BNB is a digital currency issued by Binance in 2017. The initially issued BNB is the ERC-20 token circulating on Ethereum Chain. After the Binance Chain was launched by Binance exchange in 2019, the ERC-20 BNB can be exchanged for BEP-2 BNB at the exchange rate of 1:1; In 2020, Binance launched the Binance Smart Chain (BSC) that operates in parallel with the Ethereum Chain. ERC-20 BNB can also exchange BEP-2 BNB on the basis of BEP-20 BNB.
How does Binance Smart Chain (BSC) Work?
Binance Smart Chain uses the PoSA (proof-of-stake consensus algorithm) consensus mechanism, which is a consensus mechanism between the proof of authority (PoA) consensus mechanism and the delegated proof of stake (DPoS) mechanism. The PoSA consensus mechanism has the advantages of fast block generation and low transaction handling fee. The consensus mechanism allows participants to become validators by staking a certain number of BNBs. The validators have the ability to create blocks and do not need to solve the computational problems in the PoW consensus mechanism. Validators take turns to generate blocks and get BNB as rewards. Every day, the network will re-elect. The validators need to continuously stake BNB to continue to be validators through election.
The PoSA consensus mechanism introduces the element of "stakes", so that the holders of stakes are qualified to become validators, and strengthens the degree of decentralization of the mechanism to ensure that the network has higher security and integrity.
What is Binance (BNB)?
Binance (BNB) is the native token of Binance Chain and Binance Smart Chain, with a total supply of 200 million. BNB can be used to pay the trading fees of Binance exchange, Binance DEX, Binance Chain and Binance Smart Chain, and can also be used in some on-line / physical stores, purchase goods, and book hotels and air tickets through specific websites.
Binance (BNB) Crypto Wallet
In addition to placing BNB in the Gate.io exchange to facilitate trading, BNB can also be placed in the crypto wallet.
Binance Chain Wallet is the official cryptocurrency wallet of Binance exchange. It can safely store BNBs and also access Binance Chain, Binance Smart Chain and Ethereum blockchain.
There are two schools of thought in determining the price of BNB.
By way of intrinsic value: This typically involves on-chain metrics, project metrics and financial metrics of BNB, collectively known as fundamental analysis. The law of supply and demand, tokenomics, use case, project roadmap as well as regulations and governance involved would affect the value of BNB from a long term perspective.
By way of price action: Primarily analyzed via candlestick chart patterns and technical indicators such as MACD, RSI and the bollinger bands, technical analysis forecasts the price of BNB on the basis that history tends to repeat itself. As the candlestick charts are a general representation of the emotion of the market, news announcements and community sentiment can be significant price action drivers for BNB as well.
HODLers tend to prefer the long term nature of fundamental analysis, whereas short term traders tend to rely on technical analysis more. In reality, both analyses may combine and create interesting scenarios for BNB and the cryptocurrency market as a whole.
2. What is the highest price of BNB in history?
BNB achieved the all-time high of $686.31 in 2021-05-10T07:24:17.097Z, and is currently trading at $212.86.
3. What is the lowest price of BNB in history?
In 2017-10-19T00:00:00.000Z, BNB reached the all-time low of $0.040.
4. Should I buy BNB now?
It is important to remember that BNB, like all other cryptocurrencies, are subject to extreme market conditions, legal policies, project team management and other unpredictable factors. As such, cryptocurrencies fluctuate greatly and it is important to manage your own risk level. Users are advised to do your own research when making investment decisions in the crypto market.