The Binance coin (BNB) is on fire - up 13% today!

I consider myself a conservative crypto investor (in the measure such a thing is possible). I rarely invest outside out the top 10 Cryptos by market cap and then not on tokens unless I can see a real utility to them. Once such opportunity is the Binance coin and I must say it is currently doing very well, being up 13% today.

But first a bit on how I came to purchase this coin. a few months back I decided that I wanted to diversify my cryptocurrencies portfolio a bit and wanted to add some Cardano (ADA). the problem was that currently this is not supported by Kraken. After a bit of market research I decided to open an account onBinance as it is one of the largest Crypto-only exchanges around and it carries a lot of cryptocurencies not available on more established exchanges. Once I has sent some Etherum (ETH) and purchased my ADA I noticed an interesting toggle in my account: use BNB to pay for trades and get a 50% discount. Oh my, a token that actually saves me money! I decided to have a look at the price of BNB and liked what I saw:

As you can see the price of BNB has consistently gained not only against the dollar but also against bitcoin! There is some logic to this, as more users join the exchanges more and more people want to buy the token to benefit from the savings, which creates upward pressure on prices. Another factor is that the exchanges regularly retires some BNB based on their profits, thus reducing supply. Growing demand + reduced supply = price appreciation.

I think that there is value in the tokens that can provide an immediate benefit for holding them, and this is a good example. I think that BNB is till a good investment today, but if you feel that the train has left the station there is a Brazilian exchange currently conducting an ICO for a similar coin: CHBR I will try to publish soon a follow up article on CHBR!