Many times, digital assets are created to solve a particular problem or meet a need in the Blockchain world. Binance coin (BNB) is one such coin. Back in 2017, Binance, the biggest exchange globally, launched its very own native token, BNB. Since the coin’s launch, it has steadily been making waves in the crypto world.
A Brief History of BNB Coin
It is almost impossible to talk about the history of the Binance coin without mentioning that of Binance also.
Binance Coin was introduced in July 2017 at an event featuring an initial coin offering. Binance tokens were distributed to various participants, including angel investors and the Binance founding team, during the ICO.
During the ICO, 200 million tokens were distributed. Among the 200 million, 100 million were available for sale to the public. Each coin was sold for $0.15. Through its ICO, Binance raised a total of $15 million in Bitcoin (BTC) and Ethereum (ETH).
The crypto exchange platform, Binance, opened precisely 11 days after the ICO.
Note: Since the entire supply of BNB was issued during the ICO, it cannot be mined. Instead, these coins are systematically destroyed through a process known as “burning.” Burning removes coins from circulation permanently. BNB is traditionally burned every quarter. The purpose of this is to increase its rarity and reduce the supply in circulation by half.
In the latest burning, which took place on January 15, roughly a million tokens in the Treasury were disposed of. As a result, the Binance token supply currently stands at about 168 million coins.
What is BNB Coin?
Binance Coin (BNB) is a cryptocurrency token used to trade and make payments on the Binance exchange ecosystem. With BNB, Binance users pay transaction fees at discounted prices.
BNB was initially introduced as an ERC-20 token on the Ethereum network. In 2019, it switched to a new network, Binance Chain. BNB also powers the recently launched Binance Smart Chain.
After switching to Binance Chain, users swapped their BNB ERC-20 tokens in exchange for the new ones. With this change, all Binance Smart Chain and Binance Chain transactions are payable in BEP-20 or BEP-2 BNB.
Many reasons motivate people to purchase BNB. Nonetheless, it is used within the Binance exchange ecosystem as a utility token to discount trading fees for its users. In addition to holding BNB as an investment asset, it has been used as collateral for crypto loans, as a means of purchase, passive income, etc.
How to Buy BNB? A step-by-step guide for Beginners
There are several ways of purchasing the Binance coin. However, Binance, being its native platform, is the preferred place to buy the coin with fiat currency. In most parts of the world, BNB can be purchased on Binance.com, while individuals in the USA can buy BNB through Binance.us, the US version of the exchange.
Here are the steps you can take to purchase BNB on Binance.
- Create a Binance account.
- Buy BNB.
- Get a BNB wallet.
Create a Binance Account: Create an account on Binance by signing up here. Afterward, click the “Register Now” button and complete the registration form. Your account will be created once you have filled out the required information and clicked the “Create Account” button.
Buy BNB: There are different ways of buying BNB on the Binance exchange platform. You can buy BNB with fiat currency through your Visa or MasterCard Credit/debit card, by bank transfer, or by sourcing for sellers on Binance P2P. Alternatively, you can trade BNB with other cryptocurrencies you own on the exchange.
Get a BNB Wallet: After buying your BNB, you can decide to leave it on Binance or send it to a wallet for storing. It is advisable to keep your coins in a wallet. The native wallet for Binance blockchain and BNB is Trust Wallet. When you create a wallet, you are responsible for maintaining keys and passwords since these cannot be recovered once lost. Copy your wallet address and send your BNB to it for safekeeping. You may decide to leave a part of the BNB on Binance to save on fees for future transactions.
How to Buy BNB Without Binance?
You can trade/buy BNB on the Binance.us exchange. However, some popular US cryptocurrency exchanges such as Coinbase, Huobi, and Kraken do not have BNB listed as an asset on their platform. Nevertheless, you can buy BNB from several other exchanges.
Before deciding which exchange to use, it is vital to research which one works best for you. Many exchanges differ by fees, security, and payment methods. These are the essential features to look out for.
Some of the best alternatives to Binance are; FTX, Mandala Exchange, Gate.io, CoinTiger, Kucoin, Challenglly pro, BitMart, BitGlobal PancakeSwap v2, AAX, etc.
Other platforms like Trust Wallet allow you to buy BNB directly on the Trust Wallet app using your credit card. You can also trade BNB using their multi-dex feature.
Is BNB a Good Investment?
New coins are coming up every day, and the crypto space is already saturated. However, BNB is one of the few coins that has consistently shown significant progress since its inception. As a result, many experts believe that BNB will continue to experience tremendous growth over the years.
Real vision says, “Like most successful crypto assets, the coin has experienced high volatility and a strong price increase. In the summer of 2020, just three years after its launch, BNB was already worth 200 times more (200x).”
BNB reached an all-time high price of $690.93 and currently holds 3rd place on CoinMarketCap.
According to a prediction from Long Forecast, BNB could be on its way to hitting $891 by the end of the year. CoinQuora also says that BNB’s price might also reach $700 soon. DigitalCoinPrice also predicts that BNB will hit $833.63 by the end of 2022.
However, because of the high volatility of BNB, it may not be a good idea for short-term investors as they could quickly lose all their investments. Nevertheless, in the long run, BNB is a good investment and the outlook on it for the coming years is a positive one. Therefore, think long-term if you want to invest in the Binance coin.
Without a doubt, BNB will continue to see better days in the coming years. A major contributing factor to the growth and stability of the coin is the quarterly burn carried out.
Apart from being a great investment choice within the Binance community, it is a great utility token that gives discounted fees to its users. Therefore, this system helps foster the growth within the Binance community, which contributes to that of BNB as well.
Steve is a cryptocurrency researcher. After completing his master’s degree in economics, he delved into the world of cryptocurrencies. After completing his 5 years of education in London, he worked as an audit specialist in a financial company. He is currently producing exclusive content for coinews.io.