Buy Binance Coin (BNB)
What is BNB?
BNB is a cryptocurrency that supports the Binance ecosystem. BNB is one of the most popular utility tokens in the world. Not only can you buy or sell BNB like any other cryptocurrency, but you can also enjoy a wide range of additional benefits.
BNB is an ERC-20 token and is based on Etherium. The cryptocurrency has a limit of 200,000,000 - no more coins can be created than that. Binance Coin can be used to pay trading platform fees.
To motivate you to use the virtual currency, Binance gives you a discount. In the first 12 months, it is half the amount. After that, every year it will start to decrease. After five years, it will become zero. To counteract its cryptocurrency's decline in value and value, Binance wants to liquidate a certain amount of BNB over time. By design, there should be 100,000,000 coins left.
If you are looking to buy BNB, you will be interested to know some of the features of cryptocurrency.
Binance is an entire ecosystem, not just an exchange or a protocol on which a coin is generated. It includes:
- Binance exchange for secure, fast trading. The BNB service token powers it. Ranked #1 among crypto exchange platforms by CoinMarketCap (as of August 30, 2021). There are 1,593 trading pairs available, 439 coins are listed, and 40+ fiat currencies are supported.
- Labs' venture capital arm, which invests in blockchain start-ups and communities. It has already funded over 100+ projects that popularise and promote blockchain technology.
- Academy Education Platform. A beginner's guide to the world of cryptocurrency and blockchain.
- Charity Foundation. As of August 2021, 2,958 BTC (about $140 million) had been donated through it.
- Research, an organisation that publishes analysis reports on the cryptocurrency market. Research helps investors make thoughtful contributions.
- Launchpad, a token generation platform. Developers and entrepreneurs can implement blockchain projects.
- Cryptocurrency Encyclopedia Info. The site is 100% open source. Everyone can contribute.
- Chain + Smart Chain - 2 blockchains. The first chain runs a decentralised exchange for trading tokens.
- Trust Wallet. The official trusted decentralised platform wallet that is suitable for storing, sending, receiving cryptocurrencies.
Binance is not just an exchange and a protocol, but an entire empire of organisations, tools and software.
The project has two blockchains. They work in parallel and have different functions, but both use BNB coins.
The BC blockchain was created to be a marketplace for generating, using and trading coins. The significant development is a decentralised exchange. It can be used to issue BEP-2 tokens.
The Smart Chain (BSC) blockchain runs on the Proof-of-Staked-Authority (PoSA) algorithm. A BNB cryptocurrency stacking option has been added to it. It is a programming environment on which smart contracts can be created, dapps can be deployed, decentralised financial instruments can be developed, and expanded the project ecosystem. BEP-20 tokens can also be issued.
BEP-2 and BEP-8 coins created on BC can be exchanged to the new format adopted by BCS. Moving tokens between chains are more convenient via BinanceChainWallet, installed in Firefox and Google Chrome browsers.
The blockchain supports Ontology, Chainlink, Swipe integrations and is compatible with the Ethereum Virtual Machine (EVM). The latter allows the use of Ether tools and developments. By August 2021, 1,311 programs had been released based on BSC. The largest and most popular projects are:
- Decentralised exchange PanckaceSwap. Ranked #1 among DEX in August 2021.
- Venus protocol. Acts as an alternative to Compound on the Ethereum network.
- Decentralised exchange platform Biswap.
BCS blockchain surpassed Ethereum in March 2021 by the total amount of funds blocked in the most popular financial instrument protocols. So Binance has every reason to overtake "the most popular developer environment" in the long run. The platform also overtakes Ethereum in the number of transactions per day. BCS had $5.8 million on August 26, 2021, while Ethereum had $1.17 million.
BCS beats Ethereum in terms of transactions per day (data as of August 2021).
The main advantages of the network that attract retail investors and developers are better transaction speed + low fees. The disadvantage, on the other hand, is high centralisation. But this disadvantage does not discourage most users.
Advantages of Binance
1) Speed—a typical exchange functions as a market maker for buy and sell orders. And the marketplace does not directly handle the trading operations - it seeks out a buyer. That is the main task of the exchange system. Once the buy and sell transaction is concluded, the marketplace takes a commission from the seller and the buyer, which is the source of profit. There is a complication here: if the user's software cannot cope with the mass of orders, then there is a break in the realisation of the bids. Accordingly, the main innovation of Binance is its engine, which can process 1,400,000 transactions in a second.
2) Liquidity. This refers to the number of assets on the crypto exchange and the frequency of transactions. To quickly find a responsive offer and execute an order at a competitive cost, you need to have a large order volume. An exchange system with a small order volume is inefficient. Binance, on the other hand, has the most significant order volume in the crypto market. Consequently, it makes the exchange secure and competitive. "Binance generates more liquidity for Bitcoin and several dominant cryptocurrencies, as well as a wide variety of altcoins.
3) As a result, new coins often favour Binance over its rivals - there are many coins of Asian origin here that are not available on European trading platforms. This can also be called a virtue.
Binance Coin technology
The main developments are two proprietary blockchains that exist parallel and allow users to make instant p2p transactions and create programs. In addition, the project has launched its exchanges as well:
- The popular Trust Wallet. It allows you to store coins, engages in staking, and collect non-mutually exchangeable NFT tokens.
- Marketplace for trading. Here users buy, sell works of art, collectables. It has the highest liquidity compared to other platforms.
- BinancePay allows you to buy goods with coins. Popular sites that collaborate with the service are travel platform Travala (you can pay for hotel accommodation), CoinsBee and Cryptorefills with gift cards, and Cybertino for NFT.
- BinanceCard for buying goods from 60 million stores/sites. Cryptocurrency is easy to transfer from a spot wallet.
- The bridge is a service for quickly and securely creating wrapped versions of tokens on the network, project applications.
If you want to buy Binance Coin, cryptocurrency issuance is a massive advantage for you.
After the launch of its blockchain, 2 million tokens were created. However, their issuance is strictly limited. That is, no new tokens can be issued. Moreover, there is a coin-burning mechanism built into the system.
The implication is irrevocable destruction and reduction of the total supply. The incineration takes place every quarter. It will stop when the total number of coins issued is halved. That is, 100 million cryptocurrency units will be destroyed.
How many coins will be burned in a particular quarter depends on the trading volume in the three months.
By July 202, 16 destruction procedures had been carried out. The total number of crypto coins lost is 31,863,791. The total supply was reduced by 15.93%. The last burning was carried out on July 16 2021: owners destroyed 1,296,728 BNB ($393.6+ million). This is 0.65% of the total number of units issued.
Using Binance Coin
Want to invest in Binance Coin? If so, you need to know how to use this cryptocurrency.
In 2017, the token was created to provide discounts on trading commissions on the Binance exchange. As the project evolved, it was used in numerous applications to pay for services, travel, entertainment, and selling coins via Launchpad. On Twitter, the developers suggested ten ways to use the token most effectively:
- Paying commissions. Traders on CEX get a 25% discount on slot, margin, futures trading.
- Paying for services, goods from 60+ million merchants. An increasing number of partners.
- Exchange for fiat currency.
- It can be used as collateral.
- Tool for saving capital in purses.
- Payment for employees of the exchange project.
- Application in social services and on websites.
- Tool for trading/investment.
- Application in project-related blockchains.
- Application for launching dapps, Defi, smart contracts.
What affects the price of a cryptocurrency?
If you want to buy BNB, be aware of the factors that influence its price.
The price formation is influenced by:
- The mood in the crypto market and changes in Bitcoin's value. However, Binance Coin did not correlate with the first digital currency until 2019, which has fuelled investor interest.
- Regulators' restrictions. In 2020-2021, the exchange already stopped cooperating with residents of the Canadian province of Ontario due to a stricter regime and allegations against it. The UK division has banned it from operating in the country. Such events provoke a fall or slowdown in price growth.
- Cooperation with institutional investors.
- Introduction of upgrades. Including new ways of passive income.
- Expansion of the project ecosystem.
- Activities of other cryptocurrency exchanges. The popularity of CEX Binance directly affects the price of the token.
- Publications in the media, social networks, statements by media personalities.
How to invest in Binance Coin in Kenya?
If you want to profit from Binance Coin, you can do so by investing or trading.
To profit from trading, you can invest in Binance Coin in Kenya. To do this, you need to choose a broker and register on the website.
Do you have no experience but want to buy Binance Coin in Kenya? Don't worry. There is a demo account for such cases, which will allow you to try trading with virtual money without the risk of losing real money.
If you're ready for actual trading, make a minimum deposit. Now you have access to the world of trading. Have faith in your abilities, and you'll do great!