To a certain degree, cryptocurrencies are just like any other investment option. Like stocks and shares, cryptocurrencies can be bought, sold, and traded on exchanges and markets. The biggest crypto exchange today is Binance, where the vast majority go to buy and sell cryptocurrencies.
Binance isn’t simply a crypto exchange. It is also a blockchain platform and cryptocurrency in its own right, with its BNB coin being one of the most popular in the sector. Let’s go over the history of Binance and the Binance coin, with BNB price analysis to give you an idea of the strength of the asset.
Binance: A History
Binance was founded in 2017 by Changpeng Zhao and Yi He.
The name is a portmanteau of the words ‘binary’ and ‘finance’, an indicator that the company is focused on digital currencies like crypto. Originally, Binance was headquartered in China.
However, tightening regulations on the crypto industry saw Binance move to Singapore and then eventually Malta.
Binance’s rise to the top of the crypto industry was rapid. Just one year after the company was founded, it became the largest exchange in the world by trading volume and has consistently held this crown, beating stiff competition from rival platforms such as Coinbase.
Today, Binance processes billions of dollars in cryptocurrency trading every day. According to data collected in 2022, the exchange handles over 90% of all Bitcoin trading and has 128 million registered users around the world.
What is Binance Coin?
Not content with being a mere crypto exchange, Binance also decided to launch a blockchain network and cryptocurrency.
The Binance coin, BNB, was launched in 2017. Funds raised as a result of the initial coin offering (ICO) were funneled back into the company and used to establish Binance as the industry’s biggest and most popular exchange.
Initially, BNB existed on the Ethereum network.
However, Binance soon designed and made the switch over to its own native blockchain platform.
When first launched, BNB was designed as a utility token that could be used to secure discounts on trading fees on the Binance exchange. However, as the technology was further developed and improved, it became available for use in a number of additional situations.
Today, BNB can be used to pay for payments on a number of other platforms. It can also be used to purchase entertainment products, financial services, and even hotels and travel accommodations.
Additionally, BNB can also be used to invest in ICOs that are launched through the Binance Launchpad platform. This has made it an integral part of the industry that is directly involved with new coins as they hit the market.
Finally, crypto traders and investors can trade small fragments of crypto, known as dust, into BNB. This is key, as dust is generally worthless and is waste produced as a result of crypto trading. In allowing for dust conversion, Binance is ensuring more BNB is getting into the wallets of traders.
How Has BNB Performed?
BNB is currently the industry’s fourth-biggest coin in terms of market cap.
Only crypto heavyweights Bitcoin, Ethereum, and Tether are ahead of it.
BNB is trading at a current value of $213.12. The asset’s value has fallen by 12.7% since the start of the year and by 21.83% when compared to this time last year. However, it has grown by an incredible 2,099.5% over the past five years.
While the depreciation in value might seem concerning, it’s part and parcel of the crypto world, and the asset has shown positive short-term performance that could indicate good things to come.
Should You Invest in Binance Coin?
Deciding whether or not to invest in a particular asset can be tricky. There are a lot of factors to take into consideration, and you need to weigh up a number of things before moving ahead and making your final decision.
It’s not something that can or should be rushed into, as doing so can see you take a financial hit.
If you’re thinking about investing in BNB, the first thing you’re going to need to look at is the price. However, don’t let the asset’s negative growth over the past year discourage you, as this could actually present an opportunity.
You should always keep the ‘buy low, sell high’ mantra in mind.
If you buy BNB today when the price is low, you’ll be able to sell at a profit when the value grows in the future.
Once just a utility token, BNB can now be used for a range of other purposes, and it is continuing to be developed and improved upon. What this means is that the BNB price could well rise in the future, and it will also have a positive reputation as a result of its link to the Binance crypto exchange.
BNB could be a fantastic investment option with plenty of future potential, the coin is an increasingly popular choice for investors looking to add to their crypto portfolio.
Conclusion
Binance is one of the biggest names in the world of crypto, famed not only for its exchange but for its blockchain and currency as well. Use this guide to learn all about Binance coin and to decide whether or not you should invest in BNB.
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Disclaimer
This information is of a general nature only and should not be regarded as specific to any particular situation. This should not be taken as financial advice to buy, trade, or sell cryptocurrency or use any specific exchange.
This is not intended for use as investment, financial, or legal advice as each individual’s need will vary. Binance Australia is not affiliated, associated, endorsed by, or in any way officially connected with any individual or organization mentioned in the article.
Binance Australia is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly by use of this newsletter and expressly disclaims any and all liability for any loss or damage you may suffer.