Cryptocurrencies have been gaining popularity for the past few years. With a lot of new cryptocurrencies entering into the market and surging up of their value investors are looking into investing in cryptocurrencies. In this article let’s look at the Binance coin and what the experts say about it.
What is Binance Coin (BNB)?
Binance Coin also known as BNB is one of the most popular cryptocurrencies after bitcoin. The digital coin is created by one of the world’s largest cryptocurrency exchanges Binance exchange. Binance coin offers the most crypt to crypto pairs and has a daily trading volume of around USD 50 billion.
The initial Binance coin was launched under the Ethereum blockchain ERC – 20 token and later in the year 2019 it was changed to the Binance blockchain. Binance coin has a capitalization of 200 million and is expected to surpass bitcoins in a few years.
Reason for the Rise in price of Binance Coin
Binance coin has two major functions, one it functions as a discount token towards the fees that are paid on the Binance exchange and two it is a fuel for the Binance Smart Chain (BSC). The main reason for the surge in the price of Binance Coin is due to the BSC.
In the year 2021, the BSC had become a viable option and a cheaper option to work on compared to the Ethereum network and a lot of projects had shifted to BSC which led to the surge in the value of Binance Coin. In short, the more projects in the BSC, the more Binance coin is more in use which increases the demand and the price of the coin.
The Binance Coin had also seen an increase in its value as there is a huge trading volume in the Binance Exchange and the digital coin is still used as a discount on fees.
Expert Opinions on Binance Coin (BNB)
Most of them believe that Binance coin is one of the safest Utility Tokens available in the cryptocurrency market mainly due to its stability. However, the future is uncertain. For an average investor, one of the major reasons to hold a Binance coin is the fact that it provides a 25% discount on the Binance Exchange.
There are also a variety of different types of exchange fees that can be paid using Binance coin that include transaction fees, voting fees for new tokens, commissions and also fees for launching new instruments.
However, it was mentioned that the discount would be cut half for the year 2021 and later would be cut even more half as the years pass. The experts have conveyed that if the discounts are removed then there wouldn’t be the purpose for the traders to hold the digital coin and the value of the coin is expected to lose its value until the Binance coin provides the traders a reason to hold it.
Should you Invest in Binance Coin in 2021?
As of now investing in BNB is a great option as it has a market capitalization of around USD 51 billion and various other discounts on the Binance Exchange. It is also one of the top utility tokens and has various benefits compared to other cryptocurrencies.
Binance coin however in the past has provided good stable returns compared to the other Altcoins but the only concern is that it is a centralized coin and it is controlled by Binance. They have the power to change the working of the coin or even make price alterations. However, before investing in the digital coin it is always advised to make proper research.
It is estimated that Binance would increase its value and have a market capitalization that is higher than Ethereum and Bitcoin in the coming years. Compared to other centralized coins, the Binance coin has a much better image.
Who is Binance owned by?
Changpeng Zhao is the founder and CEO of Binance, a cryptocurrency exchange.
What is Binance coin used for?
Binance coin is an Ethereum-based (ERC-20) token that can be used to trade cryptocurrencies and pay for fees on the Binance exchange.
Is BNB coin a good investment?
Binance coin has a market cap of over $51.08B and various benefits, so investing in Binance is worth it. Although before investing in the digital coin it is always advised to do a proper research.