Bitcoin Casino Blog
The Binance Exchange is one of the most well-recognised exchanges in the crypto industry. Offering more than 500 digital assets and unparalleled transparency, the platform meets the needs of every investor in terms of financing, trading and affordable fees. It also has two cryptocurrencies namely Binance Coin (BNB) and Binance USD (BUSD), which provide discounts to users who use them for transactions. These two digital assets are now considered to be profitable investments with high market valuations.
However, if you’re a novice investor, you might have wondered about their differences. Although both of them are created by the same company, their purposes are entirely different. For example, BNB is a utility token while BUSD is a stablecoin pegged to 1 USD.
What makes one coin different from the other? Why does Binance need both of them? To learn about their in-depth comparison, continue reading below for more information.
Binance Coin was launched in July 2017 through an Initial Coin Offering (ICO). This coin mainly operates on the Ethereum blockchain with standard ERC-20 and is also capped to a maximum of 200,000,000 BNB tokens. Today, Binance Coin is one of the most popular cryptocurrencies in the market.
Binance Coin was created to help Binance Exchange’s ecosystem and operations. It supports several utilities such as listing fees, exchange fees and trading fees along with the Binance coin wallet. This means that when you use BNB for transactions, you can take advantage of trading fees at a lower rate you won’t find in other tokens.
Moreover, Binance spends a part of its profits every quarter to purchase and burn Binance Coins to totally eliminate them. This will continue to take place until it has bought or destroyed 100,000,000 BNB or half of its maximum supply. It effectively decreases the supply and improves its rarity, which increases the token’s value in the market.
Also known as BUSD, Binance USD is a US dollar stablecoin. If you’re not familiar with how stablecoin works, it attempts to constantly maintain a price of one US dollar through its supply of fiat reserves, similar to USDC and Tether (USDT).
They are digital assets that aim to battle the high volatility of various cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE), to name a few. Users may take advantage of this to execute trading without dealing with price changes.
However, what makes BUSD different from fiat currencies? The main benefits of this stablecoin over traditional money are lower fees, faster transactions, transparency and decentralisation. For instance, if you’re planning to use crypto for international transfers and daily payments, then stablecoins like BUSD will make the process more efficient.
Navigating through the crypto sphere may feel a bit overwhelming, especially when two coins or tokens almost sound similar. In the case of Binance Coin and Binance USD, learning about their differences will help you choose the right token you can use for gambling and other transactions.
Take a closer look at these differences below to keep you guided:
When it comes to use cases, BNB was developed to serve as the utility token of Binance Exchange. However, during its early stages, it was initially used to obtain trading fee discounts for platform users. This means that you will be eligible for lower fees if you use BNB to pay for your trading fees instead of the currency you were trading in.
Binance once mentioned that the trading fee discount may decrease in the 4th year, from 25% to 6.75%. But, they vowed to maintain the 25% discount until 2022.
Since the inception of the blockchain network Binance Smart Chain, the use case for BNB has continuously expanded and now powers the whole Binance ecosystem. With this in mind, you can take advantage of BNB if you want to approve transactions on the Smart Chain.
On the other hand, BUSD is a stablecoin where 1 BUSD is equal to 1 USD. It has a much bigger amount of reserves (96%) in cash and cash equivalents compared to other stablecoins like USDT, which only has 2.9% of its reserves in cash.
You will receive 1 USD if you decide to purchase 1 BUSD. This stablecoin is ideal if you want to earn interest, trade for other cryptocurrencies and use it as a volatility hedge against other digital currencies you own.
Since BUSD is a stablecoin, BNB will experience more fluctuations in price. However, since Binance burns tokens quarterly to reduce the overall supply, changes in price will take place.
Hence, Binance Coin will be more volatile than Binance USD. That’s why before making any kind of transaction, you should always keep track of exchange rates, coin price trends and price prediction, among other things.
Having an account on Binance Exchange gives you the advantage of trading any digital asset with either BUSD or BNB. You can use them to purchase various digital assets if you want to diversify your investment portfolio.
However, since the price of BNB is more volatile than BUSD, it may affect the number of digital assets you’re planning to purchase. If you want a more stable exchange rate, then BUSD is right up your alley.
Although BUSD and BNB are both created by Binance, these digital currencies are also available on other platforms. BNB can be bought in exchanges such as KuCoin, Huobi, FTX, Gate.io and Cex.io. While BUSD is available in AAX, Gate.io and FTX.
However, BUSD is not supported in most exchanges compared to BNB. The reason for this is that some platforms prefer to use more popular stablecoins including USDT and USDC.
BNB was released at the same time as the launch of Binance Exchange in 2017. In the case of BUSD, it only started in 2019 with the platform collaborating with Paxos—a New York-regulated financial institution to legally issue BUSD.
To withdraw BNB and BUSD from Binance, you can use networks such as BEP2, BEP20 and ERC20. Keep in mind that the native version of BUSD is the ERC20, while the BEP20 is its Binance-Peg version.
If you’re planning to withdraw or deposit BUSD, you’d notice that the ERC20 and BEP20 deposit addresses are similar. It is also versatile compared to BNB since you can use it on multiple platforms like Harmony ONE and Avalanche C-Chain.
If BNB is more available on other exchange platforms, BUSD is supported on more networks. As such, you can take advantage of BUSD in completing projects hosted on other blockchain networks aside from the Binance Smart Chain.
Contrary to popular belief, not every digital asset in the market can be used in all kinds of transactions. This was true in the case of Binance when they created Binance Coin in 2017 to serve as a utility token for lower transaction costs.
However, the platform decided to go against the tide when the crypto industry was booming over the past few years. Now, BNB and BUSD are being used by gambling enthusiasts for faster transactions and a volatility hedge.
Since Binance’s two cryptocurrencies have several use cases, they eventually gained traction among casino players. These assets are multi-utilitarian which led casinos like Bitcasino to support them, especially Binance Coin.
Even though Binance casinos aren’t as popular as Bitcoin casinos, reports have stated that they are on the rise and expected to get more recognised.
What will be the main benefit when you play with Binance tokens instead of Bitcoin and other popular cryptocurrencies? First, you have the backing of the Binance exchange, which will allow you to store your tokens on the platform and transfer them to your Bitcasino account instantly.
Take a look at its pros and cons below:
Thanks to Binance Smart Chain, you have the chance to widen your casino game options. This blockchain network provides users with GameFi, metaverse and even non-fungible tokens (NFTs), among others. It means that you can access more innovative games that can help you pass the time and earn your desired profits.
Luckily, Bitcasino has a wide range of fun casino games that can be played using BNB and BUSD! This includes the following:
If you’re looking for a classic casino card game that can increase your funds, then baccarat is right up your alley. In essence, Baccarat may be reduced to a guessing game since you have to predict which between the Player or the Banker’s hand will win. A winning hand should have a hand value closest to nine without going over.
A great baccarat game you can play is Evolution’s Bombay Club Salon Privé. This game is intended for high rollers who want to play for a top-notch live-dealer experience. Just keep in mind that you need to meet the minimum amount on your balance before you can play on a table.
Since the stakes are pretty high, you get the chance to double your Binance tokens in an instant. You also have the benefit of setting the pace of the game, helping you assess every move.
Roulette is certainly one of the casino games that never lost its novelty since its inception. Now, you can play using BNB and BUSD, watch the ball land on your number and multiply your bets in every round! A roulette title that’s highly recommended is Salon Privé Roulette, another game released by Evolution.
What makes the game more interesting is that the tables are private. No one has the right to watch or access your gameplay but you, which will make you feel more confident to place big bets.
As of writing, no country or state has passed any law and regulation regarding the use of Binance tokens in online casinos. This means that gamblers can freely participate in online casinos with these tokens without facing charges or violating laws. For as long as there are no regional restrictions on gambling or crypto, then you’re off to a great start.
The main difference between the two is that BNB is a utility token that can lower your fees, while BUSD is a US dollar stablecoin you can hedge against volatility.
Yes, Bitcasino.io offers BNB and BUSD as valid payment methods. You can use them to play your preferred games such as slots, blackjack, poker and roulette, among others.
Yes, you can earn interest with BUSD and BNB. For instance, in the case of Binance USD, lending allows you to increase your interests over time.
Now that you’ve learned the difference between BNB and BUSD in terms of purpose, then it’s time to use them to play casino games! From blackjack, poker, online slot games and even lottery, you get the chance to boost your Binance tokens and enjoy a seamless casino experience. Sign up today, make a deposit and get started with Binance gambling!
Words by: Rachelle Bulalacao
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