Binance is one of the largest digital asset exchanges globally, making it a top choice for many people. Today, this trading platform extends services to numerous continents, exposing nations to digital assets. With Binance’s influence, many people understand cryptocurrencies and how they can pave the way for future financial technology. It is safe to state that Binance issues the Binance Coin (BNB). Since the coin’s launch, it has continued to attract investors interested in improving the digital asset economy and earning profits. And because of Binance’s impact in the digital asset space, many understood that the coin has many potentials.
What Is Binance Exchange?
Binance exchange is an online platform for buying and selling cryptocurrencies. Founded in 2017, it quickly dominated the digital asset space with other well-known platforms. Unlike other platforms, Binance exchange has a thing for alternative coins, also called altcoins. Altcoins are essentially cryptocurrencies other than Bitcoin.
Because of Bitcoin’s success, altcoins could attract new investors looking to make profits from early purchases. Similarly, Binance supports over 500 digital assets, making it a favorite amongst traders. It also supports coins like Ethereum, Dogecoin, and BNB coin. At first, the platform had its platform in Hong Kong, China. However, it had to move to Europe because of its growing regulations.
While Europe also has numerous crypto and other digital assets regulations, it still has a more friendly outlook. Many regulators have emphasized that they understand how cryptocurrencies may help the digital economy and have sought to regulate rather than ban them. Additionally, Binance is popularly known for enabling peer-to-peer trading.
Peer-to-peer trading is the highest form of decentralization, allowing parties to trade with each other without interference from intermediaries. Decentralization makes peer-to-peer trading desirable amongst individuals who wish to eradicate intermediaries, saving time and effort.
Understanding Binance for 2022
While Binance is not the first digital asset exchange, it has proven to be one of the safest and trusted in the industry. When users trade, they want a trusted platform and transact with it safely. Another reason many people use Binance is to access peer-to-peer services. Since not every trading platform has this feature, those interested in using it would opt for Binance exchange.
Before trading on any platform, it’s essential to assess its liquidity. Liquidity means the cash or cash flow a company has to assist operation. For one, Binance has high liquidity, which means that users can quickly get cash when they sell their assets. Similarly, it charges one of the lowest transaction fees in the industry. As a trader, you would want to increase your profit margin by finding a platform that charges lower.
Binance is arguably one of the most stable platforms in digital asset trading. Because of its high processing speed and well-structured algorithm can offer an attractive output at record time. And despite many assets and users, it continues to deliver reasonably good services for customers.
Buying And Selling On Binance
Trading on Binance is a straightforward process, provided you have completed your registration. Like other exchanges, it lists delists cryptocurrencies. Also, you can conduct your initial coin offering through Binance. ICOs are ways where crypto creators raise funds for the digital asset’s growth. They take place before the coin’s official launching, helping buyers get them at a lower price. So, if an investor is interested in a particular coin, they can buy it even before the official launch.
While ICOs help with fundraising, they can be risky for investors. Because since you don’t know how successful a coin will become, buying it may affect your financial situation. Still, trading crypto is majorly about risk tolerance, helping hundreds of individuals become millionaires through owning digital assets.
The first step to begin buying and selling on the platform is to complete the know-your-customer requirements. This mandates you to show your identity card and other necessary information. Fortunately, after you are done with the KYC process, you can trade on Binance. The trading platform also has valuable tools for expert traders, such as market order and stop-limit order. Whether you are a trader or a newbie to cryptocurrencies, you can benefit from the exchange’s features and options. With the straightforward purchase options and features, you can choose to buy a wide range of altcoins on the platform.
What is the Binance Coin BNB?
Binance Coin is the native token of the Binance chain. Previously, this coin had been on Ethereum but was removed after Binance Smart Chain’s completion. Today, BSC is one of the fastest networks in the digital asset space, helping traders execute transactions faster and more efficiently. In 2017, when Binance launched BNB, it assured that the token would have a limit of 200 million tokens.
Thanks to the token limit, scarcity has made BNB valuable despite the continuous market crashes. It’s safe to mention that Binance also periodically burns the tokens. Burning is a common term in the digital asset space, and it means to destroy an asset permanently. Many companies do this to increase the value of tokens per unit, which has worked in numerous instances.
BNB Utilities
Initially, Binance created BNB for users to benefit from lower transaction fees. So, when users own Binance Coin, they pay less for transaction execution. However, thanks to the growing support for digital assets, things have changed. Also, BNB is the payment means for other Binance platforms, such as BSC and Binance DEX.
You can also use it to pay for products at various platforms, such as Crypto.com and a hotel reservation on specific platforms. Similarly, you can use BNB to pay for online services or even take out loans. Also, people use BNB to buy other cryptocurrencies, especially on Binance. So, if you have Binance Coin and want to purchase other assets, you can easily use it.
It is safe to state that BNB is still a solid investment for people interested in buying the coin. For one, with BNB, they enjoy lower charges on transactions when trading on Binance. As a trader or investor who hopes to make noticeable profits, essential to maximize your profits by paying lower transaction fees.
What Led To The Price Crash of BNB?
Bitcoin has continually dropped in price for the past few days, resulting from several factors. It’s important to mention that Bitcoin’s price movements usually affect other asset prices, especially when it falls. Experts have noticed this trend caused by the asset’s dominance in the crypto market. Other digital assets are also far away from their all-time high due to the recent changes.
Experts also analyzed that Bitcoin and other cryptocurrencies may take years to recover from this latest crash. One of the significant reasons for Bitcoin’s crash is the growing regulations in Kazakhstan. Many countries have regulations, making the crypto market unattractive to potential investors. This has led to sell-offs, causing an expected price drop.
While the crackdown on cryptocurrencies in Kazakhstan is a top reason, others believe that the hike in interest rates might have led to a price fall in the crypto and stock market. This means that US regulators hope to create a safer avenue for investments. Experts believe this resulted in investors selling off their assets to capitalize on the new information. Interestingly, the stock and crypto market has been showing some correlations. For instance, when the stock market witnessed a market crash, so did the crypto industry.
The correlation shows that if the stock market sees more price corrections, this may also be the case for the crypto market. Investors are uncertain of what may happen in the future, and many are not ready to take chances. This means selling off volatile assets like cryptocurrencies. Additionally, the market has also seen a gradual decline in market capitalization as over $1 trillion has been wiped away thanks to price corrections.
Black Friday In The Crypto Industry
Black Friday is usually a day for special discounts on products, particularly close to a festive period. Most assets in the digital asset industry are at a discount, meaning that they are far below their previous highs. For example, Bitcoin had over $100 million worth of liquidation within a day. This is nothing new, especially since it continued to drop for a large part of 2021.
Many investors also believe that Bitcoin is not bound to recover anytime soon, thereby shorting it. This means taking their money off any stock or cryptocurrency that is unstable. Naturally, cryptocurrencies are highly volatile assets and can be easily manipulated with price movements. So, it’s not surprising that investors are selling off their extensive holdings to buy safer assets.
All in all, the present outlook on cryptocurrencies shows that the digital asset industry may not recover as fast it usually does. However, with growing interests or changing sentiment, other buyers can buy assets. The price crash has led to price falls for assets like BNB. Still, the token stays strong while outperforming many other coins in the industry.
How To Buy BNB On Binance
Buying BNB on Binance is a straightforward process. However, you need to know some fundamental things to ease the purchase. Below are steps for buying Binance Coin on the platform:
Creating a Binance account
The first step is creating a Binance account. You can visit https://www.binance.com/en to get started or download the Binance app on your phone. Before visiting the website, ensure that it’s the right to prevent information theft and other unwanted incidences. After this, you register with your email address, so you can always retrieve the account when you forget your password. Once you are done registering, you may be mandated to activate the 2FA. This protocol ensures your account is verified adequately before withdrawals or transfers are made with your account.
Using Your Debit/Credit Card To Buy BNB
The next step is filling in your credit card details to purchase the asset. When you have your credit or debit card, you will easily buy Binance Coin. To buy BNB, click on “buy crypto” around the top bar, which would give you a payment option. The best option to use is “debit/credit card” because it is faster. After this, you can click the amount of BNB you want, showing you the total amount you would spend. The next step would show you “pay now,” where you may be required to verify your details. After this, you get an order confirmation on your email address showing you the purchased asset.
Conclusion
Binance Coin is one of the most popular digital assets globally, thanks to Binance’s growth as an exchange and a company. While the recent price crash, resulting from a potential increase in interest rates, has caused trillions worth of liquation in the digital asset space, it’s evident that Binance Coin is still an excellent investment for people looking to diversify their portfolio.
