Binance Exchange is a leading exchange and trading platform for cryptocurrencies. It has a native ERC20 token, the Binance (BNB) coin. This coin is expected to become the decentralized Binance exchange’s native coin. Binance coin serves as a utility token with various uses, and it funded the exchange’s initial coin offering. Many investors see it as a good crypto investment because of its many uses, such as the following:
1. Diversify Crypto Investment Portfolio
Your investment portfolio should contain various cryptos aside from Bitcoin. One of the altcoins you should add to your portfolio is BNB, as it powers the ecosystem of Binance. By diversifying your crypto portfolio, you can balance your risk and reward. And because you’re not limited to one type of crypto, you can reduce the volatility of your portfolio in the long run.
A good reason why you can use it as an investment is its coin burning. Binance burns the BNB it buys back from its 20% profits to destroy and remove them from circulation permanently. It constantly does this process every quarter so that Binance can destroy approximately 50% of its supply or over 100 million BNB. This strategy is vital, so Binance can make the BNB supply more valuable and exclusive.
Swyftx says you can buy BNB on many online crypto exchange platforms, including on the platform itself. You may hold it until its price increases before selling it so you can gain profits from it.
2. Trade Other Cryptos
Besides holding the coin until you’re ready to sell it at its premium price, you can also use it to trade other cryptos like Litecoin, Ethereum, and Bitcoin. You only need to fund your account in exchange and use your credit or debit card to buy BNB. Once you have BNB, you can use it to buy other cryptos, for limit or market orders.
You can even use BNB in futures trading. It means you can go for a long or short position. However, you may need technical analysis to conduct this kind of trading, but anticipating the market allows you to earn profits, whatever the price of BNB is. For instance, you can place a short position using BNB if your analysis shows that the market will dump. When your analysis is correct, you can double or triple your BNB, depending on your target profit. However, the market may go against your analysis, so it’s best to place a stop-loss on your positions to minimize your possible loss.
3. Pay For Cryptocurrency Trading Fees On Binance
You can also use a Binance coin to pay for the crypto trading fees when using the Binance platform. The best thing about this is the ability to get a 25%-50% discount on your transaction fees compared to the rate of fees for other cryptos. It means you can buy BNB to minimize the trading fees you consume when selling or buying cryptos using Binance. So, when you buy or sell Bitcoin and other cryptos, your profits are more significant because the fees will be deducted from your Binance coins.
4. For Payment Services
Many businesses now appreciate using and accepting cryptos as part of their payment system. It allows them to have more customers because most people these days are into crypto investing, and BNB is the same. Besides, many investors are investing in Binance because of its potential to make the finance industry a better place.
Business establishments are now integrating support for Binance Chain, which means their customers can use their tokens in their transactions with the business. Retailers and physical stores worldwide are now accepting BNB as payment from their customers.
A great example is the Pundi X Open Platform, wherein BEP2 tokens will be available in the Pundi X payment ecosystem. The Pundi X allows businesses to use cryptos for business transactions through their point-of-sale device, such as XPOS. They also have a mobile app that lets users manage and track their funds, known as the XWallet. Their XPOS retailers will also have to use the physical card known as the XPASS when using BNB and other coins for transactions.
Aside from Pundi X, here are other payment services now utilizing BNB. It means you can buy their services or products using BNB as payment.
- Monetha: Monetha merchants accept BNB payments.
- HTC: You can buy a smartphone in this store using BNB.
- Coinpayments, Coingate, Coinify: They also accept BNB as payment.
- NOWPayments: You can pay them using BUS and BNB.
5. For Travel Accommodations
Paying for travel accommodation these days is more accessible because you can also use BNB to reserve and buy flights and hotels on select websites. Some travel sites that accept BNB payments are as follows:
Binance is one of the best crypto trading platforms because people can use their coins in various situations. You can use it to book your hotel and flights, buy a smartphone, pay for services, and pay crypto trading fees. Furthermore, you can use it as an addition to your crypto investment portfolio.
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