The Basics of Binance Coin

The Basics of Binance Coin

The Basics of Binance Coin

 

The Binance Coin, also known as BNB, is a cryptocurrency specific to the Binance exchange, often considered to be the largest crypto exchange in the entire world. Originally created in 2017, Binance has formed a large part of the blockchain industry and has quite a wide influence.

What is Binance Coin?

As a cryptocurrency, BNB has all of the same basic details that most other crypto types do: it is decentralized, functions through the blockchain system, and can be used as either an alternate currency or a trading tool. 

If you are familiar with cryptocurrency in any form, then you probably understand the basics of how BNB works, but some details only apply to this specific currency.

How Does BNB Work?

BNB runs parallel to the Binance Smart Chain (BSC), which is a network that uses its own specific Proof-of-Staked Authority system to ensure that all transactions are legitimate. This is meant to be a secure way to pay without opening yourself up to manipulation on the receiver or sender’s end.

This also increases security in general and offers a more reliable system for buying and selling BNB, as well as using it for crypto trading or real-world purchases.

BNB also has its own ‘burn’ mechanic. Capped at 200 million coins, the amount of BNB in existence will reduce every three months until it reaches exactly 100 million, ensuring that the number of coins will never grow too far. This is meant to keep the value fairly stable.

What is BNB For?

Its main intended function is to pay for gas through the Binance Smart Chain. However, like most other cryptocurrencies, Binance Coin is also often saved to re-sell later. Since the price can fluctuate just like all other crypto types, the coins can change value rapidly throughout each day. 

There are various other functions that BNB can be used for, such as certain interactions with the Binance Launchpad or working with the Proof-of-Staked Authority system. However, as a cryptocurrency, the owner of even a single coin can use it however they like.

Theoretically, you could use BNB to buy any product or service that accepts it as a payment method. This could be anything from important technical equipment and documents to a pizza, as long as the seller has it as an available payment option.

How Do I Buy BNB?

Since BNB is a cryptocurrency, it works in mostly the same ways as other similar offerings. This means that you can trade, buy and sell the currency on dedicated crypto exchanges and platforms, either for another cryptocurrency or with real money.

If you run your own business or sell things online, you could also potentially get some as a payment method from customers, but this usually relies on them choosing to pay you with that currency. You can’t really demand that they pay you with a specific kind of crypto.

You will need a digital wallet and a trading platform, such as Swyftx, to make a crypto transaction. Get set up as soon as you can and make sure that your wallet is linked since you will need one to be able to store each Binance Coin (BNB) that you have earned.