BNB (Binance Coin) is a crypto coin issued by the Binance cryptocurrency exchange. BNB can be used to pay for trading fees on Binance, with the benefit of gaining 50% discount on trade fees for the first year.
Binance Exchange
The Binance exchange issued its own token called the Binance Coin, with BNB as the ticker symbol. BNB runs natively on the Ethereum blockchain and follows the ERC20 token standard. The token has a total supply of 200 million. Binance engaged themselves to use 20% of their profits each quarter to buyback and burn BNB, until 50% of the total BNB supply (100 million) has been burned.
BNB Token
The BNB token has multiple forms of utility, essentially being the underlying gas that powers the Binance ecosystem. In other words, BNB functions in a similar way to Ether in that it will be needed to utilize their services.
What is BNB?
BNB is the main currency for the biggest altcoin exchange Binance, which does nearly $800 million dollars in daily volume. The token serves multiple purposes which we'll cover in our technical module.
BNB hаѕ а circulating supply оf 155,536,713. Thе platform charges а trading fee оf 0.1% оn еасh trade, but іf users pay fees іn BNB, they саn claim аn additional discount оn the trading fees. Binance’s discount rate оn BNB trading bу year іѕ оnе оf the bеѕt decisions theу mаdе early on.
Binance Coin Discount Rate:
Token Limit
A strict limit of 200MM BNB will be created, this number will never to be increased. BNB initially ran on the Ethereum blockchain with ERC20 standard, but moved tо their main net bеfоrе the DEX launch іn early 2019.
Binance features а robust matching engine that саn handle 1,400,000 orders/second and BNB іѕ аt the center оf hоw іtѕ exchange works.
Binance Coin team consists of multiple experienced industry professionals and pretty much everything checks out about them.
CEO
The CEO of Binance Coin is CZ (Changpeng Zhao).
CZ was the founder and CEO of BijieTech, a successful company that provides cloud-based exchange systems to exchange operators. BijieTech gained five million USD in first 12 months of operations.
CTO
The CTO and co-founder of Binance Coin is Roger Wang. Roger has 10+ years of experience in the finance industry, and has previously worked for the largest investment bank in Japan (Nomura Securities).
Chief Architect - James Hofbauer
VP of Engineering - Paul Jankunas
Product Director - Allan Yan
Operations Director - Sunny Li
Binance has established itself as one of the biggest and most popular exchanges in the world. For day traders, the low fees are very inviting and do make a significant difference.
Using the BNB token makes the transaction fee proposal even more attractive for high velocity traders.
Like the stock market where a company decides to buy back a certain amount of its own shares, cryptocurrencies can also burn some of their own tokens to lower circulation in the market. As a result, it promotes exclusivity, thereby raising the value of the coin in question.
Binance declared in their whitepaper that they were going to conduct a $30 million BNB token burn event which was completed in due course.
BNB can be used within the Binance platform to cover for exchange fees, withdrawal fees, and listing fees. As mentioned before, users will receive a significant discount every year for using it to cover their trading fees.
Additionally, every quarter BNB tokens will be burnt according to the trading volume, until a cap of 50% cap of destroyed tokens is reached, with the goal to destroy 100MM BNB and leave the max supply at 100MM.
List of Hardware Wallets for Binance Coin:
Ledger
The Ledger Nano S is currently the only hardware wallet to support the main-net version of BNB.
The wallet, obviously isn't free and may seem quite pricey for some individuals, but you can't put a price on the security it provides. The wallet can be used for many other cryptocurrencies in addition to BNB.
As for using the Nano Ledger S, the first step towards setting up your device is unboxing you device and checking if you have received all the accessories with the device. Once you have unboxed your device, you need to configure it and initialize it before being able to use it. The process is quite simple and will hardly take about 20-30 minutes post which you will be all set to use your Ledger Nano S device.
This video does a pretty good job at explaining how the setup works.
List of Desktop Wallets for Binance Coin:
Trust Wallet
Trust Wallet is one of the most trustworthy wallets amongst the users, especially since the largest exchange in the world, Binance had acquired it last year in June. Trust wallet is even very updated and advanced with the latest technologies, which makes it effective for all kinds of users. Trust has fulfilled its aim by adding the latest BNB mainnet version, which it is compatible with. Users can store their BNB mainnet coins in Trust wallet, without having to worry about the security.
Atomic Wallet
Atomic Wallet is a decentralized wallet which is available for Mac, Windows and Linux operating systems, hence you don’t have to shift your operating systems. Atomic wallet is one of the first ones to upgrade its technology with the BNB mainnet update. What’s great about atomic wallet is also its in-built exchange, which allows you to quickly swap tokens while also having access to features like credit card purchases.
List of Online or Web Wallets for Binance Coin:
Binance
For online storage, it is best you store your BNB tokens nowhere other than Binance. That way you will get the numerous advantages that come with being a BNB holder, including trading fee discounts, using BNB to cover for trading fees and much more. However, if you’re planning to hold on BNB for speculative purposes, we suggest you use some of the desktop or hardware wallets we’ll mention next.
No doubt the best place to do this is Binance itself. The site has newly open credit card purchases making it a breeze to obtain the BNB token by just entering your credit card details. For its credit card purchases, Binance has teamed up with Simplex to provide the needed payment infrastructure and safety.
