Have you ever tried to argue for Binance Coin (BNB) over other coins but found yourself at a loss for words? This article is for you if you’re interested in the advantages of BNB. I’ll be talking about five of the benefits of Binance Coin (BNB) over other cryptocurrencies.
One of the most well-known cryptocurrencies in the world is Binance Coin (BNB). It is supported by the Binance exchange, one of the world’s most recognised and trustworthy cryptocurrency exchanges. BNB was initially created on the Ethereum blockchain before being moved to the Binance Chain.
Because of its various benefits, Binance coin has become a significant player in the cryptocurrency market. The great thing about BNB is that it can even be used outside of crypto. Over time, Binance has partnered with a number of businesses and merchants to accept BNB as a form of payment for goods and services.
5 Benefits of Binance Coin
Binance coin (BNB) is the native token of the Binance exchange and it has several applications. It is also one of the most liquid cryptocurrencies, which means that buying and selling it on exchanges is easy. And no, those are not all the advantages there are to using BNB.
Below are some other benefits of Binance coin (BNB) over other cryptocurrencies:
- Fast Transaction time
- Low Transaction fees
- Multiple use cases
- Integration of Decentralized Exchange
- Regular Token Burns
Fast Transaction Time
One of the benefits of Binance Coin (BNB) is the fast speed of transactions. Binance Coin runs on the Binance Smart Chain which is more affordable and quicker than the Ethereum blockchain.
BNB processes transactions on average in 15 seconds, which is typically faster than many other cryptocurrencies. Due to this, it is an excellent option for transactions that require quick confirmation, such as trading and making payments.
Low Transaction Fees
Transaction fees for BNB are often cheaper than those for certain other cryptocurrencies. This makes BNB more cost-effective for users especially when sending tiny amounts of cryptocurrency or engaging in frequent transactions. The low transaction costs make it possible for traders to make more profits.
In comparison to other exchanges, Binance imposes a fee for each transaction made on the platform of 0.1%. Additionally, you can receive a discount on the transaction fees if you pay for the transaction using BNB. This discount, which may be as high as 25%, can significantly reduce how much you are charged per transaction, and help you save in the long run.
Multiple Use Cases
Another benefit of Binance Coin is that it has several applications, some of which go beyond those of simple digital money. The Binance exchange accepts Binance coins as payment for transaction fees. Additionally, it can be used to make purchases at businesses, platforms and merchants that accept BNB.
BNB can also be used for token sales and staking to earn rewards. Additionally, it can be used as collateral on lending platforms or to pay for listing new cryptocurrencies on the Binance exchange. You can also sell BNB for cash on various exchanges.
Integration of Decentralized Exchange (DEX)
Binance Coin (BNB) functions as the designated gas token on the Binance Smart Chain. Gas basically refers to charges on a transaction made on the blockchain. This allows seamless integration with decentralized applications (DApps) and decentralized finance (DeFi) platforms.
BNB’s function as gas ensures fast and cost-effective transactions, making Binance Smart Chain a top choice for decentralized applications (DApps) and DeFi activities. Users benefit from speedy confirmation times and lower transaction fees.
The speed, affordability and versatility of BNB has attracted a lot of DApps, developers, and regular users. This has made BNB a valuable part of the blockchain world. It also makes the Binance Smart Chain even more user-friendly and useful, especially for people who love blockchain technology.
Regular Token Burns
Binance periodically conducts token burns, reducing the total supply of BNB. The Binance whitepaper mentions that every quarter Binance buys back and burns BNB worth 20% of its profit. This token burning completely destroys some of the BNB in circulation, thereby constantly reducing the amount of BNB supplied.
According to Binance, it will continue performing regular token burning until it buys back and burns 100 million Binance coins. This is equal to 50% of the total supply. When BNB launched, there were a total of 200 million Binance coins in circulation.
This practice of token burning helps create scarcity, potentially increasing BNB’s value over time. This benefits long-term holders, making BNB a great choice for long-term crypto investment.
Conclusion
Overall, Binance Coin is a well-rounded cryptocurrency with a number of benefits. This coin comes in handy for both traders and investors. If you are looking for a cryptocurrency with a strong use case and the potential for long-term growth, then BNB is a good option to consider.
Holding BNB means you need to have a reliable and secure wallet to keep it safe. You can trust Coinosh, a user-friendly and highly secure decentralized, non-custodial wallet, to always keep your Binance coin safe.