What is Binance Coin (BNB)?

What is Binance Coin (BNB)?

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Binance coin (BNB) is a crypto asset issued by the Binance Exchange, and traded under the symbol BNB. The BNB coin is an ERC-20 token type that runs on the Ethereum blockchain. Well, this BNB has a total supply of 200 million BNB tokens. Binance exchange itself is the number one crypto exchange when viewed from the volume of transactions and the number of active users.

At the beginning of its development, the BNB coin was intended only to support their exchange operations. This is because, BNB has many utilities which include payment for trading fees, exchange fees, listing fees, and other fees that are listed on the Binance exchange.

Quoted from Investopedia, in the first year of its launch, Binance provided a 50% discount for traders who trade via BNB, and the discount will continue to decrease for the next five years from 2017 to 2022 from 50%, 25%, 12. , 5%, 6.25, and entering the fifth year the discount is no longer valid.

Binance Coin (BNB)The popularity of Binance coin is not only due to the discount it gives traders when trading with this coin on the Binance exchange. Instead, BNB can be used to invest in ICOs that are listed through the Binance Cryptocurrency Launchpad which will later be listed on the Binance exchange.

In addition, BNB coins are increasingly in demand because they have collaborated with various platforms such as cryptocurrency buying and selling services, video streaming, payments, and mobile applications. You can also get BNB coins in several cryptocurrency trading applications.

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To keep its value competitive, Binance performs a burn process ** every four months. Binance will buy 50% of the tokens that are already on the market. If the total BNB supply is 200 million, it means that Binance will buy back 50% of its tokens, which is 100 million BNB tokens.

BNB token buybacks come from 20% of Binance’s profits. In which, the 100 million BNB tokens that Binance plans to buy will gradually be burned and destroyed.

In mid-April 2018, Binance announced that it had completed burning 2,220,314 BNB tokens (approximately $ 30 million). The purpose of this burning is to reduce the rate of inflation. The BNB value will increase if the supply decreases and the demand is stable or continues to increase. The destruction or burning of the BNB tokens increasing according to the scheduled shows the profitability of the Binance exchange.

Why You Need To Invest Binance Coin (BNB)?
After knowing what Binance coin (BNB) is, how do you get it? For those of you who want to get BNB, you can buy it through several official cryptocurrency exchanges. In some markets, this digital coin is already available along with other digital coins. Here are the reasons why you need to buy BNB:

Binance Coin (BNB)One of the reasons why so many people buy BNB. Not only because it has a myriad of uses to support your trading activities. Instead, this digital coin is also in the top 10 cryptocurrencies by the largest market cap.

BNB also has a fairly rapid price development. According to CoinMarketCap, on Monday (22/02/2021) the BNB coin was ranked # 3 with a market capitalization of USD $ 42,709,297,151.99 with the number of available tokens of around 176 million BNB tokens. Currently one BNB has a price of USD $ 277 or equivalent to IDR 4,115,930.

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In the world of cryptocurrency trading, BNB tokens are also sought after by traders because they have a good level of liquidity. This is the reason Binance coin is chosen by many traders as a good liquidity coin for trading on various cryptocurrency exchanges.

That’s some important information we can tell you about what Binance coin is and how to get it. As the most liquid digital coin currently for trading, BNB offers so many projects out there that can boost the price of BNB itself.