The Binance coin, also known as the BNB coin, was created to fuel Binance exchange operations.
And it did this very well.
After the launch of BNB Coin, Binance went from 0 to over 10 million users in just one year.
How did this happen?
BNB coin achieved this by assisting a number of utilities within the Binance ecosystem, including trading fee payments, listing fees, exchange fees and whatever other fees are attached to the Binance exchange.
In other words, the BNB coin was used to lower trading fees through Binance.
Along with this list of services for Binance itself, BNB coin offers bonuses for its users as well.
Binance coin’s first year launch provides a 50% discount on trades with the BNB coin for traders. This discount percentage is reduced by half every year afterwards.
Users can use BNB coins for ICO investments which are listed on Binance’s Launchpad program. New cryptocurrencies will also be listed on the Binance exchange and the use of Binance will offer a marketplace for trading with other tokens of a wide variety.
While BNB coin offers many supporting systems for the Binance ecosystem at large and is known for being one of the fastest growing crypto exchanged in the world, there are a few platform issues that need to be addressed.
In this article, we’ll tell you everything you need to know about BNB coin, including some common issues you may run into after investing in it.
The BNB coin was first presented at an ICO in 2017.
It provided either 10% or 20 million BNB tokens to the first angel investors, 80 million tokens or 40% to the founding team and the rest of the 100 million tokens or 50% to the past ICO participants.
Half the ICO funds raised were to be put towards Binance marketing and branding, while a third of the funds were to be used to create the Binance platform and begin performing required upgrades to the overall Binance ecosystem.
BNB coin was given a market cap of roughly $1.4 billion in 2018. Currently, it does not provide exchange against fiat currencies. Also, BNB exchange is only possible through cryptocurrencies such as Bitcoin or alternative tokens.
Eventually, Binance will become the official native currency of the Binance exchange.
Benefits of BNB Coin
The BNB coin or token, includes all of its offers and features to its list of holders.
These BNB features include the following:
1. High-End Technology
Binance owns an incredibly talented development team that aids in the exchange of currency and updates, creating and providing new user-friendly properties.
Its platform is able to process almost 1.4 million orders every second which provides time and convenience to BNB trade users.
2. Sociability and Convenience
The BNB platform at this moment is deployed on over 30 exchanges and provides traders with advantages of a decentralized currency environment.
This crypto platform also includes scalability along with the convenience of providing multiple languages. It’s also supported on a range of devices such as Android, IOS and of course, desktop.
3. Slick and User-Friendly Interface
As mentioned above, the development team at Binance is a talented bunch. They make it so that the BNB platform along with the exchange provides a clean and comprehensive interface for users.
This results in investors experiencing a seamless and enjoyable trading experience, doubt and worry-free.
The cryptocoin also offer support from other partnerships of Binance which has increased its usage. One of these partnerships include Asia’s high-end video streaming system, Uplive. This platform sells gifts for BNB tokens.
The Binance platform also offers a repurchase plan which uses 20% of profits to repurchase its BNB token. After that, it will destroy them until a maximum of 50% of BNB coins are bought back,
This process ensures that only 100 million BNB tokens are in circulation, which helps maintain an excellent value.
BNB Coin Withdrawal Issues
Now that we’ve looked at what makes BNB tokens desirable and well-respected in the cryptocurrency industry, it’s time to look at some areas of improvement within this platform.
Binance has been taking incredible strides since the BNB coin launch and therefore has been recommended by experts when users are deciding between it and Bittrex.
This is largely to do with its cheaper withdrawal and trade fees, along with its impressive selection of cryptocurrencies.
Before jumping right in, however, there are some downsides to keep in mind.
Cheaper Trade Fees = Higher Trade Fees
Yes, we did mention that Binance trade fees are cheap.
When compared to the 0.25% fee Bittrex requires, BNB coin’s 0.1% seems like a steal. On top of that, you can actually reduce this amount to 0.05% if you choose to purchase with another BNB token.
Sounds awesome? Sure!
However, let’s say you don’t want to buy a BNB coin because you’re looking to only do a small or single trade.
In that case, you should know that Binace doesn’t actually trade in number fractions for most offered cryptocurrencies.
That means, you can only purchase whole numbers. So, for example, you can buy 15 ETH but not 1.5 ETH.
While this isn’t a problem looking at it this way yet, it becomes more of a problem when you decide to trade. This is because Bianance collects fees in a specific way.
As opposed to collecting fees from BTH or IOTA like Bittrex, Binance collects its fees directly from the BNB token. If you don’t have a token it will instead collect fees from the traded token.
What does this mean?
If you buy 1 ETH, you’ll actually only receive 0.99 ETH since Binance takes 0.1% from the purchased ETH.
Now that you’re left with a fraction of an ETH, it makes it impossible to be sold since it only allows whole numbers to be sold on the exchange.
While you can withdraw it, the cost to withdraw another token in trading feed is too expensive to be worth it.
This cost can be quite significant and depending on what cryptocurrency this happens on, it could cost you many dollars of worthlessness.
While it may be enough to sell down the line, there’s no accurate way of predicting it.
Binance Wallets are Often Offline
Binance wallets seem to be suspended for a long amount of time. Many customers and traders need to wait almost two weeks before withdrawing their IOTA’s from the exchange.
Many have also notices that other wallets were left in a suspended mode
This is a big difference and usually a huge hindrance when it comes to Binance’s platform. In comparison to Bittrex, which undergoes regular maintenance from time to time, not many other exchanges make it so that the wallets are suspended for that long.
The idea of not being able to take them out can be a bit worrisome for some traders.
What we Think: BNB Coin
BNB Coin holds a top 3 ranking out of all the cryptocurrencies available today.
Currently, the BNB coin is worth over $13 USD, while the ICO price has boosted itself to over 1% per token.
On top of that, current BNB valuations have placed the BNB coin at 1.5 X its price presently, and many industry leaders agree that the majority of industry users and traders prioritize reliability and speed over decentralization, which puts the BNB token in an even better position.
As we mentioned earlier, the BNB coin can be used to pay fees incurred through Binance, and with these payments come a lot of bonuses such as discounts and other incentives like referral rewards.
Binance as an ecosystem and the Binance token itself is an extremely exciting addition to the crypto industry.
However, it does come with a few risks that any user should be wary of.
If you weren’t aware of the trading fees which result in fractional dust or the long-wait time maintenance issue, think it over a bit before investing.
However, if you’re sure you’ll be making large withdrawals and if your faith in the Binance system is strong enough, go for it.
From what it looks like, BNB coin is only going up from here.