Could Binance Coin Make Me A Millionaire?
Binance Coin is 2021’s money-maker
- If the BSC continues to attract more DeFi projects and the crypto market stays bullish, BNB will likely appreciate.
- Coin Price Forecast predicts BNB will reach $906 by the end of 2022, and $2,089 by the end of 2029.
Binance Coin (BNB) is one of the best cryptos to invest in for 2021 and could make you a millionaire if you invest in it correctly.
Initially created as a utility token for the Binance Exchange, BNB gives traders a discount on fees with the token. Cool little fact: Binance is a combination of the words ‘finance’ and ‘binary’.
No one ever thought there would be much use for the coin beyond this. But that all changed in September 2020 when Binance launched the Binance Smart Chain (BSC).
Since then, BNB has hit all new highs of $690 in May 2021!
Factors That Could Make Binance Coin A Millionaire-Maker
By far the biggest factor that could make Binance Coin a millionaire-maker is the Binance Smart Chain and DeFi.
The Binance Smart Chain is a parallel chain that works alongside BNB’s chain and can host DeFi projects.
Binance Coin’s growth has been spurred on by the excitement around DeFi, which is predicted to continue to expand. According to Defi Pulse, the total value locked in the DeFi market is over $89 billion which is a growth of over 270% in 2021 alone.
According to CoinMarketCap, some of the biggest coins running on the BSC are Binance USD, PancakeSwap, The Graph, and Ontology. If these DeFi projects continue to grow, BNB’s price will likely continue to climb as there will be more demand.
Will Binance Coin BNB Go Up?
It is quite likely that Binance Coin BNB will continue to go up in the coming months and years. BNB started 2021 at $37.62 and has since become the third-largest crypto by market cap.
BNB also benefits from increased trading at the Binance Exchange, the largest crypto exchange by far. Data from CoinMarketCap suggests that Binance is more than five times larger than its closest rival, Coinbase exchange.
Traders stock up on BNB to buy crypto, such as Bitcoin and get a discount on fees. And so, with the current bull market and soaring crypto prices, BNB is getting dragged up pretty quickly.
How can I get free Binance Coins?
There are many sites that offer Binance Coin for free, but it’s never really for free - you have to work for it.
Typically, they will want you to participate in something, take surveys, play some games (probably not as fun as you think!), and watch videos.
Although many of these sites like to throw around the word ‘free’ it’s never really free. While you don’t pay for it, you’re still working for it. It would be free if they gave it to you for nothing.
Today, with the current value of cryptocurrencies like BNB, it is hard to trust those who offer it for free.
In the end, it will most likely be too much work for too little BNB. It will be a lot easier just to buy Binance Coin from an exchange or a broker.
Further to that, you should also be careful of scam sites. All in all, it is much safer to avoid this option.
Is Binance Coin a Good Investment?
Yes, Binance Coin is likely a good investment. Price predictions for BNB are largely positive.
WalletInvestor gives Binance Coin a one-year forecast of $805 and a five-year forecast of $2,342.
Trading Beasts is one of few forecasters that has a more conservative outlook. They forecast a 2022 high of $515 by December, lower than BNB’s current all-time high.
Read Also: How to Invest in Binance Coin
Could Binance Coin Become A Millionaire-Maker Coin?
Yes, Binance Coin could be a millionaire maker depending on how much you buy and when you decide to sell the coin.
However, there are of course some concerns with BNB. No investment is ever perfect and you must be aware of the pitfalls before you invest.
The biggest being that Binance Coin is not decentralised. Just like the Binance Exchange, it is centralised and a large quantity of BNB is owned by the exchange. Supposedly, up to 80% of BNB is stored in wallets owned by the Binance Exchange.
Centralised cryptos can also be very risky because you have no control over how they decide to change the coin. Binance has been caught making changes to the white paper and not publicly announcing it.
Another concern is the possibility of the DeFi market devouring the Binance Exchange. This is something Changpeng Zhao, CEO of Binance, expects will probably happen.
And, finally, it should be remembered that Ethereum will soon upgrade to proof of stake, and fees could be drastically reduced. This is a concern because it could encourage DeFi projects to leave the BSC.
Binance Coin will be a millionaire-maker if it can attract DeFi projects and traders continue to keep using it on the exchange. A bullish crypto market will also boost prices too.
If these factors remain in play, we may see some new Binance Coin millionaires in the coming months and years.
But remember to assess BNB’s pitfalls before you invest! If you are comfortable with Binance owning 80% of tokens and a centralised system, then BNB could be for you.
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- BNB hit all new highs of $690 in May 2021.
- Binance Coin is appreciating because of the BSC, which supports DeFi projects. The DeFi market has grown approximately 270% in 2021 alone.
- The Binance Exchange is the largest crypto exchange, and BNB is used as a discount token. BNB’s price benefits from increased trading at the exchange.
- It is best to avoid seeking BNB for free. Faucets require you to complete small tasks to get coins and it is too much effort for too little BNB.
- Price predictions for BNB are largely positive. Coin Price Forecast predicts $906 by the end of 2022, and $2,089 by the end of 2029.
- Binance is not decentralised and up to 80% of BNB is stored in Binance owned wallets.
- The DeFi market could be BNB’s undoing. It may end up swallowing BNB and projects may move to Ethereum in the future.