What is BNB Coin and How Does it Work?

BNB or Binance Coin is another popular cryptocurrency where many people invest. This cryptocurrency was built using the ERC20 token and on the Ethereum blockchain network. BNB is Binance cryptocurrency exchange’s native coin. Just a few cryptocurrencies, Binance coin is also having a cap on the maximum coins. The maximum BNB tokens are 200 million only. 

The main reason why this cryptocurrency was created is to provide affordability and convenience while performing any exchange operations. The traders or investors will not face any inconvenience. 

BNB or Binance Coin was launched in 2017, July. In just no time this coin became very popular. The coins were released through Initial Coin Offering or ICO. 20 million tokens were for the angel investors, project distributors can grab 80 million tokens, while the rest 100 million tokens were given to the ICO participants. All the amount that was collected by selling 200 million tokens was used in many different ways. Some of the funds went into branding, marketing, development, and other things for the development of the network. Some part of the amount was also spent for making updations in the Binance Exchange. 

Benefits of Binance Coin:

Not many people invest or trade Binance Coin, but there are several benefits that you will be able to enjoy you buy Binance Coin. 

Faster Transactions:

The first benefit that you will be able to enjoy with BNB is faster transactions. On any exchange, you are using Binance Coin for trading, you get access to the proprietary matching engine of that exchange platform. That engine can support almost 1.4 million orders per second. So, that means, your transactions are going to be faster. 

Multiple crypto trading:

On the cryptocurrency exchange like BitProfit, you can trade with 150+ cryptocurrencies using Binance Coin. Also, it is going to be a secure, faster, and affordable trading system for you. 

Secure:

The protection and security features of the Binance coin network are high, and that is the reason why this network has several traders and users. It has a multi-tier framework and multi-cluster system for some extra security of the funds of traders and users. 

Acceptability:

Another benefit that you will be able to enjoy with Binance Coin is its acceptability. It is accepted by many industries like hospitals, travel, and many others and hence you will be able to use in it multiple ways. 

Discounts in Trading:

Here is another great thing about Binance Coin and that is its trading fee. You can enjoy a discount of 50 percent on the trading fee. There will be a $10 charge for purchasing $10,000 coins. But if you are doing the same with Binance Coin, then you need to pay just $5. That means you get a 50 percent discount. Isn’t that great?

How does BNB work?

We have already discussed that BNB or Binance Coin is built on Ethereum Network. ERC20 is the token used for holding and storing the value of the coin. Also, there are no chances of mining these coins, they have been already mined and distributed with the help of ICO. On the Binance Exchange, these tokens are already circulating and at a discounted price. 

The discount offered to the traders and users is 50 percent, but this going to reduce by half every single year. That means, when it hits the fifth year, the discount percentage is going to be zero on the tokens. Due to this, the price of the token will deprecate. To avoid such a situation, the exchange is buying back the tokens from the traders and trying to destroy them. So, the number of coins in circulation will be reduced and the maximum supply is also reduced. 

So, this was some useful information about what is Binance Coin or BNB is. And also we have discussed the working and benefits of Binance Coin. Investing in Binance Coin is not a bad idea as it can be used in multiple ways. You just need to make sure you have a secured and reliable platform where you can hold and store your tokens. It is a great investment option for beginners or those who wish to invest low.