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CRYPTO REVIEW

Binance Review

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April 13, 2021 | 

JOHN K MWANIKI |  0 Comments | 

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Any crypto enthusiast understands Binance crypto exchange. It is currently the leading crypto exchange globally, with more than a 1.4million transactions a second. Binance coin (BNB) is the crypto-coin provided by the exchange. It operates as the native currency on the platform with various functionalities. Users gain a discount from using the coin on the platform.

Like the parent company, BNB has also gained market traction. It has attracted several users due to its wide scope of uses. It is a utility token used to trade cryptos and a development protocol for building decentralized applications. It can also be used as a reward coin and many more options. 

However, how sustainable is the growth? Also, what is the probable growth pattern of the coin in the long run? 

This Binance coin review has everything you need to know about the coin. It looks into the growth patterns, long-term price potential, and every other thing. 

What is Binance Coin?

As earlier stated, Binance Coin is a Binance platform primary token. It is, however, tradable in the open market. It operates like any other crypto with blockchain technology. It is also tradable with traditional fiat currencies and other cryptocurrencies. 

BNB started as an altcoin based on the ERC20 standard that runs on the Ethereum ETH blockchain and network. It used the safety and regulatory principles of the Ethereum network, making it a safe and reliable network. 

The coin moved to its own mainnet in April 2019. The process led to Binance burning some of the tokens. It also encouraged investors to move to the BEP-2 tokens. However, the ERC20 tokens still exist, and one can move anytime. It, though, does not support withdrawing. 

Binance launched the coin in 2017 with an Initial Coin Offering (ICO) offering 100 million BNB. The project ran for 20 days, raising around $20million. The platform used the money in three distinct ways. 50% went into branding and marketing, 35% into the building and upgrading the Binance. The rest of the 15% is reserved as emergency money.

Uses of Binance Coin

Like any other crypto comes with several use cases beyond the Binance exchange. One of the other basic use cases is trading in various crypto exchanges. As one of the top cryptos, the coin is accepted in several top exchanges. 

BNB also works as a means of everyday payment. They are usable for payment processing for various merchants who use them as a payment method. Some of the payment options include booking for travel and entertainment. 

BNB is also great as a tool for investment. Several platforms allow BNB holders to invest in ETFs, stocks, and other commodities using the coin. The coin is also important when securing loans and transfers. Certain platforms accept it as collateral when securing loans. Other apps also accept it as a means of payment. 

The use cases of BNB are never exhaustive. They keep growing as the economies embrace the digital currency systems. 

Binance Coin Price History

BNB has had a steadfast run throughout its years of existence. The coin experienced its lowest period in 2017, a few months after launch. By the time, it was selling at around $0.0966109. That would turn to be its all-time low value. 

The coin would rise steadily to become the eighth largest crypto in the world, with a market cap of $2.87B in 2019. The price has since then been fluctuating. It was trading at around $18 in December 2019 and $16.24 around April 2020. 

BNB currently trades at its all-time high of $560.62. It is ranked 11th with a market cap of $86,752,505,208. 

Binance Blockchain 

The Binance chain comes with several utilities. It helps in creating new tokens, sending and receiving tokens, and digitizing existing assets. 

The chain allows for price, transaction history, and market activity confirmation through the DEX market. It allows for exploring the API and node RPC interfaces. You can also extract data from the chain and develop tools and apps for use in the Binance DEX and Chain. 

The Binance chain runs on the Tendermint BFT consensus mechanism. The design of the Binance chain ensures high performance through low latency and high liquidity trading. It also allows traders to maintain control of their funds and private keys.

The chain is about low-cost trading and an easier user experience. It is also evolvable to meet the ever-changing technological and architectural development. 

BNB Coin burn 

BNB's whitepaper provides for coin burning every quarter. This is where the company buys the coins using 20% of their profits from fees then burning or destroying them. 

The company has been consistent with the burn over the years, having done 13 already. It has almost similar effects to the Bitcoin halving. It tends to increase the coin's value due to decreased supply with sustained demand. 

The latest coin burn occurred on 17th October 2020. The process saw Binance remove over 2 million BNB coins permanently from circulation. This saw the prices of the coin rise from $27 to $32. 

Binance is looking at the possibility of accelerating the burn program. This follows a tweet by the CEO in the same. He promised to provide more details on the same while also welcomed ideas. 

Mining BNB 

Unlike Bitcoin or Ethereum, BNB does not allow for mining. This is due to its existence on the BFT consensus mechanism. It is the cryptos running on the proof of work validation that has the mining process. BNB, however, allows one to participate in the system as a validator. 

Validators play the same role as the miners. They safeguard the network and earn tokens while at it. They help validate blocks on the blockchain to ensure lawful transactions. 

Unlike miners, validators do not require mining equipment. Also, not everyone can take part in the validation. The network has a team of trusted validators that conducts the process. There has, however, been reports of Binance planning to decentralize BNB by expanding the validation to every other person. 

Trading BNB

Investing in BNB is a sound business, given the sustained value increase. As a native token to Binance, the platform remains the best place to purchase the BNB tokens. The platform allows you to exchange any other cryptocurrency like Bitcoin or Ethereum to BNB. It also accepts fiat currency exchange. 

BNB is also available in several other top crypto exchanges. These platforms provide for varying prices, which you have to consider before the purchase. Some of the exchanges to buy Binance coin are; ChangeNow, BTCEXA, Bitrue, KuCoin, Bittrex, etc. 

Storage is the next concern after purchasing the coin. There are several wallets to consider ranging from Binance coin paper wallets to mobile and web wallets. Some of the best wallets for BNB storage are; Ledge Nano X and S, CoolWallet S, Trust Wallet, and Binance Chain web wallet. 

Reasons to buy BNB 

There are several reasons to buy BNB. These include; 

  • Affordability – The coin provides a cheaper alternative for those who can't afford Bitcoin. It is also free to trade in the Binance platform. The users might also get a special discount from trading it on the platform. 

  • Controlled supply – cryptocurrencies are open to market forces of demand and supply. BNB has a limited supply of 99 million BNB coins. These are already in the market. As the coin becomes popular, the supply decreases, leading to more demand. It thus increases the coin's value in the long run. 

  • Continual growth – BNB enjoys the growth pattern of its mother company. A growing Binance exchange sees an equally growing BNB. This has seen the coin develop a strong infrastructure like that of Binance. 

  • Community trust – BNB enjoys high community ratings. It draws consumer confidence from its ease of operation and high withdrawal limits. It also comes with minimal security concerns.

Binance Coin competition 

  • Stellar 

Stellar is a blockchain network that connects financial institutions for enterprise solutions. It helps shorten the time taken to complete large transactions that would take days to complete. It also reduces the cost of such transactions and eliminates intermediaries. Individuals can also use stellar, and it enhances cross-border transactions. 

  • Litecoin

Litecoin is one of the coins to have taken after Bitcoin. It looks to solve the issues that come with Bitcoin, like scalability and slow transactions. Litecoin has been successful, with several merchants accepting it as a payment method. 
 

Currency

Binance coin

Stellar

Litecoin

Price ($)

564.84

$0.5823

$248.90

Market cap ($)

87,309,332,977

13,326,112,085

16,614,493,501

Volume ($)

13,632,707,073

2,451,960,830

5,112,912,365

Circulating supply

154,532,785 BNB

22,838,873,241 XLM

66,752,415 LTC

Future Developments for BNB 

Binance has grown over the years to become the top exchange due to top-notch innovation. The future of BNB is pegged to that of the Binance platform. As the platform keeps on expanding, coin becomes more integral. 

In his new year address, the Binance CEO has outlined innovation in an increasingly decentralized world as the tagline of 2021. It looks to improve the technical aspects of the network for security.

Bottom Line 

Binance exchange has become the leading platform due to its security and reliable services. It has imparted the same on its digital currency. The currency has since become more than just a Binance platform utility currency. As the crypto world becomes more integral, the coin has a place in the crypto sector. 

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