Binance is a leading cryptocurrency exchange founded in 2017 in Hong Kong, also commonly known as a cryptocurrency "exchange" marketplace. Number one for a long time, it has its own token, the Binance Coin BNB. And as proof of the platform's power, BNB is the third largest cryptocurrency, just behind Ethereum and Bitcoin. Yet some are still trying to get the opinions and whether the platform is worth a look. Let me tell you, there is no question. Because in a few minutes you will know that BNB is the best of all!
- Binance was established in 2017 by Changpeng Zhao
- Binance Coin is the base currency of the exchange
- BNB burns have always been done quarterly
- Self-burn is launched by the platform
BNB: The Power Of Binance
Binance was created by CZ, also named Changpeng Zhao. It's not very easy to write or pronounce, so I would later quote it as CZ. Hope you don't blame me. Developed in 2017, it came at a pivotal time for crypto. BTC was starting to catch on everywhere and the rest of cryptocurrency was getting louder and louder. Average investors had a strong need for a versatile and accessible platform. This is where Binance gradually established itself and became the giant platform we know today.
But one of Binance's main strengths was especially BNB, or Binance Coin. Based on the BSC network, also created by the exchange to host its native token. Blockchain which would later emerge as one of the best alternatives to Ethereum's ERC-20 network. In particular thanks to reduced costs. And above all, a lot of shitcoins will be born, but hey, that's another subject ...
Binance Token
BNB is mainly used to make use of the many functions that Binance offers. Most can be done without Binance Coin, but there are some advantages to it. And other features are only possible with BNB. Like for example the BNB Vault, an option allowing Binance to take care of your BNB by investing them here and there, on various options, in an optimized and automatic way. This is a very handy feature that many will find useful. The more skilled may prefer to take care of their investments themselves, but overall Binance does its job very well.
There is of course also the possibility of trading in futures, margin trading and even, this time externally to the exchange, a Binance Wallet. In addition, BNB helps reduce already very low transaction costs. And if you sign up with an affiliate link, your fees will hardly have any visible impact! So it's always better to use BNB on Binance, or even BUSD, or Binance USD. This is a stablecoin based once again on the Binance Smart Chain which gives you no fees.
The Binance Coin BNB Self-Burn: Simplification And Clarity
We introduced Binance, the proper CZ platform. It's time to bring up the topic of self-burn now. I'm sure that's what interests you the most!
A little booster shot all the same, for the new ones at the back of the class. Burn, or token combustion, is a principle that consists of removing tokens as transactions take place within a blockchain ecosystem, or manually as with BNB until now. This is very common and usually allows for a constant increase in the price of the token. Even if the main goal is not this at all. But it differs from blockchain to blockchain. This is a feature completely absent from the Bitcoin blockchain, for example.
Until now Binance took care of the burning of BNB itself. A process that shouldn't be too complicated to manage since it only took place every three months. However, the exchange will now set up an automatic burn that will occur all the time. This is great news for the platform, which will have nothing to manage. But it's even better for investors.
The Role Of Auto Burn
Auto-burn therefore, will allow the platform to give more transparency to the community. The stated goal is to develop a healthy blockchain ecosystem. Predicting burn, instead of having to wait quarterly to find out how many BNBs will be burned is going to make it easier for investors to navigate it too. Again, the emphasis is on clarity. Token burn will no longer depend on Binance's income thanks to its native token.
Instead, the amount of tokens burned will be adjusted based on the price of Binance Coin, which itself is set based on supply and demand. The main objective of the maneuver is also to speed up the process while decentralizing the network. According to Binance, this marks the start of a new phase in the development of its Binance Coin BNB and Binance USD.
In any case, this is very good news for the cryptocurrency community. BNB's burn will be more fluid and clear. Taken together with the fact that Binance is expected to have its own head office based in Europe and in good standing globally very soon, one can be very optimistic about the future of BNB. It is obvious that any cryptocurrency investor should have BNB in their wallet. And if you don't have one yet, now is the time to invest. Because in addition to all the features that Binance Coin allows, it is definitely a reliable and profitable investment.