The information provided on this article is not financial advice and is only for education purpose as the main goal of this site is to bring news and tutorials crypto related.
For every trade you must try to be a step ahead of the market, being the current situation that everyone is focus on Bitcoin due to the ETF drama, ETF push is already planted into Bitcoin and people just need to wait if this gets approve; the overall sentiment on social media is that the altcoins are doom until news about the ETF comes out or something happens on the altcoin market.
Binance Coin is an altcoin I have been watching and trading since January 2018, every quarter Binance Exchange takes 20% of their income to buy back BNB Coin and burn them, last coin burn was this month July 2018.
If you are not familiar with the term Coin Burn, it’s basically buying coins and destroying them this will lower the total supply, as a result lower supply higher demand most of the time is equivalent to higher price.
Here how it’s done, Binance CEO, coin burn Q1
After my first trade with BNB coin I notice that this is one of the rare and only coins that most of the time does what you are expecting from it, run, correct, consolidate and run again and this happens every quarter but you need to jump in early before those three months and recently they just did their third coin burn, Binance Exchange bought back Binance Coin about $30 million worth of Binance Coin, on January 2018 the exchange burn 5.028 Million BNB coin reducing the supply, other measures they have taken to increase the price of their coin is to bump the referral bonus to 40% (this only applies if you hold over 500 BNB tokens, but still it’s an incentive) and have also open offices in Malta where most of the operation is running.
In my eyes and personal opinion the most important thing about this coin is that the work that the exchange is doing to promote it is reflected on the charts, BNB is the only coin on the entire crypto market that holds its value on BTC, most people trade and invest based on USD value but then they trade directly with BTC; going up on USD value its easy if BTC is going up for most altcoins but holding the BTC value is something very hard to do in the current market for most altcoins.
Let’s take a look at this chart were every quarter BNB goes up, they corrects its price, find support, consolidate and run again before the burn.
BNB Coin Pros:
- Use case, lower fees on Binance Exchange
- Strong team, consider one of the biggest altcoin exchange
- Soon to get into the Korean Market
- Coin Burn every quarter
- Good customer service
BNB seems to be the coin to hold or trade for 2018 while we weather the storm.
Is a good thing to open accounts on different exchanges so when an opportunity comes you have access, last year exchanges had to close doors because of the massive amount of new sing ups they had.
Have Fun and Good Luck