The Binance is an international cryptocurrency exchange and it is possible to make deposits in fiat. It was founded in China in the year 2017 by Changpeng Zhao.
The company responsible for developing the Binance was founded in China but was later headquartered in Japan due to the ban on the cryptocurrency trading in China as decided by the Chinese government in September 2017.
In the year 2018, as of January, it became the biggest cryptocurrency exchange along with a market capitalization of BNB of 1.3 billion dollars. It also achieved various milestones such as reaching a trading volume of 10 billion dollars on a daily basis.
The Binance has trading pairs which amount to more than 370 pairs and more than 143 tokens and coins which are listed on the platform. It has constantly maintained its position among the top 5 cryptocurrency exchanges.
In this Article
How to use the Binance coins (BNB) and is it safe to use Binance?
- The Binance coins can be used to pay for the trading fees of the cryptocurrency. It can allow the user to get additional discount perks. If a user uses the Binance coins to pay for the transaction fees, the user can get a discount of up to 50%. However, the discount has recently been changed to 25%.
- The Binance coins can also be spent on different goods and services. The Binance has expanded its value over the course of just one year.
- It can also be used to earn a salary and secure money to be used in times of need in the future.
- The Binance coins can be stored on various different wallets and it can also be traded as an altcoin.
- The Binance coins can be used on the integrated blockchains.
- On the Binance coins, various phishing and hacking attempts have been made. In comparison to the other cryptocurrency exchanges, the Binance is considered comparatively safer and better to use. There have been made various provisions in order to ensure the safety of the users and their as funds as well.
Benefits of the Binance Coins
- In an ICO conducted the Binance coin was used in order to raise the money for the platform in the year 2017.
- The BNB is considered a utility coin with the sole purpose of providing discount offers on the trading process. For every quarter the Binance purchase back the BNB coins with the tokens up to 20% and then burns it. This process will be continued as long as 50% of the total tokens is burnt and leaves BNB only amounting to 100 million.
- As the discount with the trading fee is reduced, the burn can cushion the already reduced demand for the Binance coins. As indicated by the BNB price analysis, the demand for the BNB is quite strong.
- The Binance holds the ability to make announcements on additional incentives in order to own the BNB tokens or coins.
- Since the BNB coins were launched by the crypt-exchange which is highly reputable in the market gives extra credibility to the BNB coins.
- The speed of transaction is very high. The Binance can handle 1.4 million transactions per second. This feature makes the Binance great alternative to the bitcoin and various other cryptocurrencies.
- The users of the Binance get various discount offers with the BNB coins.
- The transaction fee is comparatively very low and extremely affordable for the users. It amounts to only 0.1% of the transaction which makes it not only reasonable but also user-friendly.
- The Binance coins can also be used to pay for the Binance exchange services.
- Proprietary platform technology.
- The trading interface of the Binance is excellent.
Cons of the Binance Coins
Just like the other cryptocurrencies, it has some drawbacks as well:
- It is only limited to the Binance exchange. The fact that the reputation and the performance of the exchange also influence the Binance can be a huge problem. The user cannot fund the account with the normal currency.
- The buyback policy of the Binance to buy a particular portion of the coins is most likely to reduce the prices of the coins in the market.
- The Binance coins cannot be traded in most markets in the fractional numbers for a maximum of the cryptocurrencies available in the market.
- The Binance wallets which are there offline for a long period of time are eventually suspended.
- The liquidity of the Binance coins is comparatively low.
- It is not very accessible to beginners.
How to Trade on the Binance?
There are two basic trading settings in the Binance platform. These settings include Basic for the beginners and Advanced. The basic setting for trade is quite simple to understand with an easy layout with only important information for the beginners. However, even the basic setting for trade can seem very complicated because it is a trading platform for the professionals. The advanced setting for trade gives access to all the prices and the market data to the experts.
The Price and Future of the Binance
The Binance has done extremely well in the past and it is expected to perform even better in the coming year and the dollar value of the BNB is going to move up. It is expected to increase by 32% and reach 7.76 dollars by April 2019.