Buy Binance Coin (BNB)
How to buy Binance Coin in New Zealand?
If you decide to buy Binance Coin, you must register with a reliable platform. Registration is an easy and fast process, and once completed, you will have access to the platform's vast functionality.
The platform will also offer you to try out the demo account. That is a great chance to test all sorts of strategies and features that come to your mind. The great thing about it is that you won't lose a single dollar in the process!
If you decide to get down to brass tacks, you can easily open a real account with a minimum deposit.
Remember: Victory loves caution. Learn and succeed!
The key points are worth highlighting:
- Binance Coin was created by Binance in 2017.
- BNB is the ticker symbol for Binance Coin.
- Binance - led by cryptocurrency legend Changpeng Zhao - is one of the largest cryptocurrency exchanges in the world.
- Originally launched on the Ethereum blockchain, Binance Coin has moved to its blockchain, Binance Chain.
- BNB also has a unique burnout policy and acts as a discount coupon, one of the most enormous benefits of investing in Binance Coin.
- However, Binance is the target of cyberattacks, one of the major disadvantages of investing in BNB.
- Binance Coin uses the Tendermint Byzantine-Fault-Tolerant (BFT) consensus mechanism.
- With an impressive market capitalisation of over $5 billion, Binance Coin has, in a sense, already become a millionaire producer, and some experts predict that BNB will reach new highs in the future.
History of BNB cryptocurrency Binance Coin
Today we will talk about BNB digital asset Binance Coin. Binance Coin is ranked 7th, and while many other crypto trading platforms followed Binance Coin in launching their tokens, no one has managed to replicate the success of Binance Coin.
BNB cryptocurrency is one of the most exciting and unique coins currently available, and many traders desire to buy BNB. Moreover, many leading crypto-experts believe it has a positive future. But the token might not have existed if its founder hadn't found the strength to overcome a rough patch a few years ago.
Few words about Changpeng Zhao
Imagine this situation, you have sold your real estate and invested all your money in shares of a promising project, hoping for a good income, and they, just a week later, have fallen in value by a factor of three. Sad.
Many people probably rushed to get rid of securities to save at least the rest of the money and then spent the rest of their lives in misery, cursing the day and hour when they took such a rash decision. But Changpeng Zhao, a Chinese computer programmer, did not lose heart and did not panic.
When he became interested in Bitcoin in 2014, he immediately realised that digital gold would make him a millionaire. So he sold his house and exchanged his fiat money for BTC, which was trading at around $600 per coin. Towards the end of the year, Bitcoin fell to $350, and at the end of January 2015, it failed to $215 altogether. A disaster for the poor Chinese investor, but Changpeng Zhao kept his spirits up and did not get rid of the digital assets.
You can guess what happened. Next, Changpeng Zhao got obscenely wealthy. In 2017, the new multi-billionaire received attention from Forbes magazine and launched a digital currency exchange called Binance. The service was not just another centralised exchange.
Binance is a whole crypto empire, which, in addition to the traditional spot market, provides many other services. So, let's take a closer look at the asset BNB token, why it was created and why it is worth including in your investment portfolio.
What is Binance Coin (BNB)?
The cryptocurrency BNB serves as the digital fuel that fuels the Binance ecosystem. The coin offers severe savings on fees and can be exchanged for almost any other asset. It might seem like such a big deal. Why even bother going through the motions? But given the scale of the Binance platform and the number of branches, you realise that launching an internal token was very much worthwhile.
Without Binance Coin, futures Binance and other innovative services would not have been as attractive to large traders, who could further save on fees by keeping a certain amount of BNB tokens on their balance sheet. Binance Coin owners can earn money from holding the asset, making transactions and simply saving on fees.
How Binance Coin works?
Binance coin is the Binance Chain blockchain token, a simple, peer-to-peer system with high throughput and scalability. As security, the Binance blockchain uses the Byzantine Fault Tolerance (BFT) consensus mechanism, also known as Byzantine Fault Tolerance.
The Byzantine Generals problem was invented back in the last millennium as a logical dilemma leading to the conclusion that if attackers take over more than 33% of the nodes of a particular system, then it is doomed.
But thanks to BFT, this problem can be solved, and attacks by rogue nodes can be successfully resisted.
The network has a minimal set of features, but transactions are almost instantaneous, blocks are created in less than 1 second, and it is capable of the highest loads.
Binance Chain does not support smart contracts, an option that has been sacrificed to increase performance, but it does allow third-party blockchain projects to be deployed on the underlying chain. As a result, the Binance ecosystem is essentially a competitor to Ethereum, and some projects have already switched to it.
For example, the Aeron ecosystem (ARN), blockchain gaming platform Enjin (ENJ), neural network training protocol RAVEN PROTOCOL, gaming platform Gtex (GTEX) and decentralised freelancer network CanYa (CAN). Of course, this immediately secured them a listing on the Binance exchange.
History of BNB
If you want to buy Binance Coin, you should research everything about this cryptocurrency.
The cryptocurrency BNB was launched through an initial coin offering in 2017, 11 days before the Binance cryptocurrency exchange went live.
Initially, Binance Сoin was an ERC-20 token running on the Ethereum network. Total supply was limited to 200 million coins, half of which were sold in an ICO. In April 2019, the obsolete ERC-20 BNB was replaced by BEP2 BNB at a 1:1 ratio in April with the main Binance Chain network launch, and it is now no longer hosted on Ethereum.
What is BNB Burn?
Binance Coin's white paper states that the exchange must set aside 20% of its profits to redeem tokens and burn them each quarter. The firm has consistently maintained a quarterly burn and will continue until 50% of BNB's total supply has been burned. The burning process makes the token scarce and protects its value.
The last incineration took place on 15 April 2021, when Binance incinerated 1,098,888 tokens. This was the company's 15th quarterly report and its largest ever. The total number of BNB tokens currently stands at 169,432,937.
This will continue until Binance burns 100000000 BNB.
Pros and cons
Pros of investing in Binance Coin COIN
Given the popularity of BNB, it is worth explaining the pros of investing in Binance Coin to help investors decide for themselves whether they want to invest in Binance Coin.
Here are some of the most notable benefits of buying Binance Coin:
- Binance Coin is one of the best service tokens:
BNB is considered one of the best service tokens in 2021. While the token can be used to trade and pay commissions on the Binance exchange, we should mention that BNB can be used outside of the Binance ecosystem: it can be used for various payment methods. Services, including credit cryptocurrency card accounts, online shopping, travel, entertainment and transfers. For example, some apps allow users to split bills and pay friends using BNB.
- Binance Coin uses a unique burn-in policy:
As explained above, burnout is an essential feature of BNB to ensure its growth and stability. Binance will use 20% of its profits to get BNB tokens and burn them to reduce the total supply until 100 million coins (or 50% of the total supply) remain. Note that this deflationary method could lead to higher prices over time, which would also help investors to conduct price speculation over time.
- Binance Coin acts as a discount coupon:
One of the main benefits of investing in BNB is that Binance users receive discounts when they pay commissions on the exchange. This incentive - providing reduced commissions - is a clever way to build a growing community of supporters, as well as an incentive force for traders who carry out day-to-day transactions.
- Binance Coin is very popular:
BNB has taken a steady place among the top cryptocurrencies on the Coin Market Cap thanks to the popularity of Binance... Binance is a fast-growing company and one of the largest cryptocurrency exchanges in the world. Unsurprisingly, the token has received support from various partnerships, including Uplive, one of the largest social video entertainment platforms. On top of that, despite some security breaches in the past, Binance also takes security very seriously. That factor adds another layer of credibility to the token and makes it easier to adopt.
- Binance Coin offers fast transactions and low fees:
Binance Coin offers fast transactions and one of the lowest commissions in the industry - 0.1% for all traders. Note that Binance can process up to 1.4 million transactions per second. On top of that, Binance allows regular traders to win prizes.
Disadvantages of Binance Coins
While the benefits of BNB are obvious, investing in Binance Coin can be a risky venture and has certain drawbacks. Therefore, knowing the downsides of investing in BNB is vital to help you if you want to invest in Binance Coin.
Here are some serious disadvantages of investing in BNB:
- BNB is limited to the Binance exchange:
BNB is heavily dependent on the reputation of the Binance exchange, which could prevent it from going alone.
- Binance is one of the main targets of cyber attacks:
Binance is a tempting target for cyberattacks. In March 2018, one failed attempt to crush and hack the system led to the Binance hacker bounty programme. Binance offered $250,000 for information about the hackers. While Binance takes security seriously, some investors may be deterred by the risks involved.
- Binance Chain does not support smart contracts:
As stated earlier, BNB was launched on the Ethereum blockchain but later switched to its blockchain. However, this is one of the disadvantages of investing in BNB - simply because, unlike Ethereum, Binance Chain does not support smart contracts.
Is it safe to invest in Binance Coin online?
Now that you know the pros and cons of investing in Binance Coin, it is up to you to decide whether its benefits outweigh the possible risks and whether BNB could potentially be a profitable asset for your portfolio. But, of course, the decision of whether to invest in Binance Coin in New Zealand is up to you.
Since Binance Coin is the proprietary cryptocurrency of one of the largest cryptocurrency exchanges, it has many advantages and is worth investing in. In addition, Binance offers various trading apps, discounts and prizes.
At the same time, it is essential to note that buying and selling Binance Coin comes with certain risks, including losing capital. So just because you can easily invest in BNB does not mean you should.
However, if you are prepared to spend the time and energy to research and analyse the potential reward and risk of BNB, then investing in BNB could also work out for you. So if you want to buy Binance Coin in New Zealand, be sure to research the topic thoroughly and think about it.