Binance is one of the most popular cryptocurrency exchanges out there. Started in China in mid-2017, the cryptocurrency exchange recently moved its headquarters to the Island of Malta in EU that is crypto-friendly.
However, what most people don’t know is that the exchange has its own token known as the Binance Coin. The coin was released as part of an initial coin offering (ICO) initiative for Binance. The value of the coin has been steadily increasing as the exchange increases in popularity.
Given that the reputation of the exchange is hitting all-time highs, this might be the right time to understand the Binance Coin.
What Is the Binance Coin?
In simple terms, Binance Coin isa token used on the Binance exchange platform. Although this token is traded on the open market, you could think of it as currency like Bitcoin or the U.S dollar.
Binance Coin is an ERC20 token that is built on Ethereum. The total supply of the token is limited to approximately 200 million Binance Coins after which no more coins will be created. The coin follows all the rules set established by the Ethereum blockchain community.
Where Can You Use Binance Coin?
As a token used on the Binance exchange platform, the token serves quite a valuable purpose. The primary goal of the coin is to pay the transaction fees on Binance exchange.
Other than using $1 to pay for every $1000 in trades which can accumulate to a pretty more significant amount for serious investors, you can use Binance coins to cover the fee. This makes these coins extremely useful to all traders on the Binance exchange platform. Click here to register. Alternatively, I already registered, you can login by clicking here.
Where Can You Buy the Binance Coin?
The Binance exchange platform is obviously the best place to buy your Binance Coins. However, several other exchanges other than Binance also list the coin although the liquidity is quite low. In fact, there is no point in buying the coin anywhere else.
Some traders also use the Binance Coin to cut down their trading costs since any coin supported on Binance exchange platform is available as a trading pair with the Binance Coin.
At the time of its inception, the average ICO price of a Binance Coin was $0.11. However, its price has been increasing steadily, and as of August 2018, the cost of one Binance Coin stood at $13.
How Do You Store Binance Coin?
If you are interested in holding Binance Coin as a long-term investment, you need to move it from the exchange into an online wallet. Since it is an ERC20 token, the coin can be stored in any Ethereum supported wallet such as MyEtherWallet.
For improved security, you can also store your token in a hardware wallet such as Ledger Nano S or Trezor.
Binance Coin is more than a token since it qualifies to be a digital currency in its own right. Furthermore, the development team at Binance has plans to expand the scope of the coin.
Already, the coin can be used to invest in other ICOs being hosted on Binance exchangeplatform which offers its investors an incredible opportunity to realize returns on investment. As Binance continues to grow and expand, it is almost certain that the Binance Coin will become a force to reckon.