Getting to know the cryptocurrency world can be very exhausting due to all the coins, platforms, and details you have to learn and keep in mind to avoid losing your time, money, and effort in working and investing around them.
However, if you want some advice, you should start focusing on them if you are looking for better opportunities and want to have some influence and steady income in the future. After all, if Bitcoin is massive nowadays, what can you expect from the rest? Spoiler: a lot, so don’t say we didn’t warn you.
Of course, if you are here, that means you’re very interested in learning a bit more, and with Binance being part of the center-right now in several countries and regions, it is expected for you to be curious about the coin and how it works in specific.
This is why we decided to give it its own space and ensure you can understand it and determine if it is worth your time and money by the end of this article.
Should we start? Just be prepared for the ride.
First, What Is Binance Coin (BNB)?
Binance Coin, which is the cryptocurrency issued and traded on Binance Exchange’s platform with the ‘BNB’ symbol, is one of the most popular coins in this decentralized system.
However, to understand the coin, you must know first that Binance Exchange, which supports more than 1.4 Million transactions per second, is the largest cryptocurrency exchange worldwide as of June 2021.
This means that it isn’t only about the coin in specific but rather the company or exchange that supports it since its creation in 2017.
BNB can be used to pay fees and trade on the Binance cryptocurrency exchange. Also, its users receive a discount on transaction fees on the exchange. In contrast, the coin can be exchanged or traded for other cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and many more.
The idea of this coin works as every cryptocurrency you have known so far. Still, as you might know already, each of them has its own perks and uses in the industry, and the reason for their acquisition goes beyond the simple fact of being a method of investment.
The Person Behind Binance Exchange & Coin
A few years ago, many people called those with the idea of founding or starting a cryptocurrency or blockchain “crazy,” and right now, we bet they are all biting their tongues with the success of the idea so far.
This is why, kids, you should never listen to others when you have faith in yourself and know the idea can work out.
People like Changpeng Zhao made sure to focus on their goals, and to this date, you can see it came with the best results.
Zhao is a Chinese-Canadian Business executive and current CEO and founder of Binance.
However, the history he has made in the cryptocurrency world doesn’t start with this exchange and coin alone.
The genius was previously part of the team that created Blockchain.info and was also chief technology officer at OKCoin.
Being born in Jiangsu province, China. In the late 1980s, he moved with his family to Vancouver, British Columbia, Canada.
His father was a professor in China before he was branded “pro-bourgeois intellect” and exiled from his country, making it the family’s main reason for moving out of their native province.
Zhao worked in the service industry, including a McDonald’s employee, while he was still in his teens. Still, when he grew a bit more, he decided to study computer science at McGill University in Montreal, Canada.
After university, Zhao got an internship in Tokyo, working for a subcontractor of the Tokyo Stock Exchange, developing software for matching trade orders.
After graduating from university, Zhao worked as a full-time developer of futures trading software at Bloomberg Tradebook for four years.
He moved to Shanghai in 2005 and founded Fusion Systems. This company is known for its fast high-frequency trading system for brokers.
From here, we can skip to 2013, when his experience with Blockchain.info and OKCoin start to take place since these positions allowed him to dive deeper into cryptocurrency projects.
In 2017, he decided to quit his job as OKCoin chief to create Binance. After receiving $15 million in funding during the initial coin offering, Zhao launched Binance in July 2017.
After only eight months, he made Binance the largest cryptocurrency exchange in terms of trading volume. He followed the success in April 2018 when he created the blockchain network Binance Smart Chain, which has significantly contributed to the growth of decentralized finance.
Binance Coin Background: Getting to Know the Currency
Getting to know or understand how a cryptocurrency works or how it is so popular nowadays is quite hard because even when it is new, there’s a lot of background to cover with all the ups and downs, how it was launched, and how it came to the point it is in 2021.
Therefore, we will need to go over everything with quite some details.
Binance Coin was initially launched on the Ethereum blockchain using the ERC 20 standard. However, it has become the native currency of the Binance chain.
The launch took place during an initial coin offering in July 2017 and compared to other cryptocurrencies, BNB has set its maximum at 200 million tokens.
During this offering, the chain offered 10% of the tokens to angel investors, 40% to the founding team, and the remaining 50% to the various participants through the offering process.
Nearly half of the funds raised in the process were used for Binance marketing and branding, while the other third was used to build and maintain the Binance ecosystem.
Now, this is basically the coin in particular, but we cannot ignore the fact of the exchange overall.
Initially, Binance was founded in China (we are talking about the exchange). However, it moved its headquarters and servers to Japan before the September 2017 ban by the Chinese government on cryptocurrency trading.
However, in 2018, Binance announced its intentions to open an office in Malta after stricter regulations in China and Japan.
As a result, Binance signed a Memorandum of Understanding with Bermuda in April 2018 and another similar memorandum with the Malta Stock Exchange a few months later to create a platform for trading security tokens.
With the goal of expanding its European reach, the company created Binance Jersey in 2019. Jersey-based exchange offers fiat-to-crypto currency pairs, including the Euro and the British pound.
In August 2018, Binance, along with three other big exchanges, raised $32 million for a stablecoin project. Stable coins are a way to offer cryptocurrencies without the volatility associated with Bitcoin and other digital assets.
From here, the coin has had many downsides considering the breach by hackers in May 2019 and how the company is being investigated by the Internal Revenue Service and the United States Department of Justice due to allegations related to money laundering and tax offenses.
Despite this, people continue to invest in the currency due to its growth over the last few months (2021), and despite its value set at $485 to this date, it only follows a growth in the next 12 months.
What is important to pay attention to is the BNB burning the company performs every quarter.
Binance’s whitepaper explains that Binance spends 20% of its quarterly profits on Binance Coins. This allows them to buy back and burn them, but with what purpose?
The reason why the company will continue to burn quarterly is for it to finally purchases back and destroy 100,000,000 Binance coins, or 50% of the total supply.
This practice makes Binance Coin more scarce and valuable by ensuring that its supply is finite. In other words, they just want to increase the value of the coin, and it is working so far.
Using Binance Coin (BNB) Daily
Unlike other cryptocurrencies that focus on very specific purposes and uses, Binance has been used for way too many on a variety of platforms.
For starters, it can be used to pay transaction fees on Binance.com, Binance Chain, and Binance DEX.
The list just continues from here, and we can go over the ones you should look forward to when considering investing in it:
- Trading: Binance Coin can also be traded for other cryptocurrencies on different exchanges depending on the exchange’s restrictions.
- Transaction fees for the Binance Exchange: BNB can be used for payments on Binance Exchange. Users also get a discount when doing this.
- Pay your credit card: BNB is a form of payment that can be used to pay crypto credit card bills on Crypto.com.
- Payment processing: Merchants have the option to offer BNB as a payment method for customers. This allows them greater flexibility in their payment options.
- Booking travel: Book hotels and flights with BNB on selected websites thanks to the partnerships with the platform and the selected options.
- Entertainment: This option includes purchasing lottery tickets and paying for virtual gifts and other purposes related to entertainment.
- Invest: Investors can use Binance Coin to invest in stocks, ETFs, and other assets on a variety of platforms.
- Transfers and loans: BNB can be used to secure loans on certain platforms. There are also apps that let users split bills and pay their friends through Binance Coin.
Is It the Best Investment?
When you think about cryptocurrencies, we are sure you are considering them mainly for the option of investing in them and waiting for something like Bitcoin to happen: from $0, it is now almost at $50k.
In other words, you are waiting for a peak that allows you to earn a hundred times more than what you invested (or even more).
However, cryptocurrencies are and will always continue to be unstable, and considering how limited they are in quantities available, you can expect them to give people a hard time.
Therefore, you should focus more on owning a business than betting on cryptocurrencies, at least if you know that your money can go to waste due to the bet you are taking.
Personally, we do invest in them, but we have lost lots of money over the last few years as we have earned with how volatile the market is.
This is why we recommend focusing on options like a lead generation that can help you generate money, be independent, and avoid the instability of the investment.
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