Binance is currently one of the most popular exchanges in the world. One of the main advantages that attract users is the Binance Coin (BNB).
This article will bring you some basic knowledge about the Binance Coin, such as what is BNB, what is BNB used for, where can you buy and sell BNB and where can you store BNB?
What is Binance Coin?
Binance coin (BNB) is a digital currency developed on the blockchain platform of Ethereum according to ERC20 standard. BNB coin is issued by Binance – China’s largest digital currency exchange, to maintain and develop Binance’s system. BNB coin is used for trading with another coin on Binance platform with BTC, ETH, and USDT.
The Binance coin currency issued by Binance in the ICO round with a total of 200 million coins. Of which 50% is sold publicly, 40% is for founders and 10% for early investors. The Binance floor will plan to buy BNB coins and cancel 100 million coins leaving only 100 million coins (currently completed and total BNB only 100 million).
What is BNB used for?
Binance Coin (BNB) is very useful in Binance’s electronic money ecosystem.
The most important and outstanding role of BNB is to reduce transaction fees on the Binance floor. Currently, Binance charges 0.1% on each transaction. However, if users of BNB will get an additional 25% discount, this is a very attractive incentive for traders who regularly trade on the floor.
Besides, Binance is the IEO wave of the pioneering platform with the Binance Launchpad platform. Investors who want to buy project tokens on the Binance Launchpad are required to use BNB.
Moreover, it is not only the Binance ecosystem that uses BNB.
use BNB to pay for restaurants and hotels when traveling through TravelbyBit
use BNB to purchase goods in the game store of XPOS, via the PundiX
accept BNB payments via Coinify
What is special about BNB?
Binance coin is a separate currency of Binance floor and is used as a trading coin for other coins, so its liquidity is very large. Also, when you use the Binance coin to buy and sell other coins on Binance.com, there will be a lot of discount for the transaction, as follows:
1st year: 50% discount
2nd year: 25% discount
3rd year: Reduction of 12.5%
4th year: Reduce 6.75%
Year 5: No discount
Currently, in the first year, you will receive a 50% discount on transaction fees when using BNB coin to buy and sell other coins on Binance.com. Moreover, Binance floor also uses BNB to pay for withdrawal/deposit fees and other fees.
Where can you buy and sell EOS?
Some other coins are only traded internally on that exchange. However, the Binance Coin is not among these.
Not only Binance, but BNB is also listed on Bitmax, Gate.io, HitBTC, … With so many exchanges, BNB volume each day reaches more than 300 million USD.
That concludes the article. Hopefully the article will provide throughout understanding to those who are learning about Binance Coin and help you decide whether to invest in it or not