Unlike an index fund or an Amazon stock, cryptocurrency cannot be purchased on the stock market via a traditional trading account, as you would with an index fund or a part of the company. Bitcoin and other cryptocurrencies are exchanged on specialized exchanges such as Etoro, CoinBase, and BlockFi.
Binance is the name of the cryptocurrency exchange that is the largest in the world. Indeed, it has grown to such an enormous scale that a “native” cryptocurrency, known as Binance Coin, was created only to make it simpler to pay for the site’s services.
If you pay your trading expenses using Binance Coin, the exchange’s native cryptocurrency, you may get a complete 50 percent discount on what are already minimal fees (BNB). Therefore, instead of paying 10 cents on a $100 transaction, you would only pay 5 cents if you completed the transaction using BNB.
BNB is an Ethereum-based (ERC-20) token that first appeared on the market on July 21, 2017, when Binance launched an initial coin offering (ICO) with a total supply of 100 million tokens. It ultimately transitioned to its blockchain, known as the Binance Chain, and capped the total number of BNB tokens available to 200 million in total. Learn about bnb to INR.
Reviewing the app, BNB is the official native app for Binance, the world’s biggest cryptocurrency exchange by trading volume. Binance Coin was created expressly for use inside the Binance ecosystem, which provides generous discounts to encourage its adoption — but there’s more to Binance Coin than just the trading discount — and it has a lot more potential. The cryptocurrency BNB, according to CoinJournal:
- Allows for lightning-fast transactions.
- It may be used to purchase and sell a wide range of cryptocurrencies on the open market.
- Is completely safe and secure.
- Some service providers, mainly in the hotel and tourism industries, accept it as payment in exchange for goods and services.
Although the following stats may not seem significant to those unfamiliar with cryptocurrency exchanges, the 1.4 million trades conducted on Binance every second and the platform’s 2 billion in the average daily volume are genuinely remarkable figures.
For processing cryptocurrency transactions, exchanges charge a fee, and one of the reasons Binance has become so popular is because its transaction costs are amongst the lowest in the world. Each of those billions of deals is executed at the cost of about 0.1 percent to the users.
Forbes magazine stated on April 6 that the value of the cryptocurrency industry had surpassed $2 trillion. A watershed moment for cryptocurrency, and Forbes particularly singled out BNB as one of the lesser altcoins (Bitcoin alternatives), fueling much of the extraordinary growth in 2018. However, those hoping to make a fast buck should proceed with caution.
Beyond the crypto bubble, BNB is not yet generally recognized as a currency outside of the travel, hospitality, and entertainment sectors, despite specific investing platforms letting you use it to purchase traditional financial instruments. Learn about cryptocurrency aggregator – Alligat0r.
It is equally trustworthy as non-native crypto, but it is not as anonymous as non-native crypto because Binance traders must register their accounts.
This is another cryptocurrency that you may choose to invest in if you so choose, but like with other crypto investments, be prepared for a crazy journey filled with exhilarating highs, terrible plummets, and plenty of drama in the meantime. That, after all, has been the tale of cryptocurrency investment so far in its history.