Binance Coin (BNB) is the world’s most sought-after cryptocurrency exchange token. It was launched on Binance in 2017 and has grown in value over time, thanks to the competent study of its purpose. The use of the token is not limited to a discount on commissions but includes various functions. This article will talk about the token and how to exchange, for example, BNB to BUSD.
What is BinanceCoin
BNB is a token that provides a significant share of functionality in the Binance ecosystem. It was launched as an ERC-20 token and transferred to the Binance Chain and Binance Smart Chain blockchains (BEP-2 and BEP-20 standards). Serves for the following purposes:
- partial payment of commission fees;
- fuel for transactions within the chain;
- asset for passive income (staking, deposits);
- purchase of goods and services from exchange partners.
Binance Coin can also be used as a trading asset.
The exchange burns a portion of BNB quarterly to control inflation and maintain value. Tokens are burned for an amount equivalent to 20% of the enterprise’s quarterly profit. At the same time, Binance does not buy tokens on the market but simply burns them from its reserves.
Ways to buy and sell Binance Coin (BNB)
Let’s look at the main ways to buy or sell Binance Coin (BNB) cryptocurrency.
On cryptocurrency exchanges
On Binance, the BNB coin is paired with the most available currencies, giving you plenty of trading space and high liquidity.
Also worth mentioning are decentralized exchanges, namely Binance Dex, which runs on Binance Chain and supports the assets listed on this chain, including BNB. To work with this site, you do not need to create an account – the user creates a wallet, and the key and secret phrase are stored by him.
In cryptocurrency exchanges
After choosing an exchanger that suits the exchange rate, reserves, and the minimum amount, go to it. The principle of operation is the same. You need to enter the details of sending and receiving, transfer funds in the specified amount to the account provided by the exchanger, and receive the result on the final account.
Here you can exchange many cryptocurrency pairs, including btc to sol. Nearly every exchanger has an accumulative discount approach, so with regular exchanges, it is likely to make an account on one comfortable service and still use it.
What wallets can I store Binance Coin in?
It is safest to store coins in wallets officially recommended by their creators. Supported:
- mobile – Trust Wallet, Coinomi, Infinito, Enjin;
- hardware – Ledger, Coolwallet S;
- desktop – Exodus, Atomic Wallet, Zelcore;
- online – Math.
As the crypto market continues to evolve, major crypto exchanges like Binance have the potential to grow. Given the fact that institutional investors are now actively entering the cryptocurrency market, there is reason to believe that an increase in demand for Binance Coin from buyers is expected. It cannot be denied that the coin’s fate is closely related to the performance of Binance as an exchange.
So far, the platform has managed to maintain and increase the coin’s value, not only as an asset for receiving trading discounts. Therefore, it is not surprising that the desire to buy Binance Coin for one purpose or another regularly arises among the site’s clients. The downside is that the asset’s potential is 100% related to the possibility of the exchange – if the platform ceases to be in demand, then the coin will lose all value.