On which platforms can BinanceCoin be bought and sold?
Has Binance created a winning formula? Until recently, Bittrex was the place to go to find the widest range of cryptocurrency offers. Traders could trade a wide range of currencies for Bitcoin, ETH and USDT.
On July 4, 2017, Binance opened its doors to traders who wanted to join the action. Offering its own cryptocurrency – the BinanceCoin (BNB), traders had the opportunity to benefit from reduced rates on trades by using the BinanceCoin to pay the fees… reducing costs by 50%!
Thus, while BTC, ETH or USDT could still be used, traders were now encouraged to use Binancecoin. The service has taken off. In fact, it was such a success that, like Bittrex, the new subscribers were temporarily put on hold, with Binance working to increase its capacity.
Clearly, it’s a winning formula. Traders can buy Binancecoins in order to gain value, but also to have a stock of coins to pay transaction costs. And of course, investors can simply buy the coin for speculative purposes. At each step, the value of the part increases.
It should be noted that Binance was doing particularly well due to Bittrex’s capacity problems. However, let us hope that it can meet the demand for its platform and therefore for its currency as well!
How it works: for what purposes can I buy BinanceCoin?
Binance has created its own cryptographic part known as the NBB. It is used as an optional method to pay exchange fees that include: trading fees – to buy or sell coins, registration fees and withdrawal fees.
When you use NBB coins, you get a 50% discount for the first year of your account, 25% for the second year, 12.5% for the third year and 6.25% for the fourth year of your account.
NBB tokens are also used for Binance Launchpad which is a way to invest in particular ICOs on Binance. These ICOs will be listed on the Binance exchange past ICO.
Finally, Binance plans to use 20% of its profits to buy back the NBB on the free market.
Our review: should we buy BinanceCoin?
We see at least 4 good reasons to buy BinanceCoin.
First of all, Binance is one of the fastest growing cryptocurrency exchanges on the market today. The exchange is developing particularly quickly on the Chinese market, which is also one of the largest crypto markets in the world. Since Binance Coin’s (BNB) growth is directly linked to the growth of the Binance platform, you can be sure that its value will grow exponentially as the value of its exchange increases. This makes BNB one of the areas to watch out for as it is supported by a strong revenue-generating platform and revenue increases.
This also allows for low transaction costs. As explained, when you exchange NBB coins on the Binance platform, you do not pay any fees. This makes it the perfect part for someone looking for a low-cost investment in cryptocurrencies.
In addition to this, you can use the Binance coin (BNB) as a utility coin to buy other cryptos instead of using bitcoin, which is quite expensive in terms of transaction costs. These low costs and the fact that it can replace Bitcoin as a utility coin makes it a fundamentally better currency than many other altcoins on the market.
Also, the offer is limited. Supply is one of the factors that can determine whether or not a part will increase. For example, part of the reason bitcoin has increased to its current price levels is because it has a limited supply of only 21 million coins. The same applies to the NBB document. The Binance coin has a total provision of 197 million, and 99 million of them are already mined.
Finally, Binance is a website approved by the crypto community. It is a great privilege. Of all the exchanges on the market at the moment, Binance seems to be one of the most reliable. It is easy to use, has high withdrawal limits of up to $30,000 and has not had any major security issues. This confidence in the platform also gives investors confidence in the NBB coin, confidence that decreases in many other altcoins due to pump-and-dump arrangements. This element of stability and community trust is one of the reasons why this coin will grow exponentially in the coming days. In addition, the company has been linked to the NEO coin in the past, which means that as NEO grows, so does the Binance coin (BNB).