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What is Binance Coin (BNB)? [Updated July 2020]

Binance Coin: The Digital Currency of the Binance Exchange

If you have heard “What is Binance Coin (BNB)?” then, this is going to be the right guide where you will know all you need to know about this virtual currency. As the cryptocurrency market continues to expand, companies and firms in the space release their digital currencies offering users with a wide range of services and solutions. 

In this article, we will share with you what is Binance Coin (BNB) and how you can start using this digital asset, one of the largest in the world. Moreover, in the coming sections, you will have detailed information about market performance, features and the main characteristics of Binance Coin (BNB). 

What is Binance Coin (BNB)?

Binance Coin is the cryptocurrency used on the Binance exchange and that was created in 2017. Binance sold BNB coins to the market during the Initial Coin Offering (ICO) the exchange started that year. With the funds they got, they were able to buy one of the largest exchanges in the world.

Binance became in just a few years the leader exchange in terms of trading volume and services offered to traders and investors in the world. The Binance Coin (BNB) is currently being used by users on the Binance platform in order to pay for fees, participate in Initial Exchange Offerings (IEOs) and more. 

The virtual currency expanded as an ERC-20 token but Binance decided to create its own network and Binance Coin is now using its own native blockchain. Nowadays, it is possible for firms and developers to release tokens on top of this network. 

Binance Coin in the Cryptocurrency Market

Binance Coin was able to reach the top 10 in the cryptocurrency market after its success in the world and in the Binance platform. Currently, Binance Coin is the 8th largest virtual currency in the world, competing with leading digital assets such as EOS, or even Litecoin (LTC), among others. 

With a market valuation of $2.46 billion, Binance Coin is the largest virtual currency ever issued by an exchange in the crypto space. In addition to it, BNB has been growing over time and it reached an all-time high of almost $40 in June 2019. 

Since it was launched to the market, Binance coin is registering gains and showing strength compared to other virtual currencies that were launched during an ICO. Most of the ICO tokens lost most of their value during the 2018 bear market. 

Binance Coin Use Cases

Binance Coin is used on the Binance Chain to power the whole Binance ecosystem. With this currency, it is possible to fuel the transactions that take place in this network. This is what Etheruem (ETH) was doing with the transactions that took place on its network. 

With Binance Coin, users are also able to pay for fees when trading in the Binance exchange. If you hold BNB coins, then it may be possible for you to pay for lower fees when you trade digital currencies. 

This is going to make it very easy for you to make more efficient trades and investments in the industry. At the same time, users can easily use the BNB token to buy other virtual currencies that have BNB as a trading pair. In this way, you don’t have to sell BNB, buy ETH or BTC and then acquire other digital assets. 

In addition to it, users can use the BNB digital asset to participate in IEO. That means that users can acquire BNB and easily purchase other tokens if they are selected to participate in the IEOs. 

Finally, the BNB coin can be used by users to speculate and also to pay for goods or services in a large number of shops around the world. This is a great way of using virtual currencies on a daily basis. 

There are several places where you can use your BNB and Binance is offering an exclusive page where you can see all the places where you can use the BNB digital asset. 

Conclusion

Binance Coin became one of the largest virtual currencies in the market after it was released in 2017 as an ICO token to fund the expansion of one of the most popular crypto exchanges in the world. 

Nowadays, BNB is the 8th largest digital asset in the world and it is allowing users to do many things, including buying goods and services, pay for fees in the Binance exchange, speculate or even acquire other digital currencies. 

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