Binance Coin has received a lot of attention in recent times for a variety of reasons. The main reason being it’s in the top 10 cryptocurrencies when sorted by market cap.
Anyway, this article will cover everything you need to know about Binance Coin. We’ll even offer our perspective on if we think it’s a good investment.
What is Binance Coin?
First of all, Binance Coin is a utility coin for the Binance cryptocurrency exchange. In other words, you can use Binance Coin to purchase cryptocurrencies on the Binance exchange.
We know this does not sound like much. However, Binance offers a huge 50% discount if you use Binance Coin for cryptocurrency.
This does two things:
It makes Binance one of the lowest fee exchanges if you use Binance Coin for purchases. These low fees have made Binance the most popular cryptocurrency exchange.
This system also increases demand for Binance Coin. Remember, you must use Binance Coin to receive the lower fees, which means that you must purchase it. And that purchase fuels demand, increases the market cap, and adds liquidity to the coin.
All of those are huge positives for any cryptocurrency. In fact, those are three of the things that every cryptocurrency wants more of, but struggles to manifest.
Are utility coins useful outside their utility?
We would love to sugar coat this, but the simple answer is no.
Utility coins, like Binance Coin, have no use outside of their utility. This is bad for Binance Coin because it means that if Binance collapses, then the coin will collapse.
The good news is that Binance has been around for the past four years with no issues. That’s a good sign because most cryptocurrency exchange issues arise during a bear market, and cryptocurrency was in a bear market for the past two years.
Is Binance Coin a good investment?
It’s a questionable investment. On one hand, it has seen tremendous gains with the rising popularity of Binance. Especially because Binance is the top cryptocurrency exchange for purchasing altcoins.
However, the value of the coin is based on the continuing success of Binance. Without Binance, Binance Coin is worthless.
In our opinion, Binance Coin is not a great investment if you plan on investing a lot of money in a cryptocurrency. Cryptocurrency exchanges come and go all the time – they generally are not companies suitable for investment. That said, Binance Coin is a good investment for a small amount of money or to hedge your investment in cryptocurrency.
What is Binance?
Binance is the most popular cryptocurrency exchange in the world. It’s main selling point is that it has hundreds of different altcoins available for purchase. Also, the fees on Binance are very low when you use Binance Coin to make a purchase.
Binance was a Chinese company founded in 2017, but they have moved their operations to Japan due to increasing scrutiny of cryptocurrency from the Chinese company. The Chinese history of the company scares some people. However, Binance has not any issues in its nearly four years of existence.
Where can I buy Binance Coin?
The best place to buy Binance Coin is on Binance. Fortunately, you can trade any cryptocurrency that Binance offers for Binance Coin, which makes it a very easy cryptocurrency to purchase.
How much does Binance Coin cost?
Binance Coin costs approximately $30/coin at the time of writing.
What is the market cap of Binance?
At the time of writing, Binance Coin has a market cap of $4.3 billion USD. This ranks it as the tenth highest cryptocurrency market cap.
Well, that covers it for everything about Binance Coin – it’s not a particularly difficult cryptocurrency to understand. It’s used by Binance customers that want lower fees on Binance.
Binance is popular, so Binance coin has tremendous market cap and demand. However, it’s not the best long term investment because it relies on the continued success of Binance. And that’s not to say Binance is a bad exchange, but hundreds of cryptocurrency exchanges have come and go over the years.