BNB (Binance Coin) Complete Guide
Hello! Have you ever wondered about BNB, the native coin of Binance, the world's largest cryptocurrency exchange? If you thought, ""Isn't it just an exchange coin?"", you'd be very wrong! BNB is an amazing project that is creating a huge ecosystem beyond a simple exchange token. Let's dig into everything about BNB together today.
BNB, who are you?
BNB (Binance Coin) is a cryptocurrency that was launched in 2017 by Binance, the world's No. 1 cryptocurrency exchange. It was initially created simply for the purpose of ""getting a discount on trading fees!"", but guess what? It has evolved into a coin of a completely different dimension!
Currently, BNB serves as the base currency of Binance Smart Chain (BSC). What this means is that it has its own blockchain ecosystem, just like Ethereum. Numerous DeFi projects, NFT platforms, and games are running on BSC.
BNB's dramatic growth story
In July 2017, Binance founder Changpeng Zhao (CZ) set an ambitious plan. ""Let's create the world's best exchange and issue our own coin!"" That's how BNB was born.
The initial ICO price was less than $1. However, as Binance grew explosively, BNB also soared. In the bull market in 2021, it even exceeded $600! Of course, it has adjusted a lot now, but it still has a solid foundation.
The most impressive thing was the BNB Burn Event. Binance buys BNB with a portion of its quarterly profits and burns it permanently. It seems like burning money, but this is the economic principle that increases the value of the remaining BNB. So far, nearly half of the initial 200 million has been burned!
💡 Fun Fact: The total amount of BNB burned is in the tens of billions of dollars. That's literally burning money!
How does BNB work?
To understand how BNB works, you need to look at the Binance ecosystem. BNB is not just a coin; it fuels a huge ecosystem.
First, if you pay trading fees with BNB on the Binance exchange, you can get up to a 25% discount. For traders who trade millions of dollars a day, this is a huge savings.
And on Binance Smart Chain (BSC), BNB acts as a gas fee. Just like Ethereum uses ETH to pay gas fees. However, BSC's gas fees are much cheaper than Ethereum's, which is why many developers are flocking to it.
🔧 Technical Features: BSC is compatible with Ethereum, but much faster and cheaper. It can process more than 100 transactions per second!
BNB, where and what can you do with it?
BNB has a wide range of uses. It can be used in many more places than you think!
Binance Launchpad allows you to purchase tokens of new projects with BNB first. It's a kind of VIP benefit. Many of the projects launched through Launchpad in the past have made huge profits.
In the DeFi ecosystem, you can earn profits by staking BNB or providing liquidity on platforms like PancakeSwap and Venus Protocol. You can expect annual returns of 10-20%.
BNB is also actively used in the NFT market. Several marketplaces are operated on BSC where you can trade NFTs with lower fees than OpenSea.
In the gaming sector, games like Mobox and My DeFi Pet use BNB. You can use it to buy game items or get in-game tokens.
Which exchange is good for trading BNB?
Of course, Binance is the first choice, right? But there are many other places where you can trade BNB besides Binance.
For domestic exchanges, you can directly purchase BNB with KRW on Upbit and Bithumb. In particular, Upbit has a fairly large BNB trading volume, so you don't have to worry about liquidity.
For overseas exchanges, you can also trade on Coinbase, Kraken, Huobi, etc. Each exchange has different fees and trading pairs, so it's best to compare and choose.
Personally, if you plan to hold BNB for the long term, I recommend buying it directly from Binance. There are staking options and you can use various Binance services.
💰 Trading Tips: If you hold BNB on Binance, you can participate in various events such as Launchpool and Savings!
The BNB community is amazing!
There's a passionate global community behind BNB's growth. The official Binance Telegram channel alone has hundreds of thousands of participants.
If you search for the #BNB hashtag on Twitter, you can see real-time news from BNB holders around the world. From new partnership news to technical analysis, a wide variety of information is being shared.
In particular, Binance is also working hard on blockchain education through Binance Academy. It provides high-quality cryptocurrency education content for free, so even beginners can easily study.
The Binance Korea community is also active in Korea. We communicate with domestic users through regular AMA (Ask Me Anything) sessions and educational seminars.
Which BNB wallet should I use?
Choosing the right wallet is important to safely store BNB. There are various options depending on the purpose of use.
Binance Exchange Wallet is the most convenient. You can trade right away and easily use staking and other services. However, exchange wallets are at risk of hacking, so it is better to avoid storing large amounts.
You can also use Binance Smart Chain by connecting it to MetaMask. MetaMask is essential to use DeFi protocols. It's a bit complicated to set up, but once you do, it's really convenient.
Trust Wallet is a mobile wallet acquired by Binance. It supports BNB as well as all BSC-based tokens. It's optimized for DeFi on mobile.
You can also store BNB on Ledger or Trezor as a hardware wallet. If you have a large amount of money, a hardware wallet is the safest.
🔐 Security Tips: Keep large amounts in a hardware wallet, and spread out the amounts you trade frequently on exchanges or software wallets!
Things you need to know about investing in BNB
⚠️ Must-read before investing
Considering investing in BNB? Just like any other cryptocurrency, remember that high returns and high risks coexist!
First, consider the dependency on Binance. The value of BNB is closely tied to the success of Binance. If Binance is regulated or has problems, it can have a big impact on the price of BNB.
Second, understand the competitive landscape. Competition with Ethereum 2.0 and other smart contract platforms is fierce. You need to analyze BSC's long-term competitiveness.
Third, check the burn schedule. Quarterly BNB burns often have a positive impact on the price. If you make good use of the period before and after the burn, you can increase your investment returns.
Fourth, consider various utilization methods. Don't just aim for a price increase, but also think about ways to gain additional profits through staking or DeFi.
What will the future of BNB be like?
Personally, I think the future of BNB is quite bright. Of course, there are many challenges, but looking at Binance's continuous innovation and ecosystem expansion, it seems very possible.
The development of Binance Smart Chain is the most important factor. More dApps are migrating to BSC, and BSC's growth is particularly notable in the GameFi space.
As the era of central bank digital currencies (CBDCs) approaches, it's also worth noting what role Binance will play. It has already established partnerships with several countries.
In the metaverse and NFT space, BNB's utility is likely to continue to increase. Binance NFT Marketplace is also growing.
🌟 Trends to watch: BNB's role is expanding in new areas such as Web3 games, social tokens, and carbon-neutral blockchains!
In conclusion
How was your long journey with BNB? Isn't the story of BNB, which started as a simple exchange token and has now grown into a huge ecosystem, really interesting?
Of course, investment is your own judgment and responsibility. However, looking at BNB's technical foundation, usability, and community, I think it is definitely a noteworthy project. Let's keep an eye out for what new aspects BNB will show us in the future! If you have any questions, feel free to ask in the comments! 🚀