Binance coin, or BNB, is the native cryptocurrency of Binance. It serves as a core element in the platform’s ecosystem and has various applications accessible to customers. In this article, we will look at some of the features of the Binance coin and show you seven different ways in which you can use it to your benefit.
1. You can pay your trading fees with it and receive significant reductions
BNB is an advanced utility token designed to widen the functionality of Binance and provide customers with an easy-to-use payment method for any expenses on the platform. Before we dive deeper into its various usages, we will first discuss the fee reductions you can receive using the coin.
Executing transactions through the exchange comes with a flat 0.1% fee (for spot trading), which could be substantial when trading larger cryptocurrency volumes. Paying with BNB allows you to receive a 25% reduction on spot trading and margin trading fees (up to 50% for new users and VIP accounts) and 10% on futures trading fees. Another advantage is that you can use an automatic payment feature, which will charge from the BNB you currently hold without manually setting up the process.
2. You can earn more when you refer new users to the platform
Binance coin is well integrated into another very prominent feature of Binance’s platform – its Referral program. If you have friends who want to start using the exchange, you can generate a referral link or a QR code and send it to them. After they register through it, you will be rewarded each time they complete a trade.
Currently, Binance offers a 20% commission every time your friends make a trade on the platform. It can go up to 40% in case you hold enough BNB. Binance’s advanced network will potentially allow you to receive the commission in real-time with no significant delays.
3. You can stake your BNB and receive interest
Binance coin uses a Proof-of-Stake consensus protocol, which means that BNB transactions are validated through staking it on the platform. BNB holders can generate additional income by depositing their assets for a fixed period of time (15, 30, 50, or 90 days). Depending on the lock-up period and the amount you have chosen, you might receive potential returns of anywhere between 5-11% annually.
As staking your BNB requires putting it into an outside wallet, the exchange has integrated a specific yield aggregator, which can provide you with additional benefits. The so-called ‘BNB Vault’ allows you to stake your crypto in one click while potentially earning rewards from their Flexible Savings products and gaining new Launchpool tokens.
4. You can use it to trade other cryptocurrencies
In the ‘Advanced trading’ section, the exchange allows you to put market orders to convert BNB into many other cryptocurrencies, including Bitcoin, Ethereum, USDT, and others. Instead of withdrawing your assets and repurchasing your preferred cryptocurrency with it, Binance allows you to use your current BNB holdings and directly convert them without any fees. The feature is completely automated and will not require you to take any additional actions. For accounts with no KYC verification, the OTC (‘Over-the-counter’) daily trading limit is set to 2 BTC.
5. You can pay for goods and services
One of the most prominent features of the Binance coin is the ability to use it to pay for various goods and services, both inside and outside the platform. With the ‘Binance Visa Card’ you are able to spend your cryptocurrencies at more than 60 million merchants around the world by transferring assets from your spot wallet to your funding wallet. According to the exchange, the Binance Visa card does not charge any monthly or annual fees and provides up to 8% cashback on all eligible purchases made with it.
The Binance card is issued directly by the exchange (for a one-time cost of 15 USD) and serves as a payment alternative to traditional debit cards for shopping with cryptocurrencies. Currently, the card works only with Bitcoin, BUSD and BNB in more than 200 regions worldwide.
6. You can use it for exclusive token sales
You can also use Binance coin to access exclusive token sales on the Binance Launchpad. If you are not a fan of staking but still want to invest your BNB holdings, locking them up on the Launchpad will allow you to trade them for various not publicly offered tokens afterward. The participation process is the following:
- First, your average participation limit is determined by the average amount of BNB in your account over a set period of days.
- After that, you can commit and lock any amount of BNB (up to the pre-set limit) and receive launchpad tokens based on your allocation.
- Finally, a portion of the invested BNB will be traded for Launchpad tokens, and your coins and tokens will be automatically transferred to your spot wallet.
One important thing to note here is that you can keep your BNB in Launchpool or the BNB Vault and still have it counted towards your participation limit. The more BNB you hold or invest, the higher the limit will get, increasing the token allocation you will receive afterward.
7. You can loan it to other users
Binance has a loan feature, allowing users to either borrow or lend several cryptocurrencies, including Bitcoin, ETH, USDT, and Binance coin. If you have any spare BNB, you can always lend it to other users and receive hourly interest. Currently, the loan terms available are 7, 14, 30, 90, and 180 days. If you decide to lend your BNB for 7-30 days, your daily interest rate should average around 0,5%. For more extended periods of time (90-180 days), the interest rate is evaluated by the exchange at about 0,55%.
If you want to trade cryptocurrencies on Binance, holding BNB might be a reasonable decision. Binance coin allows you to receive huge fee reductions and various additional functionalities. Binance provides you with several ways to invest your BNB and accept returns in different forms and use it for shopping. You can stake your Binance coin and receive a potential APY of up to 11%. Moreover, you can loan it to other users or lock it up in the platform’s launchpad to trade it for exclusive launchpad tokens. As Binance and cryptocurrency usage continue to expand globally, we might see even more applications of BNB in the near future.
Nothing on this website should be perceived as financial, investment or trading advice. We urge you to do your own research prior to investing and we highly recommend that you consult a certified financial advisor.
Tell us what topic you’d like
Us to cover!
Our objective is to make the world of crypto more comprehensive to everyone out there