Binance coin (BNB)

What is Binance Coin (BNB)?

Binance coin is the native coin of Binance exchange. Binance is one of the biggest cryptocurrency exchanges globally. 

Binance Coin can be used to trade and pay fees on the Binance cryptocurrency exchange. Users of Binance Coin receive a discount in transaction fees on the Binance exchange as an incentive. BNB can also be exchanged or traded for other cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, etc.

Beyond the Binance exchange, Binance Coin can be use to make credit card payments, pay for travel arrangements (on select websites), buy virtual gifts, process payments, make investments, make loans and transfers, donate to charity.

History of Binance Coin (BNB)

The Binance exchange launched the Binance Coin in 2017 as an ERC-20 token on the Ethereum blockchain. It was a utility token that allowed users of the exchange to pay less in fees if they used the token for transactions. 

In it's initial coin offering (ICO) Binance exchange offered 10% of the supply to angel investors, 40% of the supply to the founding team and the remaining supply to the public. 

Binance Coin was then moved to the company's own Binance blockchain when it was released in September of 2020.

Supply and Market capitalization

Binance coin had an initial maximum supply of 200 million BNB tokens. Currently it has a maximum supply of 170,532,785 BNB coins, of which 153,432,897 are in circulation as of now.

As of writing, BNB is ranked as the 3rd largest cryptocurrency in terms of market cap by CoinMarketCap. Currently the price of each BNB is $319 and it has a market cap of $53,475,348,141.

Binance regularly performs quarterly burns. Every quarter, Binance uses one-fifth of its profits to buy back and burn Binance Coins, destroying them completely making Binance Coin more scarce.

Where to buy Binance Coin?

As the dedicated utility token of the Binance exchange, the most straightforward way to acquire BNB coins would be to purchase them through Binance. The original exchange supports the largest variety of trading pairs with BNB, and it also has the best trading rates for the coin.

 
If you are looking for alternative exchanges where you can purchase BNB, FTX is a good choice. Keep in mind that investing in cryptocurrency can be risky, just like investing in any other type of asset.

Investing in Binance Coin

The binance coins can be used to invest in certain initial coin offerings that are listed through Binance's launchpad program. New cryptocurrencies will be listed on the Binance exchange, and use of binance coins will give a seamless marketplace for dealing in a variety of virtual tokens.

Also regulators haven't been able to crack down yet, but that will likely change, and it could limit the Binance's growth. 

Cryptocurrencies are relatively new and highly volatile investments. That's why it's recommended you only invest money you can afford to lose. Before you invest in Binance Coin keep a look on these facts.