Binance Coin (BNB) - Token Used to Pay Trading Fees on Binance's Exchange
What is Binance Coin?
Binance Coin is a token used by traders to pay for trading fees on the Binance exchange. Normally, the exchange charges 0.1% fee for any trade done on their platform. However, they offer a discount for any trade that is done using BNB as an intermediary. When you trade on the exchange, there's a small switch that is automatically on that asks if you are ok with using BNB. The cool part is that when you trade with the switch on, you literally can't tell the difference - basically you're just getting the discounts.
Binance is currently offering the following discounts (based off of their normal 0.1% fee) for traders:
Binance is currently offering the following discounts (based off of their normal 0.1% fee) for traders:
- 1st year: 50%
- 2nd year: 25%
- 3rd year: 12.5%
- 4th year: 6.75%
- 5th year and after: no discount
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So what is Binance?
Binance is currently the largest crypto exchange in the world. The name Binance comes from two words: Binary & Finance. They used Binary (which means "composed of 2 things") because the exchange only allows coin-for-coin trading. In other words, Binance does not let you trade in traditional currencies, like the USD or EURO. Although the exchange is based in Hong Kong, they have now become a global company. |
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History of Binance Coin!
Binance Coin had a successful ICO in July 2017. It is currently a token that runs on the Ethereum blockchain. However, Binance has announced that they have plans to make a Binance Chain (their own blockchain) in the future. Read more about it here.
