Steemit Crypto Academy | Season 2: Altcoins-Part1 "Looking beyond the Bitcoin"Homework Post for Prof @yohan2on|Binance Coin (BNB) by @sadiqxylo

Hello Everyone,

I deem it a great honor to participate in this week Homework task by prof @yohan2on. Thanks a lot for the detailed lesson.

Altenative Coin

Altcoins or Alternative coins are for short a cryptocurrencies that are not Bitcoin. Altcoin is an abbreviation for alternative coin. Light coin, Ripple coin, Binance coin, Dutch coin and any other coin aside Bitcoin all fall under the category of altcoins.
You may ask yourself, why do we need altcoins in the first place? This is simple, bitcoin is not all perfect, and usually alternative coins will try to create a better or different version of bitcoin. For example, light coin confirms transactions faster than bitcoin. Dutch coin focus on the anonymous aspect making transactions virtual impossible to trace. Each altcoin has a unique feature it does best. Altcoins can also vary from bitcoin in the way they are mine, for example, bitcoin mining algorithm is called the SHA-256 while light coin mining algorithm is called Scrypt.
Until today, a lot of altcoins have been introduced into the market but only a hand full have manage to gain a significant following like bitcoin. To know which altcoin has gained popularity is by measuring their market cap. Market means how much money is invested in an asset when measured in dollars. Binance is one of the altcoins which I will like to talk about.

BINANCE COIN (BNB)

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Binance Coin also called BNB is based in Malta and was founded in 2017 by Changpeng Zhao. It is the leader coin of the binance project. Binance Coin was initially based on the Ethereum blockchain until 2019 when binance launch their own blockchain. BNB is use for all operations on binance. It can be use to pay trading fee on binance or to spend like other cryptocurrencies.
The binance exchange is one of the fastest on the crypto market, handling over 1.4 million orders per seconds. Like most of the cryptocurrencies BNB can't be mine. Over 200 million coins were pre mine during binance initial offering. Binance Coin has gained support and partnerships with higher companies like Brave software and Live Streaming Platforms which have a user base over millions people and sells virtual merchandise for BNB currencies. To help maintain the value of BNB, binance has a repurchased plan, it will use 20 percent of its profit to reproduce BNB coin every quarter and burn them until 50 percent of the currency became repurchased. To this process they will alternatively be 100 million BNB in circulation of the original 200 million helping the crypto sustain value.

How to Purchase Binance Coin (BNB)

Firstly, you need to register for an account with an exchange that allows BNB purchase. After finding a suitable exchange, you sign up with your email and complete the KYC verification. On same account after registration enable the two factor authentication to secure your account.

Secondly, you will need to deposit funds into your account to be able to purchase. Chose a deposit method, example ACH, credit card. Enter your deposit amount to initiate payment. You can also deposit a different cryptocurrency and trade it with BNB.

Finally, after your account ha be been credited, visit the trading page and select BNB to buy. You need to enter an amount to buy, afterwards check the payment details and confirm your Purchase.

How to Sell Binance Coin (BNB)

To sell you binance coin go to exchange wallet in your account and navigate for "sell BNB". You can also sell BNB for other currencies. All you need to do is to place a trade with a selling price you want. Note in mind that you can't trade BNB for all currencies.

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This is a screenshot taken with the coin market app at exactly 20:11pm GMT. The price was US$ 561.89 . This was drop from a spike of US$ 600 last night. This shows how valuable the Binance Coin is. In a way that the coin is capable of reaching higher values.

Liquidity of Binance Coin

Liquidity is a general term use to explain the ability of purchasing or selling an asset without much change in the market cap of the coin. Liquid coins present high volume of trading activities. Traders often prefer to trade with liquid coins. Binance Coin has a liquid Bitcoin market, this is because a lot of traders are ready to sell or buy Bitcoin.

Advantages of Binance Coin (BNB)

1. BNB holders enjoy 25% discount on all trading fees in the binance exchange.
2. Binance is a faster growing cryptocurrencies exchange company which has a great positive influence in the price of BNB.
3. BNB can be trade for other assets.
4. Can be purchase or sell at any time (liquidity).

Disadvantages of Binance Coin (BNB)

1. Binance Coin is not a stable coin so its price is volatile and can change at any point in time.
2. BNB is proportional to the Binance Exchage Productivity, implies low productivity in the Binance Exchage will yield a low price of BNB.

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