Being a strong competitor to Ethereum, Binance coin is a good investment. The crypto-token owned by Binance’s largest exchange is third after Bitcoin and Ethereum. With the current market capitalization of 101 billion USD.
This year’s price movement in 2021 is very volatile, prices at the time of writing $608.56 have gained 9.2% on the day. Binance Coin or abbreviated as BNB has become one of the highlights as a crypto asset with a chance of success because many Dapp projects use the Binance Smart Chain.
Work from home CFD, crypto, forex trading online with TenkoFX
- 1 What is Binance Coin?
- 2 How does Binance coin work?
- 3 What is the Binance coin used for?
- 4 Why is the Binance coin so popular?
- 5 Binance coin founded
- 6 Is Binance coin a good investment?
- 7 How to mine Binance coin?
- 8 How buy Binance coins?
- 9 Where to buy Binance Coin?
- 10 Binance coin price prediction
- 11 Binance coin technical analysis
- 12 Final thought
What is Binance Coin?
Binance coin is a crypto asset issued by the Binance Exchange. Binance Coin or having a ticker symbol BNB has a maximum supply of 200 million BNB tokens. They periodically will burn against the supply of BNB to ensure it doesn’t overstock.
They will burn every three months by buying BNB worth 20% of the company’s profits. The purchased coins are then burned in the blockchain network so that the transactions are transparent.
Therefore, currently, there are only 153,432,897 BNB supplies in the world. It may still shrink to the point of scarcity to keep its valuation valuable.
BNB has three formats, namely ERC-20 on the Ethereum blockchain and BEP-2 and BEP-20 which are “native” coins in the Binance chain and Binance smart chain.
History Binance coin
26 June to 3 July 2017 Binance launched the first-ever BNB on the Ethereum blockchain network. The initial price is 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB.
But even though it was first offered in an ICO, developers claim BNB is not an investment or trading product.
The developer asserts that BNB is a medium of exchange used for payments, particularly on platforms within the scope of Binance such as binance.com, Binance DEX, Binance Chain, as well as applications on top of the Binance Smart Chain.
During the ICO, as much as 10% or 20 million BNB was sold to angel investors, which is the name for investors who finance start-ups at the beginning of their establishment. As much as 40% or 80 million BNB is allocated to the team. The rest, which is 50% of the total supply of BNB or as much as 100 million coins are released to the market.
The funds raised from this ICO are used to build the Binance platform and cover operational costs. As much as 30% of the total funds were also used to build a brand and market BNB. The strategy proved successful, and 11 days after its initial offering, Binance already had its platform.
How does Binance coin work?
The first launch, the Binance coin started as a traditional ERC-20 token on the Ethereum blockchain. Later, Binance built their blockchain called Binance Smart Chain, secured by Tendermint’s Byzantine-fault-tolerant (BFT) consensus mechanism.
While ERC-20 tokens rely on proof-of-stake (PoS) consensus, which allows them to be highly scalable, and enables the creation of smart contracts. Unlike PoS, the Binance Smart Chain blockchain does not support smart contract functionality.
But after the successful launch of the ICO, Binance then built their blockchain and created tokens in three formats, ERC-20, BEP 2, and BEP 20.
What is the Binance coin used for?
Binance Coin was originally intended as a medium of exchange rather than an investment instrument.
BNB has been used to finance travel and purchase virtual souvenirs. Binance coin is also used in loans, as gifts, to create smart contracts and other transactions.
A total of 2 million BNB users used this coin to finance 127 billion trades. The total transaction with BNB to pay this trading fee alone has reached 40 million BNB or 20% of the total BNB supply.
BNB is used on the Binance.com, Binance DEX, and Binance Chain platforms. Paying trading fees with BNB is quite popular as Binance charges a discount for users who pay fees with BNB. The standard trading fee on Binance is 0.1% which can also be paid with your assets if you are not interested in pursuing fee discounts.
Why is the Binance coin so popular?
One of the reasons why Binance coin is so popular is that Binance which is the company that issues BNB is the largest exchange in the world. This is because the transaction fees of this exchange are very low at only 0.1% of each transaction execution.
So it’s not surprising that Binance scored an average daily transaction of more than 2 billion dollars, with transactions executed every second reaching 1.4 million dollars.
Moreover, using BNB for transactions will provide added value with program discounts that make transaction costs cheaper. Therefore traders who use the Binance platform prefer to use BNB because it provides benefits.
As of April 2021, Binance Exchange is the largest cryptocurrency exchange in the world. That’s because Binance managed to become a crypto exchange with over 1.4 million transactions per second.
Binance coin founded
Binance was discovered by Changpeng Zhao, who is also the CEO of Binance. He is an experienced man working at Bloomberg as head of futures trading development in 2001. Then four years later Zhao joined Fusion Systems as a partner.
He has been active in the crypto world since 2013, becoming head of development at Blockchain, and in 2015 he founded BijieTech. In 2017, Zhao officially launched Binance, and he has been the company’s CEO ever since.
Besides Changpeng Zhao, there is also Hen Yi who joined in 2017. Hen Yi also has experience in cryptocurrency development including founding OkCoin in 2014.
Is Binance coin a good investment?
After initially Binance coin used the Ethereum blockchain, then moved to their blockchain called Binance Smart Chain, BNB’s growth has grown in popularity. Binance Smart Chain or BSC for short was introduced in September 2020 and launched in April 2021.
BSC become a cheaper transaction alternative because the growth of Ethereum, which is the Defi platform, has decreased transaction speed and high fees. As a cheap alternative to blockchain, many applications use BSC, so it is not surprising that this BSC is a competitor to the Ethereum blockchain.
According to the founder and CEO of Binance, Changpeng Zhao, the BSC is like CeDeFi or Centralized Defi.
Does Binance coin have a future?
The future of BNB will depend on Binance as the company that issues BNB. According to its founder, BNB is currently using BNC which is Centralized Defi, so the success of BNB is highly dependent on the success of Binance.
Citing to Forbes that the price of Binance Coin rallies after the Binance exchange has grown to $1 billion. This growth has made the demand for BNB increase. As the most widely used use of BNB is for transaction fees because using BNB traders will get discounts for cheaper transaction fees.
Currently, Binance coin is ranked 3rd on Coinmarketcap with a market capitalization of $104 billion. 2nd place by Ethereum with a market cap of $534 billion and 1st place by Bitcoin with a market cap of over $1 trillion.
How to mine Binance coin?
Binance coin minted with a strict limit of 200MM BNB will be created, never to be increased. This token cannot be mined, 50% of the token allocation is for ICOs already scheduled past 2017. 40% is allocated for the founding team and 10% for angel investors.
To control inflation, Binance will buy 20% of BNB every quarter and will burn it up to 50% of the total BNB. That means Binance will destroy 100MM BNB, and leave 100MM BNB remaining. Although it can’t be mined, to get earned by locking BNB you can participate in the Staking program here.
How buy Binance coins?
How to buy BNB is looking for an exchange that supports BNB. By now BNB is available on some of the leading exchanges, not just Binance. However, if you want to buy BNB through Binance, you can use a payment tool such as a credit card.
Here the steps that you need to take are as follows:
- Registering a Binance account, if you are already registered this step is skipped.
- Since Binance is an exchange that complies with AML and KYC rules, you must verify your account by sending the required documents.
- Fund your account, using the payment tools available on Binance.
- Make your purchasing order.
Where to buy Binance Coin?
Since BNB is natively issued by the Binance exchange, it is obvious that the first place where you can buy BNB is on the Binance exchange. In Binance, you can buy BNB by bank transfer or by credit card. Buy/sell BNB on Binance here.
Other alternative exchanges where you can buy BNB according to the Finder are as follows:
- Paybis. Supports 32 cryptocurrencies and payment methods with AdvCash, Credit card, Debit card, Neteller, Payeer, Apple Pay. Go to the site.
- Crypto.com. Supports more than 100 cryptocurrencies, accepts Credit cards, Cryptocurrency, PayPal, TransferWise, SEPA. Go to the site.
- Binance.us. Supports 60 cryptocurrencies, using payment methods Bank transfer (ACH), Bank transfer, Cryptocurrency, Debit card, Wire transfer. Go to the site.
Binance coin price prediction
BNB price as of writing $630.30 edged up 4.4%. Some experts predict the price of BNB.
Wallet Investors. BNB is a good investment, predicting prices in 2022 $886,582, and in 2026 $2460,280.
long forecast. BNB prices are up 245% in 2022 to $1813. 2023 up 378% to $2511. 2024 up 586% to $3603. 2025 up 485% to $3,072.
CoinQuora. BNB exponential growth refers to 200 MA. 2022 could reach $800. 2023 if it doesn’t fall to $1,800. 2024 boosts reach $2,500. 2025 is not difficult to reach $4,000.
CryptonewZ. The lowest price in 2022 is $870 highest is $1010. 2023 -2025 BNB price will reach $1200 in 2023 and it may go up to $1700 by the end of 2024.
Digitalcoinprice. The moving average is exponentially up. 2022 reached $1,115.17. 2023 price $1,317.94. 2024 price $1,540.11. 2025 price $1,937.10. 2026 price $2,243.63. 2027 price $2,436.66. 2028 price $2,758.90.
Binance coin price history
At first, BNB used the Ethereum blockchain, the price history from month to month is very reasonable. There have been no high spikes in the history of BNB prices.
Historical price July 2017 BNB price was very low $0.1, until late 2017 it reached $8 based on historical price by Coinmarketcap. Prices rose mid-January 2018 to $20. That was the highest price in 2018. Historical 2019 prices hit a high of $38 in June. Prices then fluctuated until early 2020. The highest price throughout 2020 was $37 at the end of December.
2021 was a golden year for BNB, after moving from the Ethereum blockchain to the Binance Smart Chain there was a surge in demand for BNB. This led to a very sharp price spike where BNB in May hit a high of $690.
Because BNB has been traded with ups and downs in demand causing prices to form high volatility. As a result, prices soaring sharply can fall quickly as well. The price drop could be triggered by profit-taking by traders because the price was deemed too high.
If you want to get detailed historical BNB prices you can read data from Nasdaq.
Binance coin all-time high
Price Binance coin (BNB) all-time high formed on May 10, 2021, at $690.93 at present time. It could change in the future.
Binance coin technical analysis
BNB is up 9.27% at the time of writing, at $661.12, already near its all-time high of $690. This means that the bullish trend has started to dominate the price indicating an increase in BNB demand.
We see that the potential for the increase in BNB prices may continue if we refer to the candlestick pattern which has begun to gradually rise since the end of last October.
The key point is based on the MA cross, where the 9th MA above the MA 21 indicates that the market sentiment is bullish. This is possible for the price to hit all-time highs again, or if there is a breakout it can the price formed new highs.
Meanwhile, if we look at the RSI indicator, currently it has reached the level of 79.30, it is already approaching the overbought area at the level of 80.
Although the strong trend is dominating, the RSI indicator is also important as an alert, so it requires a focus on risk management in short-term trading.
Binance exchange, even though it had problems when the Chinese government banned cryptocurrencies in its country, but company then relocated out of China due to tight regulations.
In some countries, Binance is also facing regulatory problems such as in the UK, and the US, but it seems that these conditions did not dampen crypto investors who this year Binance became the largest exchange.
This is also marked by the very high increase in BNB prices this year. However, a high price increase may cause a bubble to burst, as was the case with Bitcoin a few years ago.
Note: this article is just information and personal opinion, not considered as investment advice. Forex, crypto, CFD are risky assets, every investor is responsible for their investment.
You may like