Binance Coin cryptocurrency guide advises where to buy and how to buy Binance Coin. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Binance Coin as well its status in the world of cryptocurrencies.
Binance Coin, Tuesday, 2018-08-14
- 1 What Is Binance Coin?
- 2 Beginner's Guide to Binance Coin
- 3 Where and How to Buy Binance Coin?
- 4 Binance Coin Markets
- 5 Where to Spend or Use Binance Coin?
- 6 How Does Binance Coin Work?
- 7 Binance Coin Regulation
- 8 Is Binance Coin Secure?
- 9 History of Binance Coin
- 10 Binance Coin Videos and Tutorials
- 11 See Also
What Is Binance Coin?
Binance Coin (BNB) is the digital currency on the Binance ecosystem. The asset is an ERC-20 token which means it is based on the Ethereum network. The cryptocurrency was created by Changpeng Zhao who wanted to make trading cryptocurrencies easier and faster. Since its establishment, the value has been growing progressively and attracted a lot of followers. The community appears convinced that the cryptocurrency is the next big thing that could replace Bitcoin. For investors, this is seen as a great opportunity to enjoy another rapid growth.
One of the most notable things about Binance Coin is its highly enthusiastic development team. Since inception, the cryptocurrency has weathered many battles including a very hostile administration and banning of ICOs (Initial Coin Offering) in China. Despite these challenges, Binance Coin has emerged stronger and more appealing. Now, the team is planning to move the coins to another blockchain. This will be a milestone for a cryptocurrency asset that the crypto community agrees could be the next Bitcoin.
Beginner's Guide to Binance Coin
Which is the best cryptocurrency to join and anticipate high ROI (Return On Investment)? This question rings in the minds of the cryptocurrency enthusiasts when they want to join the industry. One of the best ways to identify a good cryptocurrency is looking at its value growth over time.
One highly potential cryptocurrency in the market is Binance Coin. Since launching through ICO in July of 2017, the value grew progressively to reach more than $20 by January of 2018. Now, BNB has become the talk of the cryptocurrency community. To make your decision about BNB, it is important to carry a comprehensive analysis of its features and operations.
You need to get all the questions about Binance answered and doubts cleared. This is why this guide has been developed. It explores every concept used in the Binance Coin to help you make the right decision of joining the network or not. It looks at where to buy, how to buy, markets, profitability, transaction fees, and regulations.
The guide further explores the security, advantages & risks of using the network, taxes, history and other concepts of the Binance Coin. Welcome to read, enjoy, and get everything that you need to know about BNB in this guide.
Where and How to Buy Binance Coin?
When people decide to join the crypto world, the main thing at the back of their minds is rapid growth that will mimic that of Bitcoin after 2015. But this focus makes top cryptocurrencies such as Bitcoin to be less desirable because they are perceived to have hit or approaching the climax. Well, this is just one assumption. The next best alternative is going for newer and more promising cryptocurrencies. One of the best options out there is Binance Coin (BNB).
When BNB was launched in mid 2017, its value was about $0.1. By early February 2018, this value shot up by more than 15,000%. That is right. Think of a person who invested about $1000 USD when BNB coins were first released for sale. By early 2018, this investment would have grown by more than 15,000%. This indicates that the Binance coin has a lot of potential for growth. If you want to enjoy this growth, you need to know how to get the Binance Coin and purchase them. Here is the procedure.
- Acquire an appropriate cryptocurrency wallet. This is a digital location for holding your Binance coins after the purchase process is over.
- Identify an exchange that accepts cash or credit cards and buy an alternative cryptocurrency such as Bitcoin or Ethereum. You need to get it right at this point because Binance coins are rarely traded for fiat. If you opt to use the main exchange for Binance Coins, Binance, you can only be allowed to trade in cryptocurrencies. Some great exchanges to consider include Bancor Network, EtherDelta, and Coinbase, and CEX.io. If you already have Bitcoin or other altcoins, you should consider buying Binance Coins from Binance exchange.
- Remember that to buy cryptocurrencies from these exchanges, the first thing is getting a trading account. This means signing up for an account similar to that of forex trading. You will also need to verify the account using personal details such as date of birth and proof-of-address.
- Buy directly from people who already have the Binance Coin. After cryptocurrencies entered the market, a lot of developments have taken place. Now, the crypto community is organizing itself into clubs that help them understand the market and optimize profitability. One of these clubs is LocalBitcoins.com that also allows users to meet and agree on the terms of purchase. Note that even with direct sales, you will still need to have the right Binance Coin wallet.
Binance Coin Wallet
Every person who opts to join the cryptocurrency community should start with acquiring a digital wallet. A digital wallet or cryptocurrency wallet is the location that holds your Bitcoins or altcoins such as BNB. At this point it is important to demystify the term cryptocurrency wallet. While the accepted definition of a cryptocurrency wallet is the location that stores your crypto coins, the term is actually a misnomer.
The BNB coins, like other cryptocurrency assets, do not leave their Binance network. Because the coins only reside in the native network, it means that they cannot be shifted to the wallet. That is right. What the wallet stores are two types of digital codes; the private keys and public keys.
- 1) The private keys: These are special codes that point at the Binance Coins you have in the Binance network. As the name suggests, the keys are private and should never be shared.
- 2)The public keys. This is the address to your Binance account. This means that people who want to pay you in BNB are given the public keys.
The main Binance Coin wallets
Binance Coin is an Ethereum based token. Ethereum network allows other entities to issue their tokens and run them independent of the main platform. As an Ethereum based token, it means that only the wallets that are ERC-20 compatible can be used. Here are some of the best wallets to consider for storing Binance Coins.
- Trezor (hardware wallet)
- This is one of the leading cryptocurrency wallets in the market today. It is a finger sized and USB-connectible hardware that allows users to transact BNB and other digital assets. The wallet supports most ERC-20 tokens and other top assets in the market.
- It is designed with a unique LCD screen that allows you to follow the transactions with ease. Besides, it also comes with two physical buttons that the user must press for transactions to be initiated. This means that even if the wallet is hacked, it will still be impossible to empty the Binance Coins because the hacker does not have the Trezor.
- MetaMask (web-based wallet)
- This is a unique web-based plug-in that allows users to access their Binance Coin network to send or receive BNB. As a web-based application, it means that you do not need to download the entire BNB node to access and use it.
- When you activate the MetaMask in your device, it means that a new functionality is added to the browser. Therefore, you will have to permit it to read and write any web page on the browser in that specific device or computer. Though MetaMask was originally written for the Chrome browser, newer versions have recently been released allowing it to operate in others such as Firefox and Safari.
- MyEtherWallet (desktop wallet)
- This is a free and open-source client-side interface that allows Binance Coin holders to interact directly with their blockchain. As a desktop wallet, it means that you have to download and install on a device such as a computer. Unlike other types of wallets that help you manage the private keys, MyEtherWallet is different. MyEtherWallet puts the user in full control of their private and public keys.
- The moment you create an account on MyEtherWallet, it generates the private keys and public keys that must be stored securely. When you check or follow the details of transactions, it means that you are following the data on the blockchain. Therefore, it is very important that you keep the private keys securely, avoid sharing with third parties and keep the computer updated all the time. To stay safe on the MyEtherWallet interface, it is also important to avoid visiting high-risk sites.
Where to Buy Binance Coin with Credit Card?
When the term a cashless society is discussed in various forums, many people are hasty to associate it with the credit cards. However, this is incorrect. Because credit cards do not involve carrying cash does not mean they are synonymous to a cashless society. Indeed, the credit cards are a direct representation of hard cash you have in a bank or other financial service provider. If you have cash on the credit card, it is now possible to use the card to buy Binance Coins.
Because Binance, the main BNB native network, does not allow trading in fiat or credit cards, you need to start at a different exchange. Visit trading platforms such as Changelly, CEX.io or Coinbase to buy top coins such as Ethereum using a credit card. Then, exchange them for Binance Coins at Binance of your selected exchange.
Where to Buy Binance Coin with PayPal?
If you have funds in a PayPal account, there is no way to buy Binance Coins directly. PayPal is in the process of reviewing its network system to facilitate payment for cryptocurrencies in various networks. Initially, PayPal considered cryptocurrency networks to be competitors and, therefore, discouraged users from making payment to crypto networks. The best way to buy Binance Coin with cash in the PayPal is offloading cash to the credit card or your bank account. These two methods are accepted as means of payment in many markets.
How to Buy Binance Coin with Wire Transfer?
A bank is one facility that has won and held people’s trust for many years. Even as more people move towards cryptocurrencies, no one wants to operate without a bank account. People trust banks to hold their savings, process payments and even source financial advice. Now, you can also purchase crypto assets such as Binance Coins. Here is the procedure.
- i) Start by acquiring an appropriate cryptocurrency wallet.
- ii) Select a cryptocurrency exchange that trades other top cryptocurrencies such as Ethereum and Bitcoin. Great examples include Coinbase and Changelly.
- iii) Purchase Ethereum and Bitcoin equivalent on the selected exchange and pay with a wire transfer. Then, move the coins to your cryptocurrency wallet.
- iv) On the Binance exchange, create a trading account and move the cryptocurrencies you bought in step three.
- iv) Purchase BNB of choice and move them to your wallet. You can also start trading them on the exchange for other crypto assets.
Where to Sell and Trade Binance Coin?
If you have been in the Binance Network for some time and have some Binance coins, there are a number of ways of using them. You can hold them in your wallet and wait for the price to increase over time or use the coins for shopping in the stores that accept it for payment. However, many people opt to trade the Binance Coin for other crypto assets. Here is an account of where to sell and trade BNB coins.
The process of selling and trading BNB starts with acquiring an appropriate digital wallet. Make sure that the wallet is ERC-20 compliant. You must select an appropriate trading wallet that allows users to trade in multiple crypto assets. At this point, it is important that you appreciate that these trading platforms are governed by local laws. Some of the local laws, just like with forex trading, require users to create and verify their trading accounts.
After opening an account, you will be required to add information such as proof of location, date of birth and phone number. Note that these details may vary depending on the selected trading platform. The following are some helpful tips for selecting the best Binance Coin trading platform.
- Only go for the trading platform that lists many tradable assets. This means that you will always have a profitable option to go to if the present one becomes less preferable.
- The ideal trading platform should have a good administration that responds to clients issues to help them trade profitably.
- Consider the trading platform that has low trading charges. This will allow you to keep most of the profits as opposed to galloping them as trading fees.
- Go for the platform with an excellent reputation in the cryptocurrency industry. This should include a clean history with no hacking report.
- The best trading platform should have advanced analytics that assists traders to understand the market and trade like experts. Even new traders should be able to operate like pros.
Always remember that the trading platforms/ exchanges are the easiest point of attack for hackers. It is, therefore, important to take a special focus on the trading platform's security. The following are the top Binance Coin selling and trading platforms.
- i) Binance.
- ii) Bancor Network.
- iii) EtherDelta.
How Much Are the Transaction Fees of Binance Coin?
When people look at the cryptocurrency networks, they want to see lower transaction costs compared to what is offered by banks. On this front, Binance Coin has not disappointed. The average transaction fee at Binance Coin network is 0.1%. This means three things for the network and its users.
- The Binance coin network is one of the cheapest in the cryptocurrency industry. Note that you can enjoy even lower rates when trading in the Binance market.
- More people are likely to convert to Binance Coins when sending cash compared to other top networks.
- The cryptocurrency is likely to become a major payment network.
Binance Coin Markets
Binance Coin markets are the trading platforms that allow traders to exchange their digital assets. The cryptocurrency markets are driven by demand and supply. Binance development team aims to help the value of BNB remain high by reducing the supply. This will be achieved through buying back 100 million BNB and destroying them. Here are some of the main Binance Coin markets.
- Binance Exchange
- This is the native network and main market for the Binance Coin. The market was started in July of 2017 when the Binance Coin was launched. Between July and early 2018, Binance exchange experienced huge growth. This is attributed to its unique discount model provided traders use BNB for payment.
- Binance exchange is a crypto-to-crypto market that only allows transactions in cryptocurrencies. This implies that you cannot make payments or use fiat currencies on the platform. The model is believed to have been necessitated by the need to enhance anonymity and reduce the need for advanced verifications that come with using fiat currencies.
- The transaction fee at the Binance market is 0.1%. You will be required to pay this fee if you are paying with Bitcoin or other altcoins apart from BNB. If you pay with BNB, you get a huge discount of up to 50% in the first year after launch. The discount will continue halving every year until it hits zero by the fifth year.
- Binance is a great market because it provides users with many trading pairs and advanced analytics. This implies that you can always check for the most profitable pairs and follow the market trend to make a move at the tight time.
- Bancor Network
- Like Binance, Bancor Network is a cryptocurrency exchange that was launched in the summer of 2017. The main target of Bancor network was to help users trade ERC-20 tokens such as BNB and VEN. In addition to the exchange, Bancor Network also launched a token on the network that is called Bancor token.
- Unlike other exchanges, Bancor network allows trading without bidding and marketing taking. If you want to trade on the market, it simply generates a price based on what the specific asset is trading in other exchanges. Other advantages of using Bancor network include low latency risk and many supported tokens.
- The main disadvantage of using Bancor network is that it allows users to only trade with other cryptocurrencies. If you have cash or credit card, you will have to start from a different exchange that accepts them. Besides, trading in the exchange requires ample understanding of the Ethereum network.
- EtherDelta is a cryptocurrency exchange that is designed to help trading ERC-20 tokens. It runs on the Ethereum network and operates like a smart contract to help users manage trading, withdrawals, deposits, and integrating multiple wallets.
- Notably, EtherDelta is one crypto exchange that allows users to trade without creating trading accounts. Because it runs as a smart contract, you can start trading directly by integrating your BNB wallet with the exchange. Note that you cannot trade BNB when they are on the Binance network. You have to move them to the preferred wallet and then integrate into EtherDelta.
- The trading fee on the EtherDelta exchange is 0.03%. This fee goes to paying the exchange transaction and paying gas for every transaction. Gas is the fee that miners in the Ethereum network get for processing transactions. Note that you can opt to pay higher gas for the transaction to be completed faster.
Value of Binance Coin
The term cryptocurrency is at times confused with Bitcoin because of its high value and popularity. Many people with interest in a cryptocurrency such as Binance Coin want to know the value in the market. The value of any crypto asset is based on market demand and supply. Because Binance has indicated that it will buy back 100 million BNB, users should expect the value of the remaining coins to keep growing.
By early 2018 (around 12th January), the value of Binance Coin hit the highest mark of $24. This was a remarkable growth from $0.1 when the Binance Coin was released into the market. By then, the market capitalization also rose sharply to reach $2.3 billion. The value took a downward trend and hit $16 by 20th January of 2018. Despite this slump, the value was still remarkably high in 2018 compared to mid-2017.
Is It Profitable to Invest in Binance Coin?
What is the profitability of Binance Coin network? This is one question that keeps ringing in new investors minds. Binance Coin is one of the most profitable crypto assets out there. Between inception and early 2018, the value of Binance Coin shot up with a huge margin. Immediately after the Initial Coin offering (ICO) that was run in June and July of 2017, the value of Binance Coin was about $ 0.1.
The commitment of the development team, unique architecture, publicity, and new features helped to grow the coin value by more than 15,000% in January of 2018. If the value of Binance Coin continues with the same trend, it could rival other top networks including Bitcoin. Here are other indicators that Binance Coin is indeed one of the most profitable networks.
- It has elicited a lot of interest from the community.
- The experts in the crypto industry believe that it is the next big thing in the crypto industry.
- The cryptocurrency development team keeps working on new features such as the new blockchain. This means that both old and new users will always have something to look forward to.
- The Binance Coin development team has indicated it will only leave a small quantity of the native coins to maintain its value. Out of the 200 million BNB, 100 million will be bought back by the Binance team and then destroyed. The short supply of the remaining coins means that the demand will always be high and value will go up.
- The low transaction fee in the Binance Coin network is likely to keep more users joining and raising its value.
NOTE: While all the indicators point to the great future of the Binance Coin, it is important to point at the many challenges that lay on its way. The current fast growth in value and high profitability can only be maintained if Binance Coin manages to stay free from hacking and maintain a growing the community. It is also pegged to the nature of upcoming laws in the cryptocurrency industry. If the laws turn out to be harsh, the chances are that the profitability of Binance Coins and other cryptos could nose dive.
Where to Spend or Use Binance Coin?
One of the ways that you can use to gauge the acceptability of a crypto asset is reviewing its acceptance in conventional shopping places. In fact, all cryptocurrencies are in the race to be accepted as payments for products and services. On this, Binance Coin network lags behind. Though it is relatively new and still working on crafting partnerships with the main stores out there, there is no doubt that a lot needs to be done.
One of the places that accept BNB for payment is the Binance exchange. This is a trading platform that only allows crypto-crypto trading. If you have Binance Coins, you will enjoy special discounts for making payment in the network. You can use BNB to buy other assets in the Binance exchange, pay for new tokens, or pay the transaction charges.
NOTE: Like other cryptocurrencies, you should not feel left out because only Bitcoin or top altcoins are accepted as for payment. Rather, you can easily change BNB into the accepted cryptocurrency and complete the purchase.
Can Binance Coin Grow to Become a Major Payment Network?
Yes, Binance can easily grow into a major payment network. Many cryptocurrencies enter the market with three goals; providing a better platform compared to preceding networks, bypassing the centralized institutions in the finance industry, and offering a payment network. However, the third goal is never easy to implement. Many cryptocurrencies are struggling to get accepted as major payment networks. Despite this, Binance Coin network stands a better chance of becoming a major payment network because of the following;
- The network is attracting a lot of followers, and its value has been growing since inception.
- People are having a lot of trust in the network and prefer it because of the highly committed team, unique structure, and growing value.
- The transaction cost of using the Binance Coins to send transactions is very low compared to other networks such as Bitcoin.
- More corporate are developing an interest in it.
While it is indeed true that the Binance Coin network can become a major payment network, it is prudent that the development team works extra hard to make it a reality. A closer look at other cryptocurrencies such as Bitcoin, Ethereum, and Ripple reveals that they have made huge strides in getting accepted in conventional stores. Here are some useful things that could catapult Binance Coin into a major payment network.
- 1) Work towards building partnerships with payment organizations as opposed to appearing like threats to them.
- 2) Lower the transaction costs for traders using the network. One cryptocurrency offering such free transactions include Nano.
- 3) The cryptocurrency development team should look and work towards getting accepted as a means of payment by e-commerce based organizations.
How Does Binance Coin Work?
Binance Coin is an ERC20 token built and run on the Ethereum network. The tokens were designed for use in the Binance ecosystem especially the Binance exchange. Once you have the tokens, they can be used for paying fees in the Binance exchange. Though users are allowed to make payment in other cryptocurrencies of choice, the Binance team encourages them to pay with BNB to enjoy special rebates.
In the first year, people trading on the Binance exchange and paying with BNB enjoy 50% in discount. In the second year, this discount will go down to 25%. It will continue reducing by half until the 5th year when there will be no more discount.
You can also use Binance to send value. As a tradable asset in many markets, users can buy and send Binance without going through centralized organizations such as banks. Note that both the sender and receiver must be on the same network.
Does Binance Coin Use Blockchain Technology?
Binance Coin is based on the Ethereum network. This means that though it is an independent asset, it cannot operate independently of the Ethereum blockchain.
The transactions taking place in the Binance Coin network are captured in the Ethereum public ledger. This means that miners spread in the Ethereum network have to confirm the transactions. The Binance development team indicated that Binance Coin would be shifted to a new blockchain in early 2018.
Mining Binance Coin
Mining is the process of confirming transactions in a cryptocurrency network for a reward. In some networks such as Bitcoin, mining is used to release new coins into the network. In other cases such as the Ethereum network, the reward is done in the form of transaction fees. However, you cannot mine the Binance Coin. The processing of BNB token is done in the Ethereum network. This means that it is the miners spread in the Ethereum network who confirm the details and get paid GAS using transaction fees charged at BNB.
When the token was founded in July of 2017, a total of 200 million were released into the network. To motivate users in the network, Binance offers huge discounts to encourage users to make payment in BNB and use Binance market.
The Binance team has announced that it intends to buy back 100 million BNB from the market and destroy them. This means that only 100 million BNB will be left in existence. This is expected to help keep the value of BNB growing progressively.
What Are the Advantages of Binance Coin?
When people read about cryptocurrencies, the main thing that runs through their mind is about the ROI (Return On Investment) they will get. BNB, like other top cryptocurrencies, has demonstrated the capacity to grow progressively and give users high ROI. Between inception and early 2018, the value of Binance Coin had grown by more than 15,000%. If the trend continues, users can expect to reap even more from Binance Coin. Here are additional benefits to expect from this network.
- Ability to operate anonymously
- Binance Network is a cryptocurrency that allows users to operate anonymously. The user’s accounts and transaction details are encrypted to ensure that no third party can get access to your investment details in the network. This is a great improvement from the banking system where cashiers, management, and related financial authorities can easily access your details. At Binance Network, even the nodes that help to confirm the transactions can only confirm that a specific address has ample BNB but cannot know the details of individual transactions.
- The cheapest and fastest way to send cash
- If you want to send cash abroad using the banking networks, the cost is very high. However, crypto networks such as Binance Coin bypass profit-seeking institutions such as banks to help keep the cost of transactions low. Besides, the value transfer in these networks is effected immediately. All that you need is to have the right public keys or address of the target payee.
- The surest way to use and own the transaction network
- If you use the bank to save cash or send money, there is a tendency to feel passive. Once the transaction is completed, you feel dissociated with the organization. However, the Binance Coin network belongs to the users spread across the globe. This means that you do not simply send the cash and move away.
- Users have the freedom of using the network all the time
- Binance Coin network, like other crypto networks, allows people to use them any time of the day or night. There are no limitations. As far as you have ample coins to use and an appropriate wallet, you can trade, send, and receive BNB anytime of the day or night.
- BNB provides unique protection against third party seizures
- Today, a case court battle can easily haul its way to your doorsteps. Indeed, you do not even need to commit a criminal offense to get dragged into the courts. In such cases, it becomes very easy for the courts to freeze your bank accounts. However, investing and saving funds in Binance Coin allows you to stay without fearing of third-party seizures. Because the transactions are anonymous, no one can know, follow, or even freeze BNB in the network.
What Are the Risks of Binance Coin?
Since 2009 when Satoshi Nakamoto launched the first blockchain network, more cryptocurrencies have been entering the market and introducing new risks. Here are are the main risks that come with joining and using Binance Coin.
- The cryptocurrency network is relatively new
- To be sure that a cryptocurrency is stable and capable of weathering all the challenges on the way, simply check how long it has been in existence. Many people trust Bitcoin and Ethereum because the two networks have been in operation for many years. This means that their features and operations have been tested to the limit and proven to work. However, Binance Coin is very new. By early 2018, the cryptocurrency was about seven months old. Therefore, you cannot tell with certainty whether the new BNB features will work or not. For example, the development team plans to shift the tokens to a new blockchain early in 2018.
- It operates as an anonymous network
- Though working as an anonymous network is a great advantage for any cryptocurrency, it is also a huge disadvantage. Because all users are fully anonymous, it is very easy to get involved with criminals. For example, if a trader advertises counterfeit products and your buy using BNB; the transaction will have promoted criminal activities. It becomes worse to realize that such transactions cannot be reversed.
- The danger of looming regulation
- Almost every country in the globe feels threatened by the existence of cryptocurrencies such as Binance Coin. Most of them have reacted by banning crypto related activities while others have gone back to the drawing board to craft regulatory frameworks. The cryptocurrency community is living in fear of being slapped with very harsh laws. For example, Russia has already drafted a crypto law that targets to guide ICOs (Initial Coin Offerings) and exchanges.
- High volatility
- Cryptocurrencies such as Binance Coin are highly volatile. They respond to things happening in the finance sector with sudden rise or fall in value. For example, the banning of ICOs (Initial Coin Offering) by China in 2017 saw the value of most cryptocurrencies including BNB shift downwards. This means that you can never be sure of a steady BNB value growth.
- Entry of newer and more advanced cryptocurrencies
- Every cryptocurrency entering the market aims at introducing a newer and better type of technology. While this can be considered progressive, it dooms the preceding networks. This means that even Binance Coin network cannot sit pretty because newer networks will keep entering the market and appealing to more users. This could ultimately reduce pull down the value and trust that people have in the Binance Coin network.
What Happens if Binance Coin Gets Lost?
Joining the cryptocurrency world is an achievement. After acquiring tokens such as BNB, one can only wait to realize huge growth similar to that reported in top networks such as Bitcoin. However, it comes as shock when you wake up and realize that the tokens have been lost.
One thing that you must appreciate is that Binance Coins only resides in the native network. This means that in the event of a loss, the tokens will still be in the network. What happens when you lose BNB depends on the method of loss.
If you lose BNB tokens through hacking or sending to the wrong address, it implies that they have changed hands. The tokens are still in the network, but they have a new owner. The bitter thing about it is that they cannot be restored. Because the cryptocurrencies are not regulated, you cannot seek redress even from a court of law.
If the BNB coins were lost because the wallet got damaged or you forgot the private keys, it implies that they are still in the network but in a dormant state. You will have to get the right private keys and wallet to activate the coins.
Binance Coin Regulation
When cryptocurrencies debuted in 2009, one thing that came out very clearly was that governments were not pleased in any way about them. A new order was beckoning, and the administrations were not about to let go off without a fight. They felt threatened and vowed to do anything to keep cryptocurrencies in control. However, the view is shifting fast after the realization that the cryptocurrencies are not after all that bad.
In the United States, March 14th of 2018 will go down in history as the day when the Congress held a heated debate on cryptocurrencies. While the finance department was breathing fire and looking for global support to regulate cryptocurrencies, the senators saw it differently. Yes, they agreed that regulation was important, but cautioned against rushing the laws.
Rep. Tom Emmer (R-MN), while contributing in the Congressional debate pointed that the cryptocurrencies represented the very apex of the fintech sector. He continued to say that even though the regulations were long overdue, such efforts should only be implemented after thorough research. These efforts are evident across the globe as countries try to search for the best route to regulate cryptos.
What are the main concerns of governments about cryptocurrencies?
The efforts by many governments to slow down regulations point to a wounded animal. They feel that the cryptocurrencies are trying to usurp their powers and could ultimately win the war. In China, the country's administration has fought to limit the progress of cryptocurrencies at every level. The same trend is evident even in other countries such as such as Russia, Bolivia, and Hong Kong. However, what are the main concerns of these countries.
- The governments feel threatened because cryptocurrencies such as BNB are anonymous. This means that they are likely to be very attractive especially to criminals who want to hide their identities.
- Because of the hyped high returns, BNB and other cryptocurrencies are distorting the investment niches. Most people are opting for the higher paying cryptocurrencies as opposed to conventional avenues such as properties that take very long to give results.
- The anonymity in the cryptocurrencies architecture is encouraging a lot of people not to pay taxes. Many are those who feel that they are private enough and, therefore, unreachable by tax authorities.
- To many administrations, the cryptocurrencies often get them off guard. This means that the technologies are coming out faster that these governments can conceptualize and appropriately regulate.
These threats have made most administrations to focus on crafting regulations to halt cryptos’ advancement. While countries have taken long enough to come up with regulations, one thing that BNB investors should appreciate is that they will finally dawn. It is, therefore, crucial to be prepared for them and possible aftershocks.
Is Binance Coin Legal?
Binance Coin is legal in most countries because none of them has passed a legal framework to guide it. Even the countries that are openly anti cryptos such as China have only resorted to direct barring orders. To bring out the legal status of BNB in the globe, here is a closer look at individual states.
1) The European Union
- The EU does not have a specific legal framework for cryptocurrencies such as BNB. This means that the cryptocurrency is legal in the jurisdiction. It also implies that EU has left individual states to work on their own regulatory framework. Between 2011 and early 2018, the EU administration appeared undecided on which regulatory route to take.
- The EU Central bank cautioned people to be extra careful when investing in BNB and other cryptos because they are highly volatile. However, the EU parliament pointed that it will pass a regulatory framework to guide the use of cryptocurrencies. The legislative arm of the EU indicated that there are numerous benefits associated with cryptocurrencies that need to be spread go the entire commission.
- The parliament is reported to be contemplating of establishing a blockchain network that will help it understand how the entire technology works. The EU Central Bank released a strong statement early in February 2018 warning against regulating cryptocurrencies such BNB. The Central Bank is of the view that the regulation should target specific areas of application such as anonymity as opposed to limiting the growth of the technology.
2) South Korea
- South Korea, like other countries, has been evaluating the state of cryptocurrencies before taking a stand on their regulation. Notably, South Korea is one jurisdiction that has attracted large numbers of cryptocurrencies because of a pro-crypto population. At first, the jurisdiction was against any form of regulations on cryptocurrencies and only argued that they are not recognized as legal tenders.
- However, multiple hacking and massive thefts of crypto assets in South Korea based cryptocurrency exchanges have seen the country change the initial focus and indicate it will draw a cryptocurrency regulation. South Korea has indicated it will pass a law to ensure that all the crypto related activities including ICOs, development, and trading are regulated.
- Austria has joined the list of jurisdictions that have set their focus on regulating BNB and other cryptocurrencies. However, Austria’s focus is not on cryptos’ development or their many uses. Rather, it aims at regulating cryptocurrencies such as BNB to prevent fraud. Austria's finance minister indicated that blockchain technology has been gaining momentum and the government would not stand in the way. Rather, the administration would focus on preventing every effort that can raise the chances of fraud.
- He indicated that the law would focus on helping to build trust and enhance security in the niche over time. He pointed that the regulations will also target Initial Coin Offering (ICO) to reduce the danger of investors getting defrauded. Though the Austria administration did not indicate when the legislation will be coming, it is expected to come earlier than that by the EU.
- Russia is one country that has moved ahead to craft a cryptocurrency regulation. Like South Korea, Russia was initially non-committal on regulating cryptocurrencies until early in 2018. At the close of 2017, the finance ministry had indicated that it had identified a gap that made it impossible to tell whether cryptocurrencies were legal or not. The government further pointed those traders who accepted payment in cryptocurrencies such as BNB risked being found guilty of offenses.
- By the close of January 2018, the central bank and ministry of finance indicated that the draft law to regulate cryptocurrencies was ready. The new draft that is still at the bill stage targets to reduce the risk of fraud using cryptocurrencies. It also aims at streamlining trading of cryptocurrencies’ ICOs, exchanges, and application in the conventional market. Note that the main aim is not to ban cryptocurrencies. Rather, the government aims at helping to streamline their use and lower the risk of fraud.
- China is one country that has had no kind words to describe cryptocurrencies or their applications. While other countries have indicated the willingness to wait until appropriate laws are installed, China has decided to go for direct orders. After realizing the threats posed by cryptocurrencies, Chinese administration opted for direct orders to delimit their growth. It started with banning ICOs (Initial Coin Offering) and then went ahead to limiting crypto exchange operations. Despite these efforts, the BNB is still legal in China because there is no legal framework in the country.
Binance Coin and Taxes
Many BNB and other cryptocurrency traders rarely pay taxes. In the US, only less than 0.04% of tax filers reported cryptocurrency gains and losses to the IRS (Internal Revenue Service). But it is not just in the US where people rarely declare earnings from cryptocurrencies. Other countries such as China, South Korea, the UK, and Australia that have huge cryptocurrency population also reported low numbers of people who declare income from crypto trading.
Many people indicate that because cryptocurrencies are anonymous, they provide them ample cover to operate tax-free. This is a misconception. While cryptocurrencies such as BNB allow traders to operate anonymously, it is incorrect to assert that the situation will be permanent.
As technology advances over time, it will become easy to unmask even the private accounts. One case that is referenced in many situations is that of wannacry cybercriminals. In 2017, these criminals attacked institutions across Europe with a strain of malware called wannacry ransomware. Because Bitcoin was by then considered anonymous, the criminals insisted on getting paid with Bitcoin. Moments down the line, technology to uncover Bitcoin users was discovered. To avoid getting discovered, the criminals opted to hold their coins.
It is, therefore, crucial to appreciate that though BNB allows traders to operate anonymously, it is impossible to remain anonymous forever. At some point as technology advances, the chances are that you will be uncovered and many court battles are likely to come your way. But you need not walk away or risk by avoiding paying taxes. Rather, you can enjoy trading in cryptocurrencies and be compliant with all tax laws. Here is why you need to pay taxes when using or trading BNB tokens.
- Trading BNB or other cryptocurrencies generates capital gains that are taxable.
- If you receive payment in BNB for a product or service, it is treated as income at the fair market value at the time of receipt.
- If you want to spend BNB to make a purchase, this is considered a tax event.
- When you convert cryptocurrency to another cryptocurrency or even fiat at a gain, the revenue is a taxable event.
To remain tax compliant in the cryptocurrency industry, it is advisable to make sure that revenue is considered taxable. Then, the transaction details should be captured well including the quantity and corresponding value in fiat. Note that you can capture the details without revealing which cryptocurrency you are operating in. This means that your privacy in the BNB cryptocurrency network will not be compromised.
Does Binance Coin Have a Consumer Protection?
Binance Coin does not have consumer protection. Like other cryptocurrencies, Binance Coin is a decentralized application that is owned by nodes and users spread in the network. When the founder released the tokens, he ceded ownership of the assets. What this means is that you are on your own when operating in the Binance Coin network. If you make a mistake and send BNB Coins to the wrong address or the account gets hacked, and coins drained off, there is no single entity that is responsible for the loss. You cannot complain to Binance Coin or go to a court of law because the cryptocurrencies lack a binding legal framework.
Now that you appreciate that there is no consumer protection, it implies that you have to take a personal initiative to stay safe when operating in the network. Here are some helpful tips that can assist you to stay safe in the Binance Coin network.
- Only use a single computer when accessing and transacting in the BNB network.
- Make sure that the Binance Coin client and the computer/ device being used to access the network are up-to-date.
- Only select the trading platform that is secure, and that has a great commitment to clients' security.
- Make sure to triple check every public address before sending payment. This lowers the risk of sending cash to the wrong persons.
- Carefully store all the BNB in cold storage to reduce the risk of attack.
Illegal Activities with Binance Coin
Many anonymous cryptocurrencies in the globe are seen as a simple target by cybercriminals. Because the transactions are private, most criminals believe that they can conduct illegal activities and get away without getting noticed. Despite this fact, no illegal activity has been reported within the Binance Coin network. This can be attributed to multiple layers of security on both Ethereum and Binance system.
Is Binance Coin Secure?
Every time that reports of a hacked network hit the news, many people in other networks cannot help but wonder how safe they are. Binance Coin is one of the safest networks on the market today. Since inception, no case of successful hacking has been reported in its system. The high security on the network can be attributed to three main factors;
- 1) The cryptocurrency is based on the Ethereum network. This means that hackers can only gain entry into the Binance Coin network if they succeed penetrating the Ethereum network.
- 2) The Binance team is highly focused on guaranteeing users of extra security. This team, led by Changpeng Zhao, has been highly proactive in identifying security gaps and sealing them before attacks happen.
- 3) The development team has been working with other tech and security firms that help to identify and address key vulnerabilities before they strike.
Is Binance Coin Anonymous?
Binance Coin is an anonymous token based on the Ethereum platform. This means that all accounts and their details are fully encrypted to reduce the chances of your details getting revealed. This implies that when you make transactions, only the amount in the public address of the wallet can be revealed. However, no one can know the private keys or details of the account holder.
Has Binance Coin Ever Been Hacked?
Binance Coin has never been hacked. Hacking is used by the cryptocurrency community as a litmus test of preparedness and effectiveness of installed security systems in a crypto network. At Binance Coin network, no hacking attempt has been successful since inception.
Remember that this does not indicate that the network is not targeted. A lot of hacking attempts are made every month, but none of them was successful by early 2018. To stay safe when operating in the Binance Coin network, it is advisable to take great caution by avoiding visiting high-risk sites and selecting cryptocurrency exchanges with caution.
How Can I Restore Binance Coin?
If you have lost BNB tokens, there is a possibility that they can be restored. However, the ability to restore the coins is dependent on two things; the method of loss and preparedness.
If you lost BNB by forgetting the private keys, it means that the BNB can be restored. You have to remember the private keys or regenerate them using the private keys seed phrase. This is a phrase that is generated by many wallets the first time that they are used.
For those who lost their BNB through damage of their wallets, it is advisable to consider using a backup. After acquiring a desktop or mobile wallet, it is a great idea to consider backing it up. You can store on a home computer or in the cloud. The restoration involves activating the backup with the private keys and synching the wallet with the entire BNB network.
Note: If you lost the Binance coins through hacking or sending to the wrong address, they cannot be restored. You can only buy new ones from the market.
Why Do People Trust Binance Coin?
Starting from 2009 when cryptocurrencies entered the finance sector, a lot of new crypto assets have joined the market. Over 1500 cryptocurrencies had been launched by early 2018. This implies that the cryptocurrencies are in stiff competition to win the investors and traders’ trust. Here are the things that have made Binance Coin to win the trust of its large community.
- The value of the network’s asset has been growing steadily
- Most people who come to crypto networks are interested in knowing whether their investment will grow or not. The growth reported in the Binance Coin network between launch and early 2018 was impressive. With growth hitting more than 15,000% at some point, users are sure of reaping huge profits. With the growth of the native coin value on an upward trend, no one wants to be left behind.
- It is led by a very enthusiastic team
- A cryptocurrency network is as good as the team leading it. The crypto community has developed a lot of trust in the network because it is led by a highly qualified and enthusiastic team. Starting with the founder, Changpeng Zhao, the entire Binance Coin team has huge experience in both crypto finance and international finance. The members also have track records of successful startups.
- The community has been growing steadily
- To know the strength and success to anticipate in a cryptocurrency network, simply look at the movement of its community. Because of its fast-growing value and interest from corporates, the community around Binance Coin has been growing rapidly. This is an indicator that more people have trust in it and it is likely to continue growing over time.
- Crypto experts are referring to it as the next big thing
- A closer look at top networks in the crypto industry reveals they have either reached the climax or are approaching there. In early 2018, Bitcoin value started a backward trend that made many people think that it had reached a climax by close of 2017. The immediate impact of people in the Bitcoin network is to offload and join other promising cryptocurrencies. Binance Coin has been a great beneficiary of this shift. This implies that people have trust in the network to grow and get huge returns.
- The Binance Coin is associated to a very successful crypto exchange, Binance
- Binance Coin is the main asset at the Binance Exchange. Because of the success that Binance exchange has demonstrated since its launch in mid-2017, many people believe that Binance Coin will also exhibit the same growth.
History of Binance Coin
Though the history of Binance starts way before it was launched, it becomes distinct from the moment the Binance team ran the ICO in July of 2017. After working closely with the BeijieTech team as their leader for many years, Changpeng Zhao indicated that Binance Coin was ready by mid-2017 and the ICO would run from 14th June of 2017 to 21st July of 2017. The ICO raised $15 million.
Immediately after launch, the value of BNB was $0.1. On November 30th, the value crossed the $2 mark before rising sharply until January 12th when it hit the highest ever point of $24. This growth made a lot of people to take note and jump in to take advantage of the fast-growing value.
The Binance team has indicated that it will be shifting to a new blockchain early in 2018. The new blockchain network is aimed at providing extra independence for BNB while it continues to serve as the main driving power for the main Binance exchange.
In early 2018, the Binance team indicated that the process of buying back BNB from the public was on. It intends to buy 100 million BNB from owners so that only 100 million will ever remain in the network.
Who Created Binance Coin?
Binance Coin was created by Changpeng Zhao who is also the CEO of BeijieTech. BeijieTech is a technology company that specializes in cloud-based exchange systems. Since 2015 when BeijieTech was founded, it has attracted over 30 exchanges that use its platform in Asia. When BNB ICO was completed, Zhao relinquished his position at BeijieTech to concentrate on Binance.
Notably, Zhao’s experience that drove him to ultimately create Binance started way back in 2005 when he co-founded the Fusion Systems. This was a company that facilitated ultra-low latency trading models for financial brokers.
Between 2005 and early 2018, Zhao had been involved with other companies including Credit Suisse, Deutsche Bank, and Goldman Sachs. Notably, there is no denying that BeijieTech team was greatly involved in the early development of the Binance Coin and Binance exchange. Some of the team members included Roger Wang, James Hofbauer, Paul Jankunas, Allan Yan, and Sunny Li.
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