Decided you want in on the crypto action? You can buy Binance Coin on Binance and FTX Exchange.
Binance Coin (BNB) entered the high-stakes world of cryptocurrency in July 2017. Today Binance has grown into the top crypto exchange in the world — an impressive accomplishment! Binance is more than just an exchange, however. It is an entire ecosystem of products, including BNB, its native coin.
BNB started as an ERC-20 token, which is considered the technical standard used for all smart contracts on the Ethereum blockchain. However, since then BNB has migrated to its own proof of stake network on Binance Chain. This blockchain runs parallel to Binance Smart Chain, which hosts smart contracts on the platform.
Despite some drama regarding Binance operating in several countries that feel they are infringing on trade and licensing regulations, BNB is one of the top-performing cryptos of 2021. While this alone may cause you to consider investing, it’s always wise to do in-depth research.
What is Binance Coin?
Binance Coin is a digital asset issued by Binance. It can be used for buying goods and services as well as paying transaction fees on the Binance Smart Chain. Users of BNB on Binance can save from 10% to 25% on trading fees. The Binance Smart Chain also allows staking for interest with BNB and other tokens on Binance Smart Chain.
Binance Coin Market Capitalization
As of August 2021, the market cap for Binance Coin was more than $70 billion, earning it the ranking as the 4th-biggest cryptocurrency, according to CoinMarketCap. Price can be a consideration, but don’t let it be the only thing you look at when purchasing cryptocurrency — price alone isn’t the only factor in the actual value of a cryptocurrency.
Market capitalization is an important factor as well because it tells you how dominant a particular asset is in the vast world of cryptocurrencies. Usually, a market cap of more than $10 billion is believed to indicate a less volatile investment than those of lower market cap cryptocurrencies. BNB easily exceeds that guideline. That fact, along with the reasonable price, particularly compared to that of Bitcoin (BTC) and Ethereum (ETH), make it an investment worth giving more than a passing glance.
Bull Case For Binance Coin
Binance Coin has seen incredible growth since its 2017 launch. Most experts predict that it will see continued growth. One key factor in this growth is a result of controlling the supply of BNB. Supply and demand drive the prices of any asset, and BNB is no different. Binance, in fact, manipulates the supply to increase the value of the BNB coin by scheduling quarterly burns.
Burning means to remove a number of tokens from the available supply permanently, which in theory should increase the value of the remaining assets. When BNB launched, it had a supply of 200 million. The current supply is about 168 million. The amount burned depends on Binance’s overall quarterly trade volume. It will continue until the supply is down to 100 million.
Another factor to consider is that Binance now has a Launchpad platform. If successful, Binance will be able to help launch a number of new cryptocurrencies, which will in turn give BNB users more trading options. This will contribute to an increase in price for BNB, making it a wise investment opportunity for the short and long term.
Bear Case for Binance Coin
As previously mentioned, there has been some drama regarding Binance and its operation in various countries. It seems that lately, everyone is out to get Binance. Perhaps that’s the price you pay for being on top. CEO Changpeng Zhao stated in an article in Business Insider that he spends 80% of his time dealing with regulatory issues instead of actually working on the exchange.
Several countries have accused Binance of offering investment services without authorization. There also have been issues with people having their accounts frozen on Binance as well as a recent freeze that had users angry over losses incurred when Bitcoin crashed in May 2021 and users were unable to access their accounts.
Currently, a group of investors is planning to sue the crypto giant, and the legal status of the exchange in various countries may make the case even more complicated. These are things that can certainly hurt Binance and, in turn, affect the value of BNB.
Where to buy Binance Coin
If you’re ready to buy some BNB of your own, the obvious place to start would be the Binance exchange itself. Another option that that offers BNB is FTX Exchange, and either exchange is a good choice for new investors.
How Long will it Take for Binance Coin to Reach $1,000?
Most experts seem pretty confident that BNB will grow. The conflict is when exactly it will reach $1,000. Some feel strongly that BNB will reach $1,000 — and even exceed that number — by the end of 2021. Others feel it will take longer, perhaps reaching $1,000 over the next 5 years.
That being said, it seems almost unanimous that BNB will keep going up. Most experts feel it is a wise investment. The choice is yours because cryptocurrencies are still volatile. No one can really be certain what will happen.
Where to Store Binance Coin Safely
It’s always wise to keep your crypto in a wallet as opposed to storing it on an exchange. Even the most secure exchange can get hacked or frozen. Here are the best picks for keeping your BNB safe.
Best Hardware Wallet: Ledger Nano
The Ledger Nano X or S are both highly sought-after hardware wallets and with good reason. The Nano X is considered the elite because of its security as well as its ability to hold more than 1,000 cryptocurrencies, including BNB. It has a battery and is Bluetooth enabled.
The Nano S is just as secure but has fewer perks. If you can do without Bluetooth and a battery, you may find the Nano S a better fit for your budget.
- ERC-20 tokens
Best Software Wallet: ZenGo
ZenGo started supporting BNB in July 2019 and is a great option for a secure software wallet. Besides being safe and simple to use, ZenGo offers keyless crypto. Instead of needing to keep track of seed phrases and private keys, all you need is your face.
ZenGo uses facial biometrics, which makes sense because you can’t ever forget where you put your face.
Bonus Section:
Keep a close eye on the pending lawsuit against Binance to see how prices are affected.
Current Crypto Prices
Crypto prices are always volatile. You have to expect them to go up and down not only from day to day but also minute by minute. It’s a quickly changing landscape that can be stressful as well as exciting.
Some people thrive on the stress; some people do better just holding their crypto and forgetting about it. Whatever your strategy, always research carefully before investing so you can make the wisest choices possible.
Is Binance Coin a Good Investment?
Most experts agree BNB has a bullish outlook and is poised to grow over the years. How high Binance Coin can go is anyone’s guess, but predictions seem very favorable at this time.