If Bitcoin is the superstar of the cryptocurrency world being a household name even among newbie investors, then other cryptos such as the Binance Coin or the BNB, can be considered as up-and-coming stars.
Binance Coins or the BNB, is issued by the largest cryptocurrency exchange in the world, the Binance. The BNB Coin is a crypto-currency that can be used as a transitional asset when trading money, from one crypto-currency coin to another.
And here's the good news: You can also invest on this cryptoasset via the eToro platform (check out our eToro broker review).
Simply said: BNB Coin is the cryptocurrency of the Binance exchange platform. It is the cryptocurrency used to pay fees and trade on the Binance Exchange.
Today, the BNB has reached a market cap of over $100 billion and is seen as one of the most valuable digital currencies in the world next to Bitcoin and Ethereum.
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History of Binance Coins (BNB)
Binance started issuing Binance coins on July 25, 2017. It debuted to a lukewarm reception among crypto-currency investors but slowly gained traction until it stabilized in the world of cryptocurrency. The BNB virtual coin now represents 4.5% of the over-all crypto currency market cap.
Understanding BNB is Important
Unlike the simple concepts of the Bitcoin and other crypto-currencies, investing on BNB Coins requires an in-depth understanding of its eco-system. Changpeng Zhao, Binance Exchange CEO offered some words of advice for future BNB Coins buyers and traders. He recently tweeted “Don’t buy BNB if you haven’t spent more than 3 full days learning about it" Zhao wrote. "Its ecosystem is large and will take a while to understand. Don’t just buy it because its price has been going up.”
Comparing BNB to Bitcoin
To get a better understanding of BNB, you can try comparing it with Bitcoin. Here's how BNB and Bitcoin differs from each other.
- Bitcoin follows a cap of 21 million coins wherein BNB Coins has a bigger cap of 200 million. This shows that in the future, BNB Coins will have a larger volume than Bitcoin.
- Investors feel more secure in trading BNB Coins on Binance—where it is listed—which is considered as one of the safest and most secured exchanges in the world. Bitcoin meanwhile, is tradeable in different exchanges thus as a Bitcoin trader, you always need to be aware of the safety and security ratings of the crypto exchange you're trading on.
- Bitcoin is considered as decentralized. This means, you can trade Bitcoin in any crypto exchanges. Therefore, Bitcoin is prone to different influences. BNB Coins is traded in one centralized location (Binance Exchange) making it less susceptible to market volatility and other influences.
Trading BNB in eToro
Yes, you can trade BNB Coins in the Binance exchange using the eToro trading platform. To start trading BNB Coins, just follow these simple steps.
- Click "Trade Markets".
- Select “Crypto”.
- Scroll to look for “BNB” and click on it.
- Click “Trade”.
- Set the amount you want to invest.
- Click “Open Trade”.
You can securely store your BNB coins at these leading wallets that supports the Binance Chain:
- Trust Wallet
- Ledger Wallet
- Enjin Wallet
- Infinito Wallet
- CoolWallet 5
- Atomic Wallet
- Magnum Wallet
- Hoo Wallet
- Guarda Wallet
- Ellipal Wallet
Uses of Binance Coin
Similar to other cryptocurrencies, BNB Coins can also be used outside the Binance Exchange. Here are some of its leading uses.
- Trading or Investing. BNB Coins can be used to trade with other cryptocurrencies.
- Transaction Fees on Binance Exchange. BNB Coins was developed to serve as the official crypto to use for paying all transaction fees on the Binance Exchange.
- BNB Coins can also be used for credit card payments.
- BNB Coins can be used as payment. Many merchants now accept BNB coins as mode of payment.
- Purchasing virtual goods and tokens. BNB Coins can also be used to pay for virtual items and other digital products.
- BNB Coins can be used to simply invest. Many trading platforms such as the eToro now allow users to invest on Binance Coin.
What is BNB Burning?
BNB burning is the practice of Binance Exchange to use at least 20% of its profits to buy back Binance Coins and figuratively burns it by destroying it.
Binance performs the BNB Burning every quarter and will continue to do so until it buys back and 'burns' 100 million Binance coins—or 50% of its total 200 million cap.
BNB burning guarantees the supply of BNB coins to remain finite, thus driving it to worth more as it becomes scarcer.
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