As of September 2022, Binance coins continue their rise. Currently there are more than 10 million users on Binance platform, with an average amount of about $1 to $2 in circulation per user. Binance platform is trusted by many people globally who use it to trade cryptocurrencies like Bitcoin or Ethereum. The main purpose of this article is to discuss what BNB cryptocurrency is, how it became popular, its uses, support, and market cap.
What is Binance coin (BNB)?
Binance Coin (BNB) is one of the most famous crypto coins. It was launched as a utility coin. Its official name is known as "Binance" coin, which means that this token will be used mostly for trading transactions. To make a purchase at any price on exchanges, all you have to do is send 1 USD to your wallet after entering an address. Once you have sent all the amount you have to pay the transaction fee. If the payment is successful then the transaction is accepted and you receive your digital currency. If not then you get nothing.
So what is BNB?
Binance is one of the biggest crypto platforms in the world. Every month they release new tokens such as BNB or BTC and so on. A lot of investors and other players are investing in this coin because they believe that these tokens will help them earn profit, even if it is small. But unfortunately it is difficult to buy BNB in large volumes.
How does Binance coin work?
Binance is a very useful crypto platform that allows buyers and sellers to make trades. This is very important feature of Binance where anyone can access the platform anytime anywhere. In this case, you don't need a personal account to start trading. All you need is a phone number and you can open a free trading account without signing up. There are two ways to buy BNB. Firstly when you want to sell something using fiat currencies your options are available. Other option is through Binance exchange platform that lets you deposit your money into different wallets and make payments through the same wallet. On these methods all you have to do is transfer the funds from one wallet to another. When you see a green flag you can complete your order and once everything is completed we can say that process is complete. After completing your order Binance will add those funds to a smart contract and now you are ready to spend it at any rate. Another thing worth mentioning here is that traders are able to withdraw their funds whenever they want by sending them in wire transfers and debit cards. For withdrawing tokens, users are required to create an escrow account that is responsible for storing the payment for withdrawal. So BNB works best for retail traders and only professional traders may consider transacting in Binance.
Where Does BNB Trade?
Binance is always offering great opportunities to everyone. You can place your orders right away and easily withdraw your fund as soon as you received. So far a little over $30 billion has been transferred out of Binance platform over the past two months alone. Now it has reached around $3.7 billion in just last week. Many things that happen in crypto are controlled by smart contracts. These smart contracts help keep track of all incoming and outgoing funds between wallets and exchanges. In this way, BNB can be considered as an efficient investment tool. Even though it's still a relatively young brand new asset class, having said that, some traders like this coin because they believe that it can lead to higher rates. However, others believe that this coin could be a better choice than other cryptos like Cardano for long term investment, but not much at all.
How to Buy and Sell BNB
To buy and sell BNB, you need to follow the steps below:
Go to the website of Binance and click on 'Buy' button to buy BNB coins. Make sure that you enter an amount of minimum 20$ and maximum 150$. Click on 'Buy Now.' Enter the ticker symbol of token you wish to buy. Select one of the addresses listed under which you will buy the tokens. Complete the transaction by giving confirmation code so that both parties confirm that the deal is done correctly.
What Are BNB Coins?
BNB coins are based on the ethereum blockchain, which makes them unique among other competitors. Because ETH is considered the largest decentralized network. It also is not going to take forever before ETH miners switch to BNB. That's why BNB is capable of processing thousands and thousands of transactions each second. The entire system of BNB tokens are created in accordance with smart contracts. The concept behind smart contracts is that they are able to automatically execute every step needed for executing their obligations once done. Smart contracts help establish rules and conditions that define the nature of interactions between individuals and the blockchain network. With smart contracts, anything that happens on the blockchain can be managed through commands and instructions that are recorded on paper through codes. The software then calculates the outcome and executes it, and when it’s finished, it returns the original data it had started with. One interesting point that smart contracts have to offer is that they are immutable in terms of changes. They cannot simply change their code and expect to return it again.