26 Reasons Why You Should Invest in Binance Coin Today

Last Updated July 23rd 2021
15 Min Read

There are lots of reasons why you might want to invest in Binance Coin. Many think that they have to be an experience investor with lots of capital — but, with some common sense and research, it’s pretty accessible, even for beginners.

Binance coin is probably one of the best cryptocurrencies out there. It is only a few years old but has grown to become the 3rd largest by market cap.

A few days ago, Binance coin has crossed the $100 billion market capitalization, and it does not seem to be slowing down. But with prices making new highs, is Binance coin still a good investment, or is it too late for the party?

Well, there are lots of factors that make Binance quite a good investment even at current price. From the coin burns to the Binance Smart chain, here are 26 reasons why you should invest in Binance coin right now.

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26 Reasons Why You Should Invest in Binance Coin Today

There are all kinds of reasons why you might want to invest in Binance Coin BNB today — probably some you’ve never considered. Here are 26 that we found.

1. Binance has regular coin burns

Cryptocurrencies are not exempt from the laws of demand-supply. The more of crypto there is the market relative to demand, the less the price.

The reverse is also true. In the case of Binance coin, the regular coin burns mean that over time, more fiat will be chasing an increasingly lower number of BNB.

This is quite evident in its price action. The latest coin burn was in Q1 of 2021 and was a precursor to the current rally. With a plan to accelerate the coin burn in the next 5 to 8 years, this is one crypto that could easily double or triple its current price.

2. Binance coin is the third-largest cryptocurrency

Binance coin has been gaining consistently and is now the third-largest cryptocurrency by market capitalization. But does this even matter when it comes to long-term growth? Well, it does, especially now that interest in the crypto markets is on the rise.

Any newbie getting into crypto is likely to be most attracted to the top cryptos first, namely Bitcoin, Ethereum, and BNB. It is for this very reason, too, that Dogecoin could sustain its current momentum. As such, it is an excellent reason to bet on BNB as a long-term investment.

Read also: Bitcoin vs Binance Coin: Which Crypto Should You Buy

3. Binance coin is used for paying fees on the Binance exchange

One of the most significant use cases of Binance coin is for paying fees on the Binance exchange. Out of every trade made on the exchange, there is some BNB used. The result is a permanent and ever-growing demand for BNB. That’s because the adoption of Binance exchange in crypto trading is ever on the rise. Today, it is one of the largest crypto exchanges in the world, and it’s not letting up.

4. Binance coin is at the core of the Binance Smart Chain

The Binance smart chain is one of the fastest-growing smart contracts platforms in crypto. New coins are coming up on this chain daily. It has also become a hub for yield farming and staking.

The growth of the Binance Smart Chain is evident in the transaction levels on Pancake Swap. It has consistently experienced more volumes than Ethereum-based Uniswap all through 2021. Since Binance coin is the key entry point to the Binance smart chain ecosystem, its value is guaranteed to grow long-term.

5. Binance coin is easy to store

One of the biggest concerns that every crypto investor faces is storage.  Quite understandable given that the level of theft in the industry is quite high. Binance coin does not have this problem.

You can store it on the Binance exchange for starters, which is one of the safest in the crypto space. Binance coin can also be stored on the Binance developed Trust Wallet.

This wallet is highly secure, given that it allows you to keep full control of your private keys.  It also comes with other benefits, such as access to the Binance Smart Chain ecosystem. It is quite similar to Metamask, which gives users access to the world of Ethereum-based tokens.

6. Binance coin is benefiting from FOMO

While FOMO is not a reasonable investment strategy, it plays a role in driving growth for fundamentally strong assets. In BNB, FOMO is growing as investors try to grab a piece of this rapidly expanding cryptocurrency.

Given that the Binance coin is expected to keep declining in supply relative to its usage, more people are likely to keep buying it. This makes it a high potential cryptocurrency to buy now with short-term gains in mind.

Read Also: Is Binance Coin Expected To Reach $1,000 Or More In The Next 5 Years?

7. Binance coin Technical analysis points to growth

One of the key factors that retail traders consider before investing is the technical indicators.  Quite understandable since they give you an idea of the general direction of the market.

In the case of BNB, the technicals are pointing to strongly bullish crypto. Volumes are high, and the moving averages are all pointing to a bullish cryptocurrency. The net effect is that it will drive up the buying momentum in BNB. This is also supported by the fact that the entire market is rising.

8. Binance coin nominal value is still affordable

At this point, Bitcoin is pretty much out of reach from most people. Even for those who want to buy in small amounts, the transaction costs are going through the roof. This may explain why the price of BTC is slowing down even as altcoins rocket. Binance coin is benefitting from this for two reasons.

First, its nominal value is quite low. At just over $640 a coin, it is within reach of most people. Secondly, Binance coin is also easily accessible on the Binance exchange without having to go through Bitcoin. The exchange has easy fiat on-ramping and allows users to buy USDT in the P2P market. This is a factor that could positively impact on the value of BNB long-term.

9. Binance could benefit from whole market momentum

The entire crypto market, especially the altcoins market, is on the rise. This means that money thrown at any crypto in the current market is likely to give a positive return.

In this environment, Binance coin has been one of the biggest beneficiaries. That’s because besides the excitement in crypto at the moment, it has the fundamentals to back it up. This means that it stands to keep outpacing most altcoins in gains as long as the market remains bullish.

10. Binance Coin will benefit from an improved crypto environment

Crypto has been the wild west of investing for over a decade now.  While this is profitable for those who understand the market, it had also kept institutional players away for a very long time.

This is changing, though. In most jurisdictions. The improving environment is evident in the launch of ETFs that are launching in different countries. It is also evident in the number of big banks and other institutions taking an interest in cryptocurrencies. As the regulatory environment improves and new money comes into the market, BNB and other top cryptos stand to benefit.

11. Binance has a progressive team at the helm

Binance exchange is the power behind Binance coin and it’s a good thing. That’s because it is one of the most progressive crypto exchanges in the market today.

Binance started off as just another exchange, but has since developed an entire ecosystem that is way bigger than the exchange itself. For instance, through the Binance Smart Chain, the exchange now has hundreds of Binance-based tokens. It is also constantly innovating, as is evident with the recent launch of stock tokens. All these innovations mean more demand for BNB and secure its value growth long term.

12. Binance dust creates demand for BNB

Binance exchange has this exciting concept of converting small crypto balances to BNB. The small balances are in most cases what it left after converting one crypto to the other.

While such balances at an individual level, when taken at an aggregate level, they are a huge deal. They are a big source of demand for BNB, and always serve to protect its price. As more people get into crypto and invest through Binance, the amount of dust will rise and impact the value of BNB.

13. Binance allows for staking

Staking is a big deal because it allows investors to earn a passive income off their coin holdings. Binance coin is one of the cryptos that one can stake and increase their crypto holdings.

The best part is that staking BNB is relatively easy to do. One can either do it on the Binance Exchange or stake through the trust wallet. With the current rally in BNB prices and the potential that this crypto holds, more people could move to stake it.  This is a big deal and will play into the long-term value growth of BNB.

14. Binance DeFi ecosystem is growing

DeFi is a big deal. It’s one of the most revolutionary aspects of blockchain technology. Through it, investors have a clear alternative to traditional finance. DeFi is one of the key reasons why Ethereum has grown so fast and why Binance coin is rallying.

That’s because, there has been an explosion of DeFi projects lately. This is evident in the number of transactions taking place on Pancake Swap, where most of the Binance based DeFi transactions take place.

As more people get into DeFi for the results it offers, Binance coin will be well-positioned for long-term growth. It’s an aspect of the market that makes Binance Coin quite the crypto to watch as the market goes mainstream.

Don't miss: Top 7 Best DeFi Cryptocurrencies To Invest In

15. Binance Coin has been getting lots of positive press lately

The kind of press that a cryptocurrency gets plays a lot into its price action. This is quite evident in the price action of Dogecoin. From a joke coin, Doge is now the fourth-largest cryptocurrency by market capitalization. This has everything to do with the positive rap it has been getting from Elon Musk and many other celebrities.

Binance Coin is in a similarly good position right now. Since BNB crossed a market capitalization of $100 billion, tons of articles online highlight the same.  This simply means that anyone new to crypto is likely to be enticed to invest in BNB. The news is good, and its price action over the last three years paints a picture of growth.

16. Binance coin has breakneck transaction speeds

Binance coin is one of the fastest cryptocurrencies to use for crypto transactions. Not only are the transactions super-fast, but BNB is also one of the cheapest cryptos to make transactions. 

Given that these two are among the main factors that make a cryptocurrency usable as a currency, it’s not hard to see why BNB is blowing up in adoption. With the growing acceptance of cryptocurrencies, this functionality could play a significant role in the long-term adoption and value growth of the Binance coin.

Check Out: Is Binance Coin A Good Investment?

17. Binance coin will benefit from Bitcoin’s stagnating value growth

While Bitcoin still remains the top dog in crypto, its growth seems to have lost momentum. The number one crypto seems to be stuck between $55k and $60k. At the same time, top altcoins are rallying. One of those making new highs is Binance coin. 

For the better part of 2021, Binance has been testing new highs alongside Ethereum and Dogecoin. This has drawn in new investors and will likely draw in even more as the price increases. Investors chasing quick gains in the market are likely to find cryptos like Binance coin very attractive in short to medium term.

18. Binance coin is listed on multiple exchanges

The number of exchanges where a cryptocurrency is listed has enormous implications on its long-term value. That’s because the more exchanges it is listed on, the more accessible it is to investors.

In the case of the Binance coin, it is listed on almost all the major exchanges. Its key win factor being its listing on Binance, one of the world’s largest exchanges. With the development and growth of DeXs such as Pancake Swap, the accessibility of BNB will only get better. This means demand stands to grow with time, and that’s a good thing for its value in the long run.

19. Binance chain NFTs

NFTs are a big deal, and though the bubble burst recently, their potential is limitless. They have the potential to transform how society consumes art, music, sports, among other consumer services.

Through the Binance smart chain, developers can develop all sorts of NFTs and put them on the market. Since the Binance smart chain is powered by Binance coin, an explosion of NFTs on the platform will keep adding to the demand for Binance coin, both now, and in the future.

20. Binance coin is a perfect Ethereum alternative

Ethereum may have dominated the smart contracts space for years, but Binance is taking up this space quite fast.  This is attributable to the rising gas prices on the Ethereum blockchain.

While Ethereum has been trying to improve, there hasn’t been much change in the cost. On the other hand, Binance smart chain is relatively new. This means it does not have to deal with lots of the problems that Ethereum is going through.

It is highly scalable and can handle loads of transactions without much of an impact on costs. The impact has been an increase in the usage of the Binance chain over Ethereum for smart contracts.  With this huge adoption has come a rise in demand. With the ever growing demand for smart contracts in finance and elsewhere, Binance coin growth, is almost guaranteed.

21. Binance fundamentals are among the best

This may sound like a downer, but a good portion of the crypto market comprises worthless coins and tokens. A lot of them are whitepapers with nothing tangible to show.

This trend was most evident in 2017 when ICOs came to the market every day with lots of promises but no substance. Binance coin is different. Even if the market were to crash today, this is one of the cryptos that would bounce back. It bounced back quite well after the 2018 correction.

The reason why it makes for such a strong investment is its basis of the Binance exchange. As long as Binance and its entire ecosystem exists, Binance coin will keep growing. From the innovations that this exchange has been adding since its inception, it’s quite clear that it is on a growth path.

22. Binance Coin has CoinMarketCap as a positive factor

A while back, Binance announced that it had purchased coinmarketcap.com for $400 million. Since then, coinmarketcap.com has a button that allows investors checking out crypto prices to buy certain cryptos on Binance via CoinMarketCap.

One of the cryptos they can buy this way is BNB. Coinmarketcap.com is the world’s number one website for cryptocurrency data, and it is a key source of demand for BNB. With new investors getting into crypto every day, and most of them using CoinMarketCap, demand is likely to keep raising for cryptos that can be bought through this websit.

23. Binance coin is trusted by the crypto community

Online communities are an integral part of cryptocurrencies. In the case of Binance, it has one of the strongest communities in crypto.

From Twitter to Reddit, there is lots of positive messaging and technical support about building on the Binance network. This is a factor that has helped draw in developers to Binance for various smart contract products.

With the community of investors, and developers, ever-growing, it is quite natural that the demand for BNB will remain high too. It’s one of the factors that make it an excellent investment to hold in the long run.

24. Binance coin is secure

Security is a major factor to the long-term valuation of a cryptocurrency. That’s because any compromises in security would create fear, and that always leads to capital flight.

In the case of Binance coin, it is one of the most secure cryptocurrencies in the market. Since it was launched, Binance coin has never been compromised. 

On top of that, it is backed by one the most secure crypto exchanges in the market. Like most centralized exchanges, Binance has been attacked multiple times.

The only difference is that it is one of the few that have survived such attacks and thrived. It is also the only major crypto exchange that has an insurance fund. It uses it to compensate investors in case of a successful and devastating hack. This element of security makes Binance coin a good investment.

It assures investors that they can invest without fear that they could lose all their money to hackers. When combined with BNB’s other fundamentals, it’s not hard to see why it is a good investment with lots of long-term potentials.

25. Binance coin is liquid

Liquidity is key to the growth and success of any cryptocurrency.  That’s because it makes it easier and cost-effective to move between assets. Binance coin happens to be one of the most liquid cryptos in the market. It now has a market cap of over $100 billion, and billions worth of BNB are transacted daily. 

Besides lowering the cost of transactions, Binance liquidity also guarantees that no single individual or entity can move the market. Even if someone were to sell a billion dollars worth of BNB, it would not translate to any significant dip. Such price stability is what long-term investors want, and BNB is well-positioned to draw them.

26. Binance coin is volatile

Like the rest of the crypto market, Binance coin is highly volatile. This volatility is good for anyone with some basic understanding of how the markets work.

For instance, in just under a month, Binance coin has moved from around $400 to $600. This has made buyers lots of money. Similarly, anyone who shorts Binance coin in 2018 made lots of money, up until 2020, when the market rebound. Such volatility is what makes Binance coin an excellent financial instrument to trade for short-term gains.

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