Buying The Dip 005: KuCoin Shares VS BNB Coin

Hello Steemit.

I'm just over a month into my cryptocurrency adventure as a trader and last night I did what I've been waiting a long time to do. I finally moved some of my profits from Binance to KuCoin. The conversation over which exchange is the better of the too has been hashed (pun intended) out enough already and I think the answer remains as inconclusive as ever as both offer great options and have their own idiosyncratic differences which I will be utilising as fully as possible.

I feel it important at this point to start making note of what my purchases and sales have been. I will be regularly updating you on this in the form of a pie chart weekly so that you can monitor it and take your own judgement from it. I intend to post the first of these tomorrow  alongside a brief narrative to accompany it. That being said the purchases I made (finally) on KuCoin were that of DragonChain, Deep Brain Chain, uTrust and last but definitely by no means least the subject of todays post: KuCoin Shares.

So I will start as I mean to finish, which is better: KuCoin Shares or the BNB Token? So far, my opinion seems to be that KCS takes the gold on this one. But that is no way in detriment towards BNB, a token that I am also invested in. As a means of experimentation I own pretty much an equal amount of both and will be monitoring the price of both as time passes.

As is at the time of writing BNB stands at  $15.85 on CoinMarketCap, whereas KCS  stands at  $10.44. This brings me to my first point of comparison, where I see the price heading. I would like to say that this will be based purely on utility but I do not belive that to be the case, though as I will state many times, my investments are rarely based on trading potential alone as a believer in the technology we are helping to grow. Binance now stands at the top of the cryptocurrency exchange game (ETHOS may take the crown if their plans are anything to go by and yes I am also invested in ETHOS) with the highest traffic each day and the BNB coin is traded, as expected, exclusively on their platform. They have a coin burn planned too which should increase the price there. Pre-January correction, we saw prices of +$23 and I do indeed expect to see that again, but what is interesting to note is that at the same time KCS stood at the ~$20 mark. If both continue to grow at the rate they were before the correction it is rather possible that we will see KCS rise above BNB, especially if KuCoin itself as a platform continues to grow.

In terms of utility, where my research serves me better, there are a few differences. BNB's main utility is that it reduces your transaction fees on Binance by 50% which is extremely useful for those who trades in high volumes, but the transaction fee remains Binance's all the same. In stark comparison KuCoin's approach to it's use of transaction fees is nothing less than interesting. 90% of all transaction fees are not kept by KuCoin, the aptly named "people's exchange", 50% of all TXF's are used to pay out dividends to the holders of KCS on a daily basis. Understandably this fee is determined by how many KuCoin Shares you actually own and because of this I hope to eventually accumulate more. The reason I think this is so great (despite the obvious advantage of receiving free cryptocurrency) is that I think it serves two fundamentally fantastic purposes. The first is in regards to new adopters of cryptocurrency, they are presented with a situation where a single coin offers them to ability to have a free stake in many different cryptocurrencies which in turn leads to further investment mentally on their part. "What are these coins and what do they do?" they ask, their fingers already typing the words CoinMarketCap by the time they're finished thinking. For the more developed investor of cryptocurrency this offers an extra benefit. Today for instance I did not have the maneuverability to invest in SingularityNet despite very much having hope for the project and wanting to see AI succeed sooner rather than later. I will be investing in this soon but for the time being I have had to miss out on my opportunity to be there on it's release on KuCoin. Well, this would be the case were it not for KCS. Due to the high volume of trades performed on SingularityNet today, the amount of fees taken from it today will be much higher and as such will be returned to me via my KCS stake. Tomorrow when I wake up I am a holder of this token, despite never having spent a single Satoshi on it. I view the ambition of this dividends structure very highly, a community driven dividends system.

One utility BNB currently has over KCS is that of it's LaunchPad project. Essentially Launchpad is an ICO based area of trading on Binance that has currently hosted Bread and Gifto. I made a fair amount of profit on Bread via Binance, but I did not make this via LaunchPad. The reason for this is is simple; although the utility benefit of being able to use BNB instead of ETH or BTC for a pre-released project is great but I am not alone in this thought and the sales of these projects are completed within ~60 seconds. I am not a full time cryptocurrency trader (yet) and as such I cannot be available for such a short window every time. I am sure I am not alone in this as many of us here are still making money off cryptocurrency, but with the money from our day jobs.

One final use of KCS worth mentioning is it's voting system for new coins on the platform which fully embodies the ethos (sorry to drop that one in again) of "the people's exhange". Using your KCS you can vote for the next community decided coin/token to be listed on KuCoin. This alone is fantastic and has led to many rallies from coins that look to be next on this ever-growing exchange but this is not the end of it. Some of you may be thinking "well, I don't have many KCS, why would I use it as a voting token when the price is going up and I'd rather hold them in my portfolio?". KuCoin already have the answer to this in one simple (but possibly exploitable) mechanic. Once voting closes and the coin is selected (once again, by you), if your KCS stake was used towards voting for the winning coin/token your stake does not return to KuCoin but instead to you, making your vote not a payment but an opportunity to use your staking power as influence, or POI (Proof of Influence) as I shall be referring to it as in the future. Again, another fantastic point in KCS's favour.

To summarise, this post was never meant to be a comparison between Binance and KuCoin as to reiterate my earlier point, I will be using both to high extents. But in regards to which platform-based native coin I personally view to be the greater of the two I must give my vouching towards KuCoin Shares. If the usability of the coin itself is anything to go by, I do indeed see it becoming the more used and higher priced coin of the too, although I am sure this will only drive Binance to add more utility to BNB. Healthy competition never hurt anyone and I truly believe both will be highly successful projects. As for KuCoin itself? Watch this space, I know I am.

Quite simply, buy some BNB, but definitely buy some KuCoin Shares.
HJB. CryptoKnight.

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