Binance

Do you feel compelled to use BNB on Binance | by Stephen Dalton | February 2022

Do you feel compelled to use BNB on Binance |  by Stephen Dalton |  February 2022

FINTECH | CRYPTOCURRENCY

Although BNB is the native cryptocurrency of Binance, the world’s largest cryptocurrency exchange, and BNB is the fourth largest coin by market capitalization at $61,707,973,546 behind BTC, ETH, and USDT, you don’t don’t have to use it to buy other cryptocurrencies on the Binance Exchange.

In fact, using BNB as a median to buy other crypto coins and tokens might have some downsides, such as its volatile price.

There are at least two Binance exchanges, Binance International and Binance USA. If you are legally required to comply with the US tax code, you must use Binance USA; otherwise, you must use Binance International. In 2019, Binance stopped allowing US taxable persons to trade on its international exchange; you must use Binance US.

Binance has a Trust Pilot rates 2.1 stars out of a possible 5. However, if you think Coinbase is better, theirs is 1.6. Many crypto exchanges get an unwarranted black eye due to users losing money on their investments or failing to do so. comply with know-your-customer (KYC) requirements.

Just like your local bank, you have to fill out paperwork and prove who you are when you want to deposit or withdraw money. It is the same with cryptocurrency exchanges.

All countries and international exchanges must respect Anti-Money Laundering Laws. In the United States, if you don’t want to attract the attention of Homeland Security, you better comply or risk a trip to Guantanamo Bay. Although I’m sure it wouldn’t go that far depending on your background, it could be very inconvenient. There are still people on Gitmo because of their kinship to 9/11.

I would suggest before depositing a lot of money into an exchange, that you use it with smaller amounts first and comply with identity verification. My wife and I have been using Binance for years without issue, although we have spread our investments with e-Toro, Coinbase and others.

Additionally, we always move our crypto to a cold wallet after purchase. It makes sense. Read my article, What is the best “cold” wallet for your crypto. A cold wallet is peanuts compared to the loss of your investment.

“Cryptocurrency-related crime hit an all-time high last year in terms of value, with illegal addresses receiving $14 billion in digital currencies, up 79% from $7.8 billion in 2020.Reuters.

What is BNB?

Binance Coin is the cryptocurrency issued by the Binance exchange and trades with the symbol BNB. BNB was initially based on the Ethereum network but is now the native currency of Binance’s own blockchain, the Binance Chain.Investopedia.

REMARK: I never use Investopedia or Wikipedia for anything other than definitions because just about anyone can add or change the information there – these should not be considered valid references. You should always try to find the original or source document.

The Binance website defines it as follows:

“BNB is the crypto coin that powers the BNB Chain ecosystem. As one of the most popular utility tokens in the world, not only can you trade BNB like any other cryptocurrency, but you can also use BNB in ​​a wide range of applications and use cases.

Most investors think of BNB as a transfer mechanism like Tether (USDT) or US Dollar Coin (USDC). However, USDT and USDC remain around $1.00. While the current price for BNB was $372.00 at the time of publication.

This could indicate that it is more of an investment vehicle than the other two. It could also serve as a warning not to use it to buy another currency unless you plan to complete the transaction in one go.

Let’s say you buy for $1,000 worth of BNB to buy an altcoin, and you wait a day to complete the transaction. If BNB drops 10% overnight, as can happen, you could lose $100 without completing your purchase.

According to websitewhat are these other “…applications and use cases » mentioned by Binance above?

  • Staking – you can apparently earn up to 27.49% APY with BNB. However, always check the entry and exit charges and don’t forget the tax payable.
  • Referrals — you could earn up to 40%.
  • The VIP program offers lower trading fees.
  • Send and receive money at a much lower rate and faster than many other vehicles like banks and Western Union.
  • Crypto loans.
  • BNB Vault to earn rewards.

The annual percentage yield (APY) of BNB is very attractive. The Motley Fool describes “staking” as, “Staking rewards are an incentive that blockchains offer participants. Each blockchain has a fixed amount of crypto rewards for validating a block of transactions. When you bet on crypto and are chosen to validate transactions, you receive these crypto rewards.

However, you don’t have to “validate transactions” to stake your cryptocurrency on most exchanges, although you will get a better return if you do.

How to make money by betting on Binance (Tutorial)

#binance #Staking #Blockchain

Coin Market Cap BNB price data

“The live BNB price today is 372.17 USD with a 24-hour trading volume of 1,320,068,425 USD. We update our BNB price in USD in real time. BNB is down 0.75% in the last 24 hours. The flow CoinMarketCap ranking is #4with a live market cap of $61,451,433,956. It has a circulating supply of 165,116,761 BNB coins and a max. supply of 165,116,760 BNB coins. — Coin market cap — February 27, 2019.

BNB to USD All Time Chart from Coin Market Cap

As you can see from the table above, this is not a “stable coin” in any way. The past year has seen BNB grow from a low from $195.85 has a all-time high (ATH) of $690.93 early May 21. This volatility makes it attractive to traders, although some buy-and-hold investors might think it’s a bargain at its current price considering the ATH of nearly $700.

Final Thoughts on BNB and Binance

BNB could be a worthwhile investment if you consider its ATH and usage cost average (DCA). Traders might find it attractive although the high price might be a detractor. You might find much cheaper altcoins and tokens with just as much volatility if that’s what you’re looking for in trading.

Most consider investing because of its low tax burden, but the allure of large gains is also appealing. I don’t mind paying taxes because not making enough money to be taxed doesn’t appeal to me. Also, no matter who you are warned about, you will likely incur losses, and these can always offset your tax gains.

NOTE: Always consult a tax and financial advisor.

WARNING: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser, and everything I offer should be taken as a friendly joke to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making major financial decisions.

Note: This post contains affiliate links. Read my disclosure statement for more information.

Stephen Dalton is a retired U.S. Army first sergeant, a journalism graduate from the University of Maryland, and a certified editor of the Chicago Manual of Style in American English. Also, a leading writer on nutrition, travel, fiction, transportation, virtual reality, NFL, design, creativity, and news.

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