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Written By

Jemma Grist

Written By

Jemma Grist

Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.

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Edited By

Tobias Robinson

Edited By

Tobias Robinson

Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.

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Fact Checked By

William Berg

Fact Checked By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

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Updated

Jul 24, 2024

The Binance Coin is the third-largest cryptocurrency in the world. Trading BNB has increased significantly alongside wider crypto growth trends. This review will outline the basics of the Binance Coin, what it is, and how it works. Our review will also analyse whether it’s worth investing in, price prediction stats, trading strategies, transfer fees, and more. Start trading BNB today.

What Is Binance Coin?

The Binance Coin is a crypto token available for trading via the Binance exchange. It is represented by the symbol/ticker BNB. The crypto exchange is one the largest in the world, with 1.4 million transactions per second and over $2 billion in daily trading volumes. BNB trails only Bitcoin and Ethereum in terms of market capitalisation.

The main uses of BNB include:

• Transaction fees payable on the Binance Chain and Smart Chain
• Participation in ICO’s hosted on the Binance Launchpad programme
• Purchasing goods and services online using the Binance Card or Binance Pay
• Payment for trading fees on the Binance exchange and Binance DEX (decentralized exchange)

Binance Coin terminology varies by the blockchain network. Name listings include:

• BNB BEP-2 – Binance Chain
• BNB BEP-20 – Binance Smart Chain
• BNB ERC-20 – Ethereum Network

Review the official white paper report to learn more about the Binance Chain.

History Of Binance Coin

The Binance crypto exchange was launched in 2017 in China by founder Changpeng Zhao. The coin was developed in July of that year, originally created for the Ethereum blockchain, before becoming the origin of Binance’s blockchain. A BNB ICO was held later that year, with each token sold at a starting price of 15 cents, raising $15 million.

The Binance Coin was introduced on its launch date as a utility token, halving trading fees on the platform and ensuring price liquidity for customers. Unlike competitors such as Bitcoin, Binance did not offer fiat to crypto coin markets e.g. USD or GBP to Bitcoin.

The interest and price history of the coin has supported the growth of the exchange, subsequently enabling new listings including PAX Gold in 2020. The coin today is used as a vote token, allowing users to select new coins to be listed on the Binance platform.

The total supply limit of BNB is capped at a maximum of 200 million tokens, with plans for quarterly burn cycles to stabilise future prices by reducing the quantity available in the market. This is different vs Ethereum which has no hard cap. This also means there are no coins available for mining. The next burn schedule announcement in 2024 can be viewed in the blog section of Binance.com.

Binance Coin Trading Chart

Why Trade Binance Coin?

The interest in trading Binance Coin continues to rise, with many usage benefits aiding its popularity.

Fee Discount & Rewards

Binance Coin investors can benefit from reduced trading fees (up to 50% discount) if exchange fees are paid in BNB. A rewards programme is also available for users with a certain value of BNB held in a wallet. Other initiatives include exclusive access to the ‘launchpad lottery’ to invest in new crypto projects or ICOs reviewed by Binance experts. Expectations for other financial rewards when trading BNB are expected in the future.

Repurchase Plan

The platform follows a circulation plan, helping to maintain a sustainable value. The maximum supply cap will help ensure the future of the coin.

Trust

The Binance platform provides an easy-to-use network and high withdrawal limits with minimal security issues to report. This helps make BNB a highly trusted crypto coin.

Use the Binance Coin Chain Explorer to view wallet balances and browse transaction information on the blockchain. It is supported through affiliation with the NEO coin and follows the ERC 20 principles.

Accessibility

Trading Binance Coin is available 24 hours a day, 365 days a year. You can utilise pricing alerts or trading robots for automated investing support and monitor market conditions using economic calendars. Customer service reviews are positive, solving issues such as what to do if your Binance Coin has disappeared from a wallet.

Low Cost

BNB can be freely traded on the Binance platform making it a more affordable coin vs the likes of Bitcoin, Litecoin, and Cardano. Maximum fees are just 0.1% per trade if BNB is not used.

Yield Farming

Yield farming is a method of earning rewards as passive income with cryptocurrency holdings using liquid protocols. Earn up to 10% APY when yield farming BNB.

The Future Of The Binance Coin

Technical analysis of the Binance Coin suggests the crypto could have long-term investment potential. Some believe there will be a significant rise in the long-term value of the cryptocurrency.

CoinMarketCap reported YTD figures of +1600% vs the start of 2021 with strong price predictions for the end of 2021. 5-year prediction chart data from digitalcoinprice.com suggests the average price may increase +244% by 2025 with an all-time high value reaching $1,000 before 2030.

Risks Of Trading Binance Coin

BNB pricing history and chart analysis may inform investment decisions, however, cryptos are extremely volatile and nobody can accurately predict what may happen in the future. Digital assets are subject to higher levels of price volatility due to minimal regulation and smaller market sizes.

Some recommend not holding coins on any exchange platform after purchasing. Exchanges are more susceptible to hacking so move coins when you can. Make use of hard wallets to store, send and receive BNB. Recognised systems include Trezor and Ledger Nano X.

Another key disadvantage of investing in the Binance Coin is its centralised structure, known as closed-source. This acts as a serious hurdle for the coin’s future outlook, affecting its availability to be listed on other exchanges, or entering new markets. Also, the low withdrawal and transfer fees, plus discounted trading rewards may eventually lose competitiveness as key alternatives start following suit.

Binance Trading Strategies

Day Trading

Arguably the most active strategy for crypto investments, day trading involves exploiting intraday price movements by entering and exiting trades within a 24-hour window. Use technical analysis to predict future market behaviour based on previous price action. This can help identify key trends and trading opportunities.

Position Trading

Position trading involves directional trend analysis, typically holding a trade for up to a few months. BNB investors can enter long positions in an upward trend or short positions in a downward trend. Fundamental analysis may be used in this instance. This involves exploring microeconomic and macroeconomic settings that may impact the market. With that said, always consider the trend jump possibility, especially in the volatile crypto environment.

Range Trading

This strategy involves using support and resistance levels and candlestick chart analysis to review potential entry and exit points. Positions can be entered manually, buying at support and selling at resistance. Binance Coin traders can also make use of RSI indicators, among a suite of other tools on popular charting software, such as MT4.

How To Trade Binance Coin

How & Where To Buy

BNB is available on the Binance exchange and EtherDelta.

Crypto Coin Transfer

If you already own other cryptocurrencies such as Ripple (XRP) or Litecoin (LTC), you can swap and exchange coins for an equivalent value of BNB. Simply create an account on Binance or EtherDelta. Registration on both is quick and easy.

Note, Binance Coin is not available on Kraken or eToro.

To exchange other coins for BNB on Binance:

• Type the international coin symbol into the search box and copy the address provided
• Send the coins to the address copied from your Binance account
• After exchange confirmations are completed, funds will appear in your balance
• Then access the ‘exchange’ tab in the Binance trading platform and simply select the crypto coin to trade it for BNB

Purchase Binance Coins

You can purchase BNB directly through Binance with accepted debit/credit cards (fees apply). Other methods include purchasing BNB with fiat currencies such as the Euro or US Dollar on exchanges. Note, platform access depends on residency.

Coinbase is considered one of the safest and easiest ways to purchase Binance Coin for UK traders with an FCA e-money license.

Note, traders can use data sources or an exchange rate calculator accessible on CoinGecko to see daily cost rates for 1 Binance Coin, or fees for conversion to other fiat currencies such as INR, PKR, or NGN.

What To Do After Purchasing BNB

• Donate – BNB donations can be used for Binance charity projects
• Spend – Pay for trading fees or purchase goods and services online
• Store – Hold onto Binance Coin in a wallet for a potential increase in value
• Trade – Exchange BNB for 150+ cryptocurrencies on the Binance platform
• Send – Send BNB to anyone, anywhere with a one second block confirmation time

Final Word On Binance Coin

Binance Coin is an accessible digital asset with optimistic future price predictions for the next 5 years and beyond. The established circulation plan should sustain the future of the coin and minimise swings in volatility due to demand and supply. There are plenty of opportunities to exploit the potential of the cryptocurrency with suitable trading strategies, historical price analysis, and effective risk management.

FAQ

Is The Binance Coin A Stablecoin?

Binance Coin is not a stablecoin. Binance does offer two fiat-backed stablecoins; BUSD pegged to the US Dollar (USD) and BGBP pegged to the Great British Pound (GBP). The first fiat-backed cryptocurrency, Tether (USDT), was created in 2014.

Is Binance A Coin Wallet?

Binance offers a free-to-use multi-asset crypto coin ewallet called the Trust Wallet. The app is available to download to iOS and Android devices. The service supports staking, a live coin price chart, and historical data graph access. Third-party coin wallet MetaMask can also be used to store, send and receive Binance Coin and other ERC20 coins.

Is Binance Coin A Good Investment In 2021?

Some data sources indicate the Binance Coin is a good investment for 2021. An all-time high (ATH) price was reached in April 2021 at $610.06, with chart predictions suggesting a new highest price of up to the $800 mark by the end of 2021. Remember crypto investments are subject to significant volatility and prices can come down dramatically.

How Much Is A Binance Coin Worth?

The price of the Binance Coin fluctuates daily. Use live market rates and historical price charts to make the best investment decisions. TradingView, CoinGecko, CoinMarketCap, and CoinDesk are good sources of price prediction data, the latest news, live stock updates, coin drop statistics, and market trends.

Is Binance Coin On Coinbase?

No, Binance Coin is not supported by Coinbase. Instead, BNB can be purchased on the Binance exchange or EtherDelta. Both solutions allow for the purchase and trade of Binance Coin in decent volumes at competitive prices.