In the crypto world, Binance is the biggest brand around and they offer an ecosystem of crypto services around their own cryptocurrency – the Binance coin (or BNB).
BNB powers the Binance Ecosystem and is the native coin of the Binance Chain and the Binance Smart Chain. BNB has several use cases:
Pay for trading fees on the Binance exchange;
Pay for trading fees on Binance DEX (Decentralized Exchange);
Pay for transaction fees on the Binance Chain;
Pay for transaction fees on the Binance Smart Chain;
Pay for goods and services for both online and in-store purchases (e.g., using Binance Card or Binance Pay);
Book hotels, flights and more at Travala.com;
Community utility token on the Binance Smart Chain ecosystem (such as games and DApps);
Participate in token sales hosted on the Binance Launchpad;
Donate on Binance Charity;
Provide liquidity on Binance Liquid Swap;
What is Binance Coin (BNB)?
BNB was launched through an Initial Coin Offering (or ICO) that took place from June 26th to July 3rd, 2017 – 11 days before the Binance Exchange opened for trading. The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB.
BNB was issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. 100 million BNBs were offered in the ICO, but the current total supply is lower due to periodic burning events. If you want to know more about coin burns, and why BNBs are being permanently destroyed, check out What Is a Coin Burn?.
Although initially based on the Ethereum network, the ERC-20 BNB tokens were later swapped with BEP-2 BNB on a 1:1 ratio. The BEP-2 BNB is the native coin of the Binance Chain, and the mainnet launch was announced on April 18th, 2019.
In September 2020, Binance launched the Binance Smart Chain (BSC), which is a blockchain network that runs in parallel with the Binance Chain. This means that you can now find BNB in three different forms:
BNB BEP-2 on the Binance Chain.
BNB BEP-20 on the Binance Smart Chain.
BNB ERC-20 on the Ethereum network.
What is BNB used for?
As mentioned, BNB has many use cases. For instance, you can use BNB to pay for your travel expenses, buy virtual gifts, and much more. But let’s take a look at how BNB can help you with trading fees. Here’s how to buy BNB right away!
When trading on the Binance Exchange, each trade will incur a standard fee of 0.1% (trading fees are determined by your monthly trading volume and BNB holdings). You can either pay the trading fees using the assets you are trading or you can pay for them with BNB. If you choose to pay in BNB, you will get a special discount.
Therefore, if you trade a lot on Binance, you should consider getting BNB and using them to pay for your fees. Keep in mind that the deduction for trading fees follows a specific schedule, so make sure to check the current spot trading Fee Schedule. It’s also worth noting that the Binance Futures platform follows a slightly different Fee Schedule.
Apart from discounted trading fees, BNB is also powering the Binance DEX (on the Binance Chain) and hundreds of applications that are running on the Binance Smart Chain (BSC).
Binance coin is trading at around $280 USD per coin at the time of writing this, we expect this to increase by another 100% at least in the next rally. Sign up at Binance using this link https://bit.ly/31uRnnb and get 10% off your trading fees when you use this link!
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Get started at the world’s biggest and most established crypto exchange Binance at the link below: