Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem. For Binance users, holding BNB can provide a variety of benefits and utilities that make using the Binance platform easier and more rewarding. In this article, we will explore the key advantages of holding BNB for Binance account holders and investors.
Reduced Trading Fees
One of the biggest advantages of holding BNB is that it allows you to pay reduced trading fees on Binance. Users can choose to pay fees in BNB to receive significant discounts, with reductions of up to 50% in the first year. The more BNB you hold, the bigger discount you will receive.
For active traders on Binance, these fee reductions can lead to major savings over time. As Binance is one of the largest cryptocurrency exchanges in terms of trading volume, the savings from lower fees quickly add up. This provides a strong incentive for users to hold BNB coins in their accounts.
Exclusive Access to New Features
Binance frequently rolls out new features and services exclusively for BNB holders first. For instance, they offered BNB holders early access to the Binance DEX platform.
Holding BNB grants users early testing for new services that may later be opened to all users. This allows BNB holders to access cutting-edge features before others.
"As a long-time crypto trader, the exclusive early access Binance provides to new tools and services for BNB holders is extremely valuable."
Priority Token Listings
Binance launches an initial exchange offering (IEO) platform called Launchpad that helps new cryptocurrencies get listed. BNB holders get to participate in these token sales before others.
Launchpad token sales are highly competitive. But BNB holders stand a higher chance as they get early access and higher individual caps for purchasing new tokens.
This is beneficial as tokens purchased during Launchpad events tend to increase in price once they start trading on the open market.
- Early participation in exciting new token projects
- Chance to buy tokens at the lowest introductory prices
- Potential to gain profits by selling tokens after launch
These advantages make holding BNB very worthwhile for users who actively participate in Binance Launchpad events.
Increased Influence on Binance Ecosystem
The Binance blockchain allows BNB holders to participate in governing the ecosystem through voting rights. Users can vote on important decisions like using Binance profits for token burns.
The more BNB you hold, the greater your voting power on the blockchain. This gives active users more potential influence on the future development of Binance when they hold higher BNB balances.
Overall, holding BNB provides considerable benefits for regular Binance users by reducing fees, providing exclusive access to new products and features, increasing chances to participate in lucrative token sales, and granting voting power on the blockchain.
How Can Investors Benefit from Holding BNB?
Beyond Binance users, BNB can also be an attractive investment asset for cryptocurrency investors more broadly. What are some of the key ways investors can benefit from holding BNB coins?
Increased Liquidity and Stability
With an average daily trading volume over $5 billion, BNB is one of the most liquid cryptocurrencies on the market. It trades actively against hundreds of trading pairs, allowing investors to enter and exit positions easily.
Additionally, BNB has developed a reputation for maintaining relatively low volatility compared to other cryptos. Its price tends to be less susceptible to wild swings seen from other digital assets.
This combination of liquidity and price stability makes BNB especially appealing to investors looking to minimize risk.
Rewards From Token Burns
A unique feature of BNB is that Binance uses 20% of their profits each quarter to repurchase and burn BNB tokens. This gradually reduces the total BNB supply, making it a deflationary asset.
These scheduled token burns create scarcity that puts upward pressure on BNB's price over time. Investors benefit from seeing the value of their BNB holdings gradually increase through this deflation mechanism.
Exposure to Binance Ecosystem Growth
The Binance ecosystem has expanded rapidly to become the top cryptocurrency exchange worldwide and offer a multitude of related services. As Binance grows, the utility of BNB expands as well.
Holding BNB gives investors indirect exposure to the growth of Binance as a company. If Binance continues its current trajectory of global expansion, BNB's value stands to benefit greatly.
While risk is inherent with any crypto investment, BNB offers some attractive benefits for investors seeking liquidity, stability and exposure to the booming Binance ecosystem. The scheduled token burns and deep liquidity make it an intriguing option.
In summary, holding Binance Coin offers a range of benefits for both Binance users and crypto investors more broadly. The reduced trading fees provide significant savings for active traders on the platform. Exclusive access to new features, token sales and voting rights give BNB holders additional value.
For investors, BNB offers liquidity, price stability and potential growth driven by Binance's expansion and the quarterly coin burns. As the Binance ecosystem continues to grow in scale and attract new users worldwide, the utility and adoption of BNB is likely to increase alongside it.