When it comes to estimating the value of a token, uses cases are crucial. Honestly, I don't know any cryptocurrency that offers more use cases than $BNB. I believe that Binance Coin's numerous use cases are making it the most diversified asset itself.
In this post, let's check out the different use cases of the Binance Coin.
Binance Coin Usecases
Binance Coin already has lots of different use cases and Binance is coming up with new uses cases freqently to give its native exchange token an extra boost.
1. Reduced Trading Fees
When trading fees on Binance are paid using $BNB, users are entitled to a juicy 25% discount in trading fees. That is a pretty clean and simple use case that many Binance users are taking advantage of. In general, the trading fees are much lower than the trading fees on other exchanges like Coinbase Pro.
2. Binance DEX
While you enjoy reduced trading fees from holding $BNB on the Binance Centralized Exchange (CEX), you really need $BNB to trade on the Binance Decentralized Exchange (DEX) or on any other DEX that is built on the Binance Smart Chain like PancakeSwap or Biswap.
By the way, Trust Wallet`s inbuilt exchange is also Binance DEX.
3. Binance Account Tier
Users with account balances in BNB and 30 days accumulated trading volume above certain thresholds are given VIP tiers with additional fee discounts and perks.
4. Dust Conversion
Most cryptocurrency exchanges have a minimum trade requirement. This means that these smaller amounts are unable to be transacted. They are basically lost on most exchanges. On Binance, it is different.
Users of Binance can convert non-tradeable amounts of cryptocurrencies so-called token dust in their Binance account into $BNB. You can convert smaller balances with a valuation below 0.0012 $BTC to $BNB once every six hours. Simply go to your fiat and spot wallet, click on the button "Convert to $BNB" and say Goodbye to your token dust.
5. Binance Launchpad
The Binance Launchpad gives you the chance to participate in token sales with your $BNB. The formats of these token sales may change frequently but one thing is for sure: You always need a bunch of $BNB to participate in a token sale on the Binance Launchpad.
6. Binance Launchpool and $BNB Vault
Another cool use case of the Binance Coin is the Binance Launchpool which is issuing and launching new tokens. Do not mix it up with the Launchpad which works in a completely different way.
You can earn them by staking certain cryptocurrencies in the Binance Launchpool. You can always use your $BNB to farm these newly issued tokens on the Launchpool.
Right now, you can farm a new token called Anchor Protocol ($ANC) with $BUSD, $LUNA, and of course with $BNB. Usually, the APY is much higher than the current one for $ANC which is honestly the lowest APY that I have ever seen on the Binance Launchpool. I hope that the next projects will have a higher APY than the current one.
The $BNB Vault is a $BNB yield aggregator. Staking $BNB in the Vault means participating in Launchpool, Savings, Defi staking, and other projects and at the same time gaining rewards. When you deposit $BNB into the Vault, your rewards will be distributed the next day.
There are actually many different ways to generate passive income on Binance. If you like to know more about passive income opportunities on Binance, you might want to check out this post: Ways To Generate Passive Income On Binance - Earn Crypto While You Sleep
7. Binance Visa Card Cashback
Depending on your average monthly $BNB balance, you can also get cashback in $BNB for each purchase with your Binance Visa Card.
For example, if your $BNB monthly average balance is 5 $BNB, which is between 1 $BNB (Card Level 2) and 10 $BNB (Card Level 3), you are qualified for Card Level 2 and can receive 2% cashback in $BNB on all your purchases with the Binance Visa Card.
8. Binance Liquid Swap Rewards
When you use Binance Liquid Swaps you can get up to 50% of the swapping fee returned in $BNB when you swap specific tokens. The Swap Rewards are actually transaction fee rebates that are paid back in $BNB.
If you like to know more about Binance Liquid Swap, please check out one of my previous posts here: Binance Liquid Swap - Trading Crypto the Simple Way
9. Binance Smart Chain Native Token
In my opinion, the most important use case of $BNB is on the Binance Smart Chain.
Much like how Ethereum is necessary to pay for the fees on the Ethereum Blockchain, $BNB is needed to pay for the fees on the Binance Smart Chain.
Buying And Storing $BNB
If you want to buy some $BNB, then the best place to do it is Binance itself. If you are for some reason not registered on Binance yet, you may want to use my referral link with the code E3PGAJCE for signing up. When you use it, it will save you some trading fees each time you perform a trade on Binance. Don't forget about this possibility when you introduce a friend to cryptocurrency yourself as it will save both of you some money.
If you are looking for a wallet to store your $BNB, I recommend using Trust Wallet. Trust Wallet uses Binance DEX as their exchange provider and you can easily connect with the decentralized projects that are running on the Binance Smart Chain.
My Final Words
Binance Coin has numerous use cases and I believe that all these different use cases are making Binance Coin the most diversified asset itself.
If I forgot to mention a use case or if you think that there is an asset out there in the crypto space with more use cases than $BNB, please let me know in the comments below.
Considering the quarterly token burns, all the different use cases that $BNB already has plus new use cases that are introduced frequently by Binance, I am very optimistic about Binance Coin.
At the end of my post, I also like to remind you that my intention in this post is to raise your awareness of Binance Coin and its different use cases. My intention is not to replace your own research. However, my post really reflects my own opinion and I hope that I could provide you with some useful and interesting information.
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