Binance Coin (BNB) Reviewed

This Binance Coin review has revealed that Binance Coin also known as BNB is a cryptocurrency that runs on the Ethereum blockchain with ERC 20 standard and a limited supply of a maximum 200 million BNB tokens.

Choose your quick section of our Binance Coin review below.

A Quick Overview of our Binance Coin Review:

Live Price

What is Binance Coin?

Binance Coin is issued by the Binance cryptocurrency exchange and trades with the “BNB” symbol. BNB runs on the Ethereum blockchain with ERC 20 standard and a limited supply of maximum 200 million BNB tokens. BNB is expected to fuel Binance operations and the corresponding ecosystem of the exchange.

Key Features and Takeaways of Binance Coin

The key features, as well as takeaways of BNB, are as follows:

• Binance Coin is one of the top 30 cryptocurrencies in the world by market capitalization, which is more than 1.3 trillion ZAR.
• Binance is an exchange that matches buyers and sellers and has significant liquidity, which means that orders are executed fast and at the best possible prices.
• BNB is an ERC 20 token that was built on the Ethereum network and it can be used to pay fees while trading on the Binance exchange.
• When paid in BNB, Binance fees are discounted 50% during the first year of membership, with fee discounts decreasing with subsequent years of membership.
• BNB can be used to invest in certain start-ups and ICOs that are listed by the Binance Launchpad program.
• BNB has garnered support from a variety of partnerships which have helped the spread of its usage.
• The Binance platform also has a repurchase plan, under which 20% of profits will be used to buy back BNB tokens.
• To date, Binance Coin has seen 7 burns in which the 200 million supply has been reduced by 5.8%, or 11.7 million BNB.

Binance Coin Mining

Binance Coin started its life off as an ERC20 token and was then launched on the Binance Chain. Binance Coin (BNB) cannot be mined as result of the Byzantine Fault Tolerance (BFT) consensus mechanism that the Binance blockchain uses.

Only cryptocurrencies that make use of a Proof-of-Work (PoW) mechanism, such as Bitcoin, can be mined. However, users can participate in the Binance Coin network by becoming a validator, which is like the mining process.

BFT is a mechanism that aims to sort out issues experienced by blockchains that make use of PoW. Binance built its blockchain on this technology and it is the process used when transactions are verified.

BFT is well-known for being faster  and more economically conscious than PoW and for this reason it forms the backbone of a variety of other cryptocurrencies such as BNB and Cosmos.

One of the main reasons why users start mining cryptocurrencies is so that they can earn a form of passive income. Another reason is that mining is a way to secure the network. With Binance chain, this is done when users opt to become validators, however, not everyone can participate now.

Only a few trusted members of the Binance community are currently validators, however, Binance is exploring ways to expand this in the future to increase the idea of decentralization in the chain. Once this is done, the decentralized governance procedure will be introduced by Binance and executed, allowing other qualified organizations and/or individuals to become validators.

Pros and Cons

Transaction Fees

Should you buy Binance Coin?

Yes. However, a lot of investors may be dissuaded by the supply in addition to the fact that there are coin burns, which further reduces the supply. Apart from this, there are three key benefits that investment in BNB will bring:

• Incentive for Binance users.
• A stake in Binance Chain, which is Binance’s blockchain technology.
• A store of value.

The incentive for Binance Users

As with any other currency, BNB’s value increases as more people hold it and as result of this, Binance offers the following incentives:

• Reduced trading fees when users opt to pay their fees with BNB on Binance.
• Affiliate rewards for users who hold 500 BNB or more, which is 40% versus the normal 20% commission on the referral program.
• Access to the Launchpad Lottery, which allows users to invest in new cryptocurrency projects vetted by Binance.
• Potential for future rewards.

Stake in Binance Chain

BNB started as a rewards system for users of the exchange trading platform, however, it has morphed to power a new, and much needed, blockchain.

Store of Value

The price of any currency will be determined by the supply and demand for it and theoretically, prices rise when either demand rises, or supply falls. To understand BNB as a store of value, it is necessary to evaluate its demand, supply, and market capitalization as follows:

• Increasing utility or demand – since the technology that Binance uses includes incentives for BNB holders, the value of Binance will rise along with that of BNB.
• BNB Coin Burns or supply – In using 20% of profits every quarter to “burn” BNB, Binance will inevitably reduce the supply of BNB from 200 million to 100 million. Supply of BNB increased during July 2019 and 2025 when 32 million BNB was distributed to the team (16 million in each year), and there is a final 16 million BNB that will be distributed to the Binance team in July this year. However, after that, supply will exclusively decrease.
• Market capitalization measures the total value of a company, or a currency, and at the time of writing, BNB’s market cap is more than 1.3 trillion ZAR, showing steady increases.

Other factors that make BNB worth the investment is the price over time. This is an element that must be considered as past behaviour can indicate future behaviour in the crypto market.

• At launch in 2017, Binance coin started trading at R1.42/BNB.
• In the 2017 bull market, the price rose, reaching a high of R351.65/BNB during January 2018.
• It fell during the 2018 bear market, hitting a low of R59.62/BNB in December 2018.
• From 2018, BNB’s price has seen substantial increases to where it currently lies at R8 850.69/BNB at the time of writing.

There are numerous investment opportunities in the cryptocurrency space. Therefore, it is imperative for investors to examine their options alongside what they wish to achieve before deciding.

Binance Coin is the native crypto of a significant crypto exchange and there are numerous advantages of investing, however, buying and selling BNB come with certain risks in addition to traditional trading risks.

Those who are comfortable with the unique design of the Binance blockchain in addition to how risk-reward ratios work, can consider this cryptocurrency as an investment opportunity.

How to buy Binance Coin (BNB)

Step 1 – Open an account on Binance

Navigate to the official Binance website and select “Register Now”. You will be redirected to a “Create a Free Account” where you can either register with your email address or your mobile number.

You can enter your email address and user-selected password or select the “Mobile” option at the top of the form. Select your country code and enter your mobile number along with your user-selected password.

Once you have completed the necessary fields, you can read and accept the Terms of Service before selecting “Create an Account”.

You may have to complete a Security Verification that will confirm that you are not a robot. Next, there is an account verification. During this, a 6-digit verification code is sent to the email address or mobile number that you provided. The code is only valid for 30 minutes and must be entered in the blocks provided on this page.

Once the verification is completed, a welcome page will load, and you will be given the options through which you can either trade or purchase cryptocurrency. If you are new to crypto, you can visit the “Learn More” Section at the bottom of the page.

Step 2 – Secure account with two-factor verification

On the trader’s dashboard, select the option to secure your account with two-factor verification. Even though phone verification is a secure option, the most preferred and secured method is to make use of the Google Authenticator.

Once downloaded and installed, either scan the QR code or type in the one-time, unique code provided to add your Binance account credentials onto Google Authenticator.

Once completed, write down the back up key provided to recover your account on Google Authenticator in case you lose or misplace it. In the final step, enter the 6-digit code which you will receive on your registered email address along with the Google verification code.

Step 3 – Deposit funds

Binance allows for the purchase of cryptocurrencies via fiat deposits as well as cryptos. Deposits can be accessed from the following locations:

• The “Welcome to Binance” banner.
• Hovering over “Buy Crypto” at the top of the web page and selecting your preferred method.
• Selecting “Deposit” on the “balance details” section on your traders dashboard.

Once you have selected the option to “Deposit”, you can select whether you wish to deposit cryptocurrencies from another wallet, or whether you want to make a fiat deposit.

For Crypto deposits, follow these steps:

• Select your coin between Bitcoin, Ethereum, TetherUS, BNB, or EOS.
• Select the network to be used between BEP2, BEP20 (BSC), ERC20, or TRC20 and accept the conditions for using the network.
• Copy the address or scan the address QR code from the wallet where you are depositing and follow further prompts. Kindly note that each network has its own set of network confirmations between 1 up to 15 confirmations before the deposit will be done.

For deposits in Fiat currencies, follow these steps:

• Select the deposit currency from the dropdown list. To gain access to more currencies, it is necessary to verify your identity and face.
• Select the payment method to be used, depending on the currency chosen.
• Enter the deposit amount and any other details. Kindly note that the transaction fee will be displayed along with the balance after this is subtracted.
• Continue with the deposit.

Step 4 – Start Trading

Once you have completed your deposit, you can navigate to the “Markets” section at the top of the page to view the available cryptocurrencies. From here, you can buy, sell, and trade currencies at competitive prices.

Frequently Asked Questions

When was Binance Coin first launched?

Binance coin was created in 2017 by Binance to fund the launch.

Who founded Binance Coin?

Binance itself was founded by Changpeng Zhao who is a developer who previously created high frequency trading software.

What is “ICO”?

It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.

When was Binance Coin’s ICO and how much did it raise?

Binance Coin’s ICO took place during July 2017 and all 100 million BNBs were sold during the ICO.

Is Binance Coin legit?

Yes, as the native token of the Binance cryptocurrency exchange trading platform, Binance Coin is legit.

What is Binance Coin’s total supply?

There is exactly 200 million BNB created without the possibility of this amount ever increasing.

What is the purpose of Binance Coin?

Binance Coin was created to fuel Binance’s operations and its ecosystem. It supports several utilities on the Binance ecosystem including payment for trading fees, exchange fees, listing fees, and numerous other fees on the Binance Exchange.

On which blockchain is Binance Coin based?

Binance Coin was an ERC20 coin based on the Ethereum blockchain, however, Binance now has its own blockchain.

Does Binance Coin work with smart contracts?

No. As a result of the BFT consensus mechanism, the Binance Chain does not support smart contracts.

Does Binance Coin have potential to become more valuable?

Yes, with supply diminishing, the demand for BNB is set to increase, pushing the value up.