Founded in 2017 by Changpen Zhao and Yi He, Binance Coin abbreviated as BNB is the native coin of the Binance blockchain. It was initially based on the Ethereum blockchain performing on the ERC2O before broke its ties in 2019 to be an independent blockchain.
Binance offers a wallet where users can store their cryptocurrencies. Furthermore, Binance platform contains several cryptocurrencies exchanges, in Spot, Margin or Futures. It is the number one cryptocurrency exchange in the world.
Binance coin is used for all operations on the Binance platform. It includes fees payment for trading, exchange and any other fees on the Binance exchange. Paying them with BNB, the fees on Binance decrease by 25%.
Binance supports the trading of all other cryptocurrencies including BNB, but also the main ones like Bitcoin and Ethereum, its founding company.
There were 200 million coins in circulation when it started. Binance coin cannot be mined. Therefore it just operates on the initial pre-mined coins. These coins have also been reducing over time because the cryptocurrency company has a plan to buy 50% of the coins back.
Binance Company spends 20% of its profit every quarter to make this acquisition and they have repurchased over 2 million coins so far. The repurchase ensures a sustained value of the cryptocurrency.
To acquire a Binance coin, you will need to have a wallet that will facilitate acquiring and storing or spending. Later you will just have to register on Binance before you can pay either using your credit card or to buy BNB with another crypto. With their BNB, users can choose to spend them to pay the Binance fees, to store them, or to trade them.
Investing in Binance Coin may be a good idea, with a market cap of over $35 billion in the begining of 2021. Meaning it won’t collapse in a day. Its plan to repurchase BNB gives an assurance of an increase in value over time. But as in any cryptocurrency, it is always advised that you stake only what you can comfortably lose.
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This article is not investment advice. Do your own research before investing in the cryptocurrency market.