Buy Binance Coin (BNB)
How do I buy BNB?
There are many ways to buy BNB in Somalia:
1. The best place is the Binance exchange. You can buy cryptocurrency with any other tokens, of which there are more than 440 on the exchange. To make a transaction, you need to have an account on the exchange, deposit the required amount and then create an order. Shopping can be done at most banks. To use fiat currency as a payment method, a complete identity verification process is required.
To find a suitable trading terminal with a specific token, you need to select BNB in your wallet, click the "Trade" button, and then go to the currency pair of interest. In the available trading field, you can create any orders within the established functions.
2. The second buying method if you are looking to invest in Binance Coin in Somalia is the Binance P2P platform, which can be used by verified clients of the exchange. In this case, you can pay for orders in fiat currency. In addition, filters allow you to filter only relevant listings, taking into account the buy and sell restrictions set for money and the specific payment method selected.
3. The third option is to buy and resell coins based on price movement (short-term strategy). The main rule of speculation is to buy cheaper and sell more expensive.
If you are looking to invest in Binance Coin and take advantage of leverage (by borrowing money from your broker) then CFDs are a great option. This is especially good for traders who don't have a lot of money to start with.
To start trading through the platform, you will need:
- register on the platform.
- make a deposit to your account.
You will also receive a nice bonus in the form of a demo account. On which you can test your strategies and earn more on a real account!
Binance Coin is Somalia
Binance Coin, or BNB, is a cryptocurrency created to keep the Binance exchange running and growing. The coin is based on the ERC20 standard, initially using Ethereum for operation, but in 2019 the company could prepare its blockchain and transfer the token to it.
How to use Binance Coin?
Before you buy Binance Coin, find out its uses.
BNB has the following applications:
- DEX, BC, BSC commission payment;
- Used as a utility token to operate within the Binance system;
- Payment for goods and services (offline and online);
- Participation in token sales;
- Booking hotel, airline tickets and other services through various services;
- Transfer of donations;
- They are providing liquidity.
The most common use is to pay trading fees on the Binance exchange. But the token's capabilities are not available in countries that have not approved the exchange or are generally against cryptocurrencies, such as Singapore.
By whom and when created
Programmer Changpeng Zhao created Binance Coin. BNB was launched in mid-2017 via an ICO. The sale allowed 100 million coins to be sold. The company earned USD 15 million from this ICO, which is a modest figure compared to Tron or Eos, which received several dozen times more. The invested funds were allocated for further promotion of the platform: 35% for promotion and advertising, while 15% was put in reserve.
Although 100 million tokens were sold at the ICO, the company already could sell all 200 million available coins. But it was decided on the following distribution:
- For the ICO - 50%.
- Reserve - 40%.
- To venture capital fund investors - 10%.
With the development of the exchange, it is planned to burn all 100 million tokens of the first wave. The issuance terms will stop the creation of new BNBs when 200 million coins go into circulation.
Today, the total number of coins is 170 million, which means that 30 million of the original 200 million have been burned. With that, the current capitalisation is more than USD 50 billion.
The value of one BNB at the first ICO was 0.1 USD. But the cryptocurrency is not a Stablecoin, so it has the ability and tendency to grow naturally. The first significant jump occurred in early 2018 when the token's value rose from USD 7.86 to USD 24.91 in 2 weeks.
The second jump was recorded at the beginning of 2021 when the price for 1 BNB soared from 44.28 USD to 136.95 USD in the same two weeks. Finally, the maximum value of the coin was recorded on May 3, 2021, when the exchange demanded USD 675.68 for one coin.
The reason for the second jump was the launch of the dApps Binance Smart Chain, which took place amid a general increase in the value of cryptocurrencies. As a result, the coin increased its value by more than 6,500 times its launch date.
Separately about BNB burning
Burning is one of the primary mechanisms for operating and maintaining demand for cryptocurrency. Some of the BNB stock is also destroyed. Otherwise, inflation would hurt the value of BNB. The ability to burn was introduced during the inception of WhitePaper. The book detailing how the system worked indicated that the exchange would set aside 20% of its revenue to buy back coins from users to be destroyed each quarter. This will reduce the number of BNBs to 100 million of the 200 million issued.
Each burnout had a positive impact on the value of the coin. This is visible in the graphs. The exceptions are the burns that occurred during the crisis, which affected all cryptocurrencies without exception. Also, new services and features added from Binance are directly affecting the value of tokens. Finally, the increase in the way BNB is used is another factor in increasing the price of coins and their burning.
How is it integrated into the Binance exchange?
A token is a natural tool with which any marketplace can accelerate its development process. That's what happened with Binance, which reached a ceiling at a certain point, causing them to issue their coin. Quite quickly, it yielded results. Today, the most popular pairs are traded exactly with BNB. It can also be used to reduce commissions and/or convert small balances into them without commission.
Binance Chain is a blockchain developed by Binance specifically for its own BNB token. While previously powered by Ethereum, the coin has become fully independent since early 2019. This development allowed the company to launch another project, Binance DEX, where BNB is used as a unique token. The move away from Ethereum allowed the coin to get rid of its tether to the ERC20 standard.
Disadvantages of Binance coin
- Applications are limited to one platform.
BNB token is used only within the Binance platform and has no other use outside of that platform. On other exchanges where the token is traded, it can only be bought, sold, stored in an account, transferred somewhere to another wallet - that is where the possibilities end.
For example, ether was once the first cryptocurrency to support smart contracts, which made ICOs possible in the first place. With other cryptocurrencies, it's the same story. They are all created with some unique features that are important to the cryptocurrency community and beyond.
BNB outside of the Binance platform, the cryptocurrency completely loses its uniqueness. This means that the fate of this coin is entirely dependent on the success of the Binance platform and the decisions made by its owners.
- A large number of tokens in developers' wallets.
During the ICO process, the Binance developers kept 40% of all BNB tokens. This fact provides a potential opportunity to manipulate the currency's price in various ways to the benefit of the company.
Forecast and outlook
If you want to buy Binance Coin, you will be interested in the cryptocurrency's outlook.
Initially, BNB was a standard cryptocurrency token required for discounts and other privileges. But with the development of new projects, the coin is becoming more independent. Today, it is the basis for the Binance ecosystem, including DEX, NFT, Defi, BSC, etc.
BNB is no longer a discount coupon but a full-fledged native coin for two blockchains. The number of uses for the token in the cryptosystem is why BNB will continue to rise in value.
Its expected value will increase, especially with the release and success of new projects from a company that implements its cryptocurrency into the system.
An additional positive factor is the quarterly burning of BNB. As a result, the number of tokens is reduced, which means that the value of each token increases in individuals.
Another essential factor to consider is liquidity. If you want to buy Binance Coin in Somalia, you cannot go past this factor.
Liquidity is the number of assets on the stock exchange and the frequency of transactions. It would help if you had a large flow of orders to find a quick response and execute the order at a competitive price. An exchanger with few orders does not perform well. Binance, on the other hand, has the most charges, which means it is a safe and competitive exchange platform. And Binance provides high liquidity not just for bitcoin and a couple of other leading coins, but for many different assets.
As a result, new coins often choose Binance over their competitors - for example, many coins from Asia are not available on Western exchanges. And that is another advantage of Binance and the reason for the site's rapid growth.
Binance's incredible growth over the past six months has a reason: it is a fast, low-cost and globally accessible exchange. Binance's growth has contributed to Binance Coin's price rise and judging by the exchange's efforts. This token could be an excellent long-term investment.
Never stop learning and counting the risks. Believe in your strength, and you will succeed!