How far can Binance Coin (BNB) go? • Benzinga
Have you decided to participate in the crypto action? You can buy Binance Coin on Binance and FTX Exchange.
Binance Coin (BNB) entered the high-stakes world of cryptocurrency in July 2017. Today, Binance has become the world’s leading crypto exchange – an impressive achievement! Binance is more than just an exchange, however. It’s a whole ecosystem of products, including BNB, its native coin.
BNB started out as an ERC-20 token, which is considered the technical standard used for all smart contracts on the Ethereum blockchain. However, since then BNB has migrated to its own proof-of-stake network on Binance Chain. This blockchain runs parallel to Binance Smart Chain, which hosts smart contracts on the platform.
Despite some drama regarding Binance operating in multiple countries that believes they violate trading and licensing regulations, BNB is one of the top performing cryptos of 2021. While that alone may cause you to consider investing. , it is always wise to do in-depth research.
What is Binance Coin?
Binance Coin is a digital asset issued by Binance. It can be used to purchase goods and services as well as to pay transaction fees on the Binance Smart Chain. BNB users on Binance can save 10% to 25% on trading fees. Binance Smart Chain also allows interest staking with BNBs and other tokens on Binance Smart Chain.
Binance Coin market capitalization
As of August 2021, Binance Coin’s market capitalization was over $ 70 billion, which earned it the ranking of 4th largest cryptocurrency, according to CoinMarketCap. Price may be a consideration, but don’t let it be the only thing you look at when buying cryptocurrency – price alone isn’t the only factor in a crypto’s real value. cash.
Market cap is also an important factor because it tells you how dominant a particular asset is in the wide world of cryptocurrencies. Usually, a market cap of over $ 10 billion is believed to indicate a less volatile investment than those of smaller market cap cryptocurrencies. BNB easily exceeds this guideline. This fact, along with the reasonable price, especially compared to Bitcoin (BTC) and Ethereum (ETH), makes it an investment worth giving more than just a glance.
Bull Case For Binance Coin
Binance Coin has seen incredible growth since its launch in 2017. Most experts predict that it will see continued growth. A key factor in this growth is the result of controlling the BNB offer. Supply and demand determine the prices of any asset, and BNB is no different. Binance, in fact, is manipulating the bid to increase the value of the BNB coin by scheduling quarterly burns.
Burning means permanently removing a certain number of tokens from the available reserve, which should theoretically increase the value of the remaining assets. When BNB was launched, it had a stock of 200 million. The current supply is around 168 million. The amount burned depends on Binance’s overall quarterly trading volume. It will continue until the supply is reduced to 100 million.
Another factor to consider is that Binance now has a Launchpad platform. If successful, Binance will be able to help launch a number of new cryptocurrencies, which in turn will provide BNB users with more trading options. This will contribute to an increase in the price of BNB, making it a wise investment opportunity in the short and long term.
Bear case for Binance Coin
As mentioned earlier, there have been dramas regarding Binance and how it works in various countries. It seems that lately everyone is looking for Binance. This may be the price to pay to be on top. CEO Changpeng Zhao said in a Business Insider article that he spent 80% of his time dealing with regulatory issues instead of actually working on the exchange.
Several countries have accused Binance of offering investment services without authorization. There have also been issues with people having their accounts frozen on Binance as well as a recent freeze that angered users over the losses suffered in the Bitcoin crash in May 2021 and users were unable to access. to their accounts.
Currently, a group of investors are considering suing the crypto giant, and the legal status of the exchange in various countries can make the matter even more complicated. These are things that can certainly hurt Binance and, in turn, affect the value of BNB.
Where to buy Binance Coin
If you are ready to buy your own BNB, the obvious place to start would be the Binance exchange itself. FTX Exchange is another option offered by BNB, and either exchange is a good choice for new investors.
Binance is the world’s largest cryptocurrency exchange in terms of trading volume. In fact, it leads the cryptocurrency exchanges maintained by CoinMarketCap, which are ranked based on 24-hour trading volumes, exchange score, and average liquidity. Binance triumphs over exchanges like Huobi Global and Coinbase, which follow closely behind in 2nd and 3rd place, respectively.
Previously based in Malta, the Binance group is now based in the Cayman Islands. Binance has several sites and registered entities across the world. In the United States, it is known as Binance.US. The exchange in the United States uses the same advanced technology and trading services as its global counterparts, the difference being US regulatory compliance. It is operated by BAM Trading Services, based in San Francisco.
Binance.US ranks 9th on CoinMarketCap’s top 10 list based on metrics such as 24-hour trading volume, stock exchange score, and average liquidity. Binance might be a good platform for you to invest in cryptocurrencies if you are a US-based trader who trades frequently, does not intend to pay high trading fees, and needs to. ” access a large number of cryptocurrencies.
- American citizens
- Frequent traders
- Users interested in Binance Smart Chain (BSC) and Binance Coin (BNB)
- Low trading fees
- Easy to use platform
- Large selection of altcoins – it offers 51 cryptocurrencies besides Bitcoin (BTC)
- Good customer service
- High liquidity due to large transaction volumes
- Only residents of 43 states in the United States can trade on Binance.US. You cannot trade on this platform in New York, Connecticut, Hawaii, Texas, Vermont, Idaho and Louisiana
- Despite the wide choice of altcoins, the number of tokens offered on the US platform does not compare to the hundreds of choices available on the global Binance platform.
- There is no option for telephone customer support
How long will it take for Binance Coin to reach $ 1,000?
Most pundits seem pretty confident in BNB’s growth. The conflict is when exactly it will reach $ 1,000. Some strongly believe BNB will reach $ 1,000 – and even surpass that number – by the end of 2021. Others believe it will take longer, possibly reaching $ 1,000 in the next 5 years.
That being said, it seems almost unanimous that BNB will continue to rise. Most experts believe it is a wise investment. The choice is yours because cryptocurrencies are always volatile. No one can really be sure what will happen.
Where to store Binance Coin safely
It is always wise to keep your crypto in a wallet rather than storing it on an exchange. Even the most secure exchange can be hacked or frozen. Here are the top choices for keeping your BNB safe.
Best Hardware Wallet: Ledger Nano
The Ledger Nano X or S are both highly sought after hardware wallets and for good reason. The Nano X is considered the elite due to its security as well as its ability to hold over 1,000 cryptocurrencies, including BNB. It has a battery and is Bluetooth compatible.
The Nano S is just as secure but has fewer advantages. If you can do without Bluetooth and a battery, you might find the Nano S better fits your budget.
Best software wallet: ZenGo
ZenGo started supporting BNB in July 2019 and is a great option for a secure software wallet. In addition to being secure and easy to use, ZenGo offers keyless cryptography. Instead of having to keep track of seed phrases and private keys, all you need is your face.
ZenGo uses facial biometrics, which makes sense because you can never forget where you put your face.
Keep a close eye on the ongoing Binance lawsuit to see how prices are affected.
Current crypto prices
Crypto prices are always volatile. You should expect them to go up and down not only from day to day, but from minute to minute as well. It’s a rapidly changing landscape that can be as stressful as it is exciting.
Some people thrive on stress; some people are better off keeping their crypto and forgetting about it. Whatever your strategy, always do thorough research before investing so that you can make the best choices possible.
Is Binance Coin a Good Investment?
Most experts agree that BNB has a bullish outlook and is poised to grow over the years. Anyone can guess how far Binance Coin can go, but the forecast looks very favorable at the moment.
Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.
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