Binance Coin Features, Pros, and Prediction 2022
By Space Coast Daily // April 10, 2022
As a crypto investor, you might have come across the terms Binance coin and Binance exchange often intertwined. Binance exchange is one of the most popular global crypto platforms like “https://yuan-paygroup.com/”. As of today, the exchange has more than 1 million transactions undertaken daily. The exchange also lists some of the popular cryptos in the global market including Bitcoin, Ethereum, Shiba Inu, Polka, and, Dogecoin amongst others.
Binance Coin on the other hand is a native cryptocurrency that is issued by the Binance exchange. This crypto today trades under BNB. Binance (BNB) was first launched in 2017 as a simple token to undertake transactions in the Binance exchange. A utility token that allowed for reduced transaction charges was the primary purpose of this token. However, as users expanded the utility token also took shape and today has been officially listed as a crypto token. BNB allows users to use the token for travel booking, online services, and financial services.
Another notable action by the Binance exchange is the burndown of the BNB token. At the end of every quarter, the Binance exchange buys back BNB tokens using one-fifth of its total profits. Tokens that are purchased back are then permanently destroyed. As per market studies, the BNB token today has a market capitalization of more than 54 billion and has a safe ranking behind other popular currencies including Bitcoin, Ethereum, and Tether.
Features and support provided by BNB
BNB first entered the global crypto market in 2017. Initially, the purpose of this coin was only factored to serve as a native coin of Binance exchange. The token allowed for ease in buying multiple goods and services along with minimal transaction charges.
However, with the global growth of the Binance exchange, the popularity of BNB coins also grew. Today, BNB has taken shape as an independent cryptocurrency on its own and is used for buying, selling, and trading purposes.
During the initial launch period, the BNB token was used in multiple other platforms of Binance including Binance Chain, Binance DEX, etc. The transaction charges that shall be incurred while using these platforms were paid using the BNB token. In addition to the Binance platform, the BNB token was compatible with other platforms including HTC, Monetha, etc. The popular travel and entertainment platform Travala also accepted BNB tokens in exchange for their goods and services.
Other than buying products and services, the BNB token also could buy cryptocurrencies through Initial Currency Offering (ICO). Any new cryptocurrency listed in the Binance exchange was easily accessible for investment using the BNB token. Along with its strong market presence, BNB has also created strong partnerships in the past few years. One such partnership that garnered huge attention is with video streaming platforms. BNB tokens were distributed to the strong fan base of this video streaming platform.
What are the other uses of owning a BNB coin?
In a nutshell, BNB tokens today can pay your bills, fund your investment decisions, buy goods and services, allow you to make travel booking arrangements, use for donations, and other charitable purposes.
Points to be pondered before making BNB investment?
One common issue that needs attention before making an investment decision is the regulation around it. Many countries are looking for regulating crypto investments to not disturb the current economic balance of the country. Also, the Binance exchange has regulatory issues with multiple countries wherein countries restricted the activities that can be carried out using this exchange.
Is it worth investing in BNB coins?
In addition to being a native token, the BNB coin today has much more capabilities. The cryptocurrency is programmable allowing it to have multiple apps to be built on this network. Because of its strong network and technical capabilities and safe position in the market, this token has competition from multiple sides.
Your investment decision in BNB for 2022 is based on several factors including your risk appetite. Similar to any other crypto, BNB is also prone to price volatility and market fluctuations. There are other regulatory issues governing the entire crypto market and the same shall be replicated soon on the BNB token as well. Yet another startling factor for your decision-making is its market position. While today BNB ranks fourth in the global market, we need to wait to watch if the token can sustain this position.