Binance Coin (BNB) is one of the most popular cryptocurrencies in the world, often referred to as the ‘fuel’ of the Binance ecosystem. With a large market capitalization and active trading volume, BNB has emerged as a significant player in the crypto space.
This comprehensive guide will provide you with a detailed overview of Binance Coin, including its history, defining features, such as its utility as a means of payment on the Binance exchange, and its various use cases within the broader blockchain ecosystem.
What is Binance Coin in NZ?
Binance Coin, also known as BNB, is a cryptocurrency that was created in July 2017 by the Binance cryptocurrency exchange. As the largest cryptocurrency exchange in the world, Binance has a significant presence in New Zealand and other countries around the globe.
Binance Coin is primarily used as a utility token within the Binance ecosystem, offering users various benefits such as reduced trading fees and increased withdrawal limits.
The History of Binance Coin
Binance Coin was create by Changpeng Zhao and initially launched through an Initial Coin Offering (ICO) in July 2017, with a total supply of 200 million tokens. During the ICO, 100 million tokens were sold to early investors at a price of $0.15 USD per token.
The remaining 100 million tokens were distributed to the Binance team and reserved for future use. The ICO for BNB was considered a success, as it sold out in just a few days.
In 2019, Binance launched Binance Chain, which is its own blockchain platform. BNB was migrated from the Ethereum to the Binance Chain, becoming the native token of the Binance ecosystem. This migration improved the speed and security of transactions.
As of 2023, Binance Coin remains one of the largest and most popular cryptocurrencies in the world, with a market capitalization in the billions of dollars ($86,121,412,625.46 NZD).
How does Binance Coin work in NZ?
Binance Smart Chain
Binance Smart Chain (BSC) is a blockchain platform that was launched by Binance in 2020. It was designed to offer an alternative to the Ethereum network, which was facing issues of high congestion and transaction fees during that time.
Binance Smart Chain is designed to be compatible with Ethereum, meaning that developers can use the same tools and programming languages to build decentralized applications (dApps) on both platforms. However, BSC is also faster and cheaper to use than Ethereum, making it an attractive option for developers and kiwis.
One of the key features of Binance Smart Chain is its support for smart contracts, which are self-executing programs that can automate various processes and transactions on the blockchain. This allows developers to create complex dApps that can handle a wide range of use cases, from finance and gaming to social media and NFTs.
Binance Coin Burning
Binance Coin burning is a process in which a certain number of Binance Coins are permanently removed from circulation, reducing the total supply of the cryptocurrency.
This process is typically carried out by Binance. The burning is carried out regularly as a way to maintain the value of the cryptocurrency and prevent inflation.
Every quarter, Binance burns a portion of its Binance Coin holdings, equivalent to 20% of its profits for that quarter. The process continues until a total of 100 million Binance Coins, which is half of the initial supply of the cryptocurrency, are burned.
Private Keys and Public Keys
Acting as your digital identity and signature, every cryptocurrency wallet is distinct by having its own unique public and private key – with each unique key pair being freshly generated whenever a new cryptocurrency wallet is created.
- Private Key: Private keys is the password to your crypto bank account, and it’s required to sign off outbound transactions from your wallet. Never share your private key with anyone, and the security of your wallet rides on how safely you store your private key.
- Public Key: BNB public keys are like your crypto bank account number – an address others can use to send you BNB. You can safely send your public key to anyone, knowing they can’t change or open your wallet, but rather use it to send you BNB.
How to Store Binance Coin Safely in NZ
When it comes to storing Binance Coin (BNB) safely in NZ, there are several options.
The most secure method is cold storage, which involves storing your Binance Coin offline in a hardware wallet. Popular hardware wallet options include Ledger and Trezor.
Another option is to store your BNB in a desktop or mobile wallet, which offers more convenience but can be less secure. Trust Wallet and MetaMask are great examples.
It is crucial to take precautions like backing up your wallet’s private keys and seed phrases.
Using Binance Coin in New Zealand
Trading fee discounts: Binance Coin is primarily used on the Binance exchange to offer users discounts on trading fees. By holding Binance Coin in their account, users can receive up to a 25% discount on their trading fees.
Staking: BNB can also be used for staking on the Binance Smart Chain. Kiwis can stake their Binance Coin to earn rewards and participate in the governance of the network.
Decentralized applications (dApps): Binance Coin is used as a means of exchange and governance token for certain decentralized applications on the Binance Smart Chain.
Payment method: Some merchants and businesses accept Binance Coin as a form of payment, providing users with an additional way to use their cryptocurrency.
Binance Coin Communities in New Zealand
New Zealand boasts a thriving community of Binance Coin and crypto enthusiasts, many of whom gather on popular social platforms like Facebook, Telegram, Reddit and Discord.
These online communities are an excellent source of information for locals.
Check out our comprehensive list of BNB and Crypto communities in New Zealand:
- Cryptocurrency NZ Facebook Group – (Highly recommend)
- Cryptocurrency NZ Monthly Meetups – (Last Wednesday of every month)
- Cryptocurrency NZ Discord Group
- NZ P2P Crypto Marketplace – (NZ’s Largest Cryptocurrency P2P marketplace)
Have a community for us to list? Please reach out to us!
How can I Buy Binance Coin in NZ?
To Buy Binance Coin or any other cryptocurrency in New Zealand, you can use one of the NZ BNB platforms listed below. You can buy BNB in minutes depending on the platform.
Cryptocurrency exchanges: Online platforms that allow you to buy and sell Binance Coin using New Zealand dollars or other cryptocurrencies.
Peer-to-peer Crypto marketplaces: Platforms that connect buyers and sellers directly, allowing for more flexibility in payment methods. (Such as NZ’s own P2P marketplace)
Crypto ATMs: Machines that allow you to buy BNB using cash or credit/debit cards.
Brokers: Brokers refers to a business or individual who accepts Binance Coin.
Crypto debit cards: Crypto cards that allow you to spend your BNB at merchants that accept debit card payments without converting to New Zealand dollars first.
Is Binance Coin a Good Investment in NZ?
At Cryptocurrency NZ, we believe that BNB is more than just a utility token for Binance.
It offers a unique value proposition through its fast and low-cost transaction capabilities, making it an ideal cryptocurrency for trading and transferring funds. Additionally, Binance Coin’s use in staking and participating in decentralized applications (dApps) on the Binance Smart Chain provides further utility and potential for growth.