Binance Coin (BNB) 2023 Guide
BNB stands out due to its utility as the native cryptocurrency of the Binance exchange, offering discounted trading fees, participation in token sales, and seamless integration within the Binance ecosystem.
A Genesis of BNB: Binance’s Brainchild
To understand BNB, we must first appreciate its roots. Binance, one of the world’s largest crypto exchanges, launched the BNB token in 2017 as an integral part of its crypto trading platform. BNB is a native cryptocurrency, or coin, of the Binance cryptocurrency exchange. As a coin, it operates on its own blockchain called the Binance Chain. However, it also has utility token characteristics within the Binance ecosystem. The BNB token was conceived to enhance the user experience within the Binance cryptocurrency exchange and empower crypto traders with numerous advantages.
Why Use BNB?
BNB has become a convenient and cost-effective choice for both traders and investors. Here are some of the use cases for BNB:
- Fuel for Trading
One of the primary purposes of the BNB is to serve as the lifeblood of the Binance cryptocurrency exchange platform. When users trade cryptocurrencies on Binance, they have the option to pay their trading fees using BNB. This seemingly minor feature unlocks a world of benefits. By using BNB to pay fees, traders are entitled to significant discounts, turning every trade into an opportunity for savings. The more you trade, the more you save – an alluring proposition for seasoned traders and newcomers alike.
By incentivizing traders to utilize BNB for crypto trading fee payments, Binance creates a mutually beneficial relationship. On one hand, the exchange enjoys increased liquidity as more users opt to hold and use BNB for trading. This, in turn, contributes to a robust and active trading environment, attracting even more traders to the crypto trading platform.
- Engine of ICOs and Binance Launchpad
In the fast-paced world of Initial Coin Offerings (ICOs), Binance has developed a coveted platform known as Binance Launchpad. This platform acts as a launchpad for new cryptocurrency projects seeking funding and exposure. Investors looking to participate in these ICOs must do so using BNB. By leveraging the BNB for these fundraising events, investors gain early access to potential gems in the crypto realm, thus, turning the BNB into an engine of opportunity.
- BNB on Binance Smart Chain
As the decentralized finance (DeFi) movement gains momentum, Binance introduced the Binance Smart Chain (BSC) as a parallel blockchain to the original Binance Chain. The BSC has unleashed an array of DeFi applications, and BNB stands as the native asset fueling this vibrant ecosystem. Investors can use BNB to participate in various DeFi projects, such as liquidity provision, yield farming, and governance participation, showcasing the versatility of this remarkable.
- BNB as a Payment Option
While the BNB thrives within the realm of cryptocurrencies, its potential extends beyond digital borders. With the Binance Visa Card, users can convert BNB into fiat currencies and spend it at over 60 million merchants worldwide. This real-world utility transforms BNB from a speculative asset to a practical tool for everyday transactions, further solidifying its position in the global financial landscape. The Binance Visa Card enables owners of the card to easily convert and spend their BNB at various retail outlets, restaurants, and hotels during their travels, making it a valuable asset for seamless international spending.
- NFT Marketplace
In recent times, the world has witnessed explosive growth in the non-fungible token (NFT) market, where unique digital assets are traded, bought, and sold. BNB has found its way into this burgeoning landscape as well. Platforms such as the Binance NFT Marketplace offer artists and creators an avenue to showcase their NFTs to a vast audience, with BNB serving as the preferred currency for purchases.
This vibrant synergy between BNB and NFTs has opened a gateway to the world of digital art and collectibles. Imagine an artist who mints their artwork as an NFT on the Binance NFT Marketplace and decides to price it in BNB. By enabling collectors and art enthusiasts to purchase the NFT using BNB, they are providing the artist with a platform to monetize their creations effectively.
- BNB for Staking
The Binance ecosystem rewards holders of BNB with opportunities for staking. By staking BNB, users actively participate in the blockchain’s consensus mechanism and contribute to its security and stability. In return, stakers receive rewards, such as additional BNB or participation in various projects and decision-making processes. This mechanism encourages active participation in the network while providing users with an opportunity to earn more BNB.
- Paying Salary in BNB
A good number of Binance employees receive a portion of their salaries in BNB. This demonstrates Binance’s proactive approach towards integrating cryptocurrencies as a significant aspect of its payroll system. This practice not only fosters adoption but also enables individuals to be more directly involved in the cryptocurrency ecosystem, potentially benefiting from its growth and increasing utility
BNB on Other Exchanges
While BNB initially thrived within the Binance ecosystem, its popularity has led to its adoption on other exchanges as well. Numerous crypto trading platforms have recognized the value of BNB, listing it for trading alongside other well-established cryptocurrencies. This widespread acceptance has elevated BNB’s status, making it a coin with global recognition and appeal. For instance, traders can now easily access BNB on various crypto exchanges such as Flipster, broadening their investment options and further cementing BNB’s position as a prominent player in the crypto market.
The Ever-Growing Landscape of BNB
The Binance coin is far more than just another cryptocurrency. It serves as a cornerstone of the Binance ecosystem, enabling a multitude of functionalities, from fee discounts to NFT trading and DeFi participation. As the crypto landscape continues to evolve, BNB remains steadfast, proving its worth as a versatile and engaging coin.
How To Trade Binance Coin (BNB)
To trade Binance Coin (BNB) on Flipster:
- Download the Flipster app and complete the account set-up process
- Go to [Trade]
- Click on [Search] at the top of the page and type in BNB
- Click on BNB
- In the [Amount] field, type in the amount of BNB you wish to buy or sell. Alternatively, you can select the percentages below to choose how much of your available cash you want to use for your order
- Click [Preview order] to preview your order
- Once you have confirmed the details, click on [Buy BNB – Long] button or [Sell BNB – Short] if you are opening a short position.
Disclaimer: Any opinion shared in this article is strictly the views and opinions of the author and should not be construed as financial advice. Flipster makes no judgment on the projects or the content uploaded.