What is Binance Coin (BNB)?
, perhaps better known as BNB, is the cryptocurrency issued by crypto exchange Binance in 2017. They did not do so entirely without reason, as Binance has since developed two blockchains. However, BNB was previously running on another blockchain: Ethereum.
As of 2017, BNB was running on Ethereum as an ERC20 token. That is the reason BNB is currently still tradable on Ethereum's blockchain. In 2019, Binance announced that they would be launching their own blockchain, called Binance Chain.
The reason for developing their own blockchain was to host their own tokens. These tokens would use the BEP2 token standard, and in a way can be compared to ERC20. Both token standards are used for fairly simple tokens. Technically, of course, these standards are different from each other.
It didn't just stop with the Binance Chain, as not much later Binance launched the Binance Smart Chain (BSC). Whereas the Binance Chain can only be used to host tokens, the Binance Smart Chain can be used to host applications. In fact, as the name suggests, the blockchain provides support for smart contracts.
Binance Coin, the native token of Binance Chain and Binance Smart Chain, is important for the operation of both blockchains. In fact, BNB is used to fuel the execution of smart contracts. So you could think of BNB as what Gas is to Ethereum.
What can you use Binance Coin (BNB) for?
You can use Binance Coin within the Binance ecosystem. In fact, the BNB token plays an important role for the operation of BC and BSC.
Decentralized applications (dApps) on BSC can be used with BNB. In fact, users pay the transaction fees for using these applications with Binance Coin. Also, when you want to send tokens over Binance's network, you pay the costs for this with the BNB token.
Sending BNB is cheap and can be done quickly. In most cases, you will wait a few minutes at most for your transaction to be validated. The cost of sending BNB is often a few cents.
BNB can be used to buy cryptocurrency on both Binance's central and decentralized (DEX) exchanges. Users who use BNB to purchase crypto pay lower transaction fees.
It is also possible to use BNB for staking. In fact, the Binance Smart Chain uses Proof-of-Stake (PoS). The network consists of validators, which add new blocks by locking BNB coins into the network protocol. As a reward for the work that validators do, they receive BNB tokens.
You can stake BNB
by setting up your own validator within the Binance network. This is often very complex to execute. Therefore, you can stake BNB for Earn on Coinmerce's platform. This way you can earn an annual return of around 2%.
An IEO (Initial Coin Offering) is a fundraising held by an exchange. Also on Binance's platform, crypto projects can raise money for development, called Binance Launchpad.
Binance works with a special lottery system for the distribution of tokens of a crypto project. If you hold a certain number of tokens on Binance's platform, you may be eligible to participate in the IEO. Thus, by holding a larger number of BNB, you can have a greater chance of qualifying to buy tokens during the IEO. Many projects that launched an IEO on the Binance Launchpad ended up becoming very valuable cryptocurrencies.
Because BNB has a large number of features, the cryptocurrency has been in the top 10 largest cryptocurrencies by market cap for years. Also, the cryptocurrency has a large daily trading volume.
The BNB Token
There is a maximum inventory of 165.1 million BNB tokens, of which some 162.3 million will be in circulation by mid-2022. The number of BNB tokens available will only get smaller over time. Binance buys up 20% of the BNB tokens - achieved in that quarter - every quarter. These BNB that are bought, they will then burn. In this way, Binance wants to ensure that there is less and less BNB in circulation, making the tokens scarce. According to the classic supply and demand model, the price of BNB will increase.
Once a total inventory of 100 million more BNB tokens has been achieved, Binance will stop buying up BNB. This means that about 65 million more tokens will be burned. Of course, the question is whether the value will actually increase. Several factors influence the price of a cryptocurrency.
Where to buy Binance Coin (BNB)
In the Netherlands and Belgium, you can buy Binance from Coinmerce. You buy BNB at Coinmerce with iDEAL, SEPA, Giropay, MyBank and credit cards (Mastercard and Visa). These are the most widely used payment methods within the Netherlands and Belgium, which means that you can buy BNB from Coinmerce quickly and easily.
You do not pay any deposit fees when purchasing BNB. However, you do pay transaction fees, which can vary per user and per cryptocurrency.
Before you can buy BNB, you need an account at Coinmerce. Don't have one yet? Click here to register yourself
. Once you have created an account, you can buy BNB on this page
. You can do so by indicating how many BNB tokens or for how many euros you wish to buy BNB. After you have paid, the BNB tokens are in your wallet.
In which crypto wallet can you store Binance Coin?
You can safely store BNB in the crypto wallet of Coinmerce. At Coinmerce, cryptocurrencies are primarily stored on cold storage. This is one of the safest methods for storing cryptocurrencies. We do recommend that you use two-factor authentication (2FA). This will keep your account safe and make it virtually impossible for hackers to get in.