Should I Buy Binance Coin (BNB) 2024? Top Pros and Cons
A lot has changed since Binance coin (BNB) was launched in the summer of 2017. In order to encourage its use, this coin offers rebates specifically designed for Binance's ecosystem. During the initial coin offering, every coin was premined at a price of $0.10 each.
Although the crypto winter of 2018 ravaged the altcoin markets, Binance coin continues to hold a lot of interest in 2023.
In response to a dramatic increase in BNB's price, demand for the cryptocurrency exploded. In January 2023, BNB reached an all-time high of $686.31.
A significant decline in the price of the coin has occurred since then, resulting from another crypto winter looming large. By January 2023, the value of BNB had plummeted to lows of $184.54 during the third quarter market crash.
In the weeks since, the token has gained some momentum, currently trading at $281.10.
As you can see, like with any cryptocurrency, the price of BNB has fluctuated over the years. But what is BNB? Is it a good investment, or should you pass on it and invest in other currencies? Let’s find out.
Start Investing in Binance Coin now With ByBit!What is Binance Coin (BNB)?
Bitcoin is a crypto asset like other digital assets on the market, as its value rises and falls as it is used and traded. BNB can be stored in compatible wallets off crypto exchanges and sent directly to others for payments.
Binance Coin was launched in July 2017 with an initial coin offering (ICO). During the ICO, Binance tokens were distributed among various participants, including angel investors and the Binance founding team.
The ICO raised almost half of Binance's funds, which were used for branding and marketing, while the remaining one-third was used to enhance the Binance platform.
As the native coin of the Binance chain, Binance Coin originally ran on the Ethereum blockchain using the ERC 20 standard. The maximum number of BNB tokens in circulation is 200 million. The ICO offered 10% of the BNB tokens to angel investors, 40% to the founding team, and 50% to the various participants.
Binance Coin Price Performance
| Binance Coin Price 1y Return | -22.33% |
| Binance Coin Price 1m Return | -1.09% |
Top 7 Reasons To Buy Binance Coin in 2024
1. Binance Coin May Be the New Ethereum
Like Ethereum, Binance Smart Chain (BSC) can host smart contracts in the developing world of DeFi, which can replace centralized authorities. BSC launched in September 2020, just over two years ago. Binance CEO CZ Zhao attributes the blockchain's rapid rise to its "low fees that attract more users and projects". Therefore, BSC is much cheaper and faster than the Ethereum network.
What is Ethereum (ETH)? Is it a Good Investment?2. The Price of BNB Has Corrected Significantly
Recently, the Binance Coin price has tripled in value, making it one of the hottest cryptocurrency assets. A massive drop in Binance Coin's (BNB) price has occurred in the past few years, despite people's high expectations. However, the BNB price corrected to $36.
3. Development of the NFT market and metaverses
Binance Coin is revolutionizing the NFT market and the metaverse. In January 2023, Binance launched its NFT marketplace. From gaming collections to NFT Metaverse items, Binance NFT has provided a platform for artists as well as top game developers. In response to user feedback, Binance launched its first-ever Initial Game Offering (IGO) to create a space for NFT gaming, as well as to step into the gaming metaverse.
Binance has also made it possible for developers to build projects in the metaverse. With regard to the metaverse, BNB Smart Chain has seen a great deal of development. From collectible card games like Top Goal to RPG-style universes like Cyber Dragon and Alien Worlds, there’s something for every type of developer and gamer. Additionally, there is a player-owned casino called decentral.games and a virtual reality project called SecondLive, which hosts events in the metaverse.
4. Multiple Use Cases
With BNB, Binance customers can reduce trading fees and earn interest. However, the Binance coin has other uses as well. In addition, it fuels the Binance Smart Chain, a programmable blockchain that runs smart contracts.
As an enormous tamper-proof ledger, a blockchain database records both transactions and information. A smart contract can be thought of as a piece of self-executing code on a blockchain.
This isn't a static ledger, but one you can program. This has led to the development of thousands of decentralized applications (dApps).
Blockchain's greatest strength is that it eliminates the middleman -- such as banks and governments. You can use smart contracts to take out a loan without involving a traditional lender, or to set up an insurance policy that pays out automatically.
5. Binance Burns Its Tokens
The quarterly token burn feature makes BNB unique among other cryptocurrencies. How does it work?
A striking aspect of the company's operations is that it spends 20% of its profits on buying back tokens, which it then burns to untraceable addresses. This mechanism helps BNB create a supply-demand gap, ultimately boosting its value.
Several exchanges, like Binance, burn their tokens periodically to reward holders as the value of BNB is expected to increase. By burning tokens, the price increases and additional benefits are available, including the ability to pay for services and goods online, as well as early access to some good and worthwhile IFOs. It’s even possible to pay for travel expenses and receive discounts on trading fees.
6. Low Trading Fees
You can reduce Binance's already-low trading fees by a full 50% by paying with Binance Coin (BNB). As a result, you'd only pay 5 cents on a $100 transaction instead of 10 cents.
When Binance launched its initial coin offering (ICO) of 100 million BNB tokens on July 21, 2017, it entered the market as an Ethereum (ERC-20) token. After moving to its own unique blockchain, Binance Chain, the total supply of BNB was limited to 200 million.
7. Binance Leads in Trading Volumes
Since BNB has additional utility on Binance's exchange, there needs to be a different methodology when accounting for the token's valuation.
Moreover, BNB stands out among its competitors by offering discounted trading fees, token sales launchpad opportunities, and exclusive staking opportunities.
Top 3 Reasons Not to Buy Binance Coin (BNB)
1. Binance Faces Regulatory Challenges
Its wide range of currencies and services have made Binance one of the world's largest exchanges.
However, it's important to note that Binance's UK affiliate was recently banned. Japanese authorities have warned that Binance is not authorized to operate there, and the exchange pulled out of Ontario, Canada, following a crackdown on other platforms.
There is a growing crackdown on cryptocurrency services around the world. It is feared that crypto can be used to launder money and hide criminal activities. A concern is also that retail investors will lose money if they use advanced trading tools that multiply the risks of what is already a risky investment.
Binance's growth will be hindered if other top cryptocurrency exchanges are granted licenses in jurisdictions where Binance isn’t recognized. This could have a negative impact on the confidence of consumers, especially if it affects their ability to deposit and withdraw traditional money.
2. Binance Doesn’t Have a Headquarters
Despite having over 2,000 employees and offices around the world, Binance does not have a home base. This is in line with the company's ethos that crypto should be borderless. According to Binance CEO Zhao, cryptocurrency organizations don’t need to have a physical office or bank account.
However, a registered company is required for regulatory purposes in countries like the U.S. Binance attempted to set up a registered company in the U.K., but withdrew the application.
Binance's lack of a headquarters reflects its approach to regulation in some ways. The company aims to adhere to the founding principles of Bitcoin, which are decentralized and open. However, it must compromise in order to continue to function and be accessible to the masses.
3. Binance Is Centralized
Despite being much cheaper and faster than Ethereum, BSC has one significant vulnerability that's preventing institutional finance from investing long-term in it. It is a heavily centralized blockchain. Only 21 validators make up the Binance network, whereas over 11,000 validators make up the Ethereum network. Therefore, BSC is regarded as less robust and susceptible to manipulation. Despite its speed and low cost, the centralized nature of the BSC has raised trust concerns.
10 Best Decentralized Crypto Exchanges in 2024Top 5 Tips for Buying Binance Coin
1. Accumulate position gradually at different price levels.
2. Use technical analysis to identify key levels on the chart to increase positions and wait for them.
3. Do not invest more than you can afford to risk, do not use credit funds. You need to remember about the high volatility of this cryptocurrency.
4. Use staking as a smart long-term investment.
5. Make Binance Coin part of a wider investment portfolio of cryptocurrencies, stocks and other assets, do not put all your eggs in one basket.
Where to Buy BNB?
When To Buy Binance Coin? Binance Coin Price Analysis
Binance Coin price prediction by TU is prepared automatically on the basis of technical analysis of moving averages and indicators for each timeframe (interval) separately. Select the timeframe you need to find out Binance Coin price prediction for today.
NOTE!
Signals may differ on different timeframes. If you want to buy BNB and hold the cryptocurrency for longer than one week, it is best to use the signals on daily and weekly timeframes. Timeframes from 5 minutes to 1 hour are best suitable for short-term transactions.
How High Can Binance Coin Go in 2024, 2025, 2030
We’ve compiled Binance Coin long term price predictions, they can be useful, but it is worth remembering that the predictions are often inaccurate.
Binance Coin Price Prediction 2024
We also reviewed the forecasts by Trading Beast, an analytical portal. According to their forecast, BNB price can reach a range of $229.939 – $338.146 by the end of 2023.
| Month | Minimum Price | Maximum Price | Average Price | Change |
|---|---|---|---|---|
| October 2023 | $229.914 | $338.109 | $270.487 | -1.24 % |
| November 2023 | $229.967 | $338.187 | $270.550 | -1.22 % |
| December 2023 | $229.939 | $338.146 | $270.517 | -1.23 % |
Binance Coin price Prediction - 2025, 2030, 2033
Coin Price Forecast provides a long-term Binance coin (BNB) coin price prediction for the period from 2023 until 2033.
| Year | Price in the middle of the year | Price at the end of the year | Average growth, % per year |
|---|---|---|---|
| 2023 | $219 | $312 | +14% |
| 2023 | $276 | $293 | +7% |
| 2024 | $333 | $366 | +34% |
| 2025 | $421 | $475 | +74% |
| 2026 | $446 | $491 | +80% |
| 2027 | $535 | $579 | +112% |
| 2028 | $622 | $665 | +144% |
| 2029 | $708 | $750 | +175% |
| 2030 | $792 | $834 | +206% |
| 2031 | $828 | $867 | +218% |
| 2032 | $901 | $940 | +244% |
| 2033 | $978 | $1,016 | +272% |
| 2034 | $1,054 | $1,054 | +286% |
Should I Invest in Binance Coin (BNB) Right Now? Conclusion
Long-term, BNB is a profitable investment. As a result of initiatives such as auto-burn, a multitude of projects, and an increased prominence, we might see results. Some predictions for the price of BNB are highly bullish, which could mean a bright future for one of the most popular cryptocurrencies on the market.
The algorithms used in Binance coin prediction can, of course, be incorrect. Never forget that cryptocurrencies are highly volatile assets, and that past performance doesn't guarantee future results.
Your investment decision should be based on how comfortable you are losing money, your knowledge of this market, and the spread of your portfolio. Predictions for BNB coins are based on historical data and do not reflect all market conditions. And as always, invest only what you can afford to lose.
FAQs
How does Binance Coin work?
Binance Coin (BNB) is the native cryptocurrency in the Binance blockchain. Generally, it is used to pay transaction fees and trading commissions. There is no mining for BNB: The entire supply was premined before an ICO with a $0.10 price.
Is Binance Coin limited?
In BNB's tokenomics, coin burns are a key part of promoting deflation and maintaining the market value of BNB. The current circulating supply of coins is 161.3 million (81% of the maximum supply).
Is Binance Coin (BNB) centralized or decentralized?
The Binance Coin (BNB) is the native cryptocurrency of Binance, a centralized exchange. They've also launched Binance Smart Chain, a decentralized platform.
Is Binance coin a good investment right now?
Currently, Binance Coin seems to be outperforming most cryptos in the space as most have not approached their previous sell-off highs.
Team that worked on the article
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Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.