Today we’re going to talk about the newest member of the top ten club: Binance Coin, or BNB, recently edged past BSV to become the number ten cryptocurrency by market cap. That’ s good news for Binance Coin, but what does it actually mean?
Why is BNB Soaring?
Today’s topic is BNB, not to be confused with Airbnb. Binance Coin is the native token for the Binance exchange, which is one of the biggest crypto markets by daily volume. You can use it for buying and selling other currencies, to reduce trading fees by 25%. Every three months, Binance uses twenty percent of their profits to buy back some BNB tokens and destroy them, which helps to maintain the currency’s value.
By why is it soaring now? One possible reason is Binance Launchpad, which just held the first big ICO of the year. The BitTorrent token sale collected 7.2 million dollars in only fifteen minutes, leaving many traders wishing for more. Another token sale is planned for Fetch.AI, and it’s currently scheduled for February 25th.
There’s more good news. Binance recently launched credit card support, allowing users to buy coins a Visa or MasterCard. They’re also developing their own blockchain and decentralized exchange, where you’ll be able to trade without any third party intermediaries.
They’re also teasing us with upcoming features like native support for hardware wallets.
BNB/USD Price Action
Binance coin has recently made it to the top 10 largest cryptos based on market capitalization and its price action seems to have picked up.
After bottoming out at $4.38 back in December, the BNB/USD pair has started a gradual uptrend which resulted in a break above some key pivot levels as well as the daily Ichimoku Cloud. While we could see a pullback towards $7 in the near term, the bulls appear to be in charge at the moment. So the next stops for BNB could be $9 and $11 respectively. It still may take some time for BNB to reach the all-time-high level of $25 or even break above it. Of course, on Bincance exchange you can only buy BNB versus crypto tokens like Bitcoin so you need to convert this technical analysis accordingly.
I personally own some BNB along with other tokens. But you should only invest the money you can afford to lose in the crypto market. For more on risk management, please visit investdiva.com. I’d also like to hear from you and your thoughts on Binance Coin. Once you’ve subscribed, head over to the comment section and let me know if you think BNB is a good trade.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.