Pros
- Binance entered the scene in 2017 and exponentially grew to become the biggest exchange in cryptocurrency with over 5 million users. Binance Coin (BNB) is utilized on the exchange as a method to pay for transaction fees. If users chose to pay with BNB, their fees are cut in half, which greatly incentivizes its usage. In addition, the coin also has pairings with a decent selection of other coins allowing you to directly trade BNB for cryptocurrencies. The Binance exchange uses 20% of their profits each quarter to buy back BNB and burns them. This slowly decreases the total supply of BNB and drives up the price of the coin over time.
Cons
- The transaction fee discount for using BNB is not permanent. It will decrease to 25% in the second year, 12.5% in the third year, 6.75% in the fourth, and will provide no discount by the 5th year. Binance is currently the best cryptocurrency exchange without question, but 2018 will see the rise of many new exchanges including decentralized ones. If Binance doesn't continue to innovate and provide good support in the wake of new competition, they may see their market dominance dwindle.
