Binance is one of the largest cryptocurrency exchanges globally, and as previously mentioned, owning Binance Coin and keeping it on the exchange in one’s trading account can lessen transaction fees on the Binance exchange. Its benefits include the following:
- Steep Discount on Trades: When users choose to reduce the various fees in the Binance exchange via activation of the Binance Coin option, they receive a high discount. The yearly discount will be 50%, 25%, 12.5% and 6.75%, starting from the first year.
- Future of DEX Binance: Eventually, Binance plans to go fully decentralized, and Binance Coins will be the ‘gas’ of the network. This will make the Binance Coins extremely valuable in the future.
- Ethereum Assurance: As an ERC20 compliant token, Binance Coin will run natively on the Ethereum blockchain, which will give the coins the solidity, security, and advanced features of the Ethereum platform including usage of Smart Contracts.
- Repurchasing Plans: Binance will use 20% of their quarterly profit to buy back Binance Coins from their exchange. They will buy back and destroy a total of 100 million Binance Coins. With such a regular demand, it is estimated that Binance Coin’s price will remain elevated, particularly as the exchange grows in size.
- Easy Convertibility: Users can easily exchange their Binance Coins for more popular cryptocurrencies like bitcoin, Ethereum or Dash, and others. It is a coin pairing option on the exchange, along with bitcoin and Ethereum.
What is Binance Coin?
Binance Coin is the native currency of the Binance cryptocurrency exchange. The coin can be used for multiple purposes within the exchange, such as reducing exchange fees, listing fees, withdrawal fees, and pretty much any other fee on the exchange.
Where to buy Binance Coin (BNB) in the US?
The following two crypto exchanges are top-rated for trading BNB, which is the world’s 4th largest cryptocurrency, behind only Bitcoin (BTC), Ethereum (ETH), and Tether (USDT):
- Binance.US is owned by the same parent company that started the Binance Coin (BNB), so it’s only reasonable to expect high liquidity and plenty of trading options. With 4 different markets, BNB/USD, BNB/USDT, BNB/BTC, and BNB/BUSD, users won’t be disappointed.
- Gate.io offers three market pairs, BNB/USDT, BNB/KRW (Korean Won), and BNB/BTC.
Where to buy Binance Coin (BNB) in Europe?
European traders have access to a wider range of cryptocurrency exchanges and a larger selection of market pairs:
- Binance – The home of BNB, offering around 150 different trading pairs!
- Gate.io – 3 markets
- KuCoin – 3 markets
- Poloniex – 4 markets
- FTX – 3 markets
As the native cryptocurrency on Binance, users can unlock further rewards for trading BNB, such as discounted transaction fees. In addition, there are also opportunities to stake BNB and earn a passive income.
Trading on Binance DEX
Binance DEX is a decentralized crypto exchange offered by Binance, where traders can trade without making an account or providing any personal information. Users have the option of using WalletConnect to pair with their external wallet (if compatible) or using a Keystore file to open a decentralized wallet.
Binance DEX is great for projects who want to create BEP2 and BEP8 tokens instead of ERC-20 (the most common type of cryptocurrency). There are 77 different trading pairs on Binance DEX, but most of these coins will be unfamiliar even to regular traders, meaning it’s a great place to spot a bargain!
How Binance Coin Works
Binance Coin can be purchased on the Binance exchange with popular cryptocurrencies like bitcoin, Ethereum, and a few more. Once Binance coin is purchased, it can be used on the Binance cryptocurrency exchange for multiple purposes like exchange fees, listing fees, and withdrawal fees. Once the Binance Coin is in the Binance account of the user, during every transaction, the user gets the option to use Binance Coin to pay the fees. This feature is activated in the Settings portion of the user profile. A user only needs to tick the “Activate Binance Coin to Pay for Fees” switch, and fees will be reduced by a set percentage (currently 50%).
History of Binance Coin
Binance is headed by Changpeng Zhao (founder of BijieTech and OKChain), Yi He, and Da Hongfei. The company has a close working relationship with the NEO cryptocurrency organization. Binance went live in an ICO (Initial Coin Offering) in 2017, in which Binance Coins were distributed to ICO participants. A total of 200 million Binance Coins will be created, out of which only 100 million coins will remain in circulation after a series of planned company buybacks and destruction periods.