Investing in virtual currency has become a new trend, bringing opportunities to many people. Newly created virtual currencies create great attraction in the market. Prominent among them is the BNB coin. Actually, what is BNB ? Do you understand the information about BNB yet? The article below will help readers better understand BNB coin and provide detailed information for investors to decide whether to invest in BNB Coin or not?
Find out what BNB is? History of BNB coin
BNB is a coin released by the Binance exchange , through ICO in July 2017. BNB coin is built on the Ethereum blockchain platform with ERC-20 standard. BNB is used in the Binance and Binance Chain (BEP-2) ecosystem. The history of BNB coin has many fluctuations and changes.
Since 2020, BNB coin is built on Ethereum’s EVM virtual system – Binance Smart Chain Platform, focusing on operating and developing BSC (BEP-20), instead of the previous Binance Chain (BEP-2).
By February 15, 2022, Binance and CZ combined to launch BNB Chain to develop Metafi – a Blockchain platform that uses BNB as gas fee. At this time, Binance also changed the original token type , BNB (Binance coin) to BNB (Build and Build). This activity aims to separate BNB from the BSC ecosystem, expanding opportunities for further development so that this is not just a coin of Binance.
The total initial supply is 200 million BNB issued as ERC-20 tokens, including:
- 50% corresponds to 100 million BNB issued to the market during the ICO.
- 40%, equivalent to 80 million BNB, is owned by the Binance development team.
- 10% is equivalent to 20 million BNB for Angel investors.
Outstanding features of BNB coin
BNB coin was developed in the Binance ecosystem with unique characteristics. The ecosystem including Binance exchange and Binance Smart Chain platform has contributed to the attraction of BNB in the crypto market.
Below is some basic information about BNB coin:
- Coin name: BNB
- Blockchain: Binance Chain & Binance Smart Chain.
- Algorithm: Delegated Byzantine Fault Tolerance – dBFT.
- Token type: Utility.
- Block Time: 1 second.
- Initial supply: 200,000,000 BNB.
- Total supply: 170,532,785 BNB.
- Circular supply: 153,432,897 BNB
Up to now, investors can find BNB in 3 forms:
- BNB BEP-2 on the Binance Chain platform.
- BNB BEP-20 on the new platform Binance Smart Chain.
- BNB ERC-20 on the Ethereum network platform.
Binance’s change allows BNB to improve and develop its connection with the Crypto community, beyond the shadow of Binance’s coin. Binance Chain highlights will delve into the Game Fi, Metaverse, and Social Fi segments. Specifically:
- Expand and develop scale from One Chain to Multi-Chain.
- Throughput of BSC is enhanced.
- Strengthen and introduce additional on-chain management mechanisms.
- Upgrade the scale and expand validators from 21 to 41. Of these, 20 validators function as candidate block producers.
- BNB burning activity is also a highlight of this coin on the market. Every quarter, Binance will use 20% of profits to buy back and permanently destroy BNB coins, until only 100 million coins remain. Burning coins will make BNB more scarce and increase in price.
What is the BNB coin used for?
With the development and upgrade of BNB coin, the scope of BNB’s activities is also much wider. In fact, what is the function and value of the BNB coin ?
Some ways to use BNB include:
- Investors can use trading fee payments on centralized exchanges Binance (CEX) and decentralized exchanges Binance Liquid Swap (DEX).
- Users using Binance card or Binance Pay can use to pay for purchases online or at stores that accept the card. Currently, BNB is used in commercial partners such as: Crypto platform, Coinbates, PundiX blockchain, 150 retail points of goods in Australia.
- Binance connects with many intermediary websites, allowing investors to book hotel rooms and pay for airline tickets.
- Community utility tokens on the Binance Smart Chain ecosystem, allowing BNB holders to pay for games or download apps.
- BNB coin holders can use it to withdraw cash at acceptance points such as Zelaacoin ATMs. BNB will also be a loan guarantee tool at Nexo.
- Use BNB to make purchases on international social networking applications such as: Adamant, Uplive, Crypto Investfeed…
- Players who own BNB can participate in financial investment activities on Binance.
- Donate to Binance fund, to pay for margin loans, interest-bearing loans.
- Users using BNB pay a transaction fee of 0.1%/month, which will help you save a significant amount of fees.
- Investment opportunity for BNB to grow in price and profit in the future.
How to buy BNB coins?
After learning what BNB is, to invest in crypto effectively, investors need to clearly understand the working mechanism of BNB. In particular, how to buy BNB is an issue that many people are interested in.
To buy BNB coins, players need to have an account on a reputable exchange. Here, you should choose Binance, with the largest BNB trading volume. Create a Binance account, provide information as requested in the registration form.
In addition, investors can also buy BNB Coin at a number of other exchanges such as: FTX, Bithumb, Gate, Binance DEX, Kucoin…
On Binance, the system supports coins to buy BNB. Investors can send coins from the storage wallet to the exchange to purchase BNB.
On the contrary, if investors want to sell BNB, they can choose BTC and ETH (2 basic coins that support conversion to BNB). After successfully selling BNB, players withdraw money to their personal wallets or leave it at exchanges that allow converting VND to withdraw money to their bank accounts.
Should you invest in BNB coin or not?
Participating in the Crypto market has many opportunities but also many risks. When choosing a coin to invest in, how should players evaluate the potential and opportunities of that coin? So now, what are the potentials and risks when investing in BNB?
What is the potential when investing in BNB?
- Long-term upside opportunity: BNB coin features a limit of 200 million coins. After 5 years, Binance will burn BNB to reduce the amount to 100 million coins. At the same time, Binance committed to using 20% of profits in that quarter to buy back BNB. This will make BNB more scarce and may increase in price in the future.
- Liquidity and many applications: The development trend of virtual currency, increasing the demand for buying and selling this currency. BNB coin is linked to payment for purchasing many types of items, or linked to commerce. BNB has high liquidity thanks to the guarantee of Binance, which is a safe base for investors.
- Opportunity to develop into a coin outside of Binance: The large Binance ecosystem provides development opportunities for BNB currency in the market. With unlimited potential in the future, BNB will be an attractive investment option that you should consider.
Risks when investing in BNB coin
- Saturation of the bitcoin market : Too many coins are created, creating high competition. Besides, other strong coins may lose their appeal, causing BNB price to grow significantly.
- Crypto market fluctuations: The overall risk of the market is huge, when the credibility of the coins is still not really high. Coin prices still fluctuate continuously, which is both an opportunity and a risk for investors.
BNB coin brings investors opportunities but also many risks. Therefore, consider researching the market, analyzing techniques, and evaluating specific development trends to make appropriate choices.
Frequently asked questions about BNB coin
Participating in the crypto market, peer-to-peer trading on Binance, investors encounter many concerns about BNB. Below are frequently asked questions about this coin.
How to mine BNB coin?
BNB coins cannot be mined. By: Binance chain confirms transactions and creates new blocks for Validators in charge of block supervision and management. Validators will receive transaction fees as rewards so they cannot mine coins. If you want to own BNB coins, you need to buy and sell on the exchange.
What type of wallet safely stores BNB coins?
BNB is a coin in the top 4 in the world today. The trading volume of BNB is large, there are many wallets to safely store BNB. Investors can choose to store on online wallets that support ERC-20 tokens (MyEtherWallet, Metamask, Trust wallet), if they do not trade frequently.
If you trade frequently, you should store it right on the Binance wallet. Hardware wallets and cold wallets like Ledger Nano S will be the choice for long-term, safe storage, reducing the risk of being hacked.
Where should I trade BNB?
Investors can trade BNB on the Binance platform itself. The trading volume of BNB on Binance is the largest and has the highest liquidity. In addition, you can buy and sell BNB coins on exchanges such as: Gate.io, Bitrue, Kucoin, Bilaxy, HiBTC… However, the trading volume of BNB coins on other exchanges is insignificant.
What is BNB burning?
BNB burning is the act of destroying a number of BNB coins circulating on the market. Burning coins helps Binance control and increase the value of BNB in the market. Binance commits to using 20% of quarterly profits to buy back and burn BNB, until the number of BNB in circulation is only 100 million coins.
How much is 1 BNB equal to VND?
The price of BNB in VND is updated in real time on the exchanges. As of May 5, 2022, the price of BNB coin is 389.95 USD, equivalent to 389.95x 24,000 VND = 9,358,800 VND/ BNB coin.
BNB coin is currently a virtual currency with a large trading volume on the market. With the Binance ecosystem expanding and many applications, BNB will have many opportunities for price growth in the future. Hopefully Finhay’s above sharing will help you understand what BNB is ? From there, understand important information about BNB coin, contributing to making the right decision when participating in the cryptocurrency market.
