Last week, for the second episode of our "Know your coins" series, we were interested in Bitcoin and then Ethereum and its uses. Today, we're going to talk about Binance Coin.
For the few of you who don't know yet, BNB is none other than the native crypto-currency of the Binance exchange platform. This exchange was created during the market expansion period in 2017 and decided to use an ICO towards the end of June 2017 with 100 million tokens put on sale.
At the time of its release, the token was of the ERC-20 type, which means that it was powered by the Ethereum network blockchain. However, the exchange's plan was to eventually create their own blockchain, the Binance Smart Chain, and this has now been achieved.
In 2017 Binance was still an exchange platform in its infancy but the exchange was able to create a huge market share and is now the largest. Binance is a very ergonomic platform, with very low trading fees, namely 0.1% per transaction. In addition, owning BNB tokens further reduces these trading fees.
The primary use of BNB was to raise funds for the development of the Binance trading platform and to allow users to lower their already low transaction fees by using BNB. Initially the reduction in transaction fees was to be on a sliding scale but Binance decided to reverse this decision and the reduction is now 25% for an indefinite period.
Since the release of the Binance Smart Chain, things have changed a bit for BNB and crypto is now also used to pay the fees related to the use of the BSC. If the latter was only anecdotal at its launch, it can now compete with ETH.
Indeed, the number of Dapps, at the beginning almost null, of BSC now catches up with ETH with nearly 3200 applications on the blockchain BSC and hardly twenty more on Ethereum. BSC's transaction fees are also significantly lower than ETH's, increasing BSC's attractiveness for DeFi applications and thus the use of BNB.
Technical point of view
From a technical perspective, BNB is just above its 406-426 support area and looks set to head to the next area of importance, the 500-510 resistance area. The technical indicators are quite positive as well.
How to profit on the Upbots platform
We have several bots trading BNB on our platform. Here is the list that should help you make your choice:
Optimus V2 BNB
Swing Sniper BNB
Quite the choice right? Come and test for yourself on the marketplace!
And that closes the overview of Binance Coin. We have seen that BNB is very different from Bitcoin in many ways and more similar to Ethereum.
Next week we will study another blockchain that is very popular in the DeFi, Solana.
See you next week, take care!