Cryptocurrencies

Binance Coin (BNB) review, pros, cons and potential – Cryptocurrencies

What is Binance Coin?

What happens when a cryptocurrency coexists with a platform? This is the case for the cryptocurrency we are going to talk about in this article: Binance Coin. The latter, created at the same time as the Binance exchange platform, offers remarkable advantages. What is this cryptocurrency? What is its purpose? What is its relationship with the trading platform? We will see all of this in this article!

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Definition of Binance Coin (BNB)

In order to give you a clear and precise definition of what Binance Coin is, BNB cryptocurrency, we must first go through other definitions: that of cryptocurrency and that of blockchain.

What is cryptocurrency?

A cryptocurrency is a currency without physical support : everything is digital. More precisely, it is a virtual currency designed with cryptography, which represents the processes to encrypt information. The first cryptocurrency to make this domain popular was bitcoin, in 2009.

What is a cryptocurrency?

Cryptocurrencies can have a different purpose. Some, like fiat currencies, want allow purchases, financial transactions, etc.. Others, besides this, may have other purposes, such as develop exchanges between institutions, develop applications, etc.

You should know that cryptocurrencies are not governed by an institution. The latter operate thanks to their community which writes, by the force of their computing power, the transactions and information related to the cryptocurrency that they support on a network: the blockchain.

What is blockchain?

Blockchain is a technology that allows storage and transmission data from a cryptocurrency. This process is carried out in a secure and transparent manner, without the intervention of a central control body. Indeed, it is constantly updated by the corresponding cryptocurrency community which makes their computing power available.

Blocks store transactions, while chains connect them

The advantages of blockchain are multiple. It allows you to track all the information about a cryptocurrency, because it is a register listing all transactions since its creation. In addition, the blockchain is tamper-proof. As soon as the transactions are confirmed, they are irreversible. Under no circumstances can you cancel an operation that has already been approved and confirmed. This helps prevent corruption. It can also be used to develop certain things like automatic contract execution (this is called “smart contracts”).

What is Binance Coin (BNB)?

The Binance Coin is a digital currency created at the same time as the exchange platform Binance, or in 2017. He is also designated by BNB and once ran on the Ethereum blockchain, a blockchain acclaimed for its versatility.

Binance Coin overview

This is a currency that was once based on the Ethereum network in the form of ERC20 tokens. Binance Coin guarantees fee reductions on the Binance trading platform. Also note that he has a progressive course. In addition to this, cryptocurrency has many other uses. So whether for the payment of transaction fees on Binance, for the sale of digital assets (tokens) hosted on Binance Launchpad, or simply for the speculation, BNB is a very useful cryptocurrency.

History and Operation of Binance Coin

Several platforms were offering various cryptocurrency offerings until Binance entered the market. Since its birth, the platform has continued to grow as evidenced by the growth of its Binance Coin currency. Today Binance Coin is a cryptocurrency very popular and very advantageous.

The creation of Binance Coin

BNB was created with the exchange platform Binance

Binance Coin was created in 2017 as part of a fundraiser. Cryptocurrency came into being when Binance, then a start-up, launched its Initial Coin Offering (ICO). Investors were exchanging their money for Binance Coin. The main purpose of Binance Coin is to enable the benefit of commission reductions on operations carried out on the platform. Since its inception, Binance Coin has continued to attract investors, which contributes to its growth.

What are the principles of Binance Coin?

Like any other cryptocurrency, Binance Coin also has its own principles. This is what makes it so unique.

Why was Binance Coin created?

Binance Coin is a cryptocurrency originally created to help investors trade with other cryptos on Binance. By reducing transaction fees, BNB (Binance Coin) makes it easier for traders. Indeed, the latter can now perform operations without paying too high a price. They can buy BNBs in order to have a stock of currency that can help them pay part of their transaction costs. The creation of the BNB also aims to allow investors to make speculation. This is because cryptocurrency can increase in value over time. This allows investors to make profits on their bets.

Use your BNB to reduce your fees on Binance

How is Binance Coin used?

As said before, the main purpose of Binance Coin is the reduction of fees on Binance. But over time, the uses of Binance Coin have multiplied.

At the time of writing this site, it is possible to use the Binance Coin in over 100 ways. For example, like Bitcoin and other electronic currencies, Binance Coin (BNB) can be used to purchase multiple goods and services, from meals to homes. It is even possible to donate your Binance Coin on Binance Charity to help the most disadvantaged.

Donate Cryptocurrency on Binance Charity

Also, if you want to know more about this cryptocurrency, you can use the Binance Research platform which offers in-depth articles.

The objectives of Binance Coin (BNB)

Binance Coin was designed with well-defined goals. The main goal of cryptocurrency is to provide fee reductions first. This is the case with transaction fees, withdrawal fee and others. This went a long way in promoting the exchange platform from which it came.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

However, it should be noted that discounts granted decrease from year to year until the fifth year. In the first year, the fee discount was 50%. The second year it went down to 25%. At the time of writing this site, we’ve gone down to a 12.5% ​​discount, which is year three. For the fourth year, the reduction rate will be 6.75%. Finally, from July 2021, which will correspond to the fifth year, it is expected that there will be no further reduction.

In addition, Binance has its own decentralized exchange with Binance Coin as its main basic asset. It has existed since April 23, 2019 and is called Binance DEX.

Where and how to buy Binance Coin?

To buy Binance Coin, all you need to do is access a dedicated purchasing platform. There are several platforms where you can buy your coins. First, you can do it on the Binance exchange platform.

Binance is the first platform to think about to buy BNB

To do this, you will have to register first and then create an account. Then, you will need to verify your identity. For this step, you must provide your personal information (name, first name, gender, etc.). The next step is to perform a deposit of funds on your Binance account, whether in Fiat currency or cryptocurrency (Bitcoin or Ethereum, for example).

Cryptocurrency trading is Binance's signature

This deposit will allow you to buy your BNB. You also have the option of buying BNB directly by credit card.

This is the fastest way to buy BNB on Binance

The eToro purchasing platform also allows you to get Binance Coin. It was created in 2007, its use is simple and proves to be a very good ally for beginners.

Go through the eToro platform to buy your BNB

To purchase Binance Coin on eToro, simply register on the site and provide your personal information. In particular, you must provide:

  • A name ;
  • A first name ;
  • A username;
  • Your email address ;
  • A password ;
  • Your phone number.

Finally, you will need to accept the General Conditions of Use as well as the box on Risk Disclosure that should be read in the passage to be able to create your account. Once your account is created, do not hesitate to complete your profile.

Sample registration page (eToro)

To buy your BNBs on eToro, you will first need to make a deposit of funds. Several payment methods are accepted by the platform, including credit card, bank transfer, PayPal, Neteller or even Skrill. Once the funds have been deposited, you will only have to buy the cryptocurrency.

Start by crediting your eToro account to buy your BNB

Our two tips: Research the platforms before signing up, as transaction fees and delivery time may vary from broker to broker. Also, secure your account as much as possible, in particular by opting for 2FA when offered by the site.

Summary of the two sites and their characteristics:

Characteristics eToro Binance
Mobile app Yes Yes
French version Yes Yes
Means of purchase and deposit Bank transfer
Credit card
PayPal
Skrill
UnionPay
Neteller
Cryptocurrency
Credit card
Bank transfer
Advcash Wallet
Payeer Wallet
Epay Wallet
Means of sale and withdrawal Bank transfer
PayPal
Skrill
UnionPay
Neteller
Cryptocurrency
Bank transfer
Advcash Wallet
Payeer Wallet
Epay Wallet
Perfect Money
Okaypay
Creation date 2007 2017
Cryptos available 14 Over 100
Location Cyprus Unknown (at time of writing) despite some rumors
Security and reputation Very good Very good
Global services Excellent Excellent
Transaction fees Way Low
Reliable Yes Yes
Customer Support Effective Effective
Easy to use Yes Yes

When you are not using your cryptocurrency, remember to store it in a Binance Coin wallet (or an electronic wallet) for later use. In addition, Binance is a complete platform, because it offers its own wallet: the Trust Wallet. You can download portfolio on your smartphone, whether it’s Android or iOS.

Why invest in Binance Coin (BNB)?

Recent cryptocurrency, Binance Coin has known since its creation a strong development because of its many advantages. And it is no coincidence that more and more traders are interested in this electronic money. One of the strengths of this cyber currency is above all the reduction in transaction fees and its value.

The benefits of buying Binance Coin (BNB)

The benefits of buying Binance Coin

The advantages of Binance Coin are of course many. To begin with, Binance is a high growth company. For those who do not yet know, the rise of this cryptocurrency is intimately linked to the society which enjoys a great reputation. Indeed, over the years, the value of the cryptocurrency has increased significantly (with a few drops in price), which does not leave investors indifferent.

In addition, Binance Coin offers very attractive prices in terms of transactions. This is because when trading Binance Coin on Binance, there are no costs incurred. You also have the option of using Binance Coin when trading to obtain other cryptocurrencies, which lowers the cost of transactions. In addition, this currency can be used as utility coin instead of Bitcoin. In addition, Binance is a platform simple and easy to use. Its reliability is well established.

The risks of buying Binance Coin (BNB)

What are the disadvantages of BNB?

While there are advantages to buying Binance Coin, there are also some risks. First, it is common knowledge that the cryptocurrency industry is recent. Several events could therefore have negative effects and upset the course of the currency. The instability of the sector is therefore an aspect to be taken into account. The latter can lead to considerable losses in invested capital. Additionally, as we have seen, the fee reduction drops every year to zero in 2021, which could make the cryptocurrency increasingly obsolete in the eyes of investors if it fails to prove its worth. utility through other features.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

In summary, Binance Coin is the native cryptocurrency of the largest crypto exchange. It has many advantages that attract a lot of investors. These benefits include discounts on transaction fees. Buying Binance Coin can be done on multiple platforms such as eToro and of course its home platform, Binance. The latter is available in several languages ​​to the delight of traders. It’s important to note that buying Binance Coin also comes with certain risks. These include the risk of loss of capital and the risks associated with transactions. If you are interested in cryptocurrency, find out here how to buy!

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