BNB or the Binance Coin is the cryptocurrency native to Binance Exchange that can be used for trading on Binance cryptocurrency exchange.
The Binance Exchange is one of the largest cryptocurrency exchanges in the world having approximately 1.4 million plus transactions per second. Binance coin was launched in July 2017 and in its initial times, it worked on the Ethereum Blockchain but later on, it became the native currency of Binance’s own Blockchain, the Binance Chain.Â
One of the biggest advantages of using BNB is that the customers of the Binance crypto exchange have traditionally paid cheaper costs by paying platform fees in BNB, with Binance coin currency serving as a mechanism of change reduction. The maximum supply of BNB is about 200 million tokens.
In addition to that, Binance will also prolong the opportunity to receive a 25% discount on trading fees when paying with BNB until 13 July 2022.
Furthermore, BNB has also become a component of other Binance goods.
Applications of Binance Coin (BNB)
- Trading –
The first and the most significant use of BNB is trading. It can be traded for any other cryptocurrencies on different exchanges.
- Transaction fees –
BNB is also used to pay transaction fees on the Binance Exchange.
- Travel Accommodations –
The sites such as TravelbyBit and Trip.io can be used to book travel accommodations using BNB cryptocurrency.
- Financial Purposes –
An individual can take out a loan at ETHLend or make investments at Moeda. Furthermore, they can also make credit card bill payments at sites such as Crypto.com.
- Entertainment Purposes –
BNB coin can also help in the Entertainment sector, a person can by lottery tickets or pay for various virtual gifts.
Pros and Cons of Binance Coin (BNB)
| Pros | Cons |
| Binance Coin is one of the most extensively traded tokens. | About 80% of tokens are owned by Binance Exchange. |
| The value of coins is increasing every day, mainly because every quarter Binance redeems 20% of the tokens. | Binance is the main target for cyber attacks. |
| BNB Coin is not limited only to Binance Exchange, it can also be traded on other cryptocurrency exchanges. | Binance is not available in 7 US states which are Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. |
| It is very reliable as it was created by the largest cryptocurrency exchange – Binance. | It is not for sure that BNB will perform up to its reputation in the coming years. |
| It has multiple uses in various sectors such as payment processing, entertainment, investment, loans and transfers, and so on. | |
| BNB can also be used as a discount coupon on the Binance platform. |
Conclusion
Finally, it can be stated that BNB is a widely traded coin that is entirely trustworthy due to its association with the world’s largest cryptocurrency trading platform, Binance.
Even though it is newer than other cryptocurrencies on the market, it offers a lot of benefits as a result of which it has a trustworthy and secure image among merchants.
Furthermore, the community around this digital currency is extremely robust, with millions of happy and passionate users all over the world.
However, Binance has been the subject of several criticisms and legal difficulties since its beginning. Aside from that, BNB has also been chastised for its volatility and decentralized nature.