|What is Binance|
Binance is a popular cryptocurrency exchange. It is the largest in the world in terms of the daily trading volume of cryptocurrencies. Its explosive growth is due to the combination of low trading fees and fast transactions
It was founded in 2017 by Chang Peng Zhao, a developer who had previously created high-frequency trading software. It has its own token, Binance Coin (BNB).
The name Binance is a jumble of the word’s binary and finance
What is Binance used for?
Binance has many uses but some of its uses are:
1 Trading fee discount on the Binance Exchange
Binance coins are used to provide trading fee discounts for its holders on Binance. This arguably remains the coin’s most popular use case, and BNB holders are currently enjoying a 25% discount on their Binance trading fees. However, the discount drops by half each year, meaning that it will eventually drop to 12.5% and eventually be discontinued.
As Binance users trade between different cryptocurrencies. They will accumulate “dust”, amounts of cryptocurrency that are too small to trade or withdraw since they are smaller than the applicable fees. Binance offers an option. Which converts all of a user’s different cryptocurrency “dust” to BNB and receives a sum of cryptocurrency that is actually usable
2 Binance smart chain
It has two of the biggest projects: Venus and Pancake Swap. BNB can be used for staking and paying transaction fees on the Binance Smart Chain. The smart chain offers functionality similar to Ethereum thus making it easier for Ethereum developers to port their projects over to BSC. BSC is however heavily optimized for performance and not decentralization hence quicker transaction times and lower fees. A very small number of nodes also operate the BSC network
3 Access to Binance special feature
Holding a sufficient number of BNBs allows you to participate in token sales held through the Binance Launchpad platform. These token sales generate a lot of demand and can often translate into significant profits
4 access to Binance special features
When a project is added to the launch pool users can stake their cryptocurrency on Binance to earn tokens issued by the project. For users holding BNB tokens launch pool is a convenient way to earn some extra tokens at no practical cost
5 Purchasing goods and services
Binance coin has a lot of liquidity and it has widespread support from other cryptocurrencies and wallets. This makes it easier to transact with it just like bitcoin or any other popular cryptocurrency
6 Binance DEX
Thanks to the backing of one of the largest businesses in the rapidly growing cryptocurrency industry. BNB may gain even more use cases in the future.
How is the Binance coin produced?
Binance Coin (BNB) is an ERC-20 token built on Ethereum. Binance issued 20 million Binance Coins at its ICO, and will eventually buy back half of them and destroy them. This ‘burning’ process helps maintain the token’s value.
What can you do with Binance Coin?
Binance Coin can be used to pay trading fees on the Binance exchange.
trading fee. That’s how the company makes money. However, if you use Binance Coin to pay
the fee, they will reward you by charging a lower fee. That has helped increase demand for the exchange’s own currency. Binance coins can also buy other cryptocurrencies on the exchange.