Initially, the currency was launched for one purpose: to draw attention to the Binance platform. The launch was a PR move – interested users could use the internal coin for payments, getting discounts when making them. If a customer exchanged one crypto for another, they were charged a 0.1% service fee; if they used BNB, that figure was cut in half. It was so profitable that multimillion-dollar investments were made in the new currency. Such a big discount on the commission was not made forever, according to the established plan it should be gradually reduced:
- In the first year, users were offered a 50% discount;
- In the second, 25%;
- In the third, 12.5%;
- Fourth year – 6.25%.
Each year of the exchange’s existence begins with a halving of the discounts. This will be the case until the figure is close to 0%. But Binance Coin cryptocurrency has many other merits that make it attractive to the multi-million dollar investor community.
People are interested in the cryptocurrency’s prospects as a means of payment and a reliable tool for investing. Binance Coin steadily stays within the top 5 in the global ranking and shows stability even with the emergence of new projects and in the face of increased competition.
About Binance Coin earning methods and coin storage
It is impossible to mine BNB – the developers have distributed a certain amount of coins: some went for sale in the course of ICO, and some – went to the wallets of major investors who supported the project at the beginning of its development.
How can I earn with Binance Coin?
- Take part in the trades on the Binance exchange, where BNB is a trading instrument, along with other popular altcoins. To lead an active trade, simply speaking, to speculate.
- Buy BNB for long-term storage. You should carefully analyze the dynamics of BNB in order to choose the most profitable moment to buy. When you have a certain amount of coins on your account – just wait for a long-term increase, which is likely to happen sooner or later.
- Give your purchased BNBs to staking at the Binance exchange or one of the wallets that support this option. Staking involves putting funds into a digital wallet for an extended period of time to support transaction verification on PoS blockchains. In this case, you will receive a fixed reward in BNB, depending on the chosen placement period (from 10 days to 3 months). In this way, in addition to profits from the growth of the coin, you will receive profits in the form of interest from the staking.
A couple of words about storage
BNB is one of the most popular coins and therefore it has quite a few storage options. You can store BNB on the Binance exchange, or on one of the wallets that support the coin. These include desktop, hardware, mobile, and online wallets.
But before giving preference to one or another option, you need to find out which BNB network (ERC20, BEP2 or BEP20) the wallet works in. It is not recommended to transfer funds between different networks to avoid the risk of losing coins.
If you choose the most modern network BEP20 (Binance Smart Chain, BSC), you can use a simple and excellent by functionality wallet, available on this link. It is specially created for storing BNB (BSC), it does not require any complicated procedure of identity verification, so it will be easy to handle even for a newbie. In this case your coins totally belong to you, unlike storing on exchange, where you trust your money to another company.
But, if you want to earn on trading or staking, then storing funds on the exchange is the preferred option. True, it is only suitable for fairly advanced users.
Usage of BNB
The usefulness of the coin is not limited to technical points. Binance Coin has several uses:
- Payment of a trading fee. On the amount of each transaction, the exchange needs to pay a small commission. It can be called “exchange tax”. It is most advantageous to pay it in BNB. The commission will not be deducted from the coins you trade, only Binance Coin will go. Until mid 2023, if you pay the commission with a native token, you get 25%.
- Binance Pay services. You can now pay for purchases with Binance pay. The list of partners is constantly growing.
- Buying goods on Binance Marketplace directly in the app
Binance Launchpad is a coin launching platform based on the exchange. On it you can buy new crypto during a BNB crowdsale. The most successful token sale was the sale of BitTorrent crypto (BTT). Binance earn, staking, BNB Vault, as well as many other features offers exchange Binance, read more on the official website of the exchange.
During the years of its existence, BNB token became not only a way to get a discount on the internal exchange, a way to trade on the exchange and withdraw funds from the exchange, but also a full-fledged cryptocurrency, which became one of the three leaders in the market. The fact that BNB is backed by one of the largest cryptocurrency exchanges in the world contributed in no small part to this. As the value of the exchange’s services grows, so does the price of BNB coin.
The second prerequisite for the long-term growth of the price of Binance Coin is the token liquidation program. Part of the profits from the project is directed by the developers to buy up and “burn” surplus cryptocurrency. The rarer and scarcer the currency is, the more likely its value increases. There is interest in the exchange itself. Already now the exchange is on the first place in the world in terms of trading volume and the management is not going to stop in development.
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