What is the Binance Smart Chain?
The Binance Smart Chain (BSC), also known as BEP20, is a blockchain just like the Bitcoin, Tron and Ethereum blockchains. In a few words this blockchain was introduced by Binance for several reasons. The main ones was to expand the reach of the Crypto world, and secondly – use low fees to send crypto.
According to Binance, in an article published in 2020, they claimed that “some of the benefits of Binance Smart Chain include: Cheap transaction fees that reach as low as 1 cent“.
At the time of writing, March 2022, the fees to send tokens in the BSC are indeed quite low. You can send for instance SHIB tokens today for around 8 cents only.
Why use BSC (BEP20) and not the Ethereum Blockchain (ERC20)?
As you might be aware, many websites such as Crypto Faucets, want to send many users as many payouts as possible. If they will pay a $3 fee for every payment made then they won’t be able to pay so many users. Their alternative will be to raise the withdrawal threshold to $100 or so (and then $3 would still be 3% of that payment – which is quite outrageous). The more reasonable option is to simply ditch the Ethereum blockchain and use a cheaper blockchain.
This is not only helpful for the websites themselves. The end user receiving Ethereum tokens will have to pay the same fee to transfer these tokens elsewhere (unless the user is not required to do so). However all in all you can see and appreciate these fees are quite high. As a result, many financial businesses chose to allow users to deposit/withdraw using the BSC. It’s simply cheaper than the Ethereum one. Yes, Ethereum has been here longer than Binance, but Google also came after Altavista and turned into a popular search engine – whilst the older Altavista is something most people have never heard of. When it comes to business – efficiency in our opinion is far more important than how many years you’ve been in the market. Now let’s move further.
At the time of writing, the Ethereum blockchain is charging close to $1.50 fee to send ETH. If you want to send ETH tokens (e.g. Tether, USDC, SHIB and more) – you would have to pay $4 or $5 for doing that.
The Binance Smart Chain comes here and resolves the issue by charging 50x times less the fee for a single transaction!
- With the Ethereum blockchain, as of today, sending 50,000 SHIB will cost you around $4.50.
- With the BSC blockchain, as of today, sending 50,000 SHIB will cost you around $0.08 – that is more than 50 times less than the ETH blockchain!
Which wallets can be used with the Binance Smart Chain?
Please note that if you use the BEP20 blockchain – then you must ensure you use a wallet that supports this blockchain! Our best suggestion is to use Metamask for that purpose. The reason is because Metamask provides you with one address that is an Ethereum address, a BSC address and more.
For instance, you can use Metamask to store ETH tokens, BSC tokens, Polygon tokens and more! So you have one wallet to store them all. It is easy to use and available in all countries without any restrictions.
You can also choose to store your coins in Binance itself, which allows you to send/receive BEP20 tokens. Or alternatively you can use any other wallet, as long as you ensure it supports BEP20 tokens.
At the time of writing, March 2022, please note Coinbase does not support BEP20 tokens! Sending BEP20 tokens to Coinbase will get your tokens lost, permanently!
Please – always make sure your wallet supports BSC/BEP20 before receiving Crypto tokens there.
Use this blog for additional tips how to make more money
This blog is intended to help you make money from Crypto sites such as gambling websites, faucets and more. Check out all the tips and strategies provided in this blog to learn how to make money from these sites by having an edge or by exploiting other strategies and more.