Top 10 Reasons to Buy BNB

The Binance Coin (BNB) is the native traditional token of the Binance cryptocurrency exchange, one of the world's leading crypto exchanges. The popularity of the exchange has increased due to the various technological innovations going on in the platform. The BNB coin was launched through an ICO in 2017, just 11 days before the Binance exchange went live.

The token was initially issued as an ERC -20 token running on the Ethereum network with a total supply capped at 200 million coins. However, in April 2019, the ERC -20 BNB coins were swapped with BEP2 BNB on a 1:1 ratio with the launch of the Binance Chain mainnet. It means that the token is no longer hosted on Ethereum

The coin currently has a market cap of $19billion with a circulating supply of 154million and a daily trading volume of over $128 million. The stable fundamentals and a growing number of use cases have earned it a spot in the top 10 coins in CoinMarketCap. It can also be easily traded in several crypto exchanges such as; Binance, HBTC, BitZ, CoinTiger, etc. 

Find out Top 10 Reasons to Buy BNB

The following are some of the reasons why the Binance BNB coin is a great buy. With the Binance exchange, which is one of the fastest-growing crypto exchanges and with the BNB coin also growing rapidly, any investment decision on the coin might be a profitable long term investment. Here are the top 10 reasons while you should think about using Binance and Buying the BNB coin.

Raising Value in the Long Term 

If you want to invest in BNB, the coin is a relatively safe coin to invest in. It doesn’t have the volatility that other cryptocurrencies have. However, it is not technically a stablecoin, though it is fairly stable. Binance coin could more accurately be called a utility token. Since the launch of the coin, it has grown exponentially in value. As the Binance platform grows with time, the BNB currency grows at the same rate. The infrastructure is as strong as Bitcoin’s protocol. 

Launchpool/Launchpad

As the name suggests, it is a token launch platform that makes it easier for companies to introduce their token. The launchpool allows the BNB coin holders to invest the token in selected projects. For example; In 2021, the Binance Launchpad hosted BitTorrent’s entrance into the blockchain world and the initial exchange offering (IEO) of Harmony, and the latter used launchpad to introduce staking in 2020. 

BNB Burn 

When we look at technicalities, coin burning is one of the major achievements of Binance coin. Due to the artificial scarcity of coins, BNB traders have found a means of ensuring that their assets’ value is rising steadily. The BNB tokens are removed through a process called burning. The Binance white paper stated that Binance destroys coins in what they call a “burn.” 

In clear terms, burning is the opposite of minting. At the end of every three months (quarter), Binance plans to destroy Binance coin in regards to the trading volume on the Binance trading platform. All the transactions will be logged on to the Binance blockchain. The Binance platform performs this burning using a smart contract. So, it is practically impossible to return the coins once they are destroyed. 

During this burning, they will destroy a percentage of the BNB coin and leave some remaining. But they will use their profit to buy the coins they plan to destroy. What all this means is that instead of the coin inflating, it is deflating. Thus, leading to the rise in the price of the coin. 

BSC chain is High-performance chain using BNB as gas

The BSC chain is a new smart contract enabled blockchain that acts as a parallel chain to the Binance chain. The BSC supports cross-chain transfers and allows for the creation of pegged coins (tokens that are pegged to the BSC chain), including BTC, ETH TRX, etc. Pegged coins operate as BEP -20 tokens on Binance smart chain, similar to Ethereum’s ERC-20 tokens. The BSC chain performance is very good when using BNB as a gas. An example is the transaction fees, which are lower in Binance DEX when compared to the Ethereum DEX. 

Do Loan with BNB Collateral

In the last quarter of 2020, Binance added BNB as an option to use as collateral for borrowing on the Binance Loans platform. It means that you can use your BNB as collateral to borrow other cryptocurrencies such as BUSD, USDT, etc. The Binance loans are flexible and provide a varying range of options for supported crypto assets, interest rates, collateral assets, and maximum loanable limits based on the market conditions and the platform’s internal risk management. 

Also, Kava, a decentralized finance (Defi) platform offering collateralized loans of USDX (Kava’s stablecoin) in summer 2020, launched on the Cosmos blockchain and chooses BNB as its collateral for now. It means that you can use your BNB as collateral in the platform. 

Save on Trading Fees on Binance

The BNB transaction fees on Binance are typically 0.15%, whereas it is 0.25% on Bittrex. You might be wondering why it is so? The reason is that when you are in the Binance platform, the coin holds value, and you don’t pay any trading fees. So, it means that they are removing that 0.05% fee, and that’s a massive incentive. If you sign up with this link you will get an extra 10% discount on trading fees. 

Suppose you are trading between other cryptocurrencies in the Binance platform. In that case, you might as well use the BNB coin as a utility to buy your desired cryptocurrency instead of using BTC and paying huge transaction fees. That’s one of the advantages of having a BNB coin. 

Low Transaction fees (vs. ETH) on BSC

It is not new that Binance aims to be the leader in the Defi space and the crypto space. So, it unveiled its own DEX, Binance Smart Chain, with its traditional native token BNB as the base for the transaction fees. Unlike Ethereum’s DEX, where the gas fees are in the form of ETH, Binance charges in the form of BNB (which serves as gas). With this, the Binance smart chain fees are only 0.1% if you pay in non-BNB assets, and it is 0.04% if you pay in BNB. However, different transactions have different fee structures like Cancel, Order Expire, Transfer, IOC, etc. This makes the BNB one of the easy coins to get at a lower cost. 

As the Defi space continues to garner more popularity, the Binance Chain gains more attention in the crypto space – offering fewer fees than Ethereum. This has helped Binance to snatch much of ETH’s shares.

Binance Raising the Value of BNB. 

Currently, the Binance exchange is coming up with fresh ideas on increasing the value of the BNB token. One of them is the coin burning that the platform introduced. The Binance platform promised to use about 20% of profit to buy back the Binance coin about 50% units. This should give the price a big boost in the future. That’s because the burn rate ensures a limited supply, which drives the demand and increases the price. 

Also, when you make use of the launchpad, BNB is the only token you can use to purchase the tokens on sale. Given the number of past and present partnerships and new applications, the adoption of BNB looks to be constantly growing, which shows a sign that the coin’s price will increase in the future. 

Furthermore, as we stated above, the recent Binance investment in TravelByBit and the utilization of BNB as a payment method on platforms can also help drive the digital currency price. 

Cashback up to 8% on Binance Visa Card

The Binance platform offers up to 8% cashback on all eligible purchases made with Binance Visa card. The cashback percentage will be based on your card level, which depends on the amount of BNB staked at your Binance wallets. The cashback is calculated daily for each settled purchase from the previous date, and it is paid daily in BNB to your card wallet. However, the Binance card cashback program is only applicable to eligible purchases made with your Binance card. In summary, you will be rewarded in BNB (and also earn interest) for purchases made with your Binance card. It is one of the reasons why you need to purchase the coin.

Pay with it on Various Platforms. 

Some merchants offer BNB as a means of payment for customers. One of them is Binance’s recent investment in TravelByBit, an Australian start-up that has equipped more than 150 establishments, including the whole Brisbane Airport ( which gives people the ability to pay for goods and services using cryptocurrencies). With this partnership, we are going to be expecting BUB usage on TravelbyBt affiliated merchants very soon. Presently, the system is undergoing testing. 

Also, the BNB is being utilized as a payment method on platforms made by blockchain start-ups like crypto point of sale solutions provider Pundi X, blockchain payments company Crypto.com and private nightclub, and many more. 

Let’s look at more in-depth reasons why BNB is a good buy today. These top 10 reasons will give you a clue while you need the digital coin. 

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Written by:  Narender Charan

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