In this article we’re going to talk about BNB, short for Binance coin.
This coin, as the name suggests, is the virtual coin created by Binance. It is used to pay transaction fees, since Binance does not accept exchange in Fiat currency (ie currencies with legal tender, such as euro, dollars, etc.), but also as a reference currency for exchange with other secondary currencies (the so-called alt coin ).
We don’t bring this currency to your attention because it’s technologically innovative, but because we want to study its market performance, which we can observe in image 1:
Image 1 : tradingview – BNB / ETH chart on time frame 1d
Indeed, we can see that its exchange rate in Etherium, starting in September 2017, is always on an uptrend. This while the main coins (bitcoin, etherium, ripple, etc.) are instead in a downtrend. For example, over the past 3 months, it has made around + 185%.
Its uptrend could depend on the fact that Binance periodically collects part of the BNBs in circulation and eliminates them, thus decreasing the total number of coins in circulation.
It is therefore certainly an interesting currency. In the immediate term, however, attention should be paid to a possible downward retracement, given the excessive inclination that the uptrend has taken (therefore an entry at this moment would require the insertion of the appropriate stop-loss).