Is Binance Coin A Good Buy In 2021?

The benefits of investing in Binance Coin in simple English

Last Updated October 5th 2021
6 Min Read

Binance Coin is a good buy, as it has a low price at the moment and its value is expected to increase according to crypto experts.

  • Since February 2021, BNB has benefited massively from DeFi projects on the Binance Smart Chain.
  • Long-term investors could see Binance Coin BNB reach $2,342 by 2026, according to WalletInvestor.

2021 has been the best year ever for Binance Coin and crypto analysts and enthusiasts feel that this is just the beginning.

With a market cap of $72.5 billion and $430 per coin, BNB is the third-largest cryptocurrency, at the time of writing.

So far, Binance Coin has seen tremendous growth, starting 2021 at $37.62. Binance Coin then took off in February 2021 and reached an all-time high of $690.93 in May.

With a bullish crypto market and a lot of excitement around DeFi, we see many new records broken in 2021. Let’s look at why you need to seriously consider Binance Coin BNB.

Should I Buy Binance Coin BNB In 2021?

If you are planning to buy Binance Coin at the best possible price, then this year may be a good time to buy as the value of BNB is expected to increase in the long-term.

Binance Coin is a great investment if you are looking to get involved with DeFi and the Binance Exchange.

DeFi (decentralised finance) is a growing force in cryptocurrency. At the time of writing, according to Coingecko, the DeFi market has a cap of $129 billion.

And 2021 has been an especially important year for DeFi so far. As Christine Kim of Coindesk explains:

“In Q1 2021, the dollar value of crypto assets under management by DeFi applications appeared to grow 150%, from roughly $20 billion to $50 billion”.

Binance moved into DeFi in September 2020 with the launch of the Binance Smart Chain (BSC). A new chain that works parallel to the Binance Chain and facilitates dApps and DeFi products.

Today, according to DeFi.prime, there are 41 DeFi projects on the BSC, making it the second-largest after Ethereum.

Buying Binance Coin could be a smart move as it continues to see growing adoption across the industry. This forward-looking cryptocurrency has efficiently established its market niche for years to come.

There are, of course, some issues you need to be aware of about BNB and we will cover them in this article as well.

Is It Better To Buy Bitcoin Or Binance Coin?

Bitcoin may be a better buy than Binance Coin for now, but BNB can still yield you excellent returns.

Ideally, it would be probably best to have both in your portfolio. This is because the two coins both have different purposes.

Bitcoin originally started as a ‘transactional cryptocurrency’, where you could transfer value between individuals without a middleman. But since then, it has become a store of value, just like gold.

Binance Coin, on the other hand, acts as both a utility token and fuel for the Binance Smart Chain. Don’t think that because they are both cryptocurrencies one must be better than the other.

In the end, it depends on the kind of investment you are looking for.

buy binance coin

Is It Safe To Invest In Binance Coin?

Binance Coin is one of the safest cryptocurrencies to invest in because it is one of the largest cryptocurrencies. In short, the more people that use it the more secure it is. 

This is because the network is more spread among many users, making it harder for hackers to attack.

Smaller altcoins, for example, are not as safe to invest in because it is easier for hackers to overpower them.

Of course though, like all other cryptos, BNB goes through volatile peaks and troughs. But this is something that you need to accept when trading cryptocurrency.

The Binance Exchange has been hacked a few times in the past, but this will not directly affect BNB’s price.

Read Also: 26 Reasons Why You Should Invest in Binance Coin Today

What is the Future of Binance Coin?

The future of Binance Coin will be good if Ether fees remain high and traders continue to use the Binance Exchange.

That said, there are things to be concerned about. The Binance Exchange is a centralised exchange and with the creation of the BSC, the Exchange may enable the growth of their competition.

This is because of DEXs - ‘decentralised exchanges’. These exchanges cut out the middleman, like the Binance Exchange, and put buyers and sellers in direct contact with each other, reducing the cost of trading.

So, if DEXs pick up in popularity, we may see less activity at the Binance Exchange. 

However, this is all speculation for the time being. It may take a few years and who knows what kind of regulation could be created to disrupt this possibility. Elsewhere, BNB’s outlook is very positive.

Is Binance Coin A Good Long-Term Investment?

Yes, like most cryptocurrencies, it would likely be best to hold on to Binance Coin for the long term.

Remember that the cryptocurrency market is still very young. Adoption is continuing to grow. As more people use BNB, it will increase in value. In short, adoption fuels price growth.

Looking at predictions for the next few months and years, it may be pretty foolish to miss out on investing in Binance Coin.

On the more conservative end, The Economy Forecast Agency estimates between $1,213 and $1,395 by January 2025

Meanwhile, DigitalCoin predicts $2,000 by 2028. Coin Price Forecast foresees the possibility of BNB reaching $2,089 by 2029, which is roughly in the same territory.

And finally, WalletInvestor gives a five-year forecast of $2,342.

Don't Miss: What Will Binance Coin Be Worth In 10 Years?

Conclusion: So, Is Binance Coin A Good Buy In 2021?

Binance Coin is likely a good buy for 2021 as there is a strong feeling its price will rise. In 2021, the BSC benefited hugely from high Ether fees and the bullish crypto market encouraged trading at the Binance Exchange.

But remember, while the outlook may be good, before investing in BNB, make sure you thoroughly understand its potential pitfalls!

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Key points

  • BNB is the third-largest cryptocurrency with a market cap of $72.5 billion and a price of $430 per coin.
  • BNB reached its most recent all-time high of $690.93 in May 2021.
  • DeFi applications grew approximately 150% in the first quarter of 2021.
  • The Binance Smart Chain is the second-largest DeFi platform after Ethereum.
  • Being one of the largest cryptocurrencies makes BNB safer than other cryptos. This is because its network is more dispersed, unlike small cryptos.
  • If fees remain high on the Ethereum network, BNB will likely have a bright future ahead.
  • Binance Coin is likely an excellent long-term investment. Price forecasts expect growth in the coming years.

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