Before Buying Binance Coin, WATCH THIS ! BNB Token 2023 Target Price Prediction

Binance Coin (BNB) is an exchange-based token created and issued by the cryptocurrency exchange Binance. Initially created on the Ethereum blockchain as an ERC-20 token in July 2017, BNB was migrated over to Binance Chain in February 2019 and became the native coin of the Binance Chain.

Binance Coin has seen massive growth in interest throughout the years. Several rounds of token burn events have appreciated BNB price and pushed it up as one of the top-10 cryptocurrencies by market capitalization. BNB can be traded in over 300 trading pairs across 120 exchanges tracked.

BNB was initially created as part of the Binance exchange through its ICO. In its whitepaper, Binance states that BNB was designed to be used to pay discounted fees on the Binance platform and also function as the native token powering the Binance Chain.

In addition to the initial use cases, BNB has added other cases both on and outside of the Binance platforms. Here’s an overview of BNB use cases:

Reduced Trading Fees
Binance Account Tier
Dust Conversion
IEO Lottery
Binance Chain Native Token
Spent as Cryptocurrency

There may be more ways to use BNB that have not been covered here, but generally BNB can be used like any other cryptocurrencies to pay for goods and services as long as the merchant accepts it.

Binance Coin (BNB) is designed with token burn in mind to induce scarcity and drive up the value of the token. In its v1.1 whitepaper (archived copy), Binance stated that 20% of Binance’s profits will be used to purchase BNB and subsequently destroyed in every quarter. In 2019, Binance updated its whitepaper to v1.2. In the updated whitepaper, it is stated that BNB burns will now be based on its exchanges’ trading volume.

Since Binance began burning BNB in Oct 2017, 10 rounds of token burns have taken place, with about 16.7 million BNB worth approximately $208 million burned up till January 2023.

Binance Coin (BNB) is supported by various hardware and software wallet providers. The choice between hardware and software wallets is mostly a balancing act between convenience and security to the user. We’ll provide a quick rundown on them in this section.

Generally, hardware wallets (e.g. Ledger) are non-custodial wallets which keep private keys of a wallet offline and only the owner knows it. This is arguably the safest option for storage as the user has full ownership of the coins, but is likely the least convenient as it requires the user to operate additional hardware to spend/use the cryptocurrency.

Non-custodial software wallets (e.g. Trust Wallet, Atomic Wallet) is the next option in terms of safety compared to hardware wallets, although they are likely more convenient. The private keys are also owned by the user, but since the wallet is kept on an online device (eg. the phone), there is a higher risk of losing the funds as hackers can access devices which are connected to the internet.

Lastly, arguably the most convenient yet risky storage method would be storing funds on custodial wallets (eg. on a centralized exchange such as Binance) as users do not own the private keys to the funds. A hack on the storage location can potentially cause users to lose their funds, much like what happened during the infamous 2014 Mt. Gox hack which recorded a massive loss of 850,000 BTC, most of which are customer funds.

source: ➡️ https://www.binance.org/en
source: ➡️ https://www.coingecko.com/en/coins/binance-coin

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? FINANCIALS
Total Market Capitalisation: $ 35B
24 Hour Trading Volume: $ 4B
Circulating Supply: 154.5M
Total Supply: 170M

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DISCLAIMER:
I am not a financial adviser and my opinions are entirely my own. You should do your own research and inform yourself prior to investing in any market. You should only invest after discussion with your financial adviser. I am not a financial adviser and my statements should not be taken as financial advice.

Before Buying Binance Coin, WATCH THIS ! BNB Token 2023 Target Price Prediction

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Kane Dane