What is Binance Coin (BNB)
BNB is a crypto currency of Binance exchange platform, which can be used to trade and pay fee on the platform. BNB was launched in July 2017 on Ethereum network but is now operating on Binance Smart Chain. Binance exchange is believed to be the largest cryptocurrency exchange in the world. Fun fact about Binance is his CEO, @cz_binance, is a very active member of Twitter.
Main characteristics of BNB:
- It started in July 2017
- It is operating on Binance Smart Chain
- It is the third cryptocurrency by market cap, excluding stable coins, as of July 2021
Every quarter, one-fifth of Binance profit goes to buy BNB and burn it permanently. BNB has shown to be fairly reliable and strong coin in the market recently. There are some criticisms againts Binance, as some people believe it does not have really a decentralised system and it was hacked once in 2019. Also, due to some legal issues, Binance is not available in the US and some other countries.
Things to consider before investing:
- Do your own research before investing in this coin
- Do not invest money in this market that you cannot afford to lose
- While less volatility has been experienced in strong coins like BNB, we still face major corrections every now and then.
BNB has been showing promising performance in the crypto market and has become the third largest cryptocurrency after Ethereum. It is predicted that BNB will continue to grow, although there are some concerns regarding legal issues of Binance exchange platform.