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ATFX charges no commission on Binance Coin CFDs trading, and no bank fees for deposits and withdrawals from your ATFX account, dramatically improving the bottom line for Binance Coin traders.
Trade Binance Coin CFDs 24 hours a day, five days a week with the ability to open and close positions as you see fit with ATFX, your preferred Binance Coin broker.
Trade the ups and downs of Binance Coin with our CFDs.
With ATFX you don’t own the actual cryptocurrency, but you still gain exposure to Binance Coin’s price changes, and you only need to have 50% of the position value as margin. This also means that any profits or losses will be magnified and it is important that you understand the risks involved.
Changpeng Zhao founded Binance in 2017 as a high throughput cryptocurrency exchange. Zhao was previously a developer who specialised in building high-frequency trading software. He founded Fusion Systems in 2005, which developed trading software for stockbrokers. His career includes leading tech roles at Blockchain.info and the defunct Chinese exchange OKCoin.
Binance raised funds via an Initial Coin Offering (ICO) held in July 2017. During this ICO, $15 million was raised by selling 100 million BNB coins. The company was initially based in China but had to move its headquarters elsewhere due to a sudden Chinese ban on crypto exchanges in 2017.
If you are searching for ‘how to buy Binance Coin?', you must first understand its fundamentals. The Binance Coin, also known as BNB Coin, was first launched as an ERC-20 token on Ethereum and acted as the utility token for the Binance Exchange. The early use cases of the Binance Coin included trading fee discounts and launchpad access. In addition, Binance also announced a quarterly buyback and burn mechanism. According to this, Binance uses 20% of its quarterly profits to buy back and burn BNB tokens.
In the following years, the Binance exchange kept adding to the utility of its cryptocurrency, including credit card payments, travel bookings and use as collateral for loans. In 2020, the Binance Smart Chain (BSC) was launched, and BNB migrated to this new chain, where it now acts as the chain’s native asset. All the gas fees on BSC are paid in BNB.
The Binance Smart Chain was launched in 2019 to facilitate cheap and fast transactions. The chain is hosted on the Binance Dex, allowing decentralised trading via one of the friendliest user interfaces (UI). However, the Binance Chain was not scalable for smart contract programming, and too many smart contracts could have congested the network. Therefore, the Binance Smart Chain (BSC) was launched in September 2020 as a custom-built blockchain for smart contracts.
The Binance Smart Chain boasts an almost 3-second block processing time by employing a Proof-of-Staked Authority consensus (PoSA) algorithm that runs parallel to the Binance Chain. Participants can stake BNB to become validators on its blockchain. In addition to having the smart contract functionality, BSC is also compatible with the Ethereum Virtual Machine (EVM). This allows all Ethereum dapps to migrate to BSC with little or no effort.
Binance Coin (BNB) is the native asset of the Binance ecosystem. Therefore, its prices are directly tied to the success of the Binance Exchange and the Binance Smart Chain. 'Is Binance Coin a good investment?', you may ask. First, you should know that the coin has already generated a 197,553% return since its ICO in July 2017.
Nevertheless, due to the ongoing slump in the crypto markets, the coin had fallen 43% in 2022. Still, if you're confident about the project's fundamentals and believe in its vision, the current downtrend could be an excellent long-term buying opportunity.
Binance is currently a giant in the crypto industry. It became the biggest crypto exchange within a few months of its launch and has retained the top spot. Nevertheless, the top exchange faces fierce competition from other market leaders like Coinbase. If we compare Binance vs Coinbase volume stats, Binance comes out at the top with six times more trading volume than its US counterpart.
Like most other cryptocurrencies, a direct correlation can be seen between the BNB Coin and Bitcoin prices. This fact became evident when the Bitcoin price soared to record highs in 2017. The massive influx of retail investors into crypto pushed the BTC price above $20,000 in December 2017. Since most cryptocurrencies were paired against Bitcoin on exchanges, their prices also went ballistic. In January 2018, the Binance Coin price hit its then all-time high of $25.20, a whopping increase of 168 times from its ICO price of $0.15 in five short months.
The chart above shows the surge in BNB price at the end of 2017. However, as the Bitcoin price entered a bear market in 2018, the Binance Coin also fell rapidly and dipped to new lows of $5.50 in February 2018.
By February 2020, BNB was trading just above $26.90 just before the global financial markets crashed due to the pandemic-induced worldwide lockdowns. Binance Coin price also crashed in March 2020 and dipped to a low of $6.40, showing that the Binance Coin price was prone to global economic uncertainty just like other assets. In the 3rd quarter of 2020, the equities and traditional markets started booming again, and the BNB price followed suit.
In the fall of 2020, Bitcoin prices started soaring again as the FED kept injecting liquidity into the markets. As a result, BTC went above $20,000 in December and kept making new highs. In addition to the retail investors, many institutions also entered the crypto markets. Therefore, a significant amount of new capital was injected into the crypto markets, and crypto prices surged to record highs. During this time, investor interest in Binance Coin increased as the platform added many new features for its clients.
Binance coin price surged to its 2021 highs of $691.80 in May 2021, equivalent to a 10,709% price increase from its March 2020 lows. However, the price couldn’t stay above $500 for very long and faced intense selling pressure.
After topping out at $69,000, Bitcoin trading went into a downtrend again. The ongoing bearishness has forced the Binance Coin price into a downward spiral. The coin is now trading at $294, which translates into a 58% decrease from its May 2021 highs of $691.80. This correlation also suggests that any future Binance Coin price prediction depends on Bitcoin's price action.
The circulating supply of BNB coins plays a significant role in its price action. The Binance Coin initially had a maximum supply of 200,000,000 coins. However, due to a quarterly buyback scheme, 35,906,976 coins have been burned. As a result, the current circulating supply is only 164,093,023 coins.
If you are wondering where to buy Binance Coin, there are several ways through which you can gain exposure to its native asset, BNB. These include spot markets, futures contracts and CFDs. Spot Exchanges like Binance, FTX and Kucoin could be helpful if you have a long-term perspective. However, CFD trading could be a better option if you're a trader and just want exposure to the volatility of BNB's price action.
CFDs or contracts for difference allow you to increase your position size with very little capital through what is known as 'margin'. By trading CFDs, you don't own cryptocurrencies; instead, you speculate on the direction in which the underlying prices are heading. This makes these products ideal for investors with low initial capital. Another benefit of leveraged products like CFDs is that you don't have to hold or manage the assets on a blockchain.
The native asset of the Binance Smart Chain BNB is currently trading at $294. It is down 58% from its May 2021 all-time high of $691.80.
Binance Coin is the utility token of Binance Exchange, Binance Chain and Binance Smart Chain. It is powered by blockchain technology and can be used to pay gas fees and for several other privileges within the Binance ecosystem.
Binance Coin prices follow Bitcoin’s price action, just like most altcoins. However, it also depends on the adoption stats and the network activity. Major network upgrades and big news also affect its prices.
You can trade Binance Coin using a reliable CFDs broker like ATFX.com. You can also buy it from crypto exchanges like Binance, FTX, Kucoin, etc.
The best way to gain exposure to Binance Coin is by trading CFDs. This is because they allow you to hold a much bigger position with just a fraction of capital, known as 'margin'.
There are no minimum requirements. You can invest as low as $10 on most spot exchanges. You can increase your position size by trading CFDs as well.
Binance Coin was initially created as a utility token for the Binance Exchange. Later, the Binance Coin migrated to the Binance Smart Chain to allow for low cost and fast transactions for decentralised applications.