Binance Coin (BNB): What is it? Can it be purchased easily?
If you ask anyone about cryptocurrencies, you will likely hear the word Binance.
This word has become one of the most common in the cryptocurrency market.
This is because of the famous Binance Coin, which belongs to the Binance platform, the most famous cryptocurrency platform ever.
For this reason, we will talk in a series of articles about Binance Coin and what it is. How can it be purchased?
We will also go into some articles in step-by-step details for purchasing this currency. Let us know more.
What is Binance Coin?
Binance Coin is the currency of the famous Binance platform.
This means that it is the currency that is used on the platform to obtain a discount when paying trading fees or can be mortgaged to obtain passive income or the right to enter into investment operations in projects sponsored by the Binance platform.
But it is also the official currency of the Binance smart chain or Binance blockchain.
This means that they stake their shares on the blockchain to secure them and complete financial transactions on the network.
In addition, it is used to build and develop smart contracts on the network and is also used to pay gas fees on the network.
Currency is also considered an investment asset that can be used for trading or purchased and held for investment purposes.
It can also be lent and obtained as a return from this, or borrowed by using it as financial security.
What is the difference between Binance Coin and Ethereum?
Ethereum is the base currency of the Ethereum blockchain. In the past, Binance Coin was part of the Ethereum ecosystem.
But what is known as a fork occurred in the Binance network, and thus the network became independent from the Ethereum network.
This means that the Binance network’s code is built on the foundations of Ethereum but has been slightly modified.
The biggest difference between the two networks is that the Binance network has much lower gas fees and is also much faster than Ethereum.
But this does not mean that it is like the Layer 2 networks on Binance but only that it is faster than Ethereum.
This is due to the small number of Nodes on the network, which on the one hand means high centralization of the network, and on the other hand, it means high speed and low gas costs.
Nodes are the computers that are used to secure the network and complete transactions on it.
Is investing in Binance Coin good?
Binance Coin is the largest coin in the altcoin market in terms of market capitalization. Its market value exceeds $32 billion.
It is the third largest currency on the market after Bitcoin and Ethereum and is therefore considered a huge project.
But the price of the Binance coin has already increased from approximately half a dollar per coin in 2017 to $700 per coin in 2021. Currently, the price of the coin is slightly above $210.
The price suffered a violent decline in 2023 as a result of the rumors that spread regarding the Binance platform and also regarding the SEC’s efforts to pursue the platform in the USA
The reason for mentioning these problems is so that you know the risks of investing in the currency.
The Binance (BNB) project is very successful and achieves fantastic profits, which is considered almost the largest in the world of crypto.
Therefore, from a fundamental analysis perspective, investing in the project is a very smart decision.
The more profitable the project is, has a strong community, social media presence, and strong usage, the better this investment will be.
The Binance Coin project has all these features, but there is a strong problem currently, so what is it?
What you should beware of
The biggest problem facing the Binance Coin project currently is the legal situation globally.
Although the platform is licensed in many countries and continents around the world, it has begun to suffer in many places.
Since the fall of the FTX central platform in November 2022, all central platforms have been in constant suffering, led by the Binance platform.
In May and June 2023, the US SEC filed a case against the Binance platform on charges of operating without a license or trading in unlicensed securities, in addition to other charges related to questionable financing.
This has greatly damaged the platform’s global reputation.
The platform has been exposed to problems not only in the United States but also in Europe.
Based on this, the platform’s license was withdrawn in more than one different country, and major international banks stopped dealing with it.
This means that your investment in Binance Coin is currently a bet on Binance winning against the SEC in its case.
It is worth noting that the Binance platform is in a struggle against the SEC, along with the Coinbase platform, which is the largest cryptocurrency platform in the United States.
Therefore, the chances of winning for both platforms are high.
But if one platform loses its case, most likely the other platform will lose as well.
Therefore, you should be aware that currently, the biggest factor in a currency’s success or failure is winning the case and not falling the platform before the next bull market.
If this happens, Binance Coin may break the $1,000 barrier in the next bull market.
How to buy Binance Coin (BNB)?
Binance Coin is easily available and can be purchased from different places.
You can buy the currency on central platforms such as Binance, OKX, and other platforms.
Here we recommend buying it from the Binance platform, since it is the main platform for the currency, and therefore purchasing the currency from it always has reduced fees.
But don’t forget that you will always need KYC procedures to purchase currency on a centralized platform.
You must also make sure that cryptocurrency trading is available in your country or at least not prohibited.
The other way to buy BNB is via a decentralized platform like UniSwap or PancakeSwap.
It can be purchased here via the Binance network or even the Ethereum network since it is available on both networks.
But it is recommended to buy it on the Binance network so that you pay a much lower gas fee, which may be 1 or 2 cents, but on Ethereum, you may have to pay at least a dollar.
Where can I keep BNB?
You can hold Binance Coin either on a centralized exchange wallet or on a hot or cold wallet.
Leave the coin on a centralized platform if you trade it frequently and will sell it soon.
But if you interact with decentralized platforms all the time and need it, for example, to pay gas fees, transfer it to a hot wallet such as MetaMask or Trust Wallet.
If you want to invest in the currency in the long term, we recommend transferring it to a cold wallet and keeping the secret key to the currency in a safe place.
Your coins may be at risk on centralized exchanges. Do not forget also that when you buy the currency from a central platform on the spot market, you can withdraw it from the platform.
Can BNB be sold easily?
Binance Coin can be easily sold if its price rises. This is because currency liquidity is available in many places, especially on the Binance platform.
Currency liquidity is abundant, which is extremely important when investing.
You should always ask yourself whether you will be able to convert cryptocurrencies into cash or not.
Do not forget that, as we said, the future of the currency depends on the platform’s victory over the SEC in the current case.
Not only the future of BNB, but many cryptocurrencies will have their future dependent on this.
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