What Is Binance Coin?
BNB is a cryptocurrency that was created by Binance exchange to power its own ecosystem, which includes the Binance DEX (decentralized exchange). The BNB coin can be used to pay for fees on Binance or traded against other cryptocurrencies on any supported exchange.
The coin has been growing steadily since its launch, but there have been some ups and downs along the way. In this article, we will take a look at binance coin price prediction and see what can be expected from this coin in 2022 and beyond.
The purpose of creating this coin is to incentivize traders who are using the exchange by giving them discounts when they use it for transactions. This helps increase liquidity, which means it will be easier to buy and sell cryptocurrencies on your platform. It also makes it more attractive for new users to join your platform because they know they can save money by using your token instead of paying fees directly with fiat currency like USD or EURO
Binance Coin is the native cryptocurrency of the world’s largest cryptocurrency exchange, Binance. It was launched in 2017 with an ICO and raised $15 million worth of BTC. The company is one of the few profitable crypto exchanges with a trading volume of over $2 billion per day.
It is important to note that Binance Coin has shown tremendous growth over the past year and has been able to maintain its position as one of the top 10 cryptocurrencies by market cap. The coin was first listed on exchanges in March 2018 and has been steadily growing ever since then.
In early 2019, Binance Coin (BNB) reached its all-time high at $25.17 USD, but quickly fell back down to around $3 USD per coin at that time due to an overall decline in crypto prices and market volatility due to regulatory uncertainty in major markets like South Korea and China. Since then, however, BNB has recovered from its low point and currently sits at $20 USD per coin which is still much lower than its all-time high price but shows plenty of promise for future growth if these trends continue long-term
BNB has gained popularity because it offers a utility to traders — discounts on trading fees. Traders who use BNB to pay for their transactions are given a 50% discount on their trading fees.
The coin also has a staking feature, which allows users to earn more BNB by locking up their tokens in a wallet. Users can stake their coins and then receive additional BNB as interest over time. The longer you stake your coins, the more interest you will earn. The maximum amount of interest you can earn per year is 100%.
Binance Coin (BNB) has been one of the most popular coins to invest in 2019 because of its stability and growth potential. BNB coin has been able to achieve this success due to its unique features which include:
Binance Coin has remained stable throughout its journey and has not experienced any major price fluctuations even during crypto bear markets. This can be attributed to the fact that it is used as a payment method on Binance exchange platform as well as other platforms like Trust Wallet and Dex Exchange.
Binance also offers futures trading where users can buy or sell digital assets at a certain price at a future date. This way they can benefit from price volatility while minimizing risks associated with investing in cryptocurrencies.
Binance Coin has several important uses within the platform:
You can use it to pay for fees on the Binance exchange, which currently include transaction fees, withdrawal fees, listing fees, etc. The fee discount depends on your trading volume over time — so if you make frequent trades, then you will get a greater discount than someone who only makes occasional trades.
Binance uses 20% of its profits every quarter to buy back tokens from traders at market price (i.e., not at a premium). This creates artificial scarcity in the marketplace and pushes up demand for BNB tokens since fewer are available for purchase with fiat money or other cryptocurrencies each quarter
Trading fee discount
Binance offers a discount on trading fees to users who pay fees with Binance Coin. The larger your Binance balance, the greater your discount will be.
Withdrawal fee rebate
Users can also opt to pay their withdrawal fees (for example, if they want to withdraw their funds from the exchange) in Binance Coin instead of Bitcoin or Ethereum. If they do so, they will receive a rebate of 50% of those fees in Binance Coin. This is another way that Binance encourages customers to hold their funds in it’s native token.
With this feature, users can invest in upcoming ICOs hosted on the Binance platform, directly from their wallets using BNB. The idea behind this feature is to streamline the ICO process and provide an easier way for investors to participate in new projects without having to go through multiple steps or worry about setting up multiple accounts with different cryptocurrency exchanges just to participate in an ICO launch event.
Binance charges a fee for each trade, and this fee can be paid in BNB. This feature encourages traders to keep their BNB tokens in their wallets, which is beneficial for increasing the demand and price of BNB. Voting rights – Each quarter, Binance conducts a vote among its users to decide which new coins should be added to its platform. The more you have invested in BNB, the more weight your vote carries. As a result, this gives investors an incentive to buy more coins, as well as encouraging less experienced investors who are unfamiliar with cryptocurrencies to do so as well (and thus give them an opportunity to experience how it feels to invest).
Each quarter, Binance conducts a vote among its users to decide which new coins should be added to its platform. The more you have invested in BNB, the more weight your vote carries. As a result, this gives investors an incentive to buy more coins