BNB AND BINANCE EXPLAINED!

in crypto •  last year

What is Binance Exchange?


Binance is an chinese cryptocurrency-exchange with support for multiple languages. It launched on the 11th of July. (https://binance.zendesk.com/hc/en-us/articles/115000599831-Binance-Exchange-Launched-Date-Set)

While it is new in the western world - as far as I know - it established itelf in chinese for about a year now. They are currently growing very fast and also release ICOs of other Tokens on their site - which makes the whole ICO-transaction easier (if you are fast enough).

Binance has added many coins over the last few weeks and continues to do so. About 4 to 5 was a regularity.

Binance also has a youtube channel - on which they have so far created 3 videos. In one of them (see below) they're showing their working area, team and staff.

They are quite big. Binance has gotten a lot of positive feedback so far - however over the last time they were simply overwhelmed with the demand and server load etc.

What is BNB? (Binance Coin)



Binance launched it's own Token - BNB - mid july. After launch, the token steadily rose in price - it currently has a value around 2$. Alltime high is 3$.

BNB is also under the top 100 assets on rank 11 with a marketcap of 218 Million $. Currently there are 100 Million Token available - from which the company has around 80 Million safely stored. In total there will be 200 Million Token available. (However I'm not sure if Binance has 80 Million of the 200 Million in total)

One reason why BNB is so popular is because it is used in Binance as a way to reduce fees.

Binance has a exchange fee of 0.1%. In Comparison - Bittrex has a fee of 0.25%. When using BNB - this fee is reduced by 50%. The amount is automatically calculated and reduced from the BNB Tokens in the wallet.

An Example:

Let's say Bitcoin has a value of 4000$ and BNB has a value of 2$.

You want to sell bitcoin - so you sell 3 Bitcoin with a value of 12000$. The fee would be 12000 * 0.1% = 12$. But with using BNB - the fee get's reduced by 50% to 6$. The only thing you have to do is to buy BNB - in this case you would need 600/2 = 300 BNB Token. Note - that if you don't have BNB - you have to pay 100% fee for those BNB.

Also - the %-amount is reduced over the years. But Binance also buys about 20% if I'm right per year back and destroys it to increase the price.

As you can see - in the beginning the discount is at it's biggest and get's slowly less. I'm not sure in which way this will affect the price, but I am sure that it is currently undervalued and WILL rise in price.

But .. I don't know when..

ICO on the plattform

As I said before - Binance created the idea to host ICOs directly on the exchange. One of the first was TRON - which was sold out in less than 10 seconds - 4 times.

The servers were also overloaded - I sadly didn't get any. But this is fine - since Binance is still expanding very fast and those things are typical.

My guess for the future is that the exchange will grow and BNB will grow with it. My advise is also to look into BNB as a possible buy option.

You can find the Exchange here: https://www.binance.com

If you have any questions - please ask them in the comments!

Until then - all the best,

Wolf
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For anyone needing a Binance referral to join while public registration is closed: https://www.binance.com/?ref=16937568

Try KuCoin exchange if Binance is lagging or down: https://www.kucoin.com/#/?r=1yPs5

@therealwolf got you a $4.63 @minnowbooster upgoat, nice!
@therealwolf got you a $4.63 @minnowbooster upgoat, nice! (Image: pixabay.com)


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I am the Great Cornholio! I'm a gringo!

very informative post...!!!
upvoted...!!!!

This post has received a 1.93 % upvote from @booster thanks to: @therealwolf.

Great post. I heard about the binance ICO before but didn't know what was exactly going on. You explained it very well.

I still don't see the point of investing into BNB. If the price stays the same, you have no advantage to paying your fees with "normal" coins. Is there any other incentive to buy BNB?

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What do you mean with the price stays the same? I guess the first time you buy BNB you will 100% fee but after that you will always save 50% fee - which is not bad. The reason bitcoin is high is because everybody needs bitcoin to trade it into another currency. Ethereum is the next best thing but most of the coins are available via BTC/Coin.

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Wait. The BNB doesn't go away when you use it to safe fees? I think that is where I was wrong. If it would be used up in the process, it would be rather pointless.

Good info, I have been reading up on Binance to figure out what the fuss is all about. The discount is great for big whales of course but it's not that big of a deal.. The example you made looks great but I think the math is off? 0.1% of $12000 usd is not $1200.. that's what 10% would be. 0.1% is actually only $12 worth of trading fees on a $12000 trade. So you would be saving only $6 dollar if you paid the fee with Binance tokens.

The biggest draw I see is the short term benefit of the discount, but this decreases in time. What's left is the 20% buyback, but this by itself is basically speculating on the amount of trade volume Binance gets. Which is good but there are a ton of exchanges and more coming up, decentralized and all, which offer the same (or possibly better in the future).
Binance did announce their plans to open a decentralized exchange too for which the tokens will be used as fuel, which sounds awesome for sure, but does kind of require more information in order to really place my bets on it.

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Yeah- that math was way scary ---> no one would be trading any crypto with fees like that.....!

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I stopped short at that number also..going that's not right. My Scottrade account is 6.95 per trade...1200 makes equities look sweet. lol Glad others saw that also. He needs to correct it!

Test test test - is everybody hearing me? @therealwolf

Thanks for good information. I bought BNB , NEO , OMG @ Binance Exchange also. So far very good. Love it !They have a tons of promising coin to trade. and I love the most is Low fees.Just 0.10% binance.com I think it ‘s better than bittrex.

I read a lots about Binance Exchange before i trade here. New trader should read this Article Binance Review Good Luck!!!

0.1% of $12000 = 12000 * 0.001 = $12. Not $1200. That's 10%

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ha - you're right. Not sure how I came to that amount.

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and You didnt' correct that bug?

This post received a 4.3% upvote from @randowhale thanks to @therealwolf! For more information, click here!

You said "The fee would be 12000 * 0.1% = 1200$"

$12,000 x .1% is actually only $12 holmes.

For anyone needing a Binance referral link in order to join while public registration is closed: https://www.binance.com/?ref=16937568

Good Post. Upvoted. Thank you! Binance is the best platform so far, but i hate their fee structure. I wish they'd let users get rid of fractional coins left over from trades. I would happily donate them if they'd let me.

Question: So do I buy the BNB, and then use BNB to buy the alt coin? (Seems like a double fee which defeats the purpose of getting a half off discount). Or if I first buy BNB somehow the system knows that when I buy altcoins with BTC to discount me?

Thanks for the guide mate... Was trying to get my head around how the bnb works...

I think it would be helpful to write not 0.1% but one percent (1%), because when you write 0.1% you syntactically imply "a tenth of a percent", which is not true, according to your calculation.

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To TheRealWolf: It would be a great help if you corrected your math about the fees above, saving other people time when they read your post. Thank you to the reply folks who helped correct the math.

I'm trying to figure out how to calculate binance fees for my trades. Can you help?

Interesting article, but why didn't you correct your wrong calculation?
It was mentioned 1 year ago and repeated several times.
So I will repeat it, 0.1% of 12000$ = 12$.
I would correct that as soon as possible, otherwise you will get the impression that you did not correct the error after several requests so that the numbers look better.

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You weren't able (on a blockchain level) to edit posts when the corrections were proposed.