BNB, launched in 2017, migrated from the Ethereum blockchain to the native Binance Chain. Initially, it was a utility token, but later its uses cases were expanded to numerous activities, such as bookings, transaction fees, etc.
Many are curious about how to convert SHIB to BNB, as this trading pair is popular these days. But what if you want to sell Binance coins? Perhaps, the market situation seems right, or you want to move investments elsewhere. This guide focuses on BNB, its main features and criticism. Keep reading to learn whether selling BNB coins is a smart idea!
Distinctive Features of BNB
BNB gives many benefits to traders using the Binance exchange. You can pay transaction fees, settle payments for services and goods, join token sales, etc. But what are BNB’s advantages compared to other cryptocurrencies? Here are the token’s distinctive features that set it apart from the competition!
Binance coin uses an auto-burning mechanism to offer better predictability and transparency to the community. Burning occurs every three months, and experts consider it a deflationary procedure to maintain and grow token value over time. One-fifth of the total quarterly profits of Binance go into destroying BNB.
The latest burn occurred in April 2022. It was the 19th time BNB executed its auto-burn feature and destroyed 1.83 billion coins. Their value was approximately $772 million.
The record number of transactions on Binance is 1.4 million transactions per second. Even if the average is only a third of that number, it’s much more than other blockchain platforms. For example, Polygon can handle 65,000 TPS, and the number is much lower for Bitcoin and Ethereum. BNB’s capability to handle a large number of transactions makes it among the fastest on the market.
Experts consider BNB a fantastic utility token due to its versatility. Apart from serving to power the Binance exchange, here’s how you can use it:
- Finance. You can earn passive income by completing different tasks. It’s possible to take out loans and even trade stocks on some platforms.
- Payments. Purchasing online and ordering gift certificates is possible with BNB. In addition, you can use some platforms to pay and transfer funds to friends.
- Travel and entertainment. You can book hotels and flights, play games to earn BNB, and even purchase virtual land on Axie Infinity.
Now that we’re familiar with the main BNB features and positives, let’s discuss its drawbacks. Of course, no digital currency is perfect, which applies to Binance coin as well. Here’s a list of top problems BNB has been facing:
- Volatility. BNB has gone through rapid growth, only to face a sharp decline afterward. So it’s no surprise for BNB to gain over 100% but then lose 50% of its value. That’s not unique to BNB since most cryptocurrencies face that issue.
- Potential hacker attacks. Binance has been the target of multiple cyber-attacks over the years. A potential major theft could affect BNB, too.
- Dark web use. BNB isn’t alone since this is a general crypto problem. Due to the high level of anonymity and privacy, people use it on the dark web to purchase drugs, stolen items, weapons, etc.
- Regulations. The latest news indicates Binance won the dismissal of a lawsuit in the United States. However, potential regulation changes could still affect the platform and token.
Profitable BNB Exchange
If you firmly decide to get rid of BNB, you don’t have to sell it for cash. Instead, those who intend to remain crypto investors can trade it for another cryptocurrency. The token to acquire depends on multiple factors, such as the current rates and market trends.
Converting your BNB to MATIC might be a smart choice since Polygon is a scaling solution that resolves some Ethereum issues, such as transaction speeds. And ETH should soon get the Merge upgrade, a major network improvement. So, getting this currency on time can be a wise decision. And if you are looking for maximum stability, converting Binance Coins to USDT or USDC is the best choice. You can exchange those for USD later or keep the currency until you find another viable investment option.