Binance Coin (BNB) and Tron (TRX) are two crypto tokens that are among the top ranking crypto assets.
They are both proof-of-stake (PoS) tokens, that is they are used on Pos networks Binance Smarch Chain (BSC) and Tron respectively. You may be familiar with both tokens, but when it comes to key differences between them that can influence investment decisions, you may be in the dark.
We have created this guide to shed light in those gray areas so that you can make a more informed decision about which of the two to buy whenever you want. We’ll go into the major differences between the two to help with this.
What is BNB?
BNB is the token that powers the BSC ecosystem. It is also used on the older Binance Chain from which BSC was derived. The token is used to pay for transaction fees on these blockchains which support smart contracts and decentralized applications.
The token is also used for staking to support the network. All PoS networks depend on staking by validators to remain secure and reliable. BNB is the token used for this purpose and is used to reward the validators as an incentive for them to keep securing the network.
BNB also serves as a governance token for the network. Those who own BNB can participate in voting on governance proposals for the network to make it better. The more BNB they hold, the more voting rights they have.
BNB has a total supply of over 147 million tokens, and is currently the fourth latest crypto asset by market cap.
What is TRX?
TRX is the token used to power the Tron network. Like BSC, Tron is a PoS network, and the token is used to pay for transaction fees as well. It is also naturally the staking token used to secure the network.
Holding the token also empowers you to vote on governance proposals for the development of the network. Tron has a total supply of over 87 billion tokens, and is currently the twelfth largest by market cap.
The Tron network is a high throughput network with low transaction fees, making it a popular choice for sending and receiving funds. It is also used for smart contracts and building decentralized applications.
Anyone can use the decentralized network for these purposes and also for NFTs and other products and services it supports.
Which Should You Buy?
BNB and TRX are similar in many ways, especially in the way they are used. However when it comes to investing in the token, you’ll need to take a closer look to make sure you’re making the right choice.
That being said, there is no hard and fast rule for choosing the better investment, but there are few pointers to guide you. For example, the total supply of the token could be a factor.
For BNB, it is 47 million while for TRX, it is 87 billion. This allows the natural laws of supply and demand to take its course and BNB is likely to be more valuable down the line, especially if you’re investing for the long term.
Short term investments usually don’t tell you anything because every token experiences a price surge every once in a while, but they must be tested with time.
On the other hand, some investors may just prefer the cheaper token, or maybe because they wish to participate in the particular ecosystem, be it Tron or BSC. in that case, you’ll have to buy the appropriate token.
However, looking at the important factors that affect the long term value of an asset, BNB is the better choice to buy, even though the price is much higher. The price can grow indefinitely as long as there is sustained demand.
Looking at the Binance ecosystem and the ongoing developments on the BSC and Binance Chain networks, BNB has a bright future.
