play an integral role in the new, decentralized and blockchain exchange and can be used to pay exchange fees, which enable investors to obtain a discount on trade rate. By the end of 2020, BNB could hit $35.
Should I invest in Binance Coin?
Binance is one of those ventures that shocked the cryptocurrency world by achieving exponential growth in a short period. In one year, Binance has been the largest trading volume cryptocurrency exchange. Despite its success rate, the site has attracted a lot of users and investors alike.
Binance is assisted by a large and dedicated team. The leadership and growth team is made up of people with specific expertise and experience required for the project to be successful. The team has developed the platform to make it safer and more effective. The protection of Binance was tested in 2018 when a hacking attempt was launched by some malicious organizations which were successfully repelled by Binance.
The product has proven its ability to produce high returns on investment. As of August 14, 2018, its price is approximately $9, a rise of over 8000 percent on its launch price.
Binance also has a progressive economic model that will require 100 million BNB tokens to be burned. The lower overall supply would help increase demand and raise the value of the token.