Those seemingly inconspicuous 'transaction fee vouchers' turned out to be my most successful investment in my crypto journey.
In 2017, I bought BNB for the first time at only $8. At that time, it was purely to save on transaction fees, and I didn't expect to hold it for eight years.
Now BNB has stabilized at $300, and my initial investment of $500 has grown to $200,000. Today, I want to share these real experiences that were gained through real money.
1. The value logic of BNB: Much more complex than just 'vouchers'.
What initially attracted me was indeed the discount on transaction fees—using BNB for trading offers a 20% discount. But soon I realized that BNB is far more than that.
BNB is actually my pass into the Binance ecosystem. Early participation in Launchpad projects allowed me to capture high-quality projects like ADA and DOT, some of which yielded returns of dozens of times. Holding BNB also allows participation in staking mining and enjoying discounts on NFT trading fees, later expanding to cross-border payments and derivatives margin scenarios.
The BNB burn mechanism is key to supporting its value. Every quarter, Binance uses profits to repurchase and burn BNB, continuously reducing circulation. By 2025, 64.26 million BNB will have been permanently burned, reducing circulation to about 137.7 million. This deflationary model directly captures Binance's platform income, creating value for holders.
Eight years later, BNB has evolved from a simple platform token to the core asset of the entire BNB Chain ecosystem, with its value support becoming increasingly solid.
2. My holding strategy: Patience is more important than enthusiasm.
It's important to buy at the right time, but long-term holding requires more strategy.
During the bear market in 2018, BNB fell from $24 to $6. I did not panic sell; instead, I set up a monthly investment plan, buying more as prices fell. This laid a solid foundation for later profits.
During the bull market in 2021, I took profits in batches—selling 1/3 at $150, another 1/3 at $250, and clearing the remaining portion at $300, achieving over 40 times returns in a single round.
I always adhere to the principle of position management, never holding more than 25% of my total assets in BNB, with the rest allocated to mainstream assets like BTC and ETH to avoid single asset risk.
3. Avoid these misconceptions to prevent unnecessary losses.
Leverage trading is the biggest enemy of platform token investment. I witnessed friends using 10x leverage to trade BNB, only to face liquidation due to a 20% drop caused by regulatory rumors. Assets like BNB require long-term holding; leverage only amplifies short-term volatility risks.
Awareness of asset security cannot be ignored. After the FTX crash in 2022, I immediately transferred 70% of my BNB to cold wallet storage. Even the most trusted trading platforms should adhere to the principle of asset diversification.
One more important point: do not blindly follow the hype of burn events. Early on, I profited by positioning before burns, but after the rules changed in 2023, the strategy failed. Now I carefully study official announcements rather than following the crowd.
4. Practical advice for beginners
For newcomers to BNB, I have a few practical suggestions:
Entry timing: Wait for BNB to retrace 30%-40% from its peak to build a position in batches, avoiding chasing high prices. For example, a drop from $300 to the $210 range is a good entry point.
Long-term holding strategy: Long-term holders can use BNB to participate in staking mining, enjoying annual returns of 5%-8%, while also gaining additional benefits such as Launchpool and HODLer airdrops.
Profit-taking strategy: Use a tiered profit-taking method, selling 1/4 when profits reach 50%, half when they double, and set a moving stop-loss for the remainder. Don't be greedy in pursuit of the 'last bit of increase.'
5. The future potential of BNB
Today, the BNB ecosystem has expanded to an astonishing scale. Binance has over 300 million users worldwide, and BNB Chain users exceed 500 million. Wall Street institutions like Franklin Templeton have expanded tokenized products to BNB Chain, and several publicly listed companies have established BNB strategic reserves.
Some analysts compare today's BNB to Moutai stock in 2004—institutions are just beginning to recognize its value, but have not yet allocated on a large scale. Currently, the institutional holding ratio of BTC is about 12%, while BNB is only 0.4%, indicating huge growth potential.
Over the past eight years, my biggest insight has been: in the cryptocurrency field, the most profitable approach is often not frequent trading, but selecting a strong ecosystem project and holding it for the long term.
The value growth of BNB essentially reflects the expansion of the Binance ecosystem. For beginners, I suggest treating BNB as the 'ballast stone' of your asset allocation, accumulating through spot dollar-cost averaging and ecosystem participation, which is much more stable than chasing trends or trading contracts.
My eight-year experience investing in BNB tells me that sometimes the simplest strategy—choosing and holding—is the most effective in the crypto world. Follow Ake to learn more first-hand information and precise points of knowledge in the crypto circle, becoming your guide in the crypto space; learning is your greatest wealth!
