Buy Binance Coin (BNB)

If you are connected to the cryptocurrency world in one way or another, you have already heard the name Binance. The exchange was founded back in 2017 and is considered the largest crypto-asset trading platform in the world. This article will find out what Binance Coin is, how it works, and how to buy BNB.

What is Binance Coin (BNB)?

BNB or Binance Coin is the underlying cryptocurrency of the Binance exchange. The Binance platform allows crypto traders and investors to pay fees and trade other cryptocurrencies in pairs with BNB. 

The coin was initially an ERC-20 token on the Ethereum blockchain, but Binance has developed its advanced blockchain platform over time. According to statistics released in April 2021, the platform performs more than 1.4 million transactions per second, one of the leaders among all cryptocurrencies. 

Moreover, between early April and mid-May 2021, Binance Coin showed impressive growth and doubled its value.

History of the BNB cryptocurrency

Binance Coin was created by Changpeng Zhao back in July 2017, and the development of BNB can be divided into the following three market cycles:

1. The first market cycle.
   BNB was launched on 17 November 2017 with a low price of just $0.50. But already in the first 67 days of trading, BNB reached a value of over $25.
   
   
2. Second market cycle.
   BNB was launched on 17 November 2017 with a low price of just $0.50. But already in the first 67 days of trading, BNB reached a value of over $25.
   
   
3. Third market cycle.
   During the third market cycle, BNB hit about $350, while the cryptocurrency's market capitalisation surpassed $53 billion.
   

Pros and cons of BNB 

Along with its advantages, BNB cryptocurrency also has some disadvantages. If you want to invest in Binance Coin or you want to buy Binance Coin, read the following pros and cons carefully.

Pros:

• Leading Utility Token. Due to the intensive development of the Binance exchange, BNB is considered a leading Utility Token (service token). In addition to making transactions on the Binance exchange, you can invest in this coin to earn passive income. In addition, you can also create online purchases: order gift cards, entertainment, travel, pay bills, etc.
• Unique burning policy. The crypto exchange has an incineration policy for Binance Coin (which we will discuss later in this article). This decreases the supply of BNB, and the cryptocurrency's exchange rate rises over time.
  
• Reduced trading costs. One of the most substantive advantages of Binance Coin is that with it, traders get discounts on Binance fees.
  
• Fast transactions: BNB transactions are instantaneous (up to 1.4 million transactions per second), well ahead of Bitcoin and Ethereum.
  

Minuses:

• Regulators' influence. Many crypto critics and experts suggest that regulators in China and the US could affect the BNB token long-term.
• Dependence on the Binance exchange. One of BNB's most significant drawbacks is that its progress is directly linked to the reputation of the Binance exchange. That means that it is tough for this cryptocurrency to move forward independently, and any problems at Binance directly affect BNB's reputation.
  
• Stability is not guaranteed. No one can say with certainty how BNB will perform in the future and whether or not it will be able to maintain its current performance. Additionally, cryptocurrency is relatively young and has only been around for four years, so there is some difficulty predicting.
  

No one promises that risk-free trading is possible. There are risks in every way if you want to invest in Binance Coin or another cryptocurrency. So you have to take them into account to minimise the risks. 

Other essential features of Binance Coin 

Binance Coin (BNB) has several options for users to choose how to use Binance Coin. In addition, it is necessary to know the specifics of the coin's combustion to understand the prospects.

Binance Coin (BNB) has several use cases:

• To pay fees and commissions in the Binance platform.
• BNB is one of the key cryptocurrencies for crypto-trading.
  
• You can use Binance Coin to pay for goods and services through a wide range of applications.
  
• For exchanging liquidity on Binance.
  
• For charitable purposes.
  
• To get discounts when you reach a specific trading volume of Binance Coin. Crypto-exchange users can get a discount of up to 25% on commissions by using BNB.
  
• For offline and online purchases, airline and hotel bookings, virtual gift purchases, e-gift cards, etc.
  

"Burning" Binance Coin

Binance uses 20% of its total profits every three months to redeem and "burn" - permanently destroy a certain amount of BNB. The last Binance Coin burn took place on 15 April 2021, when the platform got rid of 1,099,888 tokens. Currently, the total number of coins is 168,137,036.00 BNB. This deflationary procedure, which increases the value of the cryptocurrency over time.

Why did Binance Coin (BNB) rise?

BNB has proved to be one of the best performing cryptocurrencies over the past year in terms of growth rate. As a result, the value of the BNB token has risen sharply, especially in recent months. 

However, like most significant cryptocurrencies, BNB is very volatile. Especially in the short term. BNB quickly reached a record high price ($675.68) in 2021, but a severe correction followed, during which the price even fell below $300 at one point.

However, the extra opportunities, discounts and burnout attracted numerous investors, which always helped BNB rise in value. 

Is it safe to invest in Binance Coin online?

As mentioned, BNB is one of the most popular and successful cryptocurrencies worldwide. Moreover, BNB has shown continuous growth over time, and many financial experts believe that this will continue in the coming years. Currently, the outlook for this cryptocurrency looks positive.

But it is important to remember that BNB can be a good investment for long-term investors. On the other hand, short-term investors can lose their investment in no time due to its high volatility.

In any case, you need to think carefully about your strategy before you can invest in Binance Coin. 

How to invest in Binance Coin in the UAE?

Binance Coin is the best crypto exchange for buying, exchanging, storing and selling BNB coins. You can easily invest in Binance Coin for fiat currency or another cryptocurrency. The platform also allows you to speculate with your coins or use them for staking and passive income. The process of buying Binance Coin (BNB) is straightforward. You only need to follow three steps to buy a cryptocurrency.

1. Registering

The next step is to open an account on the platform, which is straightforward. All you have to do is click the 'Register' button and only enter your personal information.

2. Market analysis

If you want to invest in Binance Coin in the UAE, you must conduct a comprehensive market analysis. Moreover, you should also clearly define your financial and investment goals to see if BNB is a suitable investment option or not. This will allow you to make an informed decision, and only then can you move on to the next step.

3. Real account

Once you have successfully set up your account, you can open a live account.  If you are going to open a real account, the next step is to fund your account. Make a minimum deposit in any way you like, and voila! Now you have access to the full range of platform features! 

Every day, new cryptocurrencies appear on the market, expanding the choice for investors. But BNB is one of those cryptocurrencies that has shown impressive progress from the beginning and continues to grow. The community of this digital currency is robust, with millions of participants worldwide. We hope this guide will give you answers to all the basic questions about Binance cryptocurrency, so you can decide if you want to buy Binance Coin in the UAE.

Demo account

Usually, platforms offer such an excellent feature as a demo account. You'll be able to experiment and try out whatever you're up to without the risk of losing money. It is a unique opportunity that we recommend you do not miss out on and take some training.

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