Buy Binance Coin

Binance Coin is the native cryptocurrency of the Binance exchange and serves multiple functions within the Binance ecosystem. It was launched in 2017 during an Initial Coin Offering (ICO) on the Ethereum blockchain, but later migrated to Binance’s own blockchain, Binance Chain. BNB’s primary function was to serve as a means of payment for transaction fees on the Binance exchange, allowing users to receive discounts.

In addition to lower transaction fees, BNB offers several advantages. The token can be used to purchase services or goods from affiliated providers, and participate in special token sales on the Binance Launchpad.

Binance Coin has some unique features, such as the token burn mechanism. Binance periodically uses a portion of its profits to buy back BNB tokens and permanently destroy them. This reduces the total supply of BNB, which theoretically increases the value of the remaining tokens. These token burns occur quarterly and are intended to increase the scarcity and value of BNB.

An important aspect of Binance Coin is its role on the Binance Smart Chain (BSC), a parallel blockchain compatible with smart contracts and decentralized applications (dApps). BNB is used to pay transaction fees on the Binance Smart Chain and plays an important role in the governance of the blockchain. BNB holders can vote on important decisions and updates.

BNB has a maximum supply of 200 million tokens. A large portion was distributed during the Initial Coin Offering (ICO) in 2017. Approx. 10% went to angel investors, 40% to the founding team, and the remaining 50% to the participants of the ICO. The deflationary token burn mechanism will ensure that the number of circulating tokens decreases over time.

Who founded Binance Coin?

Binance Coin was founded by Changpeng Zhao, better known as CZ, and Yi He. CZ is an entrepreneur and developer with a background in technology and finance. Before founding Binance, he worked at Blockchain.info and was the CTO of OKCoin. Yi He also has a strong background in technology and cryptocurrency. Together, they founded Binance, which has since grown to become one of the largest crypto exchanges in the world. The company is managed by a team of hundreds of professionals from around the world, with Richard Teng at the helm as CEO.

Binance Coin has a number of interesting applications and can be used in the following situations:

*Paying transaction fees: Users will receive a discount when they use BNB to pay transaction fees on the Binance exchange.

• Participating in new token sales: BNB tokens allow traders to participate in new token sales on Binance Launchpad.
• Travel booking: BNB can be used to book travel on platforms such as TravelbyBit, Trip.io and Travala.com.
• Paying for goods and services: Certain vendors, such as HTC and Monetha, allow BNB to be used to purchase goods and services.
• Online services and software: BNB can be used for payments on online services and software such as BitTorrent, Canva and Storm.
• Financial services: BNB can be used for lending and investing on platforms such as ETHLend and Moeda.

BNB started as an ERC-20 token on the Ethereum blockchain, but later moved to Binance’s own blockchain, Binance Chain. Binance Chain is designed for fast and secure transactions. It offers limited smart contract functionality, but is well-suited for digital asset trading.

To address the limitations of Binance Chain, Binance introduced Binance Smart Chain (BSC). BSC is a parallel blockchain compatible with the Ethereum Virtual Machine (EVM), meaning developers can easily migrate Ethereum dApps to BSC. This blockchain supports complex smart contracts and decentralized applications, greatly expanding the versatility and functionality of BNB.

Token burn mechanism

A unique aspect of BNB is its token burn mechanism. Binance uses 20% of its profits each quarter to buy back and permanently destroy BNB tokens. This reduces the total supply of BNB and is intended to increase the value of the remaining tokens by creating scarcity. As of July 2024, Binance had performed 28 token burns, destroying millions of BNB tokens.

Versatile use

Within the BSC, BNB is used to pay transaction fees and for governance. This means that BNB holders can vote on proposals that determine the future of the chain. These features make BNB not only a useful tool for users, but also an important part of the BSC’s governance and development.

The Binance Smart Chain (BSC) is a parallel blockchain to the Binance Chain. It is designed to support smart contracts and decentralized applications (dApps). BSC uses a consensus mechanism called Proof-of-Staked-Authority (PoSA), which combines elements of Proof-of-Stake (PoS) and Proof-of-Authority (PoA). This allows for fast transactions and low fees, making BSC attractive to developers and users.

BSC is mainly used for developing and running dApps and for low-fee transactions. Binance Coin serves as a means of payment and governance token. The difference with Binance Chain is that Binance Chain focuses on fast and secure crypto trading, while BSC is designed for extended features such as smart contracts and dApps.

One of the key technical features of BSC is the high number of transactions per second (TPS) it can process. BSC can handle up to 160 transactions per second, which is significantly higher than the TPS of many other blockchains, such as Ethereum. In December 2022, BSC reached a peak of 32.6 million daily transactions. In May 2023, the number of daily transactions will be much lower, averaging 3.5 million, which is still double the number of transactions on Ethereum.

To stake BNB, users need a wallet that supports staking, like Trust Wallet or Binance Chain Wallet. After buying BNB on Bitvavo, they can transfer it to their wallet and follow the steps to stake it.

On Binance Smart Chain, users can participate in staking by selecting validators and delegating their tokens. Validators are responsible for maintaining the network and processing transactions. In return, stakers receive rewards in the form of additional BNB tokens, which are automatically paid out to their linked wallet.

Among others, the following features make Binance Coin a unique presence in the crypto landscape:

• Token burn mechanism: Binance regularly uses a portion of its profits to buy back and destroy BNB tokens, increasing the scarcity and value of the remaining tokens.
• Multiple applications: BNB is used for a variety of applications, such as paying transaction fees, booking travel, and participating in token sales.
• Binance Smart Chain: BNB plays a crucial role in the Binance Smart Chain. It is used for transaction fees and governance, which increases community involvement.
• Transaction fee discounts: Users who use BNB to pay transaction fees on Binance will receive significant discounts, making trading more cost-efficient.
• Strong ecosystem integration: BNB is deeply integrated into the Binance ecosystem. This increases usability and functionality for users.

Purchase Binance Coin (BNB) on Bitvavo, a platform suitable for both beginners and experienced traders. Follow these steps to buy BNB tokens via our website or app:

1. Log in to your Bitvavo account or register a new account.
2. Add funds to your account by clicking "Deposit".
3. Go to the Binance Coin (BNB) purchase page.
4. Enter the amount in euros you want to spend or the number of BNB tokens you wish to purchase and click "Buy".

After purchase, BNB tokens are automatically added to your Bitvavo account, where you can easily manage and trade them. Selling BNB tokens is just as easy, so you can quickly respond to market changes.

Your BNB tokens can be securely stored in your Bitvavo account. Bitvavo keeps the majority of assets in cold storage, which means they are kept offline for extra security. For extra protection of your account, we recommend enabling two-factor authentication (2FA).

Many software and hardware wallets support BNB. After purchase, you can easily transfer your BNB tokens to an external wallet by linking the wallet address to your Bitvavo account. This gives you full control over your cryptocurrencies and increases the security of your digital assets.