How does Binance Coin work?

Binance Coin (BNB) is the native cryptocurrency of the Binance exchange.

It was created to facilitate transactions on the Binance platform and is used to pay for trading fees, listing fees, and other services. The Binance Coin is an ERC-20 token built on the Ethereum blockchain. It can be used to pay for goods and services on the Binance platform, as well as for other transactions such as withdrawals and deposits.

The coin can also be used to purchase other cryptocurrencies on the exchange. The Binance Coin has a total supply of 200 million tokens, with a circulating supply of approximately 170 million tokens. The remaining 30 million tokens are held by Binance itself and are used to fund future development projects.

The Binance Coin has a number of advantages over other cryptocurrencies, including lower transaction fees, faster transaction times, and increased liquidity. Additionally, holders of the coin receive discounts when using it to pay for trading fees on the exchange. This makes it an attractive option for traders who want to save money while trading on the platform.

In addition to its use as a payment method on the exchange, BNB can also be used in decentralized finance (DeFi) applications such as lending platforms and decentralized exchanges (DEXs). This allows users to access financial services without relying on centralized entities such as banks or governments.