Today, there are few people who have not heard of the words cryptocurrency, digital currency, blockchain, bitcoin, and bitcoin mining. Binance Coin is also another concept in the aforementioned field of concepts. But before addressing the issue of “ What is Binance Coin ” and other related topics, a brief explanation of the concepts of digital currency, cryptocurrency and blockchain will be provided. Next, the issue of explaining BNB (binance) is thoroughly explored.
?What is digital currency
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Digital currency is a form of currency and, in fact, money. The difference between digital currency and fiat money that most people know and use is that digital currency cannot be physically touched, and is in fact computerized money or, more correctly, electronic money. Cryptocurrencies can be accessed using a computer, mobile phone or tablet. It should be noted that digital currencies are a type of digital “money” or “asset”. Most digital currencies are built on blockchain technology . To learn more about digital currencies, read the article “ What are digital currencies ?” Everything you need to know is presented in simple language.
?What is cryptocurrency
A cryptocurrency is a type of digital currency that uses cryptography to implement it on a blockchain platform. Cryptography is used to maintain the security of the blockchain network on which the cryptocurrency is executed.
؟ What is Binance Coin
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Binance Coin is a digital currency issued by the Binance platform and traded with the BNB token. Binance Coin was initially run on the Ethereum blockchain and has a fixed limit of 200 million BNB. Binance is an online cryptocurrency trading platform and is one of the most popular. The word “binance” is a combination of the two words “binary” and “finance”. This word is used in two meanings: Binance Exchange, one of the world's leading cryptocurrency exchange platforms. The cryptocurrency offered by Binance is called Binance Coin, which some people call Binance for short.
?What is Binance coin?
Binance Launcher is an exclusive platform from Binance to help start and launch cryptocurrency projects . In fact, both Binance Launchpool and Binance Launchpool are platforms that help crypto project teams on how to launch and deliver tokens, in addition to providing information and tips, they accompany them step by step in the implementation process. The main objective of the Binance Launcher project is to give crypto project teams the opportunity to focus on their own project and continue building the product. In fact, the project team is focused on building the product while the Binance launcher team is working on marketing and getting into the early user base
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?What is Binance Dex
Binance DEX is an acronym to stand for "Binance Decentralized Exchange". In simpler terms, Binance Dex is a distributed platform created by Binance and powered by Binance's proprietary cryptocurrency, Binance Coin (BNB). This exchange has lower transaction fees and increased security through distributed transactions. However, learning to work with this distributed exchange is more difficult than with the main one, and this exchange is suitable for experienced users. Overall, Binance Dex is a distributed platform built on top of the Binance Blockchain. Zhao, founder of Binance, says:
Binance Dex is a distributed exchange with a distributed network of nodes where users can store their private keys and passwords and manage their wallets.
What is Binance Dex?
What is Binance Coin?
Binance Coin (BNB) is a cryptocurrency that can be used for trading and payment on the Binance platform. Binance is the largest cryptocurrency trading platform in the world as of January 2018, with over 1.4 million transactions per second.
Currently, Binance is one of the largest platforms in terms of daily trading volume. The founder of this platform is Chang Peng Zhao, who can be called the richest and most famous person in the cryptocurrency world.
Initially, the Binance platform was located in China, but due to China’s strict rules for cryptocurrency, the exchange was moved to Japan. One of the main reasons for moving the Binance platform to Japan was the country's interest in cryptocurrencies. Binance has made great progress since its official launch and has become the largest cryptocurrency exchange. That is why, when Binance added the cryptocurrency to its list, it was quickly noticed.
This digital currency was first created with the purpose of paying transaction fees on the Binance exchange. Currently, users of this digital currency are taking advantage of fee discounts in the market. The BNB market base is also one of the popular base markets for this exchange. This coin was conceived in July 2017 and sold in the market through the initial offer.
The price of the Binance cryptocurrency was around $0.1 initially. But at the end of 2017, the price of this token reached $25. This price increase made many people hope for the future of this digital currency and invest in Binance. Buying BNB can be a promising investment.
?What is Binance Coin?
Binance Coin was created with the aim of enabling the Binance system and organizing its operations in order to have a stable system. This cryptocurrency is used for various purposes, including paying the listing fee, exchange fee, transaction fee or any other operation that the user may perform on the exchange and have a fee. At the same time, Binance Coin can be used to invest in cryptocurrencies.
?What is the use of Binance Coin
Binance Coin can be used as the native currency of a Binance exchange to pay internal fees on this exchange, invest in new cryptocurrencies offered on the Binance platform, pay fees on many platforms that support this cryptocurrency, pay fees at service centers and sell goods.
?Who is the Binance Coin development team
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The Binance exchange was founded in China by a person named Changpeng Zhao, who was the IT Director of OKCoin. After the launch of the Binance platform, Yi He also joined the Binance team. Yee Hee is the co-founder of OKCoin. Zhao and Yi both contributed to the exponential growth of Binance Exchange. Binance is currently the second largest platform in the world based on transaction volume. Currently, there is no special team working on the development of the BNB token itself, and most of the focus is on developing the platform for the platform.
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?Who is the Binance Coin development team
The team behind Binance Coin has used a special strategy around this cryptocurrency to reduce inflation, increase the value of Binance Coin and other related economic reasons. Based on this strategy, Binance Exchange has a Binance Coin Redemption Program where Binance uses 20% of its earnings from this cryptocurrency to redeem Binance Coin (BNB) tokens and burn or destroy them. This is done with the aim of leaving at most 50% of the total Binance Coin available, or actually a hundred million Binance Coins. Binance Coin tokens are burned every three months, and so far 15 stages of Binance Coin token burning have been carried out.
The Binance Coin Burn, which causes only 100 million Binance Coin tokens to remain in circulation after all the token burns have been done according to plan, greatly helps to keep the value of Binance Coin stable. At the end of April 2017 (mid-April 2018), the Binance team announced that 2,220,314 BNB tokens (about $30 million in Binance coins) had been burned, after which the token continued to burn. The continuous burning of Binance Coin with the increase in the percentage of token burning according to the schedule, is a good indicator of the profitability of this cryptocurrency exchange Binance. The remarkable thing about Binance Coin burning is that after each burn, the price of BNB usually goes up, and the reason for this is naturally a drop in supply.
Before Binance Coin moved to the Binance Chain, Binance was burning coins on the Ethereum network using the smart contract burning function . The amount of coins that Binance burns depends on the number of exchange transactions over the past three months. Since the launch of the Binance Chain, Binance Coin has not been burned on the Ethereum network, and now they are using a specific command in the Binance Chain to do so. It should be noted that Binance Coin is a cryptocurrency that was previously mined, and now it is being destroyed in large quantities with the aim of limiting the supply chain.
?What is burning Binance coin
Since Binance Coin (BNB) was originally created for use in internal transactions of the Binance platform and its coins were previously mined, there are no fees associated with the Binance Coin network itself. However, when a user buys Binance Coin tokens or does any other type of business on Binance platform, he has to pay 0.1% of the transaction fee as a fee. In the first year of launching Binance Coin, if the user pays the transaction fee with Binance Coin, they will get a 50% discount.
For example, if someone buys $100 worth of value through Binance using any other currency, the transaction fee will be $0.10. However, if the user makes the payment using Binance Coin tokens, he only needs to pay half of that fee, which is $0.05. The amount of this discount is halved every year, and after four years, the question of granting a discount in the fifth year is completely eliminated.
What is the difference between digital money and electronic money
Of course, it is worth noting that Binance Coin can be used in many other services that support this cryptocurrency to make payments, specifically travel and accommodation services. But the service fees or commission fees at these companies are set by the respective vendors or service providers, and do not necessarily include Binance discounts.
?Is Binance Coin Really Money
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?As mentioned earlier, the main purpose of Binance Coin is to play the role of improving the internal operations of the Binance platform and giving strength to the Binance ecosystem. In the early years of introducing the Binance Coin token, it was also used for trading at a very good discount. However, these deductions were reduced in subsequent years only to be eliminated entirely in the fifth year. Binance coin can also be used to pay for travel and accommodation services in some companies. But its adoption as a live currency for microtransactions remains very low. This is why BNB cannot be considered real money yet; At least now and at the time of writing this article.
?Is Binance Coin Safe
Binance Coin is built on the Ethereum blockchain. The Ethereum blockchain blocks encryption to prevent data corruption or eavesdropping. As the blockchain is distributed, there is no central hub that can be hacked and compromised. In 2019, Binance Coin moved to its own blockchain called Binance Coin, which was implemented by the Binance developer team, which promises to keep Binance Coin secure.
Regardless, the crypto exchange Binance and its security features that add a layer of security to help protect personal information and money is a trusted name in the crypto and exchange space is popular. This security layer includes two-step authentication and SSL-certified encryption. Also, secure and well-known wallets can be used to keep BNB more secure.
?Can Binance Coin Be Used Anonymously
It is difficult to maintain anonymity when using Binance Coin. Given that the Binance Coin token is mostly used with the Binance ecosystem, it is usually necessary to have a verified account on the Binance platform to use BNB. Binance operates under Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, which means that personal information is received from a user for identification prior to creating an account.
For people who have a large capital and who have to confirm their identity on Binance, it should be noted that they cannot use Binance Coin on Binance without an account. If the user is concerned about privacy, they should use another cryptocurrency such as Zcash, which provides solutions to anonymize identity and transaction details on the Blockchain.
In addition, any digital activity using BNB can be tracked by Binance itself, the government, or any other skilled hacker. This fact means that if someone leaves a digital footprint behind, there is always a chance that people who want to find it will be able to find it. In addition, this becomes more evident if one is constantly trading in cryptocurrencies.
Is it worth investing in Binance Coin
Given the general risks and benefits of investing in the cryptocurrency space, as well as considering the particular growth of Binance Coin since its introduction and the support that Binance Exchange provides for this cryptocurrency, Binance Coin appears to be an attractive option for those interested in investing in this space. Binance, like other cryptocurrencies, includes All the special risks and benefits of investing in cryptocurrencies.
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Generally, people are advised to become familiar with the concepts and intricacies of this field before investing in Binance Coin or any other cryptocurrency. Then, knowing the idea of creating a cryptocurrency, its price history, the main causes of cryptocurrency market fluctuations, and having sufficient knowledge and awareness of cryptocurrency analysis methods . People who intend to invest in Binance Coin or any other cryptocurrency before doing so should speak and consult with experts in the field with complete vigilance to ensure that their investment funds remain safe. The importance of risk reduction in the discussion of investing in cryptocurrencies is very important.
Is Binance Coin Worth Investing In?
What exchanges support Binance Coin?
The main exchange that supports Binance Coin is the same exchange that is behind the launch of this cryptocurrency. Meanwhile, popular and well-known platforms also support Binance coin, including the following:
FTX
KuCoin
Gate.it
Poloniex
AscendEX (Bitmax)
Indodax
Bithamb Global
eToroX
Wazir X
CoinDCX
Binance DEX
50X
What financial institutions have invested in Binance Coin?
When it comes to attracting investors, the Binance platform finds a lot of appeal to many people and organizations; Because the founders of Binance have already demonstrated their ability to build a successful cryptocurrency platform . This is why several leading investors and financial institutions including Vertex Ventures, Plutus21, Black Hole Capital and Fancy Capital participated in the Binance Coin ICO. It has attracted Funcity Capital, Sequoia Capital, Limitless Crypto Investments, Core Labs and many more.
?How is Blockchain Binance?
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Originally, Binance Coin was built on top of the “Ethereum Blockchain” and used ERC 20 tokens to store and hold value. Although Binance Coin was initially offered on Ethereum, it was gradually moved to its own chain called Binance Chain. The Binance series uses the tolerance compatibility mechanism. This system includes different types of nodes, including the following:
Validator Contract: Select community members who vote to validate transactions.
Witness nodes: They witness the consensus process and broadcast the transaction to the other nodes.
Accelerator Contract: Belongs to an organization (Binance Exchange) and Accelerate Transaction Verification Process.
How is Blockchain Binance?
What is Blockchain Binance in Binance Coin?
Binance Coin tokens cannot be mined on the Blockchain because all pre-existing tokens have been mined and issued through the ICO. Tokens are used in the tournament to redeem for discounts on the Binance platform. As we explained earlier, the discount rate was 50% in the first year, and this amount was halved every year, and in the fifth year there will be no more discount, and this causes the price of Binance to see changes. In order to prevent depreciation, Binance Exchange does Buy Binance Coin tokens again and destroy them to reduce supply. This cryptocurrency exchange planned to remove half of Binance’s tokens (i.e. 100 million out of a total of 200 million).
?Does Binance Chain Support Smart Contracts
The Binance series is provided to improve system efficiency and remove the need to support unnecessary features. Therefore, smart contracts are not supported on the Binance Coin Blockchain. If a specific feature is needed in the Binance Chain, then that feature should be implemented locally in the Binance Chain and not use smart contracts for it. Therefore, the BNB support team asked users on the FAQ page to share questions with them if they have a request for a specific job in the blockchain for this cryptocurrency, it will be reviewed and executed if necessary.
?Does Binance Chain Support Smart Contracts
Binance Coin is not a minable coin. This means that it is not possible to mine Binance using computers with super and high power, such as Bitcoin and Ethereum. In other words, Binance cannot be mined in the same way that cryptocurrency can be mined with a Proof of Work consensus mechanism. Because the Binance Blockchain uses the Consensus Fault (BFT) mechanism. On the other hand, all existing Binance tokens were mined by the Binance team at the beginning of the introduction and issuance of this coin and made available to everyone within a year.
In fact, Binance Coin is pre-mined and contains 200 million Binance Coins issued for use. In July 2017, the company began the initial offering of Binance Coin.
?How to mine Binance coin?
What are the advantages of Binance Coin?
Below, the benefits of Binance Coin are examined.
Safety and reliability
Binance currently has millions of cryptocurrency users and investors who rely on the Binance platform and trust the security and security capabilities of this platform.
Trade different cryptocurrencies
With Binance Coin, cryptocurrencies can be traded with more than 150 cryptocurrencies in a platform based on speed, security and the matching system of the offer.
Deals Discounts
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Binance Coin allowed users to get up to 50% off transaction fees. If the user buys 10,000 values, a fee of $10 will have to be paid in the normal payment mode. However, if the user uses Binance Coin, the transaction fee will be halved, which means that the user will only need to pay $5. The amount of the discount was halved every year, and in the fifth year from the beginning of the supply of this cryptocurrency, the discussion of discounting was completely removed.
Summary of Binance Features
This digital currency has lower fees compared to other digital currencies.
BNB coin gives its users huge discounts and rewards for completing transactions.
With Binance Cryptocurrency, you can buy and sell other digital currencies like Ethereum, Bitcoin, etc.
With the BNB digital currency, users can exchange between different digital currencies.
Very high transaction speed.
It has an easy user interface, which provides a good user experience for the users.
There is very high protection in this network.
What are the disadvantages of Binance Coin?
While there are certain benefits to buying Binance Coin, there are also risks surrounding this cryptocurrency. The first thing is that the cryptocurrency industry is an emerging industry. Therefore, various events can have a negative impact on the industry. The instability of this industry is also one of the issues that people have to consider because one accident and one moment can lead to the loss of entire capital.
In addition, as indicated, the discussion of deducting transaction fees if Binance Coin is used to pay the fees on Binance will end in 2023, and by this time, if this cryptocurrency cannot gain a good position in the cryptocurrency market. It may be completely neglected. Of course, Binance Coin now appears to have gained a good footing and has a good future by placing it in third place in terms of market size, after Bitcoin and Ethereum, which come in second and third place respectively.
?How do you store Binance coins
To store Binance coin, you need a cryptocurrency wallet and you must support this cryptocurrency. In the following, the types of Binance Coin wallets will be presented.
?What is Binance Coin Wallet
People who intend to store Binance Coin tokens should use hardware or software wallets designed for this purpose. The official wallet for storing Binance coins is Trust Wallet. However, Binance tokens can also be stored in other wallets, some of which include:
Enjin Wallet
Ledger Wallet
Trezor Wallet
Jaxx
(CoolWallet S)
(Metal Vault)
(BRD)
(Gifto)
(Request Wallet)
Ethos Universal Wallet
(WinQ)
(Atomic Wallet)
(Clay)
(Coinomi)
(Blox.io Wallet)
What is Binance Coin Wallet?
What is the method of buying and selling Binance coin?
In the following, the method of buying and selling Binance coin will be explained.
?How to buy Binance coin
When buying BNB digital currency, two different strategies should be considered. In the first case, a person owns a number of other digital currencies that he wants to use to buy Binance. In the second case, there are no other digital currencies and the user wants to buy BNB.
In the first case , anyone who owns Bitcoin, Ethereum or other altcoins can easily exchange with Binance Coin on the platform using the crypto pairs they own. Suppose a user has two cryptocurrencies, XRP and ADA Cardano, and wants to buy BNB using the coins he has. He can buy Binance coin easily, by completing the 5 steps, he can buy Binance coin :
Create an account and register on the Binance platform through the link below
https://www.binance.com/ar
Activate 2FA with the mobile code generation app
Authentication by providing a photo and user ID
Send Ripple and Cardano to the address of your Binance exchange account
Return to the exchange section of the Binance platform and start converting XRP and Cardano to BNB cryptocurrency using currency pairs.
In the second step , the user intends to buy Binance Coin without the need for other cryptocurrencies. Initially, Binance did not support the ability to buy cryptocurrencies directly using common currencies such as dollars, euros, pounds, etc. (fiat currencies). But recently this possibility has been made available and users can buy BNB tokens directly using their fiat currency.
?How to buy Binance coin?
Binance Coin can be sold on the Binance exchange or other platforms that support this cryptocurrency. For this purpose, it is sufficient for the user to specify the amount of Binance coin he intends to sell and the coin he wants to convert into Binance Coin and press the sell button.
?What is the future of Binance coin
The Binance team has provided many incentives to people. The Binance platform has started running contests, offering discounts and other ways to attract investors to use the Binance platform. It seems that given the growth of Binance coin during this period and the support of the Binance exchange, a good future awaits this cryptocurrency.
?What is the future of Binance coin
Binance Coin is one of the currencies that has gradually increased in price and its statistics do not show extreme fluctuations. Although in the year (2021) and from January when the price of cryptocurrencies such as Bitcoin and Ethereum witnessed a significant and controversial rise, Binance Coin also showed strong price growth and this growth until the beginning of May (late April 2021) was also bullish .
?What is the difference between Bitcoin and Binance Coin
The differences and similarities between the cryptocurrency Bitcoin and Binance Coin were examined from different dimensions.
Bitcoin is a cryptocurrency and a digital asset. At the moment, various stores, companies and service centers offer services to get bitcoins. This is despite the fact that Binance Coin has not yet been able to be literal cash. Since its main use is for internal payments related to the Binance exchange, and although some travel and accommodation service companies use it, it has not yet managed to get a serious stand on the matter.
Due to the high transaction cost, the high processing required in this direction (and of course the high consumption of energy companies) and the slow transaction speed, Bitcoin is not a suitable option for microtransactions. At the same time, Binance Coin is a convenient option for micro-transactions due to the lack of transaction fees and speed of transactions.
In terms of market capitalization, Bitcoin ranks first in terms of market capitalization. Binance Coin ranks third, far behind Bitcoin. It is worth noting that Binance Coin managed to increase the market size very quickly and reached the third position and higher than many popular and well-known cryptocurrencies.
Bitcoin has been running on its own blockchain since the beginning. But Binance Coin was initially on the Ethereum network and then moved to its own blockchain.
The creator of Bitcoin is an unknown person or group of people called Satoshi Nakamoto. Meanwhile, the creator of Binance Coin is actually a well-known rather than anonymous team, and its founder is Changpeng Zhao.
Almost all cryptocurrency platforms in the world support Bitcoin. At the same time, the main supporter of Binance is the Binance platform, and besides this, a certain number of other platforms also support this cryptocurrency.
Bitcoin is the most liquid of all the cryptocurrencies out there; This means that there is more supply, demand and trading than other cryptocurrencies. In other words, Bitcoin can be converted into another form of cash in less time. This is despite the fact that Binance Coin has a much lower liquidity than Bitcoin.