Binance (BNB) coin review: Is BNB the future of crypto?
Binance is one of the biggest crypto exchanges out there, and Binance coin (BNB) is well on the way to achieving the same level of popularity. With strong growth and promising features, you might be tempted to invest. Here’s what you need to know before you do.
Binance coin (BNB) hit an all-time price high in February of 2021, and there are no signs of it slowing down. With a 350% price increase in just three months and a consistent growth path over the last few years, it seems like the coin can do no wrong.
In this article, we’ll run through how Binance coin works on the Binance exchange, what makes it special, whether you should invest, and how to buy-in.
What is Binance?
Binance is one of the most used cryptocurrency exchanges in the world. It’s different from other popular exchanges, like Coinbase, because it offers one of the widest ranges of crypto pairings and focuses on altcoins — this has helped catapult it to global success.
What is Binance coin?
BNB’s primary function is paying transaction fees incurred on the Binance exchange (e.g., listing fees, exchange fees, and trading fees).
Compared to external currencies, a native coin makes crypto transactions quicker and more affordable for customers.
But BNB is more than just a way to pay fees on Binance, it also is considered a prime investment opportunity for crypto holders today.
Is Binance coin a security?
The definition of a security is a tradable financial asset with monetary value. Binance is certainly tradable, but the question of whether it has monetary value is down to opinion.
Technical classifications of securities rely heavily on the law, which is still struggling to get to grips with cryptocurrencies.
Given that Securities and Exchange Commission (SEC) officials have explicitly stated that Bitcoin and Ethererum aren’t securities, it seems reasonable to assume that Binance coin wouldn’t make the cut for lawmakers either.
However, the SEC has decided other cryptocurrencies are securities, such as SALT sor Salt Lending. The same thing may happen to Binance since BNB is directly related to a centralized company, so it will be important to watch this space.
Binance coin benefits
Now that you know what Binance coin is, let’s dig into what makes BNB so exciting.
A problem many cryptocurrencies face is that there are too many coins in circulation, diminishing their value. This isn’t the case with Binance — the team uses 20% of its profits to buy coins back and “burn” BNB.
This might sound crazy to crypto outsiders, but it keeps the coin scarce so they can retain value. In other words, the Binance team is doing everything they can to protect BNB coin holders’ investment.
As touched on already, using Binance’s native coin to pay fees helps the platform to run more quickly and efficiently with fewer costs involved.
Plus, compared to other exchanges, Binance offers low fees and high liquidity, making it an attractive choice for all your crypto trading needs. The better the platform works, the more valuable Binance coin becomes, which is great news for investors.
Having an efficient way to pay transaction fees sounds appealing enough, but as a further incentive, Binance offers BNB users a rebate for using the coin to pay fees.
The precise value of the rebate decreases in value annually over five years on a sliding scale, but that’s still pretty generous.
Is Binance coin a good investment?
Given all the useful features of Binance coin, you’d expect it to be a decent investment, but let’s look at this in further detail.
Binance coin is currently (as of 08/02/2021) worth $74.56, making it the seventh most valuable cryptocurrency on CoinMarketCap. Not a bad start.
As of writing in February of 2021, the price of BNB is at an all-time high, emerging as a big winner of the current surge in Bitcoin, Dogecoin, and other cryptos.
And since the market crash in March 2020, BNB’s price has increased 718%.
Other than a drop in March of 2020 — which was experienced by practically every cryptocurrency and stock — BNB has only seen a few temporary dips since its launch. It has practically remained on a consistent upward trend.
Plus, initiatives like LaunchPad and Binance DEX could increase value further.
While there’s no guarantee that BNB coin will go up in value consistently, the horizon looks promising. If you’re willing to believe crypto is a good investment, having faith in Binance coin seems like a natural next step given its track record. As Binance is one of the biggest crypto exchanges in the world, any movement in the industry is felt in BNB.
How to buy Binance coin
If you think that the future looks bright for Binance coin, you might be wondering where you can buy it. The obvious answer is the Binance exchange itself, where you can purchase various cryptocurrencies, including BNB with other cryptos.
But if you’d like to discover a new way to invest that helps you get the most out of your digital assets, consider sites like MyConstant.
Through our crypto-backed loans, you can borrow Binance coin against 73+ other cryptocurrencies as collateral. It’s the perfect way to invest in a new cryptocurrency without having to sell your other assets.
Or, if that doesn’t suit, switch things up and use Binance to back a stablecoin or USD loan.
You can also earn more BNB just by storing your Binance coin in a wallet on MyConstant. Through Crypto Lend, you can earn up to 8% by investing your BNB, all while keeping it safe through our extensive security features and 24/7 customer service.
Sound like a good deal? Sign up for a free account today.
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