<p>Binance Coin (BNB) is a cryptocurrency created by the popular Binance cryptocurrency exchange. Launched in 2017, BNB was issued as an ERC-20 token during Binance's initial coin offering (ICO) and later migrated to its own blockchain, becoming the native coin of the Binance Chain.</p><p>As the native coin of Binance Chain, BNB powers the Binance ecosystem and provides utility in various ways. In this beginner's guide, we'll explain the key uses and benefits of holding BNB tokens on Binance.</p><h3 id="binance-coin-adoption-for-paying-binance-trading-fees-at-discounted-rates">Binance Coin Adoption for Paying Binance Trading Fees at Discounted Rates</h3><p>One of the primary utilities of BNB is to pay for trading fees on the Binance exchange. By default, trading fees on Binance are 0.1%, but holding BNB in your account allows you to pay these fees at a discounted rate.</p><p>The more BNB you hold, the bigger discount you get on trading fees. With maximum BNB holdings, you can get a 25% discount on all trading fees. This incentive encourages users to adopt BNB for fee payment.</p><p>For example, if you hold enough BNB to get a 25% fee discount, and you make a $100 trade on Binance, you would only pay 0.075% in fees, so just $0.075. Without BNB, the 0.1% fee would be $0.10. These savings add up with high trading volumes.</p><p>Check out <a href="https://btcpers.com/binance-coin-adoption-for-paying-binance-trading-fees-at-discounted-rates" rel="noopener noreferrer nofollow">Binance Coin adoption for paying Binance trading fees at discounted rates</a> to learn more about using BNB for reduced trading fees.</p><h3 id="analyzing-binance-coin-burns-and-the-economics-behind-reducing-total-supply">Analyzing Binance Coin Burns and the Economics Behind Reducing Total Supply</h3><p>Another key feature of BNB is the coin burn, where Binance periodically destroys a portion of the total BNB supply. These scheduled burns help maintain the value of BNB by reducing the circulating supply over time.</p><p>The burns began by destroying 20% of total supply in 2017, but have since shifted to burning based on trading volume on Binance. 1 BNB is burned for every 10 trades on the platform. With high volume, millions of BNB get burned each quarter.</p><p>These coin burns reduce the total BNB in circulation, making the remaining coins more scarce and valuable. Burns will continue until 50% of the initial 200 million BNB supply has been destroyed, leaving only 100 million BNB remaining.</p><p>Check out <a href="https://btcpers.com/analyzing-binance-coin-burns-and-the-economics-behind-reducing-total-supply" rel="noopener noreferrer nofollow">analyzing Binance Coin burns and the economics behind reducing total supply</a> to understand the impacts of BNB coin burns.</p><h3 id="binance-coin-technical-analysis-to-anticipate-future-price-fluctuations">Binance Coin Technical Analysis to Anticipate Future Price Fluctuations</h3><p>With a solid understanding of BNB utilities, many crypto investors look to technical analysis to try anticipating future price movements. As a volatile cryptocurrency, BNB price can fluctuate wildly in both uptrends and downtrends.</p><p>Technical indicators like moving averages, support/resistance, RSI, and volume can help assess whether BNB is overbought or oversold. Chart patterns like wedges, flags, and double tops also provide trading signals.</p><p>Ongoing analysis of BNB price action on multiple time frames gives traders an edge for planning entries and exits. Keeping up with Binance Coin news and fundamentals aids analysis as well.</p><p>For a beginner's guide to technical analysis for anticipating price fluctuations, check out <a href="https://btcpers.com/binance-coin-technical-analysis-to-anticipate-future-price-fluctuations" rel="noopener noreferrer nofollow">Binance Coin technical analysis to anticipate future price fluctuations</a>.</p><h3 id="comparing-binance-coin-to-other-exchange-based-tokens-like-ftt-and-kcs">Comparing Binance Coin to Other Exchange-Based Tokens Like FTT and KCS</h3><p>In addition to its unique utilities, it's also informative to compare BNB to other major exchange tokens like FTT and KCS.</p><p>FTT is the native token of the FTX exchange, while KCS is the token of KuCoin exchange. Both offer similar fee discounts and benefits to BNB, but have different supply schedules and use case nuances.</p><p>For instance, FTT has no supply cap, while KCS has buyback burns to reduce supply. BNB arguably has the most utility, but it's helpful to analyze pros and cons of each.</p><p>These exchange tokens have been top performers during crypto bull markets as speculation increases on their associated platforms. To compare BNB, FTT, KCS, and more, check out <a href="https://btcpers.com/comparing-binance-coin-to-other-exchange-based-tokens-like-ftt-and-kcs" rel="noopener noreferrer nofollow">comparing Binance Coin to other exchange-based tokens like FTT or KCS</a>.</p><h3 id="binance-coin-staking-methods-and-earning-yields-through-activities-like-bnb-vault">Binance Coin Staking Methods and Earning Yields through Activities Like BNB Vault</h3><p>In additional to trading benefits, BNB also enables users to earn yield through staking and similar activities. For example, Binance offers a BNB Vault program that allows locking up BNB for fixed periods to earn extra interest.</p><p>The annual percentage yields (APYs) vary based on market conditions, but typically range from 5-15% for 30-60 day lockups. Users can stake BNB and earn yields without giving up ownership or control. Binance distributes the interest after the lockup ends.</p><p>BNB can also be staked in DeFi protocols on Binance Smart Chain to earn yield. There are risks to DeFi staking, but potentially higher rewards. BNB staking provides holders with options for earning passive income.</p><p>For a guide, check out <a href="https://btcpers.com/binance-coin-staking-methods-and-earning-yields" rel="noopener noreferrer nofollow">Binance Coin staking methods and earning yields through activities like BNB Vault</a>.</p><h3 id="binance-coin-onboarding-bonuses-and-referral-program-rewards-explained">Binance Coin Onboarding Bonuses and Referral Program Rewards Explained</h3><p>Binance also incentivizes new users to buy BNB by offering onboarding bonuses and discounts. For example, signing up through a referral link gives 20% off trading fees for life, with an additional referral bonus of 40% as BNB.</p><p>The trading fee discount is huge for active traders, along with getting $50 of BNB for free through signing up with a referral code. This encourages both new and existing users to hold BNB for these initial benefits.</p><p>Binance limits these discounts to the first 6 months for each new user. But the rewards are still significant, especially if you can refer active traders for the maximum savings. Check out <a href="https://btcpers.com/binance-coin-onboarding-bonuses-and-referral-program-rewards-explained" rel="noopener noreferrer nofollow">Binance Coin onboarding bonuses and referral program rewards explained</a> for more details.</p><h3 id="researching-the-bnb-token-distribution-and-percentages-allocated-to-seed-rounds">Researching the BNB Token Distribution and Percentages Allocated to Seed Rounds</h3><p>To fully understand the launch and distribution of BNB, it's also important to look at the percentages of total supply allocated during the ICO and founding of Binance.</p><p>The initial supply was 200 million BNB. 40% of this was sold publicly, with 50% allocated to seed rounds for founding investors and Binance team members. The final 10% was reserved to incentivize growth initiatives, such as the founders' reward pool.</p><p>This distribution concentrated significant BNB holdings into the hands of Binance itself and early backers. However, the broad ICO distribution and coin burn mechanics help make BNB more decentralized over time.</p><p>Check out <a href="https://btcpers.com/uncovering-the-bnb-token-distribution-and-allocations" rel="noopener noreferrer nofollow">uncovering the BNB token distribution and allocations</a> for a more detailed breakdown.</p><h3 id="binance-coin-wallets-and-optimal-storage-solutions-for-security-and-accessibility">Binance Coin Wallets and Optimal Storage Solutions for Security and Accessibility</h3><p>Once you purchase BNB, you'll need a secure wallet to store it properly. BNB is supported by both hot wallets for active use and cold hardware wallets for safekeeping of larger holdings.</p><p>For everyday use, mobile and desktop options like Trust Wallet, MetaMask, and Binance Chain Wallet work well. Ledger and Trezor hardware wallets offer robust security for long term holders who prioritize safety.</p><p>When choosing a BNB wallet, ensure it supports the Binance Chain mainnet and offers backup options for recovery. Evaluate accessibility, security features, backup options and costs to find the right fit based on your needs.</p><p>For more guidance, check out <a href="https://btcpers.com/binance-coin-wallets-and-optimal-storage-solutions-for-security-and-accessibility" rel="noopener noreferrer nofollow">Binance Coin wallets and optimal storage solutions for security and accessibility</a>.</p><h3 id="the-history-behind-binance-coin-creation-during-the-binance-exchange-founding">The History Behind Binance Coin Creation During the Binance Exchange Founding</h3><p>Finally, understanding the origins of Binance and BNB gives helpful context on its background and initial vision. Binance was founded in 2017 by Changpeng Zhao and team, launching an ICO shortly after for the BNB token.</p><p>The initial funding raised from BNB was key in building out the Binance exchange and ecosystem. BNB provided core utility even in the early stages of Binance by facilitating trades and discounted fees.</p><p>From humble beginnings, Binance and BNB have grown to become titanic forces in the crypto sphere. The expansion continues at a blistering pace alongside increasing BNB adoption. To learn more origins, check out <a href="https://btcpers.com/the-origins-of-binance-coin" rel="noopener noreferrer nofollow">the origins of Binance Coin</a>.</p><h2 id="header-0">Conclusion</h2><p>With a wide range of uses like discounted fees, coin burns, earnings potential, onboarding bonuses and more, BNB provides tangible utility and value to Binance users. As adoption grows, BNB stands to benefit greatly.</p><p>Hopefully this beginner's guide has provided a solid introduction to the key functions of BNB within the Binance ecosystem. As always, do your own research before investing and never invest more than you can afford to lose.</p><p>There's still so much more to explore with BNB and hundreds of other altcoins. We'll be covering more fundamental crypto topics and tutorials in future beginner's guides.</p>

The Best Crypto Tutorials for Mastering the Basics / Issue 6

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