Top 7 Reasons to Buy and Hold Binance BNB Coins
Here we are going to look at 7 of the best reasons why the Binance BNB coin is a great buy. The BNB coin is only available on the Binance exchange. Binance is the fastest growing cryptocurrency exchanges, and the BNB coin is also growing rapidly. Here are the top 7 reason you should think about using Binance and and buying the BNB coin.
1 - Avoid Multiple Tax Events
If you follow my videos, you'll know that I'm on the wrong side of the tax interpretation of this year. It was my understanding that when you trade between cryptocurrencies, you wouldn't trigger a taxable event.
In the same way that if you were, for example, playing a video game likeWorld of Warcraft, and mining gold and then sold it for wood inside the game, that wouldn't be a taxable purchase. On the other hand If you went and sold your World of Warcraft character, for example, on Ebay and received cash for it then that obviously would be a taxable event.
Now, I'm definitely wrong, or I'm pretty confident that that's not the way that the cryptocurrency tax is going to work in the U.S. It appears that every single time you trade cryptocurrencies, it will be treated as a taxable event. And so this means that if you have had more than $25,000 in trades on Coinbase over the last year your name is actually going to be given to the IRS.
2 - Rapid Growth
In my opinion, Binance is just absolutely dominating the new exchange business, and the Binance coin value is rapidly growing as well. Let’s take a look at Binance on Google trends. The Binance exchange launched in August 2017. It's a Chinese based exchange and you can see that there's no volume and then all of a sudden in December we just hit something like I've never seen before.
Not from theBittrex exchange or any of the other exchanges have we seen growth like this. Looking at the Binance Reddit page, you will see that they posted this.
This growth is absolutely insane. The reason that I think that they're gaining so much traction is that the U.S. has really struggled with its Tax Laws regarding cryptocurrencies. Now that they're making it clear they're going to enforce them, I think a lot of people are just just frustrated with with theU.S Cryptocurrency Tax Laws.
3 - Easy to Buy
A lot of exchanges are either not accepting new uses or they're kicking U.S users off because they just don't want to deal with the compliance issues. China is one of the few countries that's big enough to really stand up to the U.S., so I don't think it's really cares that a bunch of U.S. citizens are joining exchanges located in within China.
For a long time, New York has been considered the financial capital of the world. If America makes this very bad step of trying to regulate and enforce strict cryptocurrency trading laws they will force a huge amount of users over to Chinese exchanges.
Binance doesn't trade in Chinese yen, so they're not really threatening the local currency. I think China is just getting a huge boost from the cryptocurrency markets. Cryptocurrency has gone from a two hundred million dollar industry to almost a three quarters of a trillion dollar industry in just a few years.
China has just sort of come up on this giant industry. Sidestepping a bunch of U.S. regulations creating and a platform that is, in my opinion, equally as good, if not better than Bittrex.
4 - Easy to Convert and Withdraw
Exchanges like Bittrex and Poloniex, which are services that I have used previously, are not as easy to use. Binance has a two Bitcoin withdrawal limit, which is about $30,000.
Poloniex and Bittrex have a $2,000 withdrawal limit without the enhanced verification. So right away, Binance has a withdrawal limit that is 10 time higher than Poloniex or Bittrex.
5 - Low Transaction Fees
The fees on Binance are typically 0.15%. As a comparison, the fees on Bittrex are typically 0.25%. You maybe wondering "why is Binance coin such an important part?". Bittrex does not have acoin, and Poloniex does not have a coin.
The reason that Binance coin holds value is that if you're on the Binance platform, and you trade in Binance coin (BNB), you don't pay any trading fees. So what's happening here is they're removing that 0.05% fee, and so that's actually a massive incentive.
If you're trading between the different Cryptocurrencies and all the exchanges are the same price, you might as well use the BNB coin as a utility to buy your desired cryptocurrency instead of using BTC and paying that 0.05% fee.
Now that's a really, really small amount, like a 0.05% fee isn't enough for the average person to get really worried. If you're a trader and you're looking at this new emerging market, this is an actual unique value proposition for the BNB coin.
6 - High Demand and Diminishing Supply
The Binance White Paper is actually pretty incredible too. It's one of my favorites. I enjoy the fact that it's a very easy to understand what they're doing. What's even more interesting with the BNB coin is that it's going to increase, in my opinion, in value over time.
Because as Binance gets profits; as Binance is making money on the exchange, they're actually going to go buy their own BNB coins back. With the money that they make, they're actually using it to go back and buy coins. Once they have purchased BNB coins back, they will then destroy those coins so that there are less BNB coins available over time.
The quantity of BNB coins will reduce over time, so it's not like Bitcoin. With Bitcoin more coins are added, but at a very slow rate. Binance is actively going to buy its BNB coins from holders at market value and destroy them so they can't be used. That's obviously going to increase demand, and thereby increase value.
7 - Trusted by the Crypto Community
Now they're obviously security concerns because you are dealing with a Chinese exchange. You should be buying cryptos and then pulling them off the exchange. You shouldn't necessarily leave them on Binance for any length of time. Maybe 5 or 10% of my total crypto net worth is on Binance at any one time. The rest of it I've got offline in cold storage.
If you’re concerned about this Chinese exchange being a scam in my opinion Binance is actually a humongous opportunity for China. It's a humongous opportunity to become the world's largest exchange.
Binance has a huge competitive advantage over Bittrex and Polinex, and in my opinion, it looks like it's got a better business model. The vast majority of reviews I see from traders about Binance are from happy customers. The trades that I've carried out on Binance have been really quick. Binance’s quick rise makes me think of this quote by Mark Cuban:
“Work like there is someone working 24 hours a day to take it all away from you.”
-Mark Cuban.
Bittrex, Poloniex, Coinbase, and all these other exchanges have had great growth. in fact, their growth has been so good that their customer service has gotten worse. They're obviously having huge problems with scaling and all of a sudden out of nowhere Binance pops up.
Top 7 Reasons to buy Binance Coin Summary
To sum things up, Binance is clearly a better exchange in my opinion, and the Binance BNB coin a good coin to hold. It works better, it's faster, it's not going to have the tax implications that many of the U.S exchanges have, and their not going to send information to the IRS. As with any exchange, follow your best practices, pull your money off the exchanges.
When it comes to actually trading cryptos and trading Altcoins, Binance is by far the fastest. It has the lowest amount of fees and it has the highest withdrawal limits. For all these reasons, Binance and thereby the BNB Coin should continue to quickly increase in value for the foreseeable future.
What do you think?
Now that we’ve taken a look at the top 7 reasons to buy and hold the Binance BNB coin, what do you think? Are holding any BNB coins? Are you planning to Buy? What do you think of the Binance exchange and its recent growth?
Buy BNB tokens here http://bit.ly/2krss1M
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Well, we see how fast Binance became huge. What is if there is a new even better exchange which will replace Binance? Then the coin will be probably worthless. OK I know this is pretty pessimistic, but with all the new decentralised exchanges coming up it is quite possible. That's why I didn't invest in BNB.
I had the same thought, but I suspect in that case Binance would just turn into the coinbase of exchanges, meaning that Binance would be the starting point for mainstrem users when it comes to crypto-to-crypto trades...
NEX could be the next big exchange to topple binance.
I don't think this will happen in a nearby futur ! Maybe a crypto hack could scare the users ?
I have some BNB, it was a good trade from ETH in November sadly I didn't hold them all
Usually the answer is simple. If its not broke don't fix it. Using this logic, I apply my opinion to the success of an organization.
I use the application. If I do not have trouble with this I will continue to use it. The more advanced a user I am the better qualified I am to make a judgement.
A more qualified user will have more opportunities to find flaws in the system. If they do not, most likely other users will have the same experience.
I have been using Binance since Novemeber 2017. I have only had one scare when they were doing some site maintenance. Nothing like the Kraken scare. I think it is safe to say (4 months later) that this post holds water and binance could lead the way in a very young and growing crypto industry.
How do you feel now?
How do you feel now?
Great article, now if binance can adopt more alt coins it will keep it's momentum going. David hay can you please create a video or post regarding what wallets are recommended to use for alt coins? Thank you!
I think Bitconnect x is aiming to start an exchange/token similar to bnb. I'm interested to see if this new ico helps legitimize bitconnect or proves they are a scam once and for all.
I’m interested in what tax implications this brings, given that some people say multiple trades between coins is taxable and others say that until you convert coins into fiat becomes taxable.
I guess we have to consult with government agencies to clear up speculations, so we know before hand what we are getting ourselves into. I started investing not too long ago so I have homework to do before April comes.
Came across your post. It is past tax time and wanted to see how your studying went. If I were to see your comment 4 months ago when you wrote it, I would have given you the advice that if you were going to check with a government agency their answer would have resulted in you paying the highest amount of taxes.
Use the community being created here to find your answers. The US government is greedy. They had an option in this case to make every trade a taxable event or only events in which crypto was turned into fiat. taxing every trade is a HUGE number. So naturally this is the number they went after. The fun part will be seeing how well they did on collecting when it is all said and done.
Thanks for sharing!
This.....Is one of my favorite articles I have read on Steemit and when you did this video David, I had a few 'ah ha' moments :)
It just makes so much sense to me and while I'm not the smartest person on planet earth...I understand paying for something that I use daily...And I use Binance daily.
Plus all the reasons you mentioned above. Sure decentralized exchanges will have a huge impact, but Binance is positioned for a big 2018 as well.
Awesome post, thanks for all you do to help us little guys get more knowledge in the crypto space!
What is the best Wallet for BNB?
Certainly the only diamonds I could or would buy :)
Now I just hope it will pull back a bit...
Thank you for the insight @davidhay. I started using binance in November by chance in order to acquire ripple. At first I was skeptical. I had never heard of binance. They gained my trust and respect early.
The first day using the system required a slight learning curve. Not long after it was easy to navigate and find what I needed. They have made some site enhancements to improve the user experience.
I purchased binance coin early to help reduce trading fees and found the value of the coin being another huge source of growth in my portfolio.
As the New Year began and crypto started to decline I received some advice of what tokens to hold. One of those coins was the binance coin.
When you start to get advice from multiple people who are familiar with an industry and the advice supports previously acquired information, validity is born.
Fast forward a couple months and crypto is making an obvious rebound much sooner than most expected. Binance looks to be leading the way and should continue to grow as crypto regains its footing.
Looking forward to hearing and sharing more thoughts about all the exciting crypto information out there. What a time to be alive!
I have been trying to find if there is any other benefit than fee option? This question is because there is another exchange which grants its members a bonus equivalent to its platform token that you are holding. That is a good incentive for me to have a good balance of that token. Does BNB have such a facility?
Comparing to the last year's price it might be already too late to buy, but if you look on the history chart BNB had some good upgoing trends. So here you have another reason to buy it. Some resources (https://changelly.com/blog/binance-coin-price-prediction-2019/ ) say that BNB could be possibly good for a long-term HODL.