All You Need to Know About Binance CoinDate: 2021-11-16
Binance coin (BNB) is the first digital asset to merge fiat money with cryptocurrencies. It's a truly decentralized asset that can be used in multiple ways. It can be used in crypto-fiat transactions or fiat paper money. In this article, you will learn all you need to know about this valuable cryptocurrency.
Binance Coin (BNB): What is it?
Cryptocurrency is the way of the future. It's a digital currency that uses cryptography to be secure, private, and resistant to hacks. Cryptocurrency has become a phenomenon because it enables people locked out of traditional finance systems to start working for themselves.
This has led to significant growth in cryptocurrency prices since its inception in 2009, reaching over $1 billion in market capitalization in 2017. Cryptocurrency is not one specific asset class but rather a concept that traders, investors, and speculators all over the world can use today.
The crypto world is currently in a frenzy and it's not hard to understand why. It's the most prominent and fastest-growing industry of this century so far. Binance is currently the world's largest cryptocurrency exchange by volume and liquidity and one of the fastest-growing. BNB is listed on multiple exchanges, including Bittrex, HitBTC, OKEx, etc.
The main goal of this project was to provide a one-stop shop for crypto enthusiasts, which has brought about significant changes in the world of online trading and investment banking. This is because Binance was able to bridge this gap between two major markets, cryptocurrency, and conventional finance, within one year after its launch. The coin's goal is to rapidly increase its value by offering high liquidity and low volatility compared to other top cryptocurrencies.
Who created it?
Binance coin is an ERC20 token founded in Mid-2017. It was created by Changpeng Zhao, known as CZ, one of the most well-known and respected representatives in cryptocurrency and blockchain technology, who was working for Binance company back in 2017.
He did it at a breakneck pace but managed to make sure his creation went through with no errors and was executed flawlessly. It started its journey by being the first cryptocurrency to be launched on the Binance exchange in January 2018.
This coin was created to encourage investors and traders to use digital assets instead of fiat currencies like dollars or euros to buy or sell cryptocurrencies. Likely, the founders of Binance were also involved in Bitcoin, and therefore their coin has a lot of similarities to Bitcoin itself.
In addition, some people argue that BNB was created by Satoshi Nakamoto, which would make it probably the first successful digital currency. Still, this theory does not hold water as there is no solid evidence to support it.
How do BNB works?
As an asset, BNB can be traded on its own or as part of an exchange such as Binance, Huobi, or OKEx. However, its value fluctuates with different factors, such as price movements at exchanges and the dominance of other cryptocurrencies.
To buy and sell this cryptocurrency, users must first purchase their coins by paying fees to exchanges. Once they have their coins, they can then sell them on their own for fiat currency like USD or EUR through any major cryptocurrency exchange platform.
Binance Coin Exchange
Cryptocurrency trading platforms like Binance exchange provide the best way to make money with cryptocurrencies. They offer security and transparency but also provide reasonable market prices, which means you can buy and sell at any time without having to worry about the price fluctuations (this is especially important for large traders).
What can Binance Coin be used for?
BNB tokens are used as payment for various services provided by BNB holders, including withdrawal of funds from accounts, deposit to asset exchanges and trading on decentralized exchange platforms, conversion of fiat currency into digital currencies or vice versa, purchase of BNB-based derivatives, transfer between different wallets and more. It has also been used to trade Bitcoin and Ethereum.
Is Binance Coin a good investment?
Binance Coin is a relatively new crypto project with huge potential. It has the potential to become the first digital asset on the market to disrupt traditional finance. Investing in Binance Coin can lead to higher returns than investing in Bitcoin.
Binance exchange has no restrictions on new users and allows access to multiple trading pairs, such as fiat currencies, cryptocurrencies, and others. It also offers low fees for trading. This coin's fame comes from Binance's partnership with more than 40 global e-commerce platforms, including Walmart, TigerDirect, and Rakuten, much like ethereum or bitcoin. This gives it tremendous potential for expansion into new markets and could very well be an investment opportunity.
However, there are 4 significant problems with this asset:
1) It's high volatility.
2) Because of its price fluctuation, it is challenging to understand the value difference between BNB and BTC.
3) Multiple coins in the same wallet, which means no single coin can be trusted with your money.
4) Lack of liquidity in the market; you can't buy or sell it quickly because of its volatility, because of this it can result in losing significant amounts of money or even losing your entire fund due to price fluctuations.
Several other companies have integrated this cryptocurrency into their systems, such as Dell, Starbucks, etc.
Binance coin (BNB) is very popular among traders and speculators, who are investing in it to make profits from its price rise. But this rise has been accompanied by a lot of fear and uncertainty among investors, who do not know what will happen to this market over the next few months or years.