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Why You Should Diversify Into Binance Coin Right Now

Binance coin - Why You Should Diversify Into Binance Coin Right Now

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Investors often overlook Binance Coin (BNB-USD) due to its smaller size and less decentralization. However, its recent performance has been better and more consistent than both Bitcoin (BTC-USD) and Ethereum (ETH-USD), and the future of BNB seems encouraging.

Unlike most other altcoins, Binance and Ethereum both have significant ecosystems to capitalize on. Both of these blockchains generate revenue through their ecosystems, which have thousands of tokens that use the native currency of these blockchains to make transactions. Therefore, both BNB and ETH have remained consistent and profitable, whereas investors have lost interest in other cryptocurrencies.

However, Binance Coin is smaller in market capitalization and significantly less decentralized; therefore, many investors don’t regard BNB coin as a safe investment. Regardless, almost all projects have flaws, and I believe Binance Coin’s flaws aren’t a deal-breaker considering its profitability.

In addition, the project is run by Binance, which is considered to be a reputable exchange. The company has a clean track record, and it has reimbursed users in the past whenever there was a problem. Thus, despite the noticeable centralization of the BNB project, it being unsafe or a scam is implausible.

BNB Coin is also among the best-performing major crypto projects in terms of profitability. The asset has outperformed both BTC and ETH in 2021 and continued the trend in 2022 so far. Moreover, the exchange is also hinting at an expansion into Europe, which could further drive up the Binance Coin price.

Therefore, considering the consistency and profitability of BNB, I believe it to be a safe investment to diversify into. I also expect the asset to continue to outperform both Ethereum and Bitcoin due to its smaller market capitalization.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is an advocate of blockchain technology. You can follow him on LinkedIn.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/why-you-should-diversify-into-binance-coin-right-now/.

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