Should I Invest In Binance Coin In 2023?

What is the future of Binance Coin?

Last Updated December 29th 2022
6 Min Read
  • Digitalcoin forecasts that BNB will reach $769 by April 2022.
  • It’s not necessary to invest more than 1% of your trading funds on BNB. Crypto trading is still very risky.

With a price of around $514, Binance Coin (BNB) is the third-largest cryptocurrency by market capitalisation, just after Bitcoin and Ethereum.

Created in 2017 as a utility token on the Ethereum blockchain, Binance Coin is now one of the top-performing cryptocurrencies of 2021.

Much of the reason behind Binance Coin’s recent rise to the top has been the Binance Smart Chain (BSC).

The BSC is a parallel chain for DeFi projects, and it did exceptionally well in 2021. Today, the BSC is the second-largest DeFi chain after Ethereum. And it uses BNB as fuel to function.

Traders can also use BNB at the Binance Exchange to get a 25% discount on trading fees.

Why Invest In Binance Coin?

Binance Coin has a wide range of uses aside from the Binance Exchange and the Binance Smart Chain.

One of the top ways holders are making money with Binance Coin - aside from trading it - is by staking it.

By using services like BNB Vault, holders can stake their BNB tokens to secure the Binance Chain and in return will receive newly minted coins.

Binance has also launched the Binance Visa Card. Cardholders can now use BNB to pay for virtually anything. The card converts your BNB into fiat currency whenever you need to make a transaction.

Binance will likely continue to find more uses for the coin in the coming years. With more use cases, there will be more demand which should equate to a higher evaluation.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is Binance Coin A Good Or Bad Investment?

Binance Coin started at around $0.10 in their 2017 ICO and in the space of almost four years reached an all-time high of $690.93. An amazing achievement.

And when you know more about the coin, it all makes sense.

Currently, the BSC holds the greatest potential to increase the price of BNB. The DeFi market grew by approximately 150% in the first quarter of 2021. And so, we might see an exponential rise in the use of the BSC in the coming years.

High transaction fees on the Ethereum network have also been pushing many devs to the BSC which is much cheaper to use.

There are of course several things you should know about Binance Coin that might make it a bad investment.

Firstly, Binance owns up to 80% of all BNB tokens which is quite intimidating and a major turnoff for many crypto enthusiasts.

On the Binance Chain, token holders can vote who can become a validator but as Binance has so many tokens, they practically have complete control over who can do what on their chain.

Another concern looming over the horizon is the rise of DEXs (decentralised exchanges). 

Binance is a centralised exchange, which means that they make a profit from facilitating buy and sell orders. DEXs do not charge for their services and could replace centralised exchanges.

While this is not such a major concern now, in the near future it could render the Binance Exchange useless. And if that happens, BNB will lose one of its main use cases.

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

Will Binance Coin Make Me Rich?

Investing in Binance Coin could make you a handsome profit if you get in and hold at the right time.

But investing in cryptocurrency is never a sure thing so don’t put all your funds into Binance Coin. Ideally, you should invest up to 1% of your funds for investing into BNB.

This diversifies risk and reduces the chances of making a big loss. And you can use your other funds on stocks and other investments that are less risky.

The idea of investing should not be about getting rich immediately, that rarely happens. Getting rich trading requires a lot of work and isn’t like winning the lottery.

If you invest in Binance Coin and you find yourself constantly stressing over its price, that’s a major sign that you’ve invested too much.

Don’t aim to be rich, aim to improve your financial situation, and don’t invest money you need to live!

Is Buying Binance Coin A Good Idea?

Binance Coin has some of the best chances of succeeding in the crypto market right now, perhaps even more so than Ethereum and Bitcoin.

Remember that the coin is backed by the Binance Exchange, the world’s largest cryptocurrency exchange. Because of this, BNB is perfectly positioned to take the lead.

They have excellent cash flow and an excellent reach to new and current users. For many newbie traders, the Binance Exchange is one of their first experiences with crypto.

And with an army of developers and the cash to fund them, Binance Coin can become very adaptable.

Binance is also led by CEO Changpeng Zhao (CZ) who is highly influential in the crypto market. He is so influential that comments from him can make or break crypto projects.

Check Out: Will Binance Coin Make Me Rich in 10 Years

Should I Buy Binance Coin Now?

Buying Binance Coin now would be a very wise idea as many price forecasters predict the price will rise in the coming months and years.

Although BNB lost 15% of its all-time high in May 2021, you need to remember that it still trades far higher than most of its existence. So, in the long run, BNB is still appreciating.

Most price forecasters believe that Binance Coin could be somewhere between $600 and $1,700 by the end of 2022.

Trading Beasts forecasts a maximum price of $625 while DigitalCoin is more optimistic, forecasting a high of $649 in December 2023.

Other more bullish predictions, such as those by Cryptocurrency Price Prediction, put BNB at $1,760 by December 2023.

Either way, even the lowest price predictions assume that BNB will rise in price.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Key Points

  • Binance Coin is the third-largest cryptocurrency by market capitalisation and has a price of around $514.
  • BNB is primarily used on the Binance Exchange to receive a discount and on the Binance Smart Chain as fuel.
  • Use cases for BNB are increasing with the introduction of the BNB Vault and the Binance Visa Card.
  • Many are concerned that Binance owns up to 80% of all BNB tokens, which means they have a lot of control over the blockchain.
  • Keep to 1% of your trading account per BNB trade to reduce risk.
  • Strong backing from the Binance Exchange and CZ are great for BNB.
  • Price forecasts for Binance Coin are positive, suggesting BNB could reach between $600 and $1,700 in 2022.

Read More:

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