Here we are going to look at 7 of the best reasons why the Binance BNB coin is a great buy. The BNB coin is only available on the Binance exchange. Binance is the fastest growing cryptocurrency exchanges, and the BNB coin is also growing rapidly. Here are the top 7 reason you should think about using Binance and and buying the BNB coin.
1 - Avoid Multiple Tax Events
If you follow my videos, you'll know that I'm on the wrong side of the tax interpretation of this year. It was my understanding that when you trade between cryptocurrencies, you wouldn't trigger a taxable event.
In the same way that if you were, for example, playing a video game likeWorld of Warcraft, and mining gold and then sold it for wood inside the game, that wouldn't be a taxable purchase. On the other hand If you went and sold your World of Warcraft character, for example, on Ebay and received cash for it then that obviously would be a taxable event.
Now, I'm definitely wrong, or I'm pretty confident that that's not the way that the cryptocurrency tax is going to work in the U.S. It appears that every single time you trade cryptocurrencies, it will be treated as a taxable event. And so this means that if you have had more than $25,000 in trades on Coinbase over the last year your name is actually going to be given to the IRS.
2 - Rapid Growth
In my opinion, Binance is just absolutely dominating the new exchange business, and the Binance coin value is rapidly growing as well. Let’s take a look at Binance on Google trends. The Binance exchange launched in August 2017. It's a Chinese based exchange and you can see that there's no volume and then all of a sudden in December we just hit something like I've never seen before.
Not from theBittrex exchange or any of the other exchanges have we seen growth like this. Looking at the Binance Reddit page, you will see that they posted this.
This growth is absolutely insane. The reason that I think that they're gaining so much traction is that the U.S. has really struggled with its Tax Laws regarding cryptocurrencies. Now that they're making it clear they're going to enforce them, I think a lot of people are just just frustrated with with theU.S Cryptocurrency Tax Laws.
3 - Easy to Buy
A lot of exchanges are either not accepting new uses or they're kicking U.S users off because they just don't want to deal with the compliance issues. China is one of the few countries that's big enough to really stand up to the U.S., so I don't think it's really cares that a bunch of U.S. citizens are joining exchanges located in within China.
For a long time, New York has been considered the financial capital of the world. If America makes this very bad step of trying to regulate and enforce strict cryptocurrency trading laws they will force a huge amount of users over to Chinese exchanges.
Binance doesn't trade in Chinese yen, so they're not really threatening the local currency. I think China is just getting a huge boost from the cryptocurrency markets. Cryptocurrency has gone from a two hundred million dollar industry to almost a three quarters of a trillion dollar industry in just a few years.
China has just sort of come up on this giant industry. Sidestepping a bunch of U.S. regulations creating and a platform that is, in my opinion, equally as good, if not better than Bittrex.
4 - Easy to Convert and Withdraw
Exchanges like Bittrex and Poloniex, which are services that I have used previously, are not as easy to use. Binance has a two Bitcoin withdrawal limit, which is about $30,000.
Poloniex and Bittrex have a $2,000 withdrawal limit without the enhanced verification. So right away, Binance has a withdrawal limit that is 10 time higher than Poloniex or Bittrex.
5 - Low Transaction Fees
The fees on Binance are typically 0.15%. As a comparison, the fees on Bittrex are typically 0.25%. You maybe wondering "why is Binance coin such an important part?". Bittrex does not have acoin, and Poloniex does not have a coin.
The reason that Binance coin holds value is that if you're on the Binance platform, and you trade in Binance coin (BNB), you don't pay any trading fees. So what's happening here is they're removing that 0.05% fee, and so that's actually a massive incentive.
If you're trading between the different Cryptocurrencies and all the exchanges are the same price, you might as well use the BNB coin as a utility to buy your desired cryptocurrency instead of using BTC and paying that 0.05% fee.
Now that's a really, really small amount, like a 0.05% fee isn't enough for the average person to get really worried. If you're a trader and you're looking at this new emerging market, this is an actual unique value proposition for the BNB coin.
6 - High Demand and Diminishing Supply
The Binance White Paper is actually pretty incredible too. It's one of my favorites. I enjoy the fact that it's a very easy to understand what they're doing. What's even more interesting with the BNB coin is that it's going to increase, in my opinion, in value over time.
Because as Binance gets profits; as Binance is making money on the exchange, they're actually going to go buy their own BNB coins back. With the money that they make, they're actually using it to go back and buy coins. Once they have purchased BNB coins back, they will then destroy those coins so that there are less BNB coins available over time.
The quantity of BNB coins will reduce over time, so it's not like Bitcoin. With Bitcoin more coins are added, but at a very slow rate. Binance is actively going to buy its BNB coins from holders at market value and destroy them so they can't be used. That's obviously going to increase demand, and thereby increase value.
7 - Trusted by the Crypto Community
Now they're obviously security concerns because you are dealing with a Chinese exchange. You should be buying cryptos and then pulling them off the exchange. You shouldn't necessarily leave them on Binance for any length of time. Maybe 5 or 10% of my total crypto net worth is on Binance at any one time. The rest of it I've got offline in cold storage.
If you’re concerned about this Chinese exchange being a scam in my opinion Binance is actually a humongous opportunity for China. It's a humongous opportunity to become the world's largest exchange.
Binance has a huge competitive advantage over Bittrex and Polinex, and in my opinion, it looks like it's got a better business model. The vast majority of reviews I see from traders about Binance are from happy customers. The trades that I've carried out on Binance have been really quick. Binance’s quick rise makes me think of this quote by Mark Cuban:
“Work like there is someone working 24 hours a day to take it all away from you.”
-Mark Cuban.
Bittrex, Poloniex, Coinbase, and all these other exchanges have had great growth. in fact, their growth has been so good that their customer service has gotten worse. They're obviously having huge problems with scaling and all of a sudden out of nowhere Binance pops up.
Top 7 Reasons to buy Binance Coin Summary
To sum things up, Binance is clearly a better exchange in my opinion, and the Binance BNB coin a good coin to hold. It works better, it's faster, it's not going to have the tax implications that many of the U.S exchanges have, and their not going to send information to the IRS. As with any exchange, follow your best practices, pull your money off the exchanges.
When it comes to actually trading cryptos and trading Altcoins, Binance is by far the fastest. It has the lowest amount of fees and it has the highest withdrawal limits. For all these reasons, Binance and thereby the BNB Coin should continue to quickly increase in value for the foreseeable future.
What do you think?
Now that we’ve taken a look at the top 7 reasons to buy and hold the Binance BNB coin, what do you think? Are holding any BNB coins? Are you planning to Buy? What do you think of the Binance exchange and its recent growth?
Buy BNB tokens here http://bit.ly/2krss1M
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