What is Binance Coin?
Binance Coin (BNB) started as an ERC-20 token issued by the Binance exchange in 2017. Despite coming into the market recently, Binance (short for Binary Finance) has quickly gained widespread adoption thanks to its robust matching engine and low fees. Now BNB is the native coin of the Binance Chain, the company’s own blockchain, which boasts a decentralized exchange built on top of it.
On Binance Exchange
Similar to gas in Ethereum, BNB is an essential part of the exchange’s ecosystem and can be used for payment of exchange, withdrawal, listing, and other fees. In particular, it helps solve the problem of calculating the needed balance to complete a transaction. To incentivize customers to use the coin whenever possible, Binance offers a 4-year discount on trades if the fee is paid in BNB. It starts at 50%, then gets continually halved each year, but it can still save the trader a lot of money.
Another practical use of BNB is through investment in projects on Binance Launchpad, a growing ICO platform with major tokens constantly released. It is based on the Binance Chain, built on the Cosmos network. Naturally, many services in the real world accept BNB as a form of payment, and the company is actively working to equip more establishments with the ability to pay using cryptocurrencies. Due to the platform’s success, the token has seen a surge in popularity and a steady rise in price as it attracts more and more users daily.
Where to store BNB?
Whether you’re a long-time trader or just curious about cryptocurrency, Magnum Wallet will allow you to manage and exchange your BNB securely and efficiently. Compared to storing tokens and coins on an exchange, you have full control of your funds, and no personal information is collected in the process.