In the world of blockchain technology, each coin has a unique set of characteristics and is often suitable for different financial tasks. One has high liquidity and becomes an ideal tool for day-to-day trading. Another is suitable for investing for the long term. The third is profitable to use for supplying liquidity. Today, favorable terms for exchange are available at the bnb to matic page.
Briefly about the Binance ecosystem
The first product under the Binance brand is the cryptocurrency exchange of the same name, which has been operating since 2017. The founder of the exchange was an entrepreneur with Chinese roots, Changpeng Zhao. The company is registered in Malta.
In 2021, Binance expanded into an entire ecosystem of multiple services. It includes the Binance launchpad token launch platform, the Binance DEX decentralized exchange, and more.
Moreover, the company has already developed two blockchains. In each of them, BNB is used to pay the network’s fees:
The Binance Chain is the first blockchain that was created just to serve the Binance DEX exchange. It uses BNBs of the BEP-2 standard.
Binance Smart Chain (BSC) is the second blockchain of the company, which adds support for the operation of smart contracts and decentralized applications. It uses BNB of the BEP-20 standard.
About the BNB cryptocurrency
BNB is a token of the Binance ecosystem that is used in all of its services. Token holders use them in several ways:
- Paying trading commissions on the Binance exchange This is one method of paying commissions on the platform.
- Pay transaction fees on the Binance Chain and Binance Smart Chain blockchains. There is no other way to conduct transactions on them.
- Use it as an investment tool for trading on cryptocurrency exchanges.
- They are used to earn money through Binance services. We will write about this in more detail below.
The creators of Binance released BNB during the ICO, which they conducted to raise funds for the development of the exchange in 2017. A total of 200 million BNBs were issued.
Binance originally issued the coin on the Ethereum network and used the ERC-20 token standard. In the spring of 2019, the company exchanged ERC-20 BNB for BEP-2 BNB at a 1:1 ratio. This happened at the launch of the Binance Chain core network, the company’s first blockchain. After that, BNB stopped being placed on Ethereum.
How to earn from BNB
BNB owners can receive airdrops from Binance and participate in the company’s token sales. Coins can be used to pay trading commissions on Binance and during token sales.
On the Binance Launchpool platform, BNB owners earn tokens from other projects. The service creates pools for new tokens, and users supply them with liquidity in the form of BNB. As a result, liquidity providers earn a percentage return in the form of new tokens just entering the market.
It is also possible to invest coins in Binance DeFi Staking. This service uses user funds for stakes in various DeFi applications. This way, you can save on transaction fees. Binance sends coins to multiple people in a single transaction. But the company is not responsible for possible problems in smart contracts in DeFi-projects. Therefore, this method is riskier.
Binance DeFi Stacking Interface
Another service for earning BNB is Binance Savings. In it, users create a savings account in the cryptocurrency. The BNB owner sends their assets to the service for safekeeping in exchange for a yield interest, and the service lends them to margin traders.
At a favorable rate, the cryptocurrency BNB is available on the platform aggregator – Alligat0r. BNB is the coin of the Binance ecosystem, which was the third most capitalized in 2021. The company has also developed the BNB Vault. This is a special tool that allows you to automatically allocate assets between different projects.