Cons and Pros of The Binance Coin

By Rushali Shome

There is no denying that the Binance exchange would make it to every list of the top cryptocurrency exchanges. Therefore, when they came up with their own crypto coin, hopes naturally ran rather high. The Binance coin, with the ticker symbol BNB. The said was launched in the middle of last year and the company determined a specific distribution policy with regard to these coins. 10% of the tokens went to the angel investors, 40% to the people who developed it and the remaining half went to the ones who contributed funds during the coin’s ICO was on. In this article, we discuss the various pros and cons of the Binance Coin.

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Pros of Binance Coin

Following are the factors that make the Binance coin worthy of our attention and a notable name in the crypto market.

1. BNB Derives From Binance Exchange’s Reputation:

The fact that the BNB coin was launched by an exchange that is a quite reliable one in the market adds an extra layer of credibility to the coin. In addition, the fact that Binance itself is such a popular exchange, helps to heighten popularity and drive greater adoption. Through the exchange, more people get to know about the coin itself.

2. High Speed of Transactions:

BNB processes transactions rather speedily as it is able to handle about 1.4 million of them per second. This makes the BNB coin a lightning fast alternative to Bitcoin and some of the older cryptocurrencies.

3. Binance Users Get Discounts With BNB Coins:

The company gives great discounts (of changing magnitudes) to those who trade on the same exchange with their native coin. This policy is to continue for the first four years of its launch, with diminishing rates of discount.

4. Low Transaction Fee:

The BNB coin users can enjoy an extremely affordable fee for transaction. At just 0.1% of the transaction amount, the fee is not very reasonable but also a very user-friendly one.

5. BNB Can Be Used To Pay For Binance Exchange Services:

If one is a BNB token holder alongside being the user of the Binance crypto exchange, then one can easily use it to pay for charges incurred while using the exchange’s services. That way, the charges are not deducted from a user’s trading balance.

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Cons of Binance Coin:

Naturally, the Binance coin has some drawbacks as well. Let’s see what they are:

1. Limited to The Binance Exchange:

The fact that BNB is limited to the Binance exchange and is also highly dependent on the exchange’s reputation and performance, can prove to be a major problem. This will stop the coin from taking flight on its own.

2. Binance’s Buyback Policy Can Reduce Prices:

Since the BNB developers plan to buy back a certain portion of the coins, its value is likely to diminish, leading to price crashes.

3. Impact of Chinese Regulatory Policies:

The BNB coin is based out of Shanghai, China. Now, we all know that there is hardly any love lost between China and cryptocurrencies in general. Hence the regulatory red eye in the coin’s home country can possibly hurt its prospects.

If you think the pros outweigh the cons, invest in some BNB coins right away and don’t forget to store them in one of the best cryptocurrency wallets of 2018.

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Rushali Shome

Rushali Shome is a history undergraduate with a keen interest in puns, politics and beyond. When not typing away furiously in the “Notes” section of her phone, she can be found trying to catch the eye of servers at restaurants or weddings for a second helping.

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