At FxLeaders, we occasionally issue Binance signals as part of our crypto signal service, with recommendations to buy or sell Binance Coin. Crypto traders use our Binance Coin signals to help them decide where BNB is headed, often with great success. One signal we’ve issued before was to buy BNB at the $330 support zone, with a stop loss at $250 and a take profit target above $500, giving us a risk:reward of roughly 1:2.
We occasionally issue Binance signals as part of our crypto signals strategy. The BNB/USD was traded between $275 and $336 from the 2nd to 10th of August 2022. During this time, a few opportunities were identified during the uptrend following the bullish break above $300. This uptrend continued for 6 days before reversing to $275 between the 16th and 20th of August.
Our Binance Coin trading signals include an entry-level ( $330 in this case), a stop loss, and a take profit target for easy trading.
BNB/USD Technical Analysis
About Binance Coin
Binance Coin (BNB) has been in a steady uptrend since its low in mid-June 2022, bottoming out at just above $180. Since then, prices have joined in on the overall crypto market rally to peak at around $330 in August, representing an 80%+ gain.
After the recent burn of nearly 2 million BNB tokens, BNB is set for another burn in Q3 2022, with an estimated 2.05 million tokens being taken out of total supply. This gradual decline in supply is expected to push BNB’s price up.
Binance itself has recently announced its intentions to hire 2000 more employees by the end of the year, signaling growth in Binance as a company. This provides a great fundamental backdrop for further price increases.
About Binance Coin (BNB)
Binance Coin (BNB) is a digital currency created by Binance - the world's largest cryptocurrency exchange. It was created for trading with and paying fees on the exchange. Conducting transactions on the Binance exchange using BNB tokens gives users a discount on transaction fees and can also be used to trade other cryptocurrencies.
Since then, it’s developed into much more than just a trading fee token. BNB can be used to invest in new ICOs listed through Binance’s Launchpad program, make payments, and for booking travel accommodation.
Binance Coin has seen significant volatility since its inception, but its most remarkable move was between February and May 2021, when prices soared from less than $50 in February to a peak of just over $700 in May: a return of approximately 1300%. However, less than a month after the peak, prices crashed back to earth, bottoming out at just over $200.
Nonetheless, BNB is still very popular because of how many people use the Binance exchange. It’s currently #5 in the top cryptocurrencies, beaten only by Bitcoin and Ethereum if we don’t count stablecoins.
Binance Coin is a derivative cryptocurrency that was pre-mined in the form of 200 million tokens at launch. Initially launched as an ERC-20 token on the Ethereum blockchain, BNB tokens moved on to Binance’s native blockchain shortly after, known as Binance Chain.
Binance also uses BNB tokens to support a cryptocurrency incubator, Binance Launchpad, where upcoming blockchain projects can conduct ICOs and raise funds in BNB. While BNB's primary purpose was initially for transaction fees on the Binance exchange, it’s used for much more than that in 2022. Travala.com will let you book hotels with BNB; HTC takes smartphone payments in BNB; BitTorrent accepts subscription fees in BNB.
Binance uses some of its revenue each quarter to buy back and burn BNB, taking them out of supply completely. BNB will continue burning coins until they burn 100 million coins - half of the total supply. This will likely boost the price of BNB as supply decreases.
Binance Coin History
Binance Coin was first issued and launched in 2017. Binance gave the founding team 40% of the tokens and sold 10% to angel investors. The public ICO was left with the remaining 50%, which sold out and raised $15 million in the form of Bitcoin and Ethereum. Out of this $15 million, 50% was used for branding and marketing, 35% was used for the exchange’s development, and 15% was set aside as a rainy day fund.
The Binance exchange uses 20% of its profits to buy back and destroy BNB every quarter to control its supply and increase the BNB price periodically. In Q2 2022, 1,959,595 BNB tokens were successfully destroyed, totaling $622,031,710! This burn left 161 million tokens left in the total supply. It’s telling that 90% of Binance employees have a portion of their wages paid in BNB, as they’re likely aware of the decreasing supply and ever-growing popularity of the Binance platform that will probably grow their holdings for years to come.
Binance Price Factors
Activity in the crypto market
Because BNB is used to pay transaction fees first and foremost, as well as participate in Binance Launchpad ICOs, higher activity in the crypto market often spells higher prices for BNB. This is compounded when altcoins are popular, as many altcoins don’t trade using a stablecoin but will trade with BNB.
As discussed, the Binance team also burns BNB tokens periodically. This is built into BNB, written into the whitepaper. The team also tends to adjust the burn rate depending on market conditions, so while the overall trend should be that BNB’s price goes up as supply decreases, there may be periods where BNB sees lower prices as a result of eased burn rates.
When projects are added to Binance Launchpad that end up gaining a lot of hype, BNB will typically see an uptick in prices. Because these ICO tokens can only be bought in BNB, a popular project will cause investors to initially buy up BNB, raising prices.
Binance has seen plenty of regulatory scrutiny as the world’s biggest crypto exchange. Back when prices were sky-high in May 2021, an investigation by the U.S. Internal Revenue Service and Department of Justice into alleged money laundering and tax offenses was the catalyst for BNB’s price to plummet. Further investigations or bans will put further downward pressure on BNB.
Correlation with other cryptos
Like many other cryptocurrencies, BNB shares a pretty tight correlation with some of the leading tokens. It holds an 81% correlation with Bitcoin, for example, and a 86% correlation with Cardano. Fluctuations in the prices of these assets will generally lead to BNB following suit.
Trading Binance Coin
BNB can be purchased on the Binance exchange and is available in a range of pairs. For example, you can buy BNB with BTC or ETH, but you can also use a range of stablecoins and fiat currencies to buy BNB directly.
Trading Binance Coin (BNB) requires expertise and knowledge about the overall cryptocurrency market and the latest developments relating to the Binance exchange. As discussed above, whenever the Binance team releases new cryptocurrency products and services, it usually affects BNB’s price. It drives volatility in the market and provides plenty of opportunities to make a nice profit.
Keep yourself updated about all the latest developments related to the overall cryptocurrency market, especially related to Bitcoin - the most popularly traded crypto on Binance. These developments are likely to dictate Binance Coin’s price trends and can be considered fundamental drivers to note when trading BNB.
BNB/USD - FAQs
Binance coin is the digital token issued by the world's largest cryptocurrency exchange, Binance, which can be used to trade cryptocurrencies and pay transaction fees on the exchange. Binance offers users a discount for transacting using BNB tokens, as well as partners with several big names to allow payments in BNB.
You can buy BNB tokens by creating an account on Binance and exchanging your capital into Bitcoin, Ethereum, or stablecoins to purchase a corresponding value of BNB tokens. You can also trade BNB directly with fiat currency if you wish.
You can store BNB coins in your account on the Binance exchange or move them to a digital wallet. Binance's official wallet is the Binance Chain Wallet, which is integrated with the exchange. You can also use other digital wallets that support BNB tokens for secure storage.
While BNB was initially launched as a form of payment within the Binance exchange, its rising popularity has led to it being accepted as a payment method by several businesses and merchants worldwide. You can use Binance Coin to make hotel bookings, buy music and games, purchase online services, or even take out loans.
Cryptocurrency transactions are legal in most countries around the world, where you can buy Binance Coin with complete security. However, in some countries, including Algeria, Bangladesh, Bolivia, Ecuador, Nepal, and Macedonia, it is considered illegal to buy and sell Binance Coin and other cryptocurrencies.
The UK is yet to regulate cryptocurrencies, including Binance Coin, although it does permit the buying and selling of digital currencies. However, it does not recognize BNB and other cryptos as legal tender and has recently imposed a ban on the sale of crypto derivatives due to the highly volatile and unpredictable nature of the market.
While most cryptocurrencies are based on a decentralized model, Binance Coin is a completely centralized token created by Binance as a form of generating more profits and does not have the same amount of recognition or acceptance outside of the exchange.
As a pre-mined token that is majorly owned by Binance, it is more vulnerable to speculation and holds more downside risks than most other cryptocurrencies. In addition, since it is owned by a private company, BNB tokens could potentially be subject to security laws in the US.