What is Binance Coin (BNB)? And What is Binance Coin Used for? How to Buy Binance Coin (BNB)?

Binance Coin is the native token of the leading cryptocurrency exchange Binance. Initially used to secure its funding, the coin now supports the functioning of the Binance ecosystem.

Like other cryptocurrency exchanges, Binance will match your cryptocurrency buy or sell orders to those of other users on its platform in exchange for appropriate fees. Since the main characteristics that distinguish one exchange from another are related to engine capacity, fees and liquidity volume, Binance uses BNB currency to make the platform more attractive to its owners.

Therefore, the most important function of the BNB coin is to act as the fuel that powers the services that the Binance exchange provides to its customers. First, users of the platform can use it to pay trading fees with various discounts. To be eligible, it is enough to have BNB coins in the wallet with the exchange. The amount of the discount is assumed to decrease over the years, from 50% in the first year of use of the coin, followed by 25% in the second and 12.5% ​​in the third year. Even when the discount reaches zero in the fifth year, the coin will continue to be used as a means to manage the payment of commissions on the Binance platform.

Decreasing the discount carries the risk of reducing the value of Binance Coins. To prevent this depreciation and maintain a stable price for BNB, its creators have pledged to periodically destroy (or "burn") some of these coins to reduce their total supply to 50% of BNB's total supply (100 million). It is burnt

As of September 2018, there are 95 million BNBs in circulation. At the same time, the coin's market capitalization is $ 915 million, with the historically highest value just over $ 2 billion. Although Binance Coin is closely related to the exchange it operates on, it is traded on competing exchanges such as CoinSwitch, Lbank, and others.

In addition to facilitating the operation of its native network, the BNB coin can be used to invest in Initial Coin Offerings (ICOs) that are part of the Binance Launchpad program. Upon completion of an ICO, the new coins will be immediately listed on Binance to speed up the connection between the platform and the ICOs. Additionally, Uplive, a mobile live streaming platform, supports BNB for purchasing virtual gifts.

In April 2019, Binance launched Binance Chain as the public blockchain is expected to use the platform's currency to help with resource management on it. Later, Binance Coin switched from the Ethereum blockchain to the Binance chain.

What is Binance Coin Used for?

BNB has many uses both in the BNB chain ecosystem and beyond, so it is up to you how you use your BNB. For example, you can use BNB to pay your travel expenses, buy virtual gifts and much more. We estimated that millions of BNB have been consumed by users for travel expenses, product payments, loans, wages, creating smart contracts and other transactions.

Many people also use BNB to pay transaction fees. On the Binance trading platform alone, around two million users have used BNB to pay trading fees totaling over 40 million BNB in ​​over 127 billion transactions. Let's take a look at how BNB can help you with trading fees.

When trading cryptocurrencies on Binance Exchange, each transaction will incur a standard 0.1% fee (trading fees are determined by your monthly trading volume and BNB holdings). You can pay trading fees using the assets you are trading or you can pay them with BNB. If you choose to pay in BNB, you will receive a special discount.

So, if you do a lot of trading on Binance, you should consider buying BNB and using it to pay your commissions. Please note that the trading fee deduction follows a specific schedule, so be sure to check out the current Spot Trading Fee Schedule. It is also worth noting that the Binance Futures platform follows a slightly different pricing plan.

In addition to discounted trading fees, BNB also powers Binance DEX (on the Binance Beacon Chain) and hundreds of apps running on the BNB Smart Chain (BSC), which means you can also use BNB outside the Binance trading platform. . In fact, more than 180 digital assets have been issued in BSC and millions of users have consumed BNB for utility purposes in connection with BSC.

Who Are the Founders of BNB?

Changpeng Zhao is the founder and CEO of Binance. In 2001, Zhao joined Bloomberg as head of development of book futures. He spent four years with the company and then joined Fusion Systems as a partner.

Since 2013, Changpeng Zhao has been actively involved in blockchain technology and cryptocurrencies. He became Head of Blockchain Development and founded BijieTech in 2015. In 2017, Zhao officially launched Binance and has been the company's CEO ever since.

He Yi is Binance's co-founder and CMO. She began her career as a TV presenter and host on China Travel TV in 2012. Later in 2014, Yi co-founded OKCoin, which was the largest fiat-to-crypto exchange in China at the time. In 2017, she joined forces with Changpeng Zhao and together they created the largest cryptocurrency exchange in the world: Binance.

How to Buy Binance Coin (BNB)?

Being the dedicated token utility of the Binance exchange, the easiest way to acquire BNB coins would be to buy them through Binance. The original exchange supports the largest variety of trading pairs with BNB and also has the best exchange rates for the coin. Since the launch of Play2Earn games, interest in the BNB to PHP price has increased dramatically.

If you are looking for alternative exchanges in which to buy BNB, FTX is a good option. Keep in mind that investing in cryptocurrencies can be risky, just like investing in any other type of asset.