The world of digital currency is growing at an exponential rate with the evolution of currencies, wallets,
software applications, and exchanging platforms. Ever since the evolution of the digital market, several
currencies have been discovered and Binance Coin is one of them. The article provides a quick guide to
binance coins.
What are Binance coins?
Every digital currency is built and traded on a particular software. Similarly, binance coins are developed
by binance exchange, a software-based platform for these coins. It is denoted with the symbol BNB.
It is a combination of two words “bitcoin” and “finance”. Binance exchange is regarded as one of the top
exchanging forums of cryptocurrency. Especially now with the growing number of Bitcoin investors. It is
built on the Ethereum blockchain network. It was discovered in 2017.
How does it work?
The binance coins (BNB) are built on Ethereum based blockchain system which uses ERC20 to store and
hold value. It does not allow mining as they are already mined and just distributed by Initial Coin
Offering (ICO). It provides tokens for discounted trade on Ethereum software.
What is BNB coin used for?
BNB coins are used for various purposes. It is used to pay the bills of credit cards. Some websites offer
travel expenses to be paid via binance coins. It is also used to purchase online gifts. Because of
discounted fees, it can be used for transactional purposes. Investors seek to invest in it as it is relatively
stable and provides loans and transfers through it. The money in the form of BNB coins can also be
donated to the charity.
Conversion of dust
The small token or currencies that are left after trade in the digital market hold no value and are
referred to as dust. Because they constitute a tiny fraction, they are often ignored. Binance provides a
platform to convert the dust into BNB.
Is Binance coin banned?
Binance is not banned but due to the unregulated system of decentralized finance, it is vulnerable to
illicit activities. It got into trouble in 2021 in the United States where it was convicted of laundering.
Is it safe?
Since it is built on Ethereum, it uses a blockchain network which is operated by cryptography encryption
to enhance transparency and make it safe. This can make it protected from hackers. Also, the finance
company is a prominent name in the digital world that has always ensured the security of users and
their funds. The funds can either be accessed by factor authentication or keys of crypto wallets.
BNB mining
Binance Coin does not give the option of mining as it is pre-mined as 200 million BNB tokens that were
issued for use. The ICO (Initial Coin Offerings) reported that all of the coins were in circulation.
o 50% BNB coins for ICO participants
o 40% BNB coins for the founding team
o 10% BNB coins for angel investors
To limit the supply and retain the value of BNB coins, the suppliers perform the burning of previously
issued coins and back it up by purchasing new ones.
Should I invest in BNB coins?
One of the most promising factors of Binance coins is that its success does not only rely on viability. It
can be used within the Finance Exchange ecosystem, which is its platform, for driving processes and
digital asset trading. It helps to provide all one experience to the currency users. It is one of those coins
which have alternative use other than just currency.
How to store it?
The official wallet for Binance coins is the trust wallet. However, there are various other crypto wallets
for storing these coins.
The bottom line
If you wish to invest in BNB coins, then you must be aware of the risk of price fluctuation in a digital
market. Certain security measures must be taken to save your capital from great losses. Someone with
complete knowledge of crypto and deliberate intentions of investing in cryptocurrency should choose to
invest in BNB coins.
