What Is Binance Coin (BNB) and How Does It Work? Is It Worth Putting Money Into?

The universe of cryptographic forms of money is overwhelmed by Bitcoin (BTC) and Ethereum (ETH). Yet, what lies outside of the Big 2? Presently you're entering the region of elective cryptographic forms of money. These can be generally gathered into 3 kinds: 

• stablecoins, similar to Tether (USDT) 
• memecoins, as Dogecoin (DOGE) 
• utility coins, like Binance Coin (BNB) 

Of the 3 cryptos recorded above, Binance Coin (BNB) has the most elevated worth. However, what works everything out? In this article, we delve profound into the historical backdrop of Binance Coin's (BNB) — what's really going on with it, why it exists, and its authentic worth. 

Binance Coin (BNB's) value graph since its beginning

In contrast to Bitcoin and Ethereum, the two of which have seen pinnacles and valleys of sorts since their initiation, Binance Coin (BNB) has been generally steady. To place things into setting, Binance Coin (BNB's) cost drifted around S$20 for a lot of its lifetime until the digital currency blast in March 2021.

Binance Coin (BNB)’s value peaked on 10 May 2021, at an all-time high of S$915. Coincidentally, Bitcoin (BTC)’s value was around S$77,000, and Ether (ETH)’s value was around S$5,200 on the same day.

Binance press officials still aren’t exactly sure why Binance Coin (BNB) mooned so much in that time frame, but it’s widely believed that Binance’s business moves, architectural changes to its blockchain network, and its competitor, Coinbase, doing a direct listing onto the stock market made Binance Coin’s value skyrocket.

Today, Binance Coin (BNB)’s value — along with Bitcoin (BTC)’s and Ether (ETH) — has dropped significantly since their peak.

While BNB isn’t a runaway crypto success, it’s notable for its relative stability and accessible price compared to its more famous counterparts. Altcoins like these are worth considering to investors looking to diversify their cryptocurrency portfolio.

What is Binance Coin (BNB)?

But beyond its historical performance, what is Binance Coin, really? Of all the altcoins out there, why is it the most popular?

Binance Coin (BNB) initially started out as a way to pay for trading fees on the popular Binance crypto exchange ecosystem. 

Binance makes it very clear that BNB is strictly a “utility coin”, meant for use within its closed garden. Unlike, say, Bitcoin, Binance Coin isn’t meant to overthrow traditional fiat currency or decentralise entire portions of the economy.

What else is Binance Coin (BNB) used for?

Apart from paying for Binance trading fees, Binance Coin (BNB) can now be used to:

• Pay for trading fees on Binance DEX (Decentralised Exchange)
• Pay for transaction fees on the Binance Chain
• Pay for transaction fees on the Binance Smart Chain
• Pay for goods and services for both online and in-store purchases (e.g., using Binance Card or Binance Pay)
• Pay for hotel and/or flight bookings and more at Travala.com
• Usage as a community utility token on the Binance Smart Chain ecosystem (such as games and DApps)
• Participate in token sales hosted on the Binance Launchpad
• Donate on Binance Charity
• Provide liquidity on Binance Liquid Swap

Can you use BNB on Binance Singapore?

It’s worth noting that BNB works as a payment method on Binance International Exchange — but NOT on Binance Singapore. You cannot use Binance Coin (BNB) on Binance Singapore to pay for your trading fees at this point in time.

Binance Singapore offers something called a Binance Cash Wallet, but that’s a totally different thing from Binance Coin. The Binance Cash Wallet is like any other e-wallet — basically a way for you to store Singapore Dollars on the platform. You still need to pay the 0.6% trading fees in SGD.

However, you can buy and sell Binance Coin (BNB) on Binance Singapore’s crypto exchange.

How does Binance Coin (BNB) retain its value?

Binance Coin (BNB) uses a hybrid of a supply cap (much like Bitcoin) and a coin sink (much like Ethereum).

Cryptocurrency	Price	Market Cap	Circulating Supply	Supply Cap
Binance Coin (BNB)	~S$470	~S$70 billion	153.4 million BNB	200 million BNB

Binance Coin (BNB) has a hold on its value by using a supply cap. Binance has also implemented a Quarterly Burn system to keep Binance Coin (BNB) scarce and its transaction fees relatively stable as compared to Ethereum’s ever-rising transaction fees.

Binance plans to burn a total of 100 million Binance Coins (BNB) — to date, 30 million Binance Coins (BNB) have already been burnt.

Why has MAS issued a warning to Binance?

Binance International will end crypto to Singapore Dollar exchanging sets as MAS has found that it doesn't conform to its guidelines and guidelines, explicitly, the Payment Services Act. Following this, its iOS and Android applications will be taken out from their separate stores. 

This is the fundamental justification for why there are two unique Binances: Binance Singapore and Binance International. Honestly, MAS doesn't disapprove of Binance Singapore as it completely conforms to their guidelines and guidelines, so whatever subsidizes you have in there are protected. However, if you have assets in the Binance International trade, you should move your assets to a Singapore-agreeable trade like Binance Singapore or Gemini.

What if I have crypto assets in Binance International?

Binance.com, or Binance International, has issued a statement that its Singapore users have until Tuesday, 26 October 2021, to withdraw all their:

• Cryptocurrencies
• Crypto assets (NFTs)
• Fiat currencies (cash you have stored on Binance.com)

This is in compliance of the Regulated Payments Services act that MAS has imposed, since blacklisting Binance International (Binance.com) on their MAS’ Investor Alert List. You will want to move and store your funds on a Singapore-compliant crypto exchange like Binance Singapore or Gemini.

Should you buy Binance Coin as an investment?

The short answer is: no, Binance Coin isn't an interest all by itself. 

You should just purchase Binance Coin (BNB) assuming you need to execute in any piece of the Binance biological system. Binance is extremely clear on its position towards Binance Coin (BNB) being a utility token, and expects it to be utilized thusly. 

As referenced before, should you decide to make this stride, the least expensive way of purchasing Binance Coin (BNB) with Singapore Dollars is through Binance Singapore and afterward moving it to Binance International. Albeit this interaction causes two kinds of exchange expenses, it's as yet less expensive and can be handily finished with just SGD. 

All that said, you shouldn't discount each and every altcoin as useless besides inside its own biological system. Each crypto has diverse reason (and hence potential) and should be evaluated exclusively. 

Indeed, we'll end our crypto article with a disclaimer that cryptographic money is an exceptionally unstable type of contributing, paying little heed to which coin you purchase! So consistently do your due industriousness prior to purchasing and contribute close to you can stand to lose. 

Try to likewise enhance your portfolio well with customary ventures like stocks, ETFs and REITs through internet based businesses in Singapore. We have amateur and progressed guides for you to begin putting resources into Singapore. Have a perused in case you're intrigued!