There is a lot of excitement surrounding cryptocurrency, but it’s hard to get in through a traditional brokerage account like you would with an index fund. Blockchain-based currencies like Bitcoin are traded on special exchanges like CoinBase, Etoro and BlockFi.
Binance is by far the world’s largest exchange. The site is so popular that it has developed its cryptocurrency to make it easier for users to pay for its services, a project called Binance Coin. You might not understand the significance of the following numbers if you’re unfamiliar with crypto exchanges, but you should know that Binance executes 1.4 million transactions every second and its average daily volume is 2 billion.
Based on the fact that Crypto Exchanges require service charges to execute any transaction, this has made Binance popular because they offer one of the lowest transaction fees. Those billions of trades are executed for just 0.1% of a penny each.
Binance Coins makes trading cheaper
Binance offers a full 50% reduction in its already-low trading fees if you pay for them with the Binance native cryptocurrency, Binance Coin (BNB). If you complete a $100 transaction with BNB, you will only pay 5 cents instead of 10 cents.
Binance launched its initial coin offering (ICO) of 100 million BNB tokens on July 21, 2017, a token based on Ethereum (ERC-20). The company eventually moved to its blockchain, known as Binance Chain, and limited the BNB token supply to 200 million units. Binance is the world’s most popular cryptocurrency exchange, and BNB is the native app for Binance.
Binance Coin was created to be used within Binance’s ecosystem, which offers generous rebates to encourage its use – but there’s more to Binance Coin than just trading discounts.
Forbes reported on April 6 that the cryptocurrency market had reached a $2 trillion total market valuation. The Forbes article highlighted BNB specifically as one of the smaller altcoins driving much of that growth, which is such a huge moment for BNB and other cryptocurrencies out there.
Investors seeking to make quick bucks should invest lightly. Despite the big things achieved by crypto, BNB is not widely accepted yet outside of the accommodations, travel and entertainment industries, although there are investment platforms that let users buy mainstream securities. Since Binance traders must register accounts, it isn’t as anonymous as non-native crypto.
Since the turn of the year, Bitcoin and Ether have been significantly outperformed by Binance Coin (BNB). Arcane Research estimates that Binance’s coin gained roughly 1,300% in 2021. Compared to Bitcoin, the market leader, which increased by 65% and Ether which increased by 408%.
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Asides from being accepted by Binance, Binance Smart Chain, a blockchain network that allows smart contracts for decentralized finance (DeFi) also accepts Binance Coin. BSC’s growth as a rival to Ethereum’s blockchain has helped to fuel gains in the BNB token, according to Arcane Research.
In 2021, altcoins, or alternative coins, enjoyed major gains as investors’ interest in digital assets surged and the crypto ecosystem grew. Binance Coin’s returns were outpaced by Solana and Fantom, coins linked to other blockchain platforms that enable smart contracts.
Bottom Line
Ultimately, it’s an altcoin you can invest in if you want, but as with all crypto investments, you will experience highs, lows, and a lot of drama. In the end, that’s how crypto investment has gone so far.
GAG Staff