Buy Binance Coin (BNB)
Interest in cryptocurrencies has been unabated for almost a decade, which only confirms their growing importance in the global economy. People aim to buy BNB, Bitcoin, Ethereum, etc. From a bubble that would burst in an instant, leaving thousands of investors at the trough, to a revolution in the world of electronic payments, attitudes towards cryptocurrencies today have changed dramatically. Still, not everyone fully understands what they are and how to use them.
Cryptocurrency - what it is in simple terms
Cryptocurrency is a distributed accounting system of internal units of account based on cryptographic encryption. Not too clear. In simple terms, cryptocurrency is a virtual version of familiar money, such as dollars or euros. Still, it has no physical counterpart: banknotes or coins that can be carried in your pocket. Instead, Crypto exists only in electronic form.
Difference from conventional money
The introduction of virtual currencies into everyday life takes seven steps, but not everyone understands the difference between cryptocurrencies and conventional electronic payments. Here are five key differences between traditional, or fiat, money and digital currencies:
- Control. The national monetary unit is controlled and regulated by a country's central bank, whereas any centralised institution does not control cryptocurrencies.
- Creation. Conventional money is issued by a country's state treasury, while developers create cryptocurrencies using software, most often on a blockchain platform.
- Carrier. Money is made of paper (banknotes) or metal (coins). The cryptocurrency is a piece of computer code.
- Transaction time. For traditional bank transfers, including online payments, the transaction can take up to 24 hours. However, transactions with virtual money are almost instantaneous.
- Security. Online transactions using online banking are vulnerable to hacker attacks. However, cryptocurrency transactions cannot be tampered with from the outside. Each transaction, such as a bitcoin transaction, is part of an overall transaction chain and is validated through a consensus algorithm.
Cryptocurrency is a product of a market economy based on supply and demand, which shapes the coin value of individual payment systems. Historically, most governments pegged the value of a nation's currency to gold, thereby formulating the 'gold standard. However, during the Great Depression, it fell out when countries were powerless to fight the economic downturn due to the limited amount of gold in reserves.
Today's global monetary policy allows printing as many notes and minting of coins as you like without a peg to gold. Still, there is always the risk of increased inflation and devaluation of the national currency due to its oversupply in the market. Moreover, the finite number of coins, such as Bitcoin, is limited and cannot exceed 21,000,000 units, maximising inflation.
The Binance Coin
Binance Coin is a token of the Binance cryptocurrency exchange used to pay trading commissions and conduct exchange offerings (CEOs) on the Binance Launchpad.
Binance Coin's exchange rate is affected by several factors at once. One of them is the growing popularity of cryptocurrencies among a wide range of investors. In addition, new players prefer to trade on the most stable and reliable platforms, the expert explained.
However, if an investor wants to make more money, new cryptocurrencies are the best investment option.
The Binance Smart Chain (BSC) network is gaining acceptance as an alternative to the Ehereum blockchain. The BNB token is actively traded on its namesake platform and is gradually gaining liquidity. The growth of Binance Coin cannot be called a bubble, as the token has been showing consistent appreciation for a long time.
Now the market is starting to develop a classic lost profits scare, with new investors buying tokens in the hope of making money. At the same time, market participants who have already entered the asset are fixing profits.
History of Binance Coin (BNB)
The CEO of the project is Changpeng Zhao, nicknamed CZ. He is sometimes referred to as a cryptocurrency rock star. He studied programming at McGill University, interned in Japan, first encountered trading, and then developed a passion for financial technology and trading systems.
In 2013, BTCC CEO Bobby Li suggested that Changpeng Zhao invest 10% of his capital in Bitcoin. He heeded the advice, sold his flat in Shanghai and bought cryptocurrencies. But soon, the BTC exchange rate collapsed threefold.
Zhao did not sell the coins but became even more interested in the field and took a job as a blockchain columnist at the first cryptocurrency Blockchain.info, and in 2017 he decided to set up his platform.
The reason for launching a centralised exchange (CEX) is simple. In 2017, all existing token trading platforms had a clunky interface. Websites were hanging and crashing, and there was no technical support.
Changpeng. Zhao realised he could offer increased transaction speed, easy management, low fees and 24/7 user service. He introduced the option of exchanging one cryptocurrency for another.
If you want to buy Binance Coin, it will be helpful to consider the many details that apply to this cryptocurrency:
1. From 1 to 21 July 2017, Binance Coin tokens were issued on the Ethereum network, and an ICO was held. As part of the initial sale, 100 of the 200 million coins were distributed at 15 cents/pc. About $15 million in ETH and BTCs were raised. And 35% of the proceeds went to develop and improve the platform, 50% to train employees, build and promote the brand, and 15% to the emergency reserve.
And 35% of the proceeds went to develop and improve the platform, 50% to train employees, build and promote the brand, and 15% to the emergency reserve.
2. On 14 July 2017, cryptocurrency exchange Binance was launched.
3. From August to December 2017, the platform has been building momentum. At 42 days from launch, it was among the top 10 CEXs. Another 50 days later, it was in the top 5. Finally, at 165 days after the launch, the exchange was ranked #1, and at 175, it had more than $10+ billion in funds turnover.
4. October 2018 - the site introduces Chainalysis KYT software to help track suspicious transactions related to criminal activity.
5. April 2018 - partnership with cybersecurity and blockchain networking company CipherTrace.
6. On 20 July 2018, the exchange moved from a fixed transaction fee of 0.1% to a tiered system. The fee depends on the role of the investor, the number of coins on the balance sheet, and the volume traded over 30 days. The fee ranges from 0.1% to 0.02% for a maker and 0.1% to 0.04% for a taker.
7. March 2019 - Coin remains the most successful ERC-20 standard token, showing a growth rate of +40% for the week.
8. 18-23 April 2019 - BC's blockchain launched, blockchain generation started. Binance Coin native token was created with a total of 200m, with 11+m to be burned and 48m reserved. The first 5m BNBs have been transferred to the site's main account, and a similar number of ERC-20 tokens have been destroyed.
It has been announced that after 23 April 2019, cryptocurrency exchange Binance will no longer withdraw its Ethereum-created tokens. As a result, all such coins must go to the new blockchain. They will automatically be converted into BEP-2 tokens when they are entered into the exchange.
What is Binance Coin in simple terms
BNB is a cryptocurrency that is needed to keep the Binance ecosystem running. The coins were initially generated on the Ethereum network, the ERC-20 standard. It was then reissued on BC's blockchain. The bar is BEP-2. Coins act as a service token with high liquidity and provide access to services, goods and services of the issuer.
Like other coins, Binance Coin can be used for trading and other transactions. Its functionality has been expanded since its inception.
With the launch of the new blockchain, BSC Coin has become needed for payment transactions: transfers, deployment of smart contracts, dapps, Defi. In this network, the Coin is used in the BEP-20 format. In the first BC chain, the token is mainly used to access the functionality of exchanges (CEX + DEX), reduce fees, and generate passive income.
How it works
So, if you want to invest in Binance Coin, it is quite crucial to know how BNB works.
The project uses two blockchains in parallel, each using a BNB coin. Initially, one blockchain, BC, was launched. It runs on the Tendermint BFT consensus model. Therefore, it does not require active mining, which is necessary with Proof-of-Work (PoW).
More than ⅔ honest participants are sufficient to make it work. The list of validators that protect the network by checking blocks is strictly limited.
The goal of this chain is to release a faster blockchain with high throughput. Essentially, the main problems of the Ethereum network, which was initially used, need to be solved. Its speed is 14 TPS.
Although the implemented system was optimised for ultra-fast transactions, it had a rigid internal structure that was ill-suited to creating dapps. As a result, BC turned out to be ground up for only one marketplace - Binance DEX for trading.
In 2020, the Defi sector began to expand aggressively. At that time, the developers of Binance Chain realised that they lacked the necessary functionality. But adding the ability to deploy smart contracts would have reduced the performance of the blockchain. So then, a second network was launched in parallel.
BSC is not a Tier 2 solution or an off-chain. It is an entirely independent blockchain that will continue to function even if BC stops.
The new network runs on the Proof of Staked Authority (PoSA) algorithm. It emerged through a combination of Proof-of-Authority and Delegated-Proof-of-Stake. High transaction processing speed is achieved with a low block spacing and a high gas limit, allowing more transactions to be included in 1 structure.
- Like the BC version, this is a high-speed network.
- The gas limit per block is 30 million.
- The network grows very fast - about 420 GB per year.
- The average block size is 60 thousand bytes.
- No new coins are generated during creation. Moreover, the developers have implemented mechanisms that cause some of the coins to be destroyed. As a result, the total supply decreases regularly.
BCS is a fast blockchain that takes about 3 seconds to process a transaction. A maximum speed of 236 TPS has been recorded. But if the network is fully utilised, a higher bar can be set.
This is a good rate compared to main competitor Ethereum (around 14 TPS) or Bitcoin (7-8 TPS). But it is considerably inferior to the fast Solana network, with a claimed maximum of 50,000 TPS.
At these rates, Binance's blockchain charges a small fee. The average fee is 5.9-6 Gwei (about 0.000000006 BNB).
That is, the fee for a simple transfer of funds will be less than 0.01 cents. For more complex smart contract transactions, it is less than $1. By comparison, Ethereum's main rival has an average fee of $25+.
Binance Coin crypto stands out from its competitors because of such features:
- It is a native token of BC's blockchain. The standard is BEP-2. The other project network uses BSC in the BEP-20 format.
- It is a technical service token initially created to receive transaction discounts in the top Binance exchange. But its functions are constantly being expanded. In 2021, it is used to redeem fees, discounts, deployment of dapps, Defi, smart contracts, payment for services, goods.
- The Coin can be used in other blockchain-related project networks (Qlink, Skycoin).
- Dozens of Wrapped versions of other tokens are produced. This makes it possible to use different coins in Binance's Dapps. For example, the LINK token is used for farming in Smart Chain. In addition, the functionality of the platform allows for the rapid release of Wrapped versions.
- BSC is a young but already famous development environment that is poaching customers from Ethereum. It powers the most famous DEX PancakeSwap V2. It accounts for 27% of all decentralised platforms (data as of August 2021).
How to start investing in Binance Coin in the Philippines?
If you want to buy Binance Coin in the Philippines, you must choose a broker and register online. Through the platform, you will be able to invest in Binance Coin in the Philippines. Registration is a quick and easy process.
Then you can also use a demo account or open a live account right away. To do so, make a minimum deposit. Now all the functionality of the platform will be available to you, and you can start trading!
Well, no risk, no reward! Have fun trading!