Crypto Academy Week 9 - Homework Post for Professor @yohan2on: looking beyond Bitcoins, by @kinkyamiee

Special thanks to @yohan2on for this amazing lecture on looking beyond Bitcoin, this lecture has opened my eyes to other coins are have bright future in the ecosystem. So in this post, i will writing about BINANCE COIN.

About Binance Coin (BNB)

Binance coin was launched in 2017 through an ICO (Initial Coin Offering) which happened before the main Binance Exchange was opened for trading. Even though BNB was launched through ICO, it doesnt allow users claim the Binance profit or present itself as an investment on binance.

At the beginning, BNB was issued as an ERC-20 because it was running on the Ethereum blockchain and it had a total distribution of 200million coins. Initially, the ERC-20 BNB was swapped with BEP-2 BNB on a ratio of 1:1 because of the Ethereum blockchain, which then became the native coin on the Binance Chain.

Further more, Binance launched the Binance Smart Chain (BSC) In September 2020, which is a blockchain that works hand in hand with the Binance Chain. However, after the launch, you can now find BNB in three different forms, which are;

• BNB BEP-20 on Binance Smart Chain.

• BNB BEP-2 on Binance, and

• BNB ERC-20 Binance on Etherum blockchain.

USES OF BINANCE COIN.

BNB has really shown its worth in the various ways it can be used in cases that are with the ecosystem and elsewhere, below are various way you can decide to use your BNB.

• BNB has been recorded to be used by users in the payment of traveling expenses, buying virtual gifts, creating smart contracts,lending and carrying other kind of transactions.

• BNB can be used to pay transaction fees that is, trading fees. For instance, when a user trades a crypto currency on Binance Exchange, of each trade that the user does, it incurs a standard fee of 0.1% which is determined by the users monthly trade volume or BNB holding. The user can choose to either pay the fees using the asset he is trading or pay with BNB, however, special discount are been offered when a user pays in BNB.

• BNB is also supporting the Binance DEX and series of applications that are running in the Binance Smart Chain, this implies that BNB can also be used outside the Binance trading platform. Over 180 digital assets has been given out on BSC and millions of users out there are using BNB for common purposes which is in connection with BSC.

Why you should Buy the Binance Coin?

I am going to be outlining Some Great Reasons why you should Buy Binance (BNB) Coins.

Low cost

• BNB is quite affordable when it comes to buying other coins in place of bitcoin, it can be easily used to trade on the binance exchange.

Supply and Demand

• Supply and demand simply means the rate at which values of a currency grows in an exchange. In the blockchain, Bitcoin has gained more value due to its 21 million supply cap and similarly,99 million BNB coins has been pushed into the market, and with that, it has fast spread wide making its supply decrease. With this analysis, it holds a very good future for this coin.

Community trust

• BNB has the highest withdrawal limit of $30,000 and is quite easy for users to operate due to the fact that its the most trusted coin on Binance Exchange. A lot of investors have more confidence in this coin because of its less security issues.

Growth

• Binance platform has shown a strong infrastructure as the bitcoin's protocol and as the platform grows in value, so the BNB coin is growing too.

How to buy and sell BNB.

Step 1.

• Go to your binance app and click on the market icon.

• search for BNB pair, here I am use the BNB/USDT pair.

• Click on it, then it will take you to the trading page.

• here, you can buy and sell.

The future of BNB.

Binance has a very great future in the sense that the people running this platform are experts that has great experience in finance. This bright future has been shown by the ultra-fast speed of the exchange, its modernized technology which is supporting more than 30 exchanges. I feel like this coin is worth adding to my portfolio because it seems quite lucrative and if studied carefully, it can give a great returns, though one needs to trail carefully while investing and do that in a more comfortable way.