Hamed Tavakoli
Do you know what Binance Coin is? Are you familiar with the Binance exchange? With the ever-growing cryptocurrency market, attention to this challenging market has increased over time, as the high potential for profitability is considered one of the main advantages of cryptocurrencies. A quick and simple review reveals that the cryptocurrency market does not have a physical structure. Therefore, almost all information related to balances and transaction amounts in this market is recorded in the form of computer codes. This has perhaps made security the most crucial requirement for trading in this market.
Currently, high security in the crypto market has many indicators, the most important of which is the exchange used for transactions. Today, Binance is recognized as the largest exchange in the crypto market, with a 24-hour trading volume of $13.61 billion. Additionally, the native currency of this exchange is Binance Coin, known as BNB. In this article of BearBullsclub, we will answer the question “What is Binance Coin?” and explore some key points. If you want to become fully acquainted with Binance Coin, stay with us until the end of this article.
Uses of Binance Coin
When faced with the question “What is Binance Coin?” we must also understand its uses. Generally, transactions on the Binance exchange are conducted using Binance Coin. This cryptocurrency was initially introduced to attract capital for the Binance exchange, but over time, its applications have expanded. Binance Coin was initially created on the Ethereum network with the ERC 20 standard. However, it is now used for the Binance ecosystem blockchain. This ecosystem was introduced in 2019 and has undergone significant changes over time. Today, many cryptocurrencies and NFTs are recorded and transferred through this blockchain. The price of Binance Coin was around $0.1 when it was first introduced, but after a short period, it reached a value of $25. This is why many people became optimistic about the future of this digital currency and invested in it.
Is Binance Coin a Good Investment?
Alongside the question “What is Binance Coin?” there is always the question of whether Binance Coin is a good investment. This cryptocurrency is not only used to purchase other cryptocurrencies but is also a profitable currency itself. At the beginning of this year, the price of each Binance Coin was $241, but in just a few months, it has seen prices above $600 during its upward trend. The initial offering of Binance Coin took place in 2017, with a maximum supply of 200 million units. Currently, Binance uses one-fifth of its profits every three months for buybacks and token burns to increase the value of this cryptocurrency by reducing the amount of circulating coins.
Today, the number of coins in circulation has decreased due to token burns. Token burning means permanently removing that number of Binance Coins, which helps maintain the cryptocurrency’s value during times of reduced demand. This feature has led to an increase in the value of Binance Coin over time. Currently, the number of registered Binance Coins is limited to 145,937,482, meaning that no more Binance Coins will be created. Therefore, this will help increase and preserve the value of the existing coins. According to statistics and based on transaction value, Binance Coin ranks fifth among cryptocurrencies, following Bitcoin, Ethereum, Tether, and Solana.
Ways to Acquire Binance Coin
BNB is not minable, and all Binance Coins were mined during the initial offering. Therefore, the only way to acquire Binance Coin is through transactions. So, apart from buying and trading on exchanges, there is currently no other way to obtain Binance.
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BNB Wallets
So far, we have answered the question, “What is Binance Coin?” However, we must not forget about Binance Coin wallets. In recent years, there have been many reputable and official wallets available that you can rely on to store Binance Coin. Some of the most important wallets in the market today include:
Trust Wallet
This wallet was acquired by Binance in 2018 and is currently recognized as the official Binance wallet. Trust Wallet is an open-source wallet that is offered as a mobile wallet for Android and iOS. This app provides an access key and complete control over private keys, protecting your assets from unauthorized access.
MetaMask Wallet
This wallet is one of the most well-known wallets in the crypto market. MetaMask supports NFTs, cryptocurrencies, and ecosystems such as ERC-20, BNB Chain, Ethereum, Polygon, Cronos, and Avalanche. MetaMask was introduced in 2016, initially as a browser extension and later as an Android and iOS app.
Math Wallet
This wallet is available both as a browser extension and as an Android and iOS app, and it supports almost all major cryptocurrencies and blockchains, including Bitcoin, Ethereum, Solana, Polygon, Polkadot, and BNB Smart Chain.
Trezor Wallet
Trezor was the first hardware wallet for Bitcoin, introduced to the crypto market. This wallet was first offered in 2014 by a company called Satoshi Labs in the Czech Republic. As a hardware wallet, Trezor is much more secure than mobile wallets and browser extensions and is never connected to the internet. Therefore, hacking it remotely is impossible. This wallet uses a 24-word seed phrase for backup. The words, like other wallets, are chosen entirely randomly and contain the information within them. Each time you access this wallet, you will need a password, and after the first incorrect password entry, you will have to wait 30 seconds before you can try another password.
SafePal Wallet
This wallet officially started operating in 2019 and is available in both software and hardware versions. The hardware version was released first, and the software version was released in 2020 for Android and iOS. This wallet supports the ERC-20 and BEP-20 standards and allows you to use the wallet on the Binance and Ethereum platforms.
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