Coinhako Basics: What is Binance Coin (BNB)?

Coinhako Basics: What is Binance Coin (BNB)?

What is Binance Coin?

Binance Coin (BNB) is primarily used for payment of fees when trading other cryptocurrencies and is the native token powering the Binance Chain.

Binance Coin is an exchange-based token created and issued by Binance, which is known as a dominant cryptocurrency exchange. The token was initially created on the Ethereum blockchain in July 2017. BNB only migrated over to Binance Chain in February 2019. 

In its exchange platform, it is able to grant traders discounts and rebates over using other payment methods. 

How is BNB different from others?

BNB is a coin whose value rises as the demand for it increases. Being backed by Binance – an exchange that brings with it millions of users – contributes to its continued rising adoption. 

This exchange-based token is unlike most cryptocurrencies in two important aspects. 

Firstly, Binance Coin is centralized. Secondly, its network is also secured by validating blocks through a consensus mechanism, instead of the more popular mining. 

Trade BNB at Coinhako!

Binance Coin (BNB) is supported on Coinhako and our users can buy BNB with fiat currencies available in their account or with other cryptocurrencies that are supported in their country of residence.

What is the Binance Coin Burn?

Coin burning is the process of removing coins from circulation, effectively reducing the total supply. 

Binance Coin is designed with a token burn in mind, to drive up the token’s value through scarcity. 

In its 2019 whitepaper, it is mentioned that the BNB burns will be based on Binance’s trading volume. The amount of BNB coins that are burned is based on the number of trades performed on the exchange after each quarter. The price of the coin will be affected every time this occurs. 

To find out more about Binance coin burning, read here. 

What’s in store for Binance Coin?

As of this writing, it has a circulating supply of 145 Million coins out of the max supply that is 180 Million coins.

You can view Binance Coin's Whitepaper to learn more about the digital currency!

View Binance Coin's Price!

Need more info?

Copyright © Coinhako 2020 All Rights Reserved. Read more on our terms of use of this blog.

All opinions expressed here by Coinhako.com are intended for educational purposes, taken from the research and experiences of the writers of the platform, and should not be taken as investment or financial advice.


    • Related Articles

    • Coinhako Basics: What is Stellar (XLM)?

      What is Stellar? Stellar is an open network for storing and moving money that was launched in 2014 by the founder of Mt Gox. and co-founder of Ripple, Jed McCaleb, alongside former lawyer Joyce Kim. Stellar offers a similar solution to Ripple – which ...

    • Coinhako Basics: What is Neo (NEO)?

      What is NEO? Founded in 2014 by the prominent cryptocurrency figure Da Hong Fei, NEO is a blockchain platform with the aim of becoming a smart economy through digital assets, digital identity as well as smart contracts. One of NEO’s biggest traits is ...

    • Coinhako Basics: What is Ripple (XRP)?

      What is Ripple? Ripple is a peer-to-peer powered platform built on an open-source protocol that allows fast, direct, and secure transactions on the web. It provides a system of exchange and money transfer system. DID YOU KNOW: In 2020, one-third of ...

    • Coinhako Basics: What is BAND (BAND)?

      What is BAND Protocol (BAND)? Founded in 2017, Band protocol is a cross-chained decentralized oracle that links smart contracts to connect and aggregate any external data source without any point of failure.  Such data could even include things like ...

    • Coinhako Basics: What is Chainlink (LINK)?

      What is Chainlink (LINK)? Chainlink is an Ethereum-based platform/network that aims to bridge the gap between blockchain-based smart contracts, and real-world applications. This bridge is enabled by an instrument known as ‘Oracles’ (a DeFi ...