What is Binance Coin (BNB) And How Does It Work? : You would have never heard such a story, who makes his profit by destroying some part of his profit. When we talk about crypto currency, the story of crypto mining is attached to it, but in the coin we are talking about today, along with mining of coins, burning of coins is also done, that is, coins are destroyed.
A cryptocurrency that became famous in a very short time and today is counted among the top cryptocurrencies in the world. Today, in the series of crypto currency, we will understand about Binance Coin and learn how the coin made in 2017 became famous so quickly?
To solve which problem Binance Coin has been created, as well as know how much it is worth now, when and who made it and what are the possibilities of taking this coin in the future, why should you know about it?
What is Binance Coin (BNB)?
Binance Coin (BNB) is a digital asset issued by the Binance cryptocurrency exchange. It is used to pay for goods and services on the Binance platform as well as to vote on proposed changes to the Binance exchange.
In this blog post, we will show you how to buy and sell BNB tokens. We will also discuss some of the key features of this digital asset.
When and who created Binance?
Changpeng Zhao is the Founder and CEO of Binance Exchange and he launched BNB Coin on 26 July 2017. According to Forbes magazine, the founder of Binance has been the third richest person in the world of crypto currency in 2018.
How does Binance Coin work?
BNB is a crypto asset similar to other digital assets on the market in that it rises and falls in value as people use and trade it. People can hold BNB in wallets compatible with crypto exchanges and send the coin directly to others for payment or otherwise.
One may also wonder how to buy Binance Coin? For example, people can buy BNB in a number of ways, such as on Binance’s own crypto exchange. However, as always, be sure to research and comply with any applicable jurisdictional laws. The BNB chain includes the BNB Beacon chain and the BNB Smart chain.
The former focuses on BNB chain governance allowing BNB holders to participate in staking and voting. The latter is a consensus layer, Ethereum Virtual Machine compatible, and has multi-chain hubs. On a more technical level, Binance’s layer-1 blockchain has been merged to form BNB Chain (formerly Binance Smart Chain and Binance Chain).
When building the BNB chain, Binance tuned the blockchain for optimal performance to conduct on-chain trading on this newly formed chain based on Binance DEX, Binance’s decentralized exchange (DEX). In addition, BNB chain transactions are fueled by a blockchain gas token called BNB, which stands for “Build and Build” (formerly known as Binance Coin).
What is the price of Binance Coin?
To begin with, in 2017 itself, the price of one BNB coin was $8. By 2020, its price increased to $ 30, But as soon as the CEO of Binance COIN CHANGPRNG ZHAO announced on January 19, 2021 that some part of the profits of Coins will be destroyed every third month.
After this announcement, people were drawn towards Binance Coin and in February 2021, the price of a Binance Coin increased to $ 200 and in April 2021 itself, its highest ever price had reached $ 630.
How to buy BNB tokens?
- The easiest way to buy BNB tokens is through the Binance exchange. You can create an account on the exchange by visiting Binance.com and clicking on “Register”.
- Once you have created an account you will need to deposit some bitcoin or ethereum into your Binance wallet. You can do this by going to the “FUND” tab and clicking on “Deposit”.
- Next, navigate to the “Exchange” tab and search for the currency pair you want to trade. For example, if you want to buy BNB with bitcoin, search for “BNB/BTC”.
- Once you have found the currency pair you want to trade, click on the “Buy” button. This will open a new window where you can specify how many BNB tokens you want to buy.
How to sell BNB tokens?
- To sell your BNB tokens you must first deposit them in your Binance wallet. You can do this by going to the “Funds” tab and clicking on “Deposit”.
- Next, navigate to the “Exchange” tab and search for the currency pair you wish to trade. For example, if you want to sell BNB for bitcoin, search for “BNB/BTC”.
- Once you have found the currency pair you want to trade, click on the “Sell” button. This will open a new window where you can specify how many BNB tokens you want to sell.
- You will then be asked to confirm the transaction. Click on “Confirm” to proceed further.
- Funds will be transferred from your Binance Wallet and sent to the address specified by the other party in the transaction.
The Future of Binance Coin
The reason for the increase in the price of any coin is the usefulness of its use. Binance crypto exchange made a rule that anyone who transacts on Binance exchange and pays the transaction fee in the form of BNB token is given a 50% discount on the trading fee for the first year. And similarly, in the second, third and fourth year, a discount of 25%, 12.5% and 6.75% is given respectively.
People also buy BNB tokens because they can get a discount on its fees. Binance crypto exchange also uses BNB in a planned way on its launch pad. For example, when Binance launched Wazir X’s token WRX on its launch pad, there was a stipulation that anyone holding BNB would be given a ticket to distribute WRX. The value of BNB coin keeps on increasing by this type of scheme of Binance.
Is it safe to invest in Binance?
With being the largest exchange of the crypto currency market, Binance has never been hacked and there is no information about loss of its users, so till now it is safe and secure, due to which you can invest on it.
Faqs
What is Binance Coin (BNB)?
Binance Coin (BNB) is a digital asset issued by the Binance cryptocurrency exchange.
Who is Binance CEO?
Currently, the CEO of Binance is CHANGPRNG ZHAO.
When did the Binance exchange start?
In 2017, he started his own Binance exchange.
Is Binance App Legit?
Binance is US legal, but it is not available in all US states.
Conclusion
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