At every step, we can hear the following statement: ‘Let’s use BNB to pay for everything we need, settle transaction fees on Binance Smart Chain and take part in special token sales’. Of course, it may be a good offer. However, what does BNB abbreviation mean?
BNB stands for Binance Coin. It is one of crypto exchange assets. It also has its own symbol (as you may have guessed: the BNB symbol). BNB originates from the Ethereum network, however, it is the currency of the Binance's blockchain – the Binance chain – at the current moment.
It is great to know that we can get BNB in the secondary market: various cryptocurrency platforms, for examle, you can by BNB on Venera Swap.
What Is the BNB Coin Used For?
How many people do use BNB? It has been estimated that two million users have used BNB to pay for trading fees regarding Binance’s trading platform. What is the purpose?
Let’s consider some uses, where we can use Binance Coins. Firstly, it becomes possible to fulfill credit card payments. Secondly, there is a possibility to buy virtual presents as well as pay for traveling. Thirdly, process payments, making loans and donations turn into real ones. It is generally agreed that in the century of the Meta Universe, it is so important and significant! By the way, millions of BNBs have been consumed on these aims so far.
As far as transaction fees are concerned, their payments become possible as well. For instance, every trade will experience a standard fee of 0.1% if trading cryptocurrency on the Binance Exchange. There are two options in such situations: a possibility to pay trading fees using the assets we are tradingor paying for them with Binance Coins. In case of choosing payments in BNB, there will be a discount.
One should note here that we can use BNB outside the Binance trading platform. It can be done because BNB also powers the Binance DEX and many applications that run on the BSC. Venera Swap also run on the BSC. Additionally, almost two hundred digital assets have been issued on BSC. Millions of users have consumed BNB for utility purposes concerning Binance Smart Chain).
BNB Pricing and Dynamics
If we compare BNB’s price and the prices of other crypto assets, we will notice that BNB’s price has fluctuated in a fashion. BNB’s market cap has risen over the years, having a remarkable valuation – seventy billion dollars.
A number of key issues arise from the statement. For instance, is BNB a great and profitable investment? Who knows for sure? The historical price of BNB rising likely yielded profit if buyers sold at the right times. Only time will show if BNB is a perfect investment.
To Sum Up
If you are really interested in trading on Binance very much, you should find out a lot of information about obtaining BNB. Besides, you should know how to pay for fees with their help. Please, remember that the deduction for trading fees has a certain schedule (the Binance Futures platform has a slightly different Fee Schedule). Well, have fun and make your investments flourish!
Also, before you decide to trade on CEX, learn the basic differences between CEX and DEX in our article. Choose the platform that suits your interests and goals in the cryptocurrency world.