Binance Coin (BNB) for Beginners
As a native coin, Binance coin was created in 2017 by Zhang Pang Zhao and Roger Wan to offer users a digital form of currency that was quicker and more affordable. It was initially the native coin of Binance blockchain and was based on the Ethereum blockchain until they launched their own blockchain in 2019. Today, it’s a common form of currency and is one of the fastest tokens in today’s crypto ecosystem. BNB is currently used for all types of operations on Binance, whether users want to pay discounted trade on the Binance exchange or for spending similar to other types of cryptocurrencies available.
With 1.4 million orders per second, the Binance exchange is one of the fastest on the cryptocurrency market and was designed to offer a high level of convenience to traders. It can no longer be mined because it previously had 220 million coins that were pre-mined during the initial offering of Binance.
BNB has garnered increased support by partnering with several high-end companies, including Uplife, known as Asia’s live streaming platform. Uplife currently has over 20 million users and earns its profits by selling virtual merchandise from BNB currency.
One of the most interesting facts about this type of finance coin is that the company buys back the coins throughout the year, which is a unique strategy that has proven to be successful in increasing the value of BNB. A repurchase plan is in place, which helps BNB maintain its value over time. 20% of all of the profits are used to buy more BNB coins each quarter. The coins are then burned until 50% of their currency is purchased again. This reduces the total supply that is available in an attempt to raise the overall price as profits are passed down from the company to the blockchain to the coin.
It’s expected that there will eventually be approximately 100 million BNB coins that circulate from the original 200 million that were created. This will allow the cryptocurrency to maintain a higher value in the future.
Block card supports this type of digital asset, allowing users to use them for funding their block card accounts. Once the accounts are funded, the currency is available to use for buying different goods and services from over 50 million merchants around the world.
The History of Binance Coin
Binance coin was created to be fast and capable of handling a lot of data, allowing it to be more advanced than other options on the market. After Ethereum began to boom and increase in popularity, the creators of Binance realized they needed smart contracts. Smart contracts play an important role in the crypto space and allow new tokens to be created on the blockchain. Smart contracts make it possible to run decentralized applications and perform more complicated and intricate functions.
The Binance Smart Chain was created, which was the second blockchain. Many new users don’t realize there are two different Binance chains. The first is called “Binance chain.” Some people can make the mistake of accidentally sending their cryptocurrency to the wrong chain, making it easy to lose money while performing transactions.
Although the creators could have started from scratch by setting up new smart contracts, they opted for having Binance fork Etherum’s code to ensure it had the same features but was still capable of operating faster and at a lower price. This required giving up some of the decentralization.
Half of the 200 million BNB coins that were minted were sold to an ICO for 15 cents each in July of 2015, making it possible to raise $15 million. This allowed the early investors to earn a high return because the price is now close to $400. The founding team received 40% of the original coins with 20% vested each year. This allows the team to receive a certain amount of coins over time instead of all at once. The remaining 10% of the original coins were distributed among angel investors.
The Benefits of Binance Coin
Because Binance coin is significantly cheaper than Ethereum, it allows users to make hundreds of transactions without spending more than $1 dollar. Most transactions on Ethereum are an average of $3 to $50. Complex smart contract usages are known to be even higher in cost. The Binance smart chain makes it possible to create your own token at an affordable rate.
Many users also appreciate BNB because it’s considered highly secure and trustworthy, which is proven by the millions of users who have acquired the cryptocurrency. There are a variety of protection features offered with a multi-tier system framework that is in use.
Over 150 cryptocurrencies can also be traded while using BNB, and it even gets its own trading pairs to ensure it meets specific trading requirements.
BNB users can also take advantage of trading discounts that are available, making it possible to save up to 50% on the trading fee. If a user is buying $10,000 of coins, they are charged $10. Users only pay $5 when obtaining the BNB trading discount, which can be gained on any of the blockchains.
An additional benefit of using this type of cryptocurrency is the ability to participate in ICOs and IEOs. New token sales are hosted on Binance Launchpad, allowing users to obtain new forms of currency with their BNB tokens. The new currencies are then added to the Bitcoin exchange platform where they’re available to use for trading with a simple and convenient transaction that is performed.
Other Uses of the Binance Coin
One of the main uses of the Binance coin is saving on trading fees while using the Binance exchange. Discounts are also available on monthly services on other marketplaces. Discounts on electronics are also offered while using BNB to pay for the products.
Travel benefits are also offered, making it possible to save more every time you book a trip or spend time in a new destination. Many websites allow customers to make reservations and pay with Binance coin. Some of these companies include Travelbybit, Alternative Airlines, and Travala.
BNB can also be used to donate to different charities, including the Binance Charity Foundation (BCF). It’s also useful for investing in different types of stocks, assets, and exchange-traded funds (ETFs). Some websites even allow users to use it as loan collateral when borrowing large sums of money. BNB is also used to purchase entertainment on different platforms and through various merchants.
As BNB has continued to grow over time, it’s become more versatile with how it’s utilized.
Using BNB Anonymously
Some users will find that it can be difficult to use Binance coin anonymously. Users are required to have a verified account to use the currency within the Binance ecosystem. You can expect to provide your personal information before creating an account because the cryptocurrency complies with Anti Money Laundering (AML) and Know Your Customer (KYC).
Without creating an account, it’s impossible to use BNB on the platform. If you want to protect your identity, other cryptocurrencies like Zcash are more ideal with the transaction details that are revealed.
All digital activity related to Binance Coin is also traced by the government, Binance Coin, and potential hackers.
Financial Institutions Invested in Binance Coin
Throughout the history of BNB, investors have always been intrigued by this type of cryptocurrency due to the functionality of its platform. Some of the top investors who have acquired Binance coin include Black Hole Capital, Sequoia Capital, Plutus21, Vertex Ventures, Fundamental Labs, and Limitless Crypto Investments.
Regulating Binance Coin
As one of the largest players in the crypto world since 2017, Binance coin continues to open new offices around the world after regulatory scrutiny has increased in recent years. Several regions focused on the regulations of Binance coin in Malaysia, the United Kingdom, Japan, the Cayman Islands, and Malta.
All U.K.-related operations ceased in 2021 because BNB didn’t have proper registration, license, or authorization. Malaysia also filed a criminal complaint because it operated as an unauthorized virtual asset service provider (VASP).
U.S. customers were removed from the main exchange in 2019, but a new platform that is compatible with users in the U.S. opened shortly after.
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