Many users who are interested in cryptocurrency know about the existence of the Binance exchange. But not everyone knows that this project has its own token. We are talking about the Binance Coin cryptocurrency. This coin was released on the Binance ICO. The more the exchange becomes popular, the more expensive the token becomes.

About Binance Coin

The Binance Coin blockchain is a marketplace that provides users with the ability to safely and conveniently exchange digital currencies. Binance Coin is a token of the Binance exchange. But it has a lot in common with other altcoins, because this cryptocurrency has the ability to take part in exchange for other assets and is subject to volatility. Binance Coin at the first stage of creation was developed on the Ethereum blockchain. But since 2019, the coin has acquired a personal blockchain. This cryptocurrency is designed to perform the following functions:

in the form of an asset for conducting trading operations;
in order to reduce commission fees;
in the form of a means of payment for payment for goods and services on those platforms where Binance Coin is accepted.
There is an increased interest in item number two among many users. In order to reduce the size of the commission, the coin can be used only during the period that is the first four years from the moment the cryptocurrency itself was developed. That is, the discount is valid only until 2022, while its size will decrease slightly every year.

Binance Coin, since it is developed on the Ethereum blockchain, has many characteristics in common, including the consensus algorithm and encryption. Buying Binance Coin is the only way to get the coveted coins, because mining of this cryptocurrency is not provided by the developers.

How is Binance Coin created?

This cryptocurrency was created relatively recently - in the spring of 2017. Despite the fact that this is a fairly new project, it managed to gain significant popularity. The coin is relevant through the use of exchange instruments that were purchased with digital money. This cryptocurrency is a fairly promising development, since there is a high investor interest. In the early stages, the developers managed to raise $ 15 million. If we consider this figure in comparison with the leading companies that have managed to earn billions of dollars, then the amount of Binance seems small. The developers managed to get the greatest support mainly from investors who live in China. Based on the information presented on the network, the collected funds were distributed as follows:

50% was spent on promotion and advertising campaign;
40% of the company "reserved";
10% was received by investors of venture funds.
Binance Coin was developed by a group of Chinese programmers. The main creator is considered Changpen Zhao. This project is not the first in his life in the field of blockchain technologies, as he previously had experience in creating a platform. Changpeng Zhao is respected in the crypto community. The project manager is actively communicating with users, during which a discussion of the future project and planned innovations is carried out. Each user has the opportunity to write to him.

Binance cryptocurrency exchange has a high level of security and high processing speed. By creating a digital currency, the trading platform will be able to take a leading position in the digital sphere due to the implementation of the fastest possible transactions and reliable storage of assets.

Users who purchase Binance Coin can also become owners of certain discounts within this marketplace. We are talking about fees for conversion and withdrawal of funds, as well as other types of commissions. Discounts are offered to users in different sizes, which depend on the period of token purchase. If a user owns Binance Coin for one year, he can expect a discount of half of the total payment. Each subsequent year, token holders will be able to reduce the required payments to the minimum, but after the fifth year, the accrual of bonuses is canceled.

Binance Coin Features

The future of cryptocurrency depends largely on how rapidly the Binance exchange itself will develop. The reason is that without the presence of a platform, the meaning of the direct existence of the coin itself is simply lost. It should also be pointed out that today Binance demonstrates excellent development indicators. It is the second largest crypto exchange and is very popular with traders. The reason for the demand lies in the presence of small commissions and the fact that it is not necessary to go through the verification procedure without fail.

It should also be emphasized that thanks to projects such as Chain and Launchpad, which were created relatively recently, user confidence has significantly increased. This not only improves the reputation of the exchange, but also increases the value of Binance Coin. The founders are doing everything possible to expand the use of coins. The creators of the project regularly negotiate with trading platforms so that this currency can be used there as a means of payment. This means that the number of platforms where Binance Coin can be settled is growing rapidly.

But do not forget about 40% of the coins that are owned by the developers. If we take into account the so-called "burning" of tokens, then this very concentration increases significantly. If the founders decide to use reserves to manipulate the course, negative consequences are possible.

Is Binance Coin Infinite?

Binance crypto exchange tokens are used as a means of payment for paying commission fees on the exchange itself. In addition, their purpose is to trade with other cryptocurrencies. It is also necessary to highlight such an important point that the purchase of Binance Coin gives you the opportunity to participate in IEO, thanks to which you receive higher partner rewards. Recently, the use of coins of this cryptocurrency has increased in order to pay for various goods and services. A total of 200 million coins were issued, and the creators of the cryptocurrency plan to buy back and burn exactly half of the tokens in the near future.

Binance Coin Strengths

Binance coin was originally created to trade directly on the exchange. However, thanks to the implementation of innovative solutions and modern techniques by developers, users have the opportunity to use the coins of this cryptocurrency to pay for all kinds of goods and services. The coin is absolutely solvent, like Bitcoin and Ether. And although it is not yet accepted at all sites, the developers are trying to eliminate this drawback, since the team of creators has grandiose plans to bring Binance Coin to the market leader.

At the moment, the security of the project is well organized using the most modern ciphers. Thanks to this, users can carry out transactions without any fear, because third parties do not have the opportunity to find out additional information either about the owner of the crypto wallet, or about the amount to which the funds were transferred. In addition, making transactions using Binance Coin is beneficial for users, as there is a minimum fee for transfers due to the discounts provided. Those wishing to purchase coins should be aware that since tokens were created as a digital mechanism that is designed to provide discounts to users of a particular exchange, it is quite understandable that these coins are freely available for purchase only on that exchange. It is possible to buy coins only for another cryptocurrency, because this service does not work with fiat funds.

Binance Coin in TOP currencies

It should be pointed out that the basis for the development of the Binance Coin cryptocurrency is the success of its exchange. In the event that developers plans for the transition to a decentralized basis are implemented, this digital currency has excellent potential for growth in the form of assets for the trading platform.

This cryptocurrency, like all others, is subject to inflation. But the creators took this moment into account at the beginning of development. When analyzing the prospects for Binance Coin, many experts pay close attention to factors such as declared deflation and partnerships. In the first case, it is planned to develop a mechanism for the destruction of coins using the following algorithm:

the planned emission will be 200 million coins;
part of the profits received by the developers will be invested in the acquisition of their own assets at prices indicated on the market, after which they are supposed to be destroyed and withdrawn from circulation;
after making each such purchase, the value of the coin increases significantly, but the total quantity becomes smaller, which has a positive effect on the value indicators;
the creators plan to withdraw half of the coins from circulation, after which it is planned to stop their volume at the level of one hundred million.
As a result, the value of assets rises significantly. This cryptocurrency is considered one of the most promising. There are many reasons for this, including:

the cryptocurrency has high liquidity indicators, since trading is carried out in a pair with more than 400 coins;
the price of Binance Coin grows in the long term due to the decrease in supply, that is, the burning of coins carried out by the creators of the project;
providing an opportunity to reduce the amount of commission payments in trading, because the owners of Binance can both open and close transactions on the exchange with a lower commission (currently by 25%) than for other users;
since 2018, users have been given the opportunity to pay for services and goods, since this cryptocurrency is accepted at more than 150 different trading platforms.
Despite the significant advantages that this project has, there are certain disadvantages, which should be mentioned separately:

there is an impressive concentration of tokens in the ownership of the founders, which implies the presence of significant risk in the further implementation of price manipulations for their own purposes;
the main place where there is an opportunity to buy the Binance Coin cryptocurrency is the Binance exchange, and there are not enough other platforms.
From the above information, we can conclude that this cryptocurrency has impressive potential, so it is no wonder that it is popular among users. As of December 2019, the capitalization of the currency is equal to $ 2,416,753,291; it itself ranks 8th in the list of the most popular cryptocurrencies. Due to the fact that coins play an important role, market demand is likely to increase in the future. If we take into account the periodic burning, it is safe to say that in the future the size of the course will only increase. Therefore, many experts recommend this cryptocurrency for long-term investment. Do not be afraid that the value falls from time to time, because this means that very soon a great time will come to open positions. The prospects for Binance Coin are quite bright, so it would be an excellent solution to have these coins in your crypto wallet, because there is a high probability of making good money on this.