Binance Coin (BNB)
What is Binance Coin?
BNB was conceived and created as a fee payment currency on the Binance crypto exchange and also on its Binance Smart Chain network. At the moment, the token keeps the entire Binance ecosystem running.
BNB is essentially a technical token that is needed only for domestic payments. That is, its value is directly related to the success of the progress in the business of the Binance crypto exchange. This is very similar to how stocks work. This is the main difference between BNB – it does not seek to rеplace ordinary money.
At launch, Binance Coin worked on the Ethereum(ERC20) blockchain, but then the creators decided to move BNB to their own network.
Strengths of Binance Coin:
- Discounts for paying commissions.
This causes many investors to choose BNB as their fee payment method, which increases the demand for BNB. - BNB trades in pairs with many other currencies.
This is a very big plus. All currencies that can be bought on Binance can be bought with Binance Coin. - manufacturability and speed of translations.
Binance is executing over 1.3 million trades in one second, increasing the demand for Binance Coin. - BNB destruction.
This has a strong impact on the value of BNB: destruction reduces their supply, and the demand for them grows, which creates a scarcity, which in turn increases the value of BNB.
Weaknesses of BNB:
- Limited functionality.
BNB is, in fact, suitable for use only on the Binance exchange or as a means of short-term or medium-term investment. - The danger of hacker attacks.
Crypto exchange Binance is a constant target of hacker attacks.
Binance Coin Mining
BNB cannot be mined like a regular cryptocurrency using the Proof-of-Work principle, because the Binance network uses a different mechanism – Byzantine Fault Tolerance (BFT). There are validators that validate blocks and thus help protect the network and earn money.
How do I purchase Binance Coin?
You can buy BNB directly on Binance or through a crypto exchange such as Leoexchanger!
Binance Coin Price Dynamics (USD)
As of August 2022, 1 Binance Coin is worth approximately $282.00. The total market capitalization is $45,494,043,478.
The price movement chart is shown below:
How to store Binance Coin?
Binance has its own official wallet called Trust Wallet. It is one of the most trusted places to store BNB.
More information:
