BNB, formerly called Binance Coin, is the native token of the Binance exchange. It is used to pay commission fees on the platform for trading in tandem with other cryptocurrencies, investments, and other purposes. BNB holders enjoy up to a 25% discount on trading fees on the exchange. Buying BNB will allow you to participate in IEO, Launchpad, and Launchpool and receive increased partner rewards, etc.
Our today’s goal is to analyze the BNB cryptocurrency in more detail and tell you how to buy it. Let’s get started!
History of BNB (BNB) Cryptocurrency
BNB was released in July 2017 during the ICO (Initial coin offering), whose purpose was to attract investments to develop the Binance exchange. The initial blockchain is Ethereum. On April 18, 2019, the Binance Chain network was launched, and all BNB tokens migrated to their own blockchain and subsequently also to BSC.
Under the terms of a White Paper, the exchange used 20% of its profits to buy back tokens quarterly, then burned them. It is planned that in the end, there will be 100 million BNB in circulation.
From December 1, 2021, the burning conditions have changed. If earlier it was quarterly and carried out manually, now it happens automatically. Each block on the Binance Smart Chain network burns a fraction of transaction fees. According to the developers, such a system will increase a deflationary effect.
The project was able to raise $15 million, and the exchange was supported mainly by investors from China. The amount invested is quite small, as some projects raised larger amounts without a working business or product. Half of the investments was directed to advertising and brand promotion; 35% — to platform development, modernization, and security; the remaining 15% were directed to the project’s reserve fund.
As a result of all the events held in the fall of 2017, the Binance exchange became the leader in terms of cryptocurrency trading volume. The number of users increased by a million a week.
On February 15, 2002, Binance renamed its blockchain network the BNB Chain, which was formerly called Binance Smart Chain.
In addition, Binance also changed its native token name, BNB, formerly the Binance coin, to Build and Build. The move was a sign that Binance wanted to disassociate directly from the network and allow the coin to develop on its own.
Key Unique Features of BNB Crypto
- BNB is a native token of the Binance exchange and the fourth-largest cryptocurrency by market cap. BNB crypto stands out from its competitors due to the following features:
- It is a native token of the native BC blockchain. The standard is BEP-2. In another project network, BSC is used in a BEP-20 format.
- BNB is a technical utility token that was originally created to receive discounts on transactions on the Binance exchange. But its functions are constantly expanding. In 2021, it was used for paying commissions, discounts, deploying dApps, DeFi, smart contracts, and paying for goods and services.
- The coin can be used in other networks related to the project blockchain (Qlink, Skycoin).
- Dozens of Wrapped versions of other tokens are being issued. Thanks to this, you can use different coins in Binance dApps. For example, a LINK token is used for farming on the Smart Chain. Thus, the platform’s functionality allows users to quickly issue wrapped versions.
- BSC is a relatively new but popular developer environment that is winning over customers from Ethereum. It is based on the most famous DEX PancakeSwap V2 and accounts for 27% of the trading volume of all decentralized platforms.
Where to Buy BNB: Switchere Exchange
If you’re wondering where to buy BNB, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy BNB in the fastest and most convenient way. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
How to buy BNB with USD? At Switchere, you can buy crypto for fiat money or swap crypto for crypto. In addition to traditional purchases with a bank card, you can use alternative payment methods available (SEPA, SOFORT, Asian local banks)
Here is an easy step-by-step guide on buying BNB at Switchere!
- Visit our website and log in to your account.
- Choose the currency pair for exchange as well as a payment method and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Buy’ button.
- Specify your BNB (BSC) wallet address and click on the ‘Buy’ button.
- Enter your card details and click on the ‘Pay Now’ button. Please take into account that you have a limited amount of time to send your funds. Elsewise, the transaction will be canceled automatically.
- Once you send the funds and your transaction receives the required number of blockchain confirmations, the amount of purchased BNB will be sent to your provided wallet address accordingly.
- Congratulations! The transaction is completed, and now you can check your BNB (BSC) wallet.
Usually, Switchere transactions take 5-30 minutes. If you have any troubles with the exchange process, let us know at [email protected]
What Is BNB Crypto Used For?
BNB was created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
Benefits of holding BNB for Binance users:
- Up to 25% off spot market fees;
- Up to 25% discounts on futures and margin trading fees;
- Additional discounts on commissions when participating in a VIP program;
- Referral rewards — up to 40% of referral commissions;
- Ability to farm new tokens on Binance Launchpool;
- Staking and yield aggregation via BNB Vault;
- Purchasing new project tokens on Binance Launchpad;
- Sending and receiving payments through the Binance Pay system;
- Payments in many countries around the world using Binance Visa Card.
BNB is also a driving factor for the Binance Smart Chain decentralized ecosystem. The coin is used in all dApps of this network, both for purchases, payment for services, and for payment of transaction fees (gas).
What Affects the BNB Exchange Rate?
The enormous success of the exchange was reflected in the value of BNB.
During the ICO, the token could be bought for $0.1. Currently, the coin’s all-time high was noted on May 10, 2021 — $686 for one BNB. Due to the overall bearish trend in the crypto market, the current coin’s rate is $291.87.
The rate of BNB coin is affected by:
- The general situation in the cryptocurrency market;
- News regarding the platform’s activity. Hacking or banning Binance can seriously affect the BNB rate and the entire cryptocurrency market, as the platform is one of the largest in the world in terms of turnover.
- Limited emission and burning of tokens.
- Development of the Binance Smart Chain (BSC) network.
The idea to launch a native exchange token was one of the most successful for Binance. This made it possible to attract millions of users and allowed the platform to develop very quickly. Now BNB is an important and integral part of the Binance ecosystem, without which it is impossible to imagine a full-fledged trading and investment toolkit. Following Binance, other exchanges began to issue their own tokens with similar functionality, but no one has caught up with the pioneer in popularity yet.