Cryptocurrency is the key interest of the investors these days. Whether you are trading for the first time or you are a professional trader who wishes to diversify your portfolio, investing in the right cryptocurrency would be beneficial in a number of ways. There are around 8000 cryptocurrencies in the market, and when you are planning to invest in any one of these, it has to be a well-thought and researched decision. You must not start investing in a cryptocurrency just because everyone else is doing so. The decision has to be smart. So, when you are planning to invest in any cryptocurrency, you have to work on it in a similar pattern. We are going to highlight the details of Binance Coin and the key aspects associated with it.
What is a Binance Coin?
When you start searching about a cryptocurrency, then you must get to know about the cryptocurrency and what is the underlying supporting technology it has. In this case, we are talking about the Binance coin. Binance exchange issues Binance Coin. You can spot it with the symbol BNB. This cryptocurrency was initially working on the Ethereum network, but now it is working on its own Blockchain or Binance chain.
Burning of Binance Coin
You would have heard about Bitcoin halving, but in Binance, we have Binance burning. In the initial ICO, there were around 100 million Binance tokens issued. In every quarter, Binance uses 1/5th of their profit to repurchase it and permanently destroy it or burn it. This burning event is very common, and the latest one was done in the month of April 2021. On 15th April 2021, 1,099,888 BNB were burned. This amounted tokens worth of $595,314,380 . This reduced the total supply from 170,532,825 to 169,432,937.
FAQs on Binance coin
Now that you are aware of BNB and how it works, we will now be covering some key FAQs associated with it.
What are the use cases of Binance Coin or BNB?
Similar to another cryptocurrency, the Binance coin also has several use cases.
- Paying off credit card bill
- Paying for travel (on the website that accepts Binance)
- Buying virtual gifts
- Donation and charity
While these may look limited, with time, the use cases of Binance Coin will have much wider use cases.
Where can you buy and sell Binance coins?
There is a dedicated marketplace where you can buy and sell Binance. Most of the BNB purchase takes place in the secondary market. You can use the Binance exchange or any other trading platform that accept Binance for buying and selling.
Is there any legal allegation against Binance?
Binance has been alleged of being used for evading tax and laundering charges. However, the cryptocurrency is not banned.
What are the key Binance qualities?
If you are still contemplating that why you should be investing in Binance, then you must know about its key features:
- Lower cost– One of the primary reasons to invest in Binance is its lower cost, and hence it is affordable. This will be a good move if you are a first-time investor. You can easily start your investment in Binance.
- Supply and demand- The next important feature of Binance is its supply and demand. There are 21 million Bitcoins circulating in the market, and when it comes to Binance, then they are 99 million in numbers.
- Trust factor– The next important factor that makes Binance your first choice is trust. Binance is trusted because of its ease of pertaining, and it also gives a higher withdrawal limit of $30,000. Additionally, there are lesser security issues with Binance, and hence, it is a more trusted choice of investors.
- Growth– The fact is that Binance coin is growing, and so is the prospects of profitability. And so, if you’re thinking about investing in it, now is the time to do so.
This was the basic information about the Binance coin, and if it has been able to raise your interest level, you can start trading it by registering on a credible crypto exchange platform like cryptocurrencies. You can choose any crypto exchange, but make sure that it is credible and secure.