The Binance token (BNB), introduced by one of the world’s leading cryptocurrency exchanges, Binance, has surpassed its initial purpose as a utility token. It has become one of the best tokens for holding and trading.
In this guide, we’ll uncover everything you need to know about the BNB token including its features, advantages, how you can purchase it, and many more.
What is a BNB Token?
Binance Coin (BNB) is a token created by the Binance cryptocurrency exchange. Initially launched as an ERC-20 token in July 2017, BNB was designed to serve as the native utility token for the Binance exchange. Its primary purpose was facilitating various functions within the exchange, such as paying for trading fees, participating in token sales on Binance Launchpad, and accessing certain features and services.
However, Binance Coin has become widely adopted beyond the Binance ecosystem. Binance soon launched its blockchain (Binance Chain) and BNB underwent a mainnet swap from the Ethereum network to the Binance Chain.
This means BNB now runs on the Binance chain, enabling it to serve as the native asset for the Binance chain ecosystem. It is listed and traded on numerous cryptocurrency exchanges, making it accessible to a global audience of traders and investors. The token currently has a market cap of over $52 billion and its current price is $353 for 1 BNB.
Additionally, BNB tokens can be used to cover trading fees. By using BNB to cover trading fees, users are eligible for discounts, which incentivizes the use of BNB for trading activities on the Binance exchange.
Tokenomics
BNB tokens are digital assets issued by Binance and they play a vital role in facilitating transactions, improving the user experience on the Binance exchange, and driving the growth of the Binance ecosystem.
Binance Coin (BNB) debuted through an Initial Coin Offering (ICO) that took place in July 2017. During the ICO, Binance issued 200 million BNB tokens.
Initially, after the ICO, 50% of the total token supply (100 million BNB) was made available for sale to the public. The remaining 50% was allocated as follows:
40% (80 million BNB) was allocated to the founding team and early investors.
10% (20 million BNB) was reserved for the Angel Investors of the Binance project.
Therefore, immediately after launch, 100 million BNB tokens were tradeable on various cryptocurrency exchanges, including Binance. All of the 100 million BNB tokens available for public sale were sold during the ICO at $0.15 per token.
Token name – Binance Token
Symbol – BNB
Network – BSC
Total circulation –149,544,144 BNB
Current circulation – 149,544,144 BNB
24-hour Volume – $1.2 million
How to Acquire a BNB Token?
Buying BNB tokens can be done in a variety of ways, but the simplest way is to purchase them from an exchange. All you need to do is follow these steps:
1. Find the right exchange to buy the token from: Conduct your research and select a reputable crypto exchange to buy your BNB token from. Crypto exchanges like Coinbase and Bybit are good choices. Once you’ve selected a reliable exchange, create an account on the platform.
2. Make a Deposit: Next, deposit a crypto asset into your wallet. Some exchanges support fiat currency deposits, so you can deposit your preferred fiat currency as well. Ensure you go through the payment methods provided and select the most convenient one for you.
3. Swap asset for BNB: Next is to trade the purchased asset with the BNB. In most exchanges, you can use the “buy” function to purchase the token directly using the crypto you deposited on the exchange’s spot market.
4. Safely store your BNB token: Finally, transfer the BNB to your cryptocurrency wallet. You may choose a self-storage wallet, such as Trust Wallet, where you can store BNB tokens safely.
You can also sign up directly on Binance and make your purchase on the platform where it can be stored or used for trading. To register on Binance, click here.
Benefits of BNB Token
BNB offers several benefits to its holders and users within the Binance ecosystem and beyond. Some of the key benefits of BNB include
Trade
You can trade BNB on Binance and many other crypto exchanges seamlessly. You can also use it to participate in token sales on Binance Launchpad, and access various other services, enjoying discounts and benefits in the process.
Savings
Users can buy and hold the BNB token for long-term investment. It also helps traders save up to 25% on their trading fees when they make use of the BNB token for payments.
Spend
BNB tokens can be used to purchase various goods and services, both within the Binance ecosystem and beyond. Users can also use BNB to purchase other cryptocurrencies listed on Binance, allowing them to diversify their investment portfolio.
Earn
BNB holders can stake their tokens to earn rewards or participate in various DeFi protocols and yield farming activities. They also stand a chance to earn extra bonuses during campaigns and events.
End Note
Binance token (BNB) is one of the most flexible tokens, available to various traders and investors. With the BNB token, users can enjoy up to 25% discount on trading fees. You can also use the token to purchase other cryptos on various exchanges. With this guide, you should be eager to get a BNB token, so head over to Binance and sign up to learn how you can win free BNB tokens.
To learn more about Binance, check out our full Binance review.
FAQs
How can I buy BNB tokens?
You can buy BNB tokens on Binance’s spot market using various fiat currencies and cryptocurrencies. You can also purchase it from other crypto exchanges. You can check out the ones recommended in this guide.
How can I save on trading fees with BNB tokens?
You can save up to 25% on your spot trading fees on Binance when you pay with the BNB token. You can enable or disable the function by visiting the Fees & Transactions Overview page. Toggle on and off the button under [BNB Discount] to enjoy a 25% discount on spot trading fees.
How can I earn rewards with a BNB token?
You can earn rewards with BNB tokens by saving, staking, or participating in campaigns and events on the Binance exchange.
