Binance coin (BNB) is regarded by those familiar with the digital world as one of the most popular cryptocurrencies. Currently in the market at the reach of everyone, this exchange has its own token. It is this token that we are referring to as the Binance coin. This token was initially release as part of an ICO for Binance. And behold, since release, its value has been steadily increasing as more people are getting to know about the digital currency. You can be sure that this is the right time to get informed about this cryptocurrency given that its popularity has reached new heights of success. If you’ve made-up your mind to familiarize yourself with it, we’ll help you to know how it works.
What is Binance?
As of the writing time, Binance is perceived as the largest cryptocurrency exchange on the planet. Looking around, we can’t find any other cryptocurrency exchange that can stand Binance with over $1.5 billion in trading volume per day. What really makes the whole story interesting is that this cryptocurrency exchange was launched just a few years back; on July 14, 2017 to be more precise. In less than a year, they moved from a new brand cryptocurrency exchange and started overtaking other cryptocurrency exchanges that were already in existence. And today, we can say without doubt that Binance is at the top of the cryptocurrency exchange industry with millions of registered and loyal users.
What is Binance Coin (BNB)?
In simple words, Binance Coins are tokens which are used on the Binance platform. Although they are openly traded in the market and do have fluctuating values, we can think of them as the British Pound, US dollar or Bitcoin. Many people are gradually embracing the use of Binance coins because of the increasing value of its tokens. The Binance coin is what the world popularly knows as altcoin. This digital currency is fully based on the ERC20 standard and uses the Ethereum network and blockchain. In this way, the coins benefit from all the rules which are governing the Ethereum network. In addition, Binance coin benefits from the safety and stability which is generally offered by the Ethereum network and blockchain. With the protection offered by Ethereum, there is no need to worry about having your coins stolen.
How does the Binance exchange work?
Just like other cryptocurrency exchanges, the Binance exchange allows its users to exchange one cryptocurrency for another. Here, buyers and sellers are matched at the requested prices using an advanced customer matching engine. On this platform, each time that the trade is processed, every customer receives what he/she wants. Note here that at the completion of each transaction, Binance receives a small fee for providing the matching and exchange service. It is in this light that they make their profit or can sustain the platform. Around 2017 when Binance exchanges came into existence, most cryptocurrency exchange platforms were facing lots of difficulties. This was as a result of the high demand of exchanges due to the popularity that cryptocurrency had gained.
And as a result, people were subjected to slow transactions, high transaction fees, bad prices, and lost orders. Binance came in with solutions to all these problems. This clearly points out the reasons behind its success. Binance owns a trading engine which is capable of processing 1.4 million trades per second. This is by far faster than any other trading engine which is currently owned by other cryptocurrency exchanges. It is their ability to quickly process transactions at a lower price that led them to becoming popular with the highest number of registered customers.
Where can I buy and store Binance Coin?
The primary exchange for buying BNB is on Binance. All Binance coins are stored in secured wallets. They are treated just like other cryptocurrencies. Their wallets are highly sophisticated in terms of safety. That’s why you’ll worry less on loosing your coins. Note that you can as well keep your bitcoins in the exchange wallet. In short, you can store your coins in any wallet that supports the Ethereum technological system. MyEtherWallet is one of the highly secured Ethereum-compliant cryptocurrency wallets that you can use without fear of loosing even a single coin of yours.