- BNBBinance Coin
- Price$ 584.55
- Marketcap$ 98.05 B
BNB Coin is the native currency of the world’s largest cryptocurrency exchange, making it a valuable starting place for potential crypto investors. But before you invest, you might have a few questions, such as: What is BNB, how secure is its network, and what is it valued at today?
We answer these questions so you can decide if investing in Binance Coin is an ideal option for you, whether you’re starting out in cryptocurrency or want to expand your options.
Account Minimum: $0
Fees: .1% per trade
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What is Binance Coin (BNB)?
Binance Coin (BNB) is a digital cryptocurrency that can be bought and traded on the Binance Exchange, the largest and most popular online cryptocurrency exchange.
Binance Coin can be used to pay for transaction fees (on Binance.com, Binance DEX, and the Binance Chain), travel bookings (on select websites), financial and online services (credit card payments, investments, donations to charity), and entertainment (virtual gifts, lotteries).
You can also use BNB coins to invest in other cryptocurrencies, whether they’re new or already well established.
Part of BNB Coin’s appeal lies in its exchange fees, which are some of the lowest in the world. BNB also provides quick and fluid transactions so that you can buy and trade fast.
The Binance Exchange supports over 50 other cryptocurrencies.
Who Are The Founders of Binance Coin?
Changpeng Zhao founded Binance Coin in June 2017. Before founding Binance Coin, Zhao participated in the creation of Blockchain.info and served as the Chief Technology Officer of OKCoin.
Zhao initially created BNB Coin as a utility token, which offered major discounts on transaction and exchange fees. These discounts incentivized users to invest in what quickly became the largest cryptocurrency exchange in the world.
BNB Coin found its roots in the Ethereum system as an ERC-20 token variant. ERC-20 tokens operate on Ethereum’s blockchain rather than their own. After BNB’s success in the Ethereum system, Binance Coin launched its network, Binance Chain, in April 2019.
Binance Chain’s main focus is to facilitate fast trading in high volumes on a safe and secure network. Binance Chain can also communicate with Binance Smart Chain (BSC), essentially creating a dual-chain system.
BSC extends the original Binance Chain’s capabilities to support smart contracts, which allows two parties to agree to a set of terms without having to know or trust one another. If the terms are not met, the agreement is not executed.
How Many Binance Coins Are in Circulation?
At the time of writing, there are 153,432,897 BNB Coins in circulation. Because Binance Coin has a strict 200 million cap on how many BNB Coins will be allowed into circulation, there are only 46,567,103 left.
The remaining BNB Coins are awarded to users who have already invested in the coin, which means time is of the essence for potential investors.The current price, as of writing, is $362.08.
Staking vs. Mining
New BNB Coins are added through a process called staking. Staking involves locking your BNB Coins (simply holding them in your online wallet). BNB Coin’s staking model, or Proof of Stake (PoS) protocol, incentivizes participants to help build a more decentralized and safer network.
Staking coins in your wallet automatically adds them to a staking pool. At set intervals, the PoS protocol randomly assigns the right to create the next block in the system’s blockchain, which produces new coins for the awardee.
The more coins you lock in your wallet, the higher your chance for reward. There are no fees involved with staking and the technicalities for entering the stake pool are carried out automatically by the system, which makes it ideal for earning a passive income.
Some cryptocurrencies use the Proof of Work (PoW) protocol, otherwise known as mining. When compared to staking, mining has several drawbacks.
Mining requires users to compete in solving arbitrary and complex math problems. Whoever solves the problem first is awarded the right to establish the next block in the system’s blockchain.
Mining does not generate passive income. Instead, it requires its users to dedicate time and work to solving equations that otherwise have no value.
How is Binance Coin Network Secured?
Over $2 billion is traded on the Binance Exchange every single day with 1.4 million transactions occurring every second. To protect its users’ investments, the Binance Exchange and BNB Coin have robust security measures in place.
Part of cryptocurrency’s appeal is creating safer, decentralized financial systems through blockchain technology. Blockchain ensures that no single person or group has control over the system and that the system is available and accessible to everyone who wants to participate.
Information stored in a blockchain cannot be changed or destroyed. Blockchain creates a digital ledger of transactions and dates and typically requires two-factor authentication for each transaction, which minimizes security risks.Binance Coin offers a digital wallet to users, aptly named “Trust Wallet”. Trust Wallet is user-friendly and free to use. The app supports over 40 different blockchains and allows you to quickly access your BNB Coins while you’re on the go.
Binance Coin vs. Top Coins
Should I Invest in Binance Coin?
BNB Coin is the perfect cryptocurrency for those looking to invest in a new form of finance and has numerous advantages and uses over other cryptos out there, but whether or not you want to invest comes down to your personal preferences.
BNB Coin’s discounted fees allow you to spend less and get more. It's Proof of Stake model continues to promote network security among its users, and its digital Trust Wallet is safe and easy to use.
What’s more - you can earn a passive income through your investment.
Binance is one of the largest crypto exchanges in the world, if not the largest player in the market.
I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.