Knowledge

A Closer Look at the Utility of BNB. The King of Utility

Utility tokens are gaining popularity as some of the top cryptocurrency exchanges in the space are employing them to provide value to their users while funding the development of different projects. While the word “cryptocurrency” is often used as an umbrella term to describe all digital assets, there are actually several specific types of cryptos. Most of them fall into two main categories: coins and tokens. And Utility tokens is the native token of an ecosystem like BNB.

What is BNB?

BNB was launched through an ICO that took place from June 26th to July 3rd, 2017 – 11 days before the Binance Exchange opened for trading. The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. BNB was originally issued as an ERC-20 token, running on the Ethereum network, with a total supply of 200 million coins. 100 million BNB was offered in the ICO, but the current total supply is: 163,276,974.63 BNB lower due to periodic burning events and a real-time burning mechanism.

Although initially based on the Ethereum network, the ERC-20 BNB tokens were later swapped with BEP-2 BNB at a 1:1 ratio. The BEP-2 BNB is the native coin of the Binance Chain, and the mainnet launch was announced on April 18th, 2019. In September 2020, Binance launched the BNB Smart Chain (BSC, former Binance Smart Chain), a blockchain network that runs in parallel with the BNB Beacon Chain.

What is BNB used for?

BNB Coin was initially created to pay for trading fees at a discounted rate on the cryptocurrency exchange. But, throughout the years, BNB has developed new functions and use cases within the Binance ecosystem and beyond.

BNB to pay for trading fees

As mentioned, BNB has many use cases both within the BNB Chain ecosystem and elsewhere, so it is up to you to decide how to use your BNB. For instance, you can use BNB to pay for your travel expenses, buy virtual gifts, and much more. Many people also use BNB to pay transaction fees. On Binance’s trading platform alone, approximately two million users have used BNB to pay for trading fees totaling more than 40 million BNB on more than 127 billion trades. Let’s take a look at how BNB can help you with trading fees.

Deposit Fees: Free. There are no fees for crypto deposits.

Trading Fees: If you do not use BNB (Binance Coin) to pay your trading fees, each trade will carry a standard fee of 0.1%.

Withdrawal Fees:

  • Withdrawal fees are dynamic and automatically adjusted based on the status of the market.
  • For current withdrawal fees, you can refer to the Fee Schedule.

Therefore, if you trade a lot on Binance, you should consider getting BNB and using them to pay for your fees. Keep in mind that the deduction for trading fees follows a specific schedule, so make sure to check the current spot trading Fee Schedule. It’s also worth noting that the Binance Futures platform follows a slightly different Fee Schedule.

Apart from discounted trading fees, BNB is also powering the Binance DEX (on the Binance Beacon Chain) and hundreds of applications that are running on the BNB Chain, which means that you can use BNB outside the Binance trading platform as well. Indeed, more than 180 digital assets have been issued on BNB Chain, and millions of users have consumed BNB for utility purposes in connection with BNB Chain.

Use BNB to Earn

Binance Earn offers a suite of products for you to grow your crypto holdings easily like: Flexible Savings, Staking, Farming, Dual Investment Auto-Invest, Launchpool, BNB Vault, and more opportunities are available on the platform. Binance will regularly launch high-quality products for Binance Earn, so make sure to check them out regularly.

Guaranteed

If you are new to crypto, you can get started with Guaranteed. These products have relatively more stable yields and you can get back your principal after the locking period.

Savings: Flexible Savings and Fixed Savings. Similar to a bank’s demand deposit, you can deposit your crypto and gain daily interest from your dormant funds.

Launchpool: When users stake their crypto assets in DeFi projects, such as by providing liquidity to a liquidity pool, they will get rewards. By reinvesting these rewards, users can start a process known as Yield Farming. Launchpool is the perfect option for users to farm new assets. You can acquire newly launched tokens as rewards when you stake BNB, BUSD, and other crypto assets. You can withdraw your deposited assets at any time, and rewards are distributed every hour.

BNB Vault: is a capital-guaranteed investment product to help you maximize the income potential of your BNB. By investing in the Vault, BNB HODLers can easily invest in both centralized and decentralized finance products in just one easy step. As a BNB yield aggregator, BNB Vault will combine Flexible Savings, BNB DeFi Staking, and Launchpool to give you the best APY returns. APY up to 20%.

Staking: You can gain rewards through Locked Staking by staking crypto assets on the blockchain. You can redeem these assets after you successfully subscribed, but please note that redemption requires a certain unlocking period. This locking period differs based on the product chosen.

Auto-Invest: Auto-Invest allows you to automate crypto investment and earn passive income. It is a dollar-cost averaging (DCA) investment strategy. You can choose the cryptocurrency you want to purchase on a regular basis. Your purchased crypto will be automatically deposited into your Flexible Savings account, so you can earn passive income with your investments.

High Yield

Besides Guaranteed, Binance offers users a series of high-yield products with relatively higher risks.

 Dual Investment: Dual Investment is a non-principal protected structured saving product with enhanced yield, involving two different currencies. Upon subscription, you select the underlying asset, the deposit currency, subscription amount, and settlement date. Your return will be denominated in the deposit currency or alternate currency, depending on the below conditions.

There are two types of Dual Investment products: (1) Sell High and (2) Buy Low. For both types of Dual Investment products, you will receive the returns in deposit currency if the product is not exercised. You will receive the returns in alternate currency if the product is exercised. Each subscribed product has a settlement date. We will take the current price at 08:00 (UTC) on the settlement date as the settlement price.

Liquidity Farming: Binance Liquid Swap embraces the principles of liquidity pools. It combines the advantages of centralized and decentralized financial services, allowing users to obtain high annual returns by providing liquidity to liquidity pools on Binance.

You can also swap cryptocurrencies in the liquidity pool and enjoy the benefits of low slippage and low handling fees, or remove assets at any time, but you will need to pay a handling fee if you swap only a single asset in the pool

Trading as an altcoin

Now, for the crypto trader types, especially those who are delighted by Binance Coin’s performance thus far, this is a familiar option. Crypto has brought new life to the concept of day trading, because of the exciting market action in exchanges such as Binance. And we are humbled to gain patronage from thousands, if not millions, of traders, even in exchanges other than Binance. Right now, Binance Coin is trading in almost noteworthy exchanges.

BNB to pay for payment

BNB Chain integrates with Pundi X, Monetha, HTC smartphone, and Nowpayments.. it’s able to add more use cases for their cryptocurrencies by reaching physical stores and retailers around the world, allowing merchants to accept BNB payments in their stores.

BNB to pay for Travel

Backed by Binance: TravelbyBit, Trip.io, and Travala.com allows 90 million users of Binance to book hotels, accommodation, airline tickets, and now tours and activities using BNB and some coins cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and AVA – Travala.com’s own cryptocurrency – in addition to traditional payment methods.

BNB to use for Entertaiment

BNB partnering with Decentraland, Axie Infinity, Loom Network.. They are famous names in gamefi, BNB is used to pay in-game rewards or use to buy Land, and auction items. its will make more communities and create new utilities for both tokens: BNB and token in-game.

BNB to use for social media services

When BNB started to show real-world value, it ended up being worth something for people other than your crypto trader friends. People like, say, your friends who love to do live broadcasts of even the most mundane things they do. Social media has become a major part of the lives of a lot of people in the world, so Binance welcomed the use of BNB for various functions on innovative platforms.

For instance, BNB can be bought on crypto-centric social media network Investfeed through API exchange integration. BNB has also been used as a gift token on live streaming service Uplive and chat service ADAMANT. You can earn BNB just by being famous on certain social media platforms. Sometimes, you’ll just be amazed at what use cases people can have with BNB.

Verdict

With the continuous development of cryptocurrencies, more and more people know and use them to find profit. Can’t undeniable that BNB it has been and is on the right way to attracting users. Surely in the future, we will still see CZ and BNB Chain approach more and more areas. Above is some information about Utility BNB that can hopefully bring useful information to you.

Find more information about BNB chain

Website: https://www.binance.com/en

Whitepaper: https://www.binance.org/#smartChain

Twitter: https://twitter.com/binance

Telegram: https://www.binance.com/en/community

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Ala

Coincu Ventures

Ala

Recent Posts

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

23 minutes ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

1 hour ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

3 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

3 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

4 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

5 hours ago

This website uses cookies.