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What is Binance coin?

What is Binance Coin?

Binance coin (BNB), is offered by the biggest cryptocurrency exchange, Binance in 2017. BNB has many benefits for Binance users, such as lowering transaction fees, increasing the chance of receiving IEO tokens and other applications that will lead to the expansion of Binance activities in the future. In 2019, Binance coin was transferred from Ethereum blockchain to Binance blockchain, so Binance coin is both a digital currency for the Binance exchange and a cryptocurrency on the Binance blockchain.

The purpose of Binance Coin invention

Binance coin was created with the goal of empowering the Binance system and structuring its operations to have a sustainable system. This cryptocurrency is used for a variety of purposes, including payment of listing fees, transaction fees, or any other operations that the user may perform in exchange for a fee. The presence of a native currency in an exchange eliminates the dependence on traditional currencies. Traditional currencies can create additional delays and costs for the users, along with other limits and restrictions on transactions and exchanges.

Why we should use the Binance coin?

First, it is one of the low-cost cryptocurrencies and is quite affordable compared to Bitcoin. Supply and demand also determine the growth of the value of a currency in a digital exchange. Bitcoin gained value due to its limited supply. Likewise, there are 99 million BNB units on the market, and with the rapid expansion of its reputation, its supply will decrease, which will have a positive effect on raising its value.

In addition, BNB is one of the most reputable currencies on the market due to its ease of use and its 30,000 withdrawal limit. Investors have more reliance on BNB because of its security, as it is based on ERC 20 and is dependent on NEO currency. The growth of the Binance platform also boosts BNB’s value. This infrastructure is as strong as the Bitcoin protocol.

Also, the Binance team has prepared many incentives for people to use its currency and also to determine Binance as their default exchange. The company has used competitions, discounts, and more attractive methods to attract investors to use this platform.

Binance coin

Binance coin

Advantages and disadvantages of using Binance coin

Advantages:

  • It has a lower fee than other cryptocurrencies in the cryptocurrency market.
  • It gives discounts and rewards in transactions.
  • We can use Binance coin to buy and sell other cryptocurrencies available in the digital market such as Bitcoin, Ethereum, and so on.
  • It has the ability to exchange different cryptocurrencies.
  • It supports Android.
  • It has a high speed in transactions.
  • Convenient user experience and user interface.
  • It has wide access to more than 40 cryptocurrencies.
  • It has high security.

Disadvantages:

  • Its poor support in responding to users and their problems
  • It does not support Fiat currencies, so it is not possible to pay in the traditional way.

What exchanges support Binance coin?

The main exchange that supports Binance coin is the Binance Exchange. Meanwhile, other popular and well-known exchanges also support Binance Coin, such as the following:

  • io
  • KuCoin
  • Bitmex
  • FTX
  • Indodax
  • Bithumb Global
  • Poloniex
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