Pros of Binance
- Exposure to massive Binance userbase
- Reduces trading fees
- Periodically decreasing supply
- Voting rights on Binance crypto listings
- Get access to IEOs on Binance
Cons of Binance
- Growth highly correlated to success of Binance
History – A brief history of Binance Coin
The success of Binance and BHB starts with the rags-to-riches story of its founder, Changpeng Zhao. The Chinese-born, Canadian-immigrant worked at a McDonalds by day and a gas station by night to supplement his family’s household income. From these humble beginnings, he went on to complete a computer science degree before working as head of trade book futures at Bloomberg. Zhao demonstrated his entrepreneurial acumen by developing high-frequency trade systems with his Fusion Systems company in 2005. His debut in the crypto space came in 2013 when he served as CTO of blockchain.io.’s wallet app and OkCoin, one of China’s largest crypto exchanges.
The wealth of experience accrued through these endeavours culminated in the founding of Binance in early 2017 in China. The company was funded with an ICO (Initial Coin Offering) where early investors could buy Binance Coin, the profit enabled further development, maintenance and promotion of the exchange. The mounting pressure of regulatory obstruction from the Chinese government forced the platform to relocate its headquarters which is now firmly established in Malta. Binance aims to retain its position and the top exchange and have continuously innovated Binance Coin to improve user experience and attract a larger base, more on this in the development section.
The Binance exchange is a monumental success, coming out on top in an incredibly competitive market. Binance Coin is part and parcel of this success story, the utility it provides users as a token within the Binance ecosystem and standalone cryptocurrency is attested by its ascension to a top 10 crypto market cap position at the time writing.
Development – What is in the works for Binance Coin?
The Binance Coin ICO was launched in June 2017, crowdfunding a whopping $15 million dollars in one month. During this event 100 million coin supplies were sold, covering the cost of hiring developers, optimising security and advertising.
Initially, Binance Coins were issued on the Ethereum blockchain as ERC-20 tokens, however, developers have since created the native Binance blockchain to which the coins were transplanted. This ensures that full operational autonomy and control over future development is vested in Binance and its vision. Binance Coin is far from a one-trick pony and is constantly adding new use cases for the native currency. Holders of sufficient BNB are awarded voting rights in the listing of new cryptocurrencies on the exchange and Binance Launchpad has enabled users to invest in IEOs on the platform using their BNB.
In 2020 Binance made waves with its corporate breakthrough by partnering with Visa and Swipe and releasing their Binance card. This physical card serves as a digital wallet which converts approved cryptocurrencies such as BTC and BNB into fiat at the point of purchase. Another exciting partnership was struck with Brave browser, which now displays a Binance widget on the browser’s home page exposing the platform to millions of new potential clients.
Binance again displayed their flexibility with the August 2020 launch of their mainnet Binance Smart Contract (BSC) blockchain. This Blockchain utilises a proof-of-staked authority consensus mechanism and runs parallel to their primary blockchain. Binance has invested $100 million into the development of DeFi products and dApps which founder Zhao hopes will drive collaborations with centralised financial products.
Statistics & Major Facts – All the major facts about Binance Coin
If you are considering trading Binance Coin it is essential to have a firm grasp of the core fundamentals. The total supply of BNB is 200 million coins, however, Binance has committed to using its profit to periodically buy back coins and burn them (permanently remove them from circulation) in order to constrain the supply which applies upward price pressure in hopes to stabilise the currency.
To date, 20 million coins have been burned and this process will continue until the remaining total supply reaches 100 million coins, the current circulating supply is 154 million coins. BHB is considered a blue chip cryptocurrency with the 10th highest market capitalisation in excess of $6 billion.
The daily trading volume currently above $510 million and market dominance sits at 0.7%. The weekly trend has seen the price of BNB fluctuating around the $40-$42 range which has corrected from the all-time high price of $47.2 reached in the week prior.
Security, Features, Use Cases – Is Binance Coin secure?
When researching potential crypto investments security should always be a top priority. All hypothetical gains are moot without the assurance that your funds are secure. Binance’s track record in this regard has cause for pause. The enormous volume of transactions processed on a daily basis puts a big target on exchange such as Binance, hackers stand to make millions from infiltrating their system.
One such attempt was made in March of 2018 when an orchestrated multi-vector attack was launched in an attempt to overwhelm the Binance network, however, the security protocols successfully prevented any funds from being stolen. Binance responded to this attack by placing a bounty on the hackers, offering a $250,000 reward for any information leading to their arrest.
This intimidation tactic proved ineffective as yet another attack was launched in May of 2019. Unfortunately, the hackers managed to breach the security system with cunning phishing tactics and stole approximately $40 million worth of cryptocurrencies from its online wallets. The Binance exchange fully reimbursed the losses incurred by their users and has since been working hard to win back the confidence of the community. But it’s a stark sign that Binance coin trading scams are possible.
How To Trade – All you need to know before Binance Coin trading
If you are interested in buying crypto online and are looking for the best Binance Coin trading sites in South Africa you will be disappointed to know that popular local exchanges like Luno and Altcointrader do not list this currency. Fortunately, Binance has recently begun supporting ZAR on its platform meaning that not only can you buy crypto online but you can also trade Binance Coin.
In order to begin Binance Coin trading you will need to create an account on Binance. You will need to submit your email address and create a strong password and after solving a simple puzzle to prove you are indeed human, you will be sent an email to verify and activate your account. This email will contain important information on basic security tips that you should be sure to follow.
The next step is to log in to your account where you will receive tips on handling your account. You can then choose to install a 2-factor-authenticator app on your mobile device which generates a unique code every time you log in to your account. This additional security measure is strongly recommended as there can always be Binance Coin trading scams that try to access your assets, and with the 2019 security breach on the Binance platform it’s best not to take chances.
To access the full functionality of the platform it is advised to provide a time-stamped photo of yourself holding an identification document such as a passport or ID, Binance requires this to comply with KYC (know your customer) regulations to enable you to withdraw your assets later. Please take the time to familiarise yourself with the Binance interface, there are plenty of handy guidelines and tips available on the site to help you with possible queries relating to trading, wallets, deposits, withdrawals etc.
You can now begin to trade Binance Coin! Be sure to do extensive research on the historical price movements of the currency to make informed investment choices. This should help you to buy crypto online a little more confidently. Check out our Litecoin trading piece to see how it compares to Binance Coin trading.
Future Outlook – What to think about before you buy Binance Coin
The recent Bitcoin trading price surge has generated a lot of excitement and interest in the crypto space, attracting a wave of new investors and traders. Notably, large institutional players are beginning to recognise the promise of this new asset class which could result in massive capital flows into the space.
As a wildly popular, established, well-regulated exchange Binance will likely attract many newcomers, all of whom are economically incentivised to buy Binance Coin to save on trading fees. Binance has partnered with Visa, Swipe, Brave, Chiliz proving its adaptability and willingness to evolve with the times. Binance has vowed to comply with guidelines of regulators in order to assuage fears that Binance will face lawsuits similar to Ripple, however, this remains an ongoing concern.
In terms of the market, the bull run has lost momentum and Bitcoin is fighting to hold its position above $30,000. The entire crypto market is closely correlated to Bitcoin’s movements and thus in the short run it is anyone’s guess whether a large correction is due or if we are in a respite before achieving new all-time highs for Binance Coin trading.
In short, the long term Binance Coin price prediction is that there is ample room for growth and higher-highs if Binance is able to maintain its dominance, whereas the immediate state for the whole cryptomarket is uncertain so it’s difficult to make an accurate Binance coin prediction. Check out our XRP trading piece to see what the outlook might be for a different crypto in the market.
Reputation and Customer Feedback – Should you buy Binance Coin?
Much of the hype surrounding Binance and BNB is vested in the notion that Binance is a platform for the people. Users that buy Binance Coin enjoy cheaper transaction costs, voting rights for crypto listings and a seat at IEOs. Furthermore, the exchange supports over 45 fiat currencies and is available in nearly every country.
Binance displayed care for its user base by acting swiftly in returning the stolen funds from the 2019 hack. Customer support is rated highly for their quick response time and Binance Coin trading reviews laud the website and app for meeting both beginner and advanced user needs.
Trading Binance Coin is made simple with their user-friendly interface and beginner trading guidelines. Binance’s close coordination with regulators has earned it the reputation as a leading force in the integration of cryptocurrencies and the traditional financial system, striving to add legitimacy and credibility to the space. Binance has invested heavily into research and established its own virtual lab on the platform, proving its commitment to contribute to and innovate within the space. This has clearly gone down well with Binance coin trading reviews in general.
Overall Conclusion – Our thoughts on Binance Coin
In a saturated market with thousands of cryptocurrencies to choose from, Binance Coin stands out for its captive audience, strong use cases and demand generating tokenomics. If you are considering to buy Binance Coin take note of the following key insights. Binance has outgrown its status as an exchange, it has developed into a highly sophisticated financial ecosystem and driver of innovation in the space with its native currency, Binance Coin, underpinning the project. Check out our pieces on Bitcoin Cash trading and Ethereum trading to see how they compare.
Under the visionary stewardship of Changpeng Zhao, Binance is forming big partnerships with the likes of Visa and coordinating closely with regulators to further establish its legitimacy and promote integration with traditional financial sectors. These factors are promising for Binance and Binance Coin trading prospects, however, the 2018 security breach remains an unfortunate blemish on an otherwise stellar record. This piece has highlighted the most salient aspects to consider if you want to trade or buy Binance Coin. Remember, this is not financial advice and you should always do your own research to better increase your chances of successful Binance Coin trading.