Is Selling BNB Coins a Good Idea?
BNB, launched in 2017, migrated from the Ethereum blockchain to the native Binance Chain. Initially, it was a utility token, but later its uses cases were expanded to numerous activities, such as bookings, transaction fees, etc.
Many are curious about how to convert SHIB to BNB, as this trading pair is popular these days. But what if you want to sell Binance coins? Perhaps, the market situation seems right, or you want to move investments elsewhere. This guide focuses on BNB, its main features and criticism. Keep reading to learn whether selling BNB coins is a smart idea!
Distinctive Features of BNB
BNB gives many benefits to traders using the Binance exchange. You can pay transaction fees, settle payments for services and goods, join token sales, etc. But what are BNB’s advantages compared to other cryptocurrencies? Here are the token’s distinctive features that set it apart from the competition!
Binance coin uses an auto-burning mechanism to offer better predictability and transparency to the community. Burning occurs every three months, and experts consider it a deflationary procedure to maintain and grow token value over time. One-fifth of the total quarterly profits of Binance go into destroying BNB.
The latest burn occurred in April 2022. It was the 19th time BNB executed its auto-burn feature and destroyed 1.83 billion coins. Their value was approximately $772 million.
The record number of transactions on Binance is 1.4 million transactions per second. Even if the average is only a third of that number, it’s much more than other blockchain platforms. For example, Polygon can handle 65,000 TPS, and the number is much lower for Bitcoin and Ethereum. BNB’s capability to handle a large number of transactions makes it among the fastest on the market.
Experts consider BNB a fantastic utility token due to its versatility. Apart from serving to power the Binance exchange, here’s how you can use it:
- Finance. You can earn passive income by completing different tasks. It’s possible to take out loans and even trade stocks on some platforms.
- Payments. Purchasing online and ordering gift certificates is possible with BNB. In addition, you can use some platforms to pay and transfer funds to friends.
- Travel and entertainment. You can book hotels and flights, play games to earn BNB, and even purchase virtual land on Axie Infinity.
Now that we’re familiar with the main BNB features and positives, let’s discuss its drawbacks. Of course, no digital currency is perfect, which applies to Binance coin as well. Here’s a list of top problems BNB has been facing:
- Volatility. BNB has gone through rapid growth, only to face a sharp decline afterward. So it’s no surprise for BNB to gain over 100% but then lose 50% of its value. That’s not unique to BNB since most cryptocurrencies face that issue.
- Potential hacker attacks. Binance has been the target of multiple cyber-attacks over the years. A potential major theft could affect BNB, too.
- Dark web use. BNB isn’t alone since this is a general crypto problem. Due to the high level of anonymity and privacy, people use it on the dark web to purchase drugs, stolen items, weapons, etc.
- Regulations. The latest news indicates Binance won the dismissal of a lawsuit in the United States. However, potential regulation changes could still affect the platform and token.
Profitable BNB Exchange
If you firmly decide to get rid of BNB, you don’t have to sell it for cash. Instead, those who intend to remain crypto investors can trade it for another cryptocurrency. The token to acquire depends on multiple factors, such as the current rates and market trends.
Converting your BNB to MATIC might be a smart choice since Polygon is a scaling solution that resolves some Ethereum issues, such as transaction speeds. And ETH should soon get the Merge upgrade, a major network improvement. So, getting this currency on time can be a wise decision. And if you are looking for maximum stability, converting binance Coins to USDT or USDC is the best choice. You can exchange those for USD later or keep the currency until you find another viable investment option.
The past year-plus has seen a fresh explosion in cryptocurrencies. Companies are enabling payments via these digital assets or embracing the blockchain technology behind Bitcoin and others, creating a boon for some of the biggest cryptocurrencies.
It’s all part of what has become known as DeFi, or decentralized finance. Imagine peer-to-peer networks that offer financial transactions, rather than a single authority like a central bank.
In the 12 years since the first Bitcoin was digitally mined, the space has grown exponentially, with the total crypto market value topping out at an all-time peak near $2.5 trillion in early May (though it was last seen hovering closer to $1.5 trillion).
Along the way, a number of cryptocurrency projects have been developed. Some are centralized, some are not. Many involve community input on adopting new protocols. There are now an estimated 4,000 cryptocurrencies in existence.
Many of the biggest cryptocurrencies at present also look like reasonable, differentiated places for new investors in the space to get started. In many cases, these digital coins have already built proven ecosystems, which should improve their prospects of being excellent long-term investments. Just be aware that cryptocurrencies are rife with risk, so learning about their pitfalls is every bit as important as appreciating the upside.
Here are eight of the biggest cryptocurrencies that are worth watching right now. Not only can you learn what you need to know to potentially make an investment in each, but by understanding the key differences between these major crypto assets, you’ll be better able to identify opportunities in smaller coins, too.
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- Price: $36,151.84
- Market value: $678.7 billion
- One-year performance: 295%
- Organization: Decentralized
- Maximum supply: 21 million coins
The original cryptocurrency still reigns supreme. Using a digital ledger known as blockchain, Bitcoin (BTC) is stored in a decentralized network.
As an open-source cryptocurrency, anyone can take part. The digital asset is divisible up to 1/100,000,000th of a Bitcoin, also known as a “Satoshi,” after the pseudonym of Bitcoin’s reclusive founder, Satoshi Nakamoto.
Bitcoin is created using a proof-of-work (PoW) model, where miners solve mathematical equations and receive a digital coin as a reward. The PoW system is used to securely sequence the transaction history of Bitcoin on the blockchain.
Bitcoin’s most important feature is its hard cap. By design, only 21 million Bitcoin can ever be mined. The rate at which new Bitcoin can be mined is reduced every four years by 50% in a process known as halving, which last occurred in May 2020. Prior halvings have also led to increases in Bitcoin’s price (because, in theory, demand is the same, but supply has decreased).
This is why proponents of Bitcoin see it as the ultimate store of value. In a world where most things digital can be easily copied and shared, Bitcoin acts like “digital gold” for securely transferring wealth.
Michael Saylor, a Bitcoin proponent who led his company MicroStrategy (MSTR) to be one of the first publicly traded firms to hold the cryptocurrency as an asset on its balance sheet, told CNBC in February that he believes Bitcoin will continue to grow as it “subsumes” other store-of-value assets, like gold. Additionally, he thinks there’s a path for the digital asset to reach a $100 trillion market cap.
Bitcoin already is the biggest cryptocurrency out there, at well more than double the size as the next largest coin. Thanks to the rally in Bitcoin prices over the past year, it was the first digital coin to hit a $1 trillion market cap. And while its share of the overall market has started to decline thanks to the rise of other projects, Bitcoin remains the dominant player in the space.
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