Binance Coin
What is Binance Coin?
BinanceCoin (BNB) is a cryptocurrency that was created in the form of a utility token by the team behind the exchange platform Binance. The reason behind it was to have a native token used for paying your transaction fees thus lowering their cost within the platform. The only place you can get BNB cryptocurrency is on Binance and it is not tradeable outside of it. The current maximum supply of tokens is 190 799 315 BNB. Let’s review BinanceCoin further.
Advantages
As mentioned earlier, BNB token is native to one of the largest and most popular crypto exchanges in the world – Binance. It will be used for a very long time, providing the user with stability. Some of the other advantages are:
- Extensive choices when it comes to currency pairs
- It is very easy to buy and then to convert
- Since its creation was focused on lowering the transaction fees, using BNB, will save you money from every transaction.
Disadvantages
Due to the popularity of the Binance platform, malicious users are attracted to it and there is always a chance for your funds to be hacked. Some of the other things to watch out for are:
- BNB tokens are useable only inside the platform
- There are no fiat to crypto pairs
- The token is centralized and dependant on Binance
History and Evolution
Binance Coin (BNB) was created as an ERC-20 token on the Ethereum blockchain network after a successful ICO in July 2017. After that Binance have lowered the transactional charges while using BNB by 50% in the first year and then 25% for the 2nd year, 12.5% for the 3rd, 6.25% for the fourth and so on until the charges are back to standard full price. This is to incentivise the usage of the token.
The team behind Binance consists of CEO Changpeng Zhao, CTO Roger Wang, Chief Architect James Hofbauer and VP of Engineering – Paul Jankunas.
Binance’s ICO started at 27th June 2017 and ended on the 2nd July 2017. The initial ICO supply represented just half of the 200 million token supply.
Binance Coin’s Future
The future for BNB looks bright as in the near future there will be a lower transaction fee if you pay with the token instead of paying with a fragment of the coin you are trading. Both new and old supporters of Binance Coin would prefer using it to maximize their profits.
The most noteworthy mention is that every quarter, Binance uses 20% of its profits to buy Binance Coin at its market price. After that they remove or burn the said tokens until 50% of the supply is removed, leaving approximately 100 million tokens.
Binance Coin Blockchain
Binance Coin is not a crypto coin because it does not have its own blockchain. It relies on the Ethereum network as it’s an ERC-20 token. Ethereum blockchain allows developers to quickly and with accuracy to predict how their token will work and perform if released. The ERC-20 standard for tokens really shortens the necessary time for development of a new crypto asset while also not deeming necessary for a developer to constantly reinvent the token so that it interacts with all basic functions.
The future plans for the network are very interesting. Binance Coin is planned for upgrade to exist on its own native blockchain mainnet, becoming a real coin. At the same time, the Binance platform would transition from being a company to being a wide community.
How to get Binance Coin at Exchanges
Currently most of what the exchanges can offer its users is pairs of BNB with crypto currencies only. You can either buy BNB and use it for your trades with other cryptocurrencies or just trade it as an asset within Binance. Its popularity is growing making it more desirable, thus HODL-ing it can be a good strategy for future profits.
| Exchange | Buy Binance-Coin with: | Buy with Fiat Money: | |
|---|---|---|---|
| Bitcoin, Ethereum + 25 more | – | Trade now | |
| Bitcoin | USD | Trade now | |
| Bitcoin, Ethereum and +8 more | – | Trade now |
Wallets for Binance Coin
In order to be able to hold the currency you buy, you will need a wallet. Wallets are software programs or hardware pieces that store your private and public keys used for accessing your funds. Currently there is no official wallet for Binance Coins but it is compatible with any wallet supporting ERC-20 tokens. What I can recommend is My Ether Wallet (MEW). It’s not a fully pledged wallet software program. It works more as a User Interface with which you interact with the blockchain. Alternatively, as mentioned before you can use any other ERC-20 supporting wallet shown below.
Alternative Wallets
There are currently 4 categories of wallets that you can choose from – desktop, web, mobile and hardware wallets. Desktop wallets are hosted on your computer locally, Web wallets are hosted in the cloud, mobile wallets can be used with your mobile device and offer access on the go and hardware wallets are devices like USB sticks that act as a wallet, also called cold storage.
Desktop Wallets:
Web Wallets:
News
There is no official roadmap for Binance Coin, but you can find the latest news on their website.