What is Binance ($BNB)?
Binance comes from the words "binary" and " finance. "It has 2 meanings.
- It is one of the world's leading cryptocurrency exchanges.
- BNB coin is a cryptocurrency that can be used as an intermediary in exchanging money from one crypto coin to another.
In 2017, ChangPeng Zhao founded a Chinese company called Beijie Technology. Beijie is the holding company that operates Binance Exchange. It is currently headquartered in Hong Kong. Zhao has been working with the Binance team to increase the platform's growth into one of the most successful exchanges in the world.
The Binance (BNB) Initial Coin Offering (ICO).
To fund the creation of the exchange platform, Zhao and his team developed a token and raised money through an initial coin offering. The ICO lasted about a month and raised about $15 million. This was enough to pay for startup costs such as hiring new developers, marketing, and strengthening the security of the exchange servers.
The BNB token can be used to pay transaction fees incurred when exchanging digital coins. For example, if you want to convert your Litecoins to Bitcoin, you will have to pay a transaction fee (by receiving slightly less BTC than expected).
The Binance token was innovative. Users who bought the token and used it to pay the transaction fee were rewarded with a 50% discount. Most users would use the tokens to buy more Bitcoin or other major altcoins - and get some great returns.
The excellent management of the exchange platform helped attract millions of users. The coin exchange space has been competitive, but Binance has become the top 3 in the market.
Most days, it is the largest exchange in the world by volume traded.
How to buy the Binance (BNB) coin?
There are two scenarios we should consider when you want to buy Binance (BNB) token.
- How to buy BNB tokens if you already own another cryptocurrency.
- The process to follow if you do not own any crypto coins before.
I own Bitcoin, Ethereum or other altcoins. How do I buy BNB?
Your process would be simple, just exchange your coins for an equivalent of BNB.
Here is the procedure. Let's say you have Cardano (ADA) or Ripple (XRP).
Step 1 - Create an account on Binance.
- To create an account, go to the registration page here. You will need:
- Your email address (to an email client you can access).
- A strong password.
You fill out the registration form and solve a simple puzzle (to verify you are human) and voila! You are good to go. An email confirmation will be sent to you. Once you click on it, you can proceed to the next step.
It's important to read the confirmation email carefully, as you'll be given basic security tips (e.g., don't share your password with anyone).
- The next step is to log in and start using the account. You will need to read some more tips on how to use your account.
Click the checkbox to the right of each tip to indicate that you understand it. After you have checked all of them, you can proceed.
Step 2-Enable 2-factor authentication (2FA).
The 2FA is a method to ensure that only one person, you, can access the account at any time. It helps protect your account from hackers or online scammers and fraudsters. Binance holds money for you and millions of users and takes security very seriously.
Fortunately, enabling 2FA is very easy, as you only need to install an app on your phone that will generate a code for you whenever you log in to the account.
If you don't want to (or can't) install an app, you can use SMS to receive a code when you log in.
You can always skip this step for later. However, if you skip it, you will remain unverified and therefore your withdrawal limit will be low.
Step 3-Account Verification
Next, you may want to verify for yourself if you want to withdraw coins later. Verification involves sending a timestamp image of yourself with an ID card.
You can skip this step and go straight to depositing coins.
Step 4-Depositing your coins on Binance
We had started with the assumption that you already have some Cardano (ADA) - or Ripple (XRP) - coins. Note that the process is similar with any other crypto coin. Let's take Cardano as an example.
- First, go to the funds tab.
- Enter the coin's international symbol in the search box. In Cardano's case, enter ADA
- Then click "Copy Address" and go to the wallet with your ADA tokens. Send the coins to the address you copied from your Binance account. Please check that you are sending ADA coins, not something else - as you could lose money if you send a different type of coin.
- After depositing, your money may show up immediately on the exchange balance. You can check it at the top of the Funds tab.
It is available that you wait for 15 confirmations in Cardano Blockchain Explorer before making any further transactions.
Once it is displayed on your balance, you can exchange it for BTC, XRP or any other coin available on the exchange. In the rare case that your deposit was not reflected on the dashboard, this could mean 2 things:
- The transaction is incomplete
- The blockchain is overloaded due to high traffic.
Step 5 - Exchange the coins
After you have successfully deposited the money, it is time to convert the coins to BNB. On the Binance trading platform, go to the "Exchange" tab and search for the pair you want to trade.
For convenience, select the "Basic" dashboard instead of "Advanced.""
Select BNB and proceed with the trade. You sell your ADA or XRP for BNB. When buying BNB, you use percentages to calculate how much of your money should be changed to BNB.
For example, if you want all deposited funds to be changed into Binance coins, you will sell 100%.
I don't have cryptocurrency, How can I buy Binance (BNB) coins?
Since Binance does not accept "real" or fiat currencies such as USD or Chinese Yuan, you must first buy a cryptocurrency. It is recommended to buy the most liquid and stable currencies, e.g: Bitcoin (Bitcoin Cash or Gold), Astraleum, Litecoin, Ripple
To do this, you need to get them from a crypto exchange that is allowed in your country. For example, if you live in the US, Australia, Singapore or Europe, you can use Coinbase. If you are in another country, you should find a verified service that can serve you. Coinmama is one of the largest exchanges in terms of reach.
Once you have your coins, you can go to Binance and follow the procedure described above.
Why buy the Binance coin? Qualities
Here are some good reasons to buy Binance (BNB) coins.
BNB is cheap when buying other coins instead of bitcoin as it is quite affordable. You can trade BNB currencies freely on the Binance platform.
- Supply and demand
Supply and demand determine the growth of a currency's value in a digital exchange. Bitcoin gained value due to its 21 million supply cap. In the same way, 99 million BNB coins are already on the market, and with their rapidly spreading fame, their supply is decreasing. This will have a positive impact on the future of the Mint.
- Community trust
Binance is obviously one of the most trusted coins due to its ease of use and a high withdrawal limit of $30,000. Investors are gaining more confidence in BNB due to its minimal security issues. It was built with robust ERC 20 principles and its affiliation with the NEO Mint has a direct impact on BNB's growth.Growth
As the value of the Binance platform grows, so does the BNB currency. It has an infrastructure as strong as the Bitcoin protocol.
Where can you buy and store BNB?
BNB coins are available on the Binance Exchange and Ether Delta, as they are ERC20 compliant. You can buy it from both sources.
It is recommended that you do not store the coins on any exchange platform after you buy them. Immediately, they will hit your account. You should put it in a safe place - like a cold wallet. The reason is that exchanges are soft targets for hackers these days and people sit ducks with their coins stored on them.
MyEtherWallet and Trezor Wallet are the best available options for storing BNB coins when they are withdrawn from the active exchange.
The Future of BNB Tokens
The Binance team has created many incentives for people to adopt their tokens and use their exchange as a user standard. It has used contests, discounts, and more enticing methods to attract investors to use the platform.
Binance coin prediction
Many investors who use BNB for trading and speculation take advantage of rebates through a healthy ROI. BNB has all the characteristics of a thriving asset. Analytical simulation of short-term returns using Monte Carlo simulation shows a probability of more than 50 percent that BNB will achieve healthy growth in 2018.
Moreover, Binance's regular technical analysis shows that the cryptocurrency is likely to be an excellent long-term investment asset. The long-term value of the crypto coin is expected to increase, and a five-year price forecast for BNB is more than $31,978.
One small caveat.
You need comprehensive historical data to make informed investment decisions, as you would in stocks and bonds. Cryptocurrencies, like fiat currencies, are subject to economic tides and global market volatility.
Binance's future is pretty bright. As an exchange, it has ultra-fast velocity. In fact, Binance's underlying technology also powers more than 30 exchanges in Asia. The people running this company are very competent and have several hundred years of experience in finance between them. In any case, its future prospects seem good.
As for the coin, it is something you should add to your portfolio. The coins are very compelling and if watched closely can give you a good return. Just be sure not to invest more than you are comfortable with investing and "hodling".