The content on this site is for informational purposes only and does not constitute financial advice. Always do your own research (DYOR) before making any investment or trading decisions.
Understanding Binance Zones
Payments tokens
Payment tokens are a type of cryptocurrency designed to make sending and receiving money faster, cheaper, and accessible to everyone, no matter where they are. These tokens serve various payment functions, such as:
- Helping users easily convert traditional money (fiat) into cryptocurrency and vice versa (on-ramp/off-ramp solutions).
- Acting as a digital alternative to storing value, like a virtual form of money.
- Enabling direct transactions between people without needing a bank (peer-to-peer transfers).
Proof of Work (POW) tokens
Proof of Work (PoW) tokens are rewards given to users, called miners, who use powerful computers to keep the cryptocurrency network safe and process transactions. Each project operates on its own independent blockchain.
Layer 1 and 2 tokens
Layer-1 crypto projects are main blockchains, like Ethereum and Solana, that handle transactions and support apps.
Layer-2 crypto projects are add-ons that make Layer-1 blockchains faster and cheaper, like Polygon and Arbitrum.
BNB Chain tokens
BNB Chain is a fast blockchain that supports apps, smart contracts, and tokens. It was originally called Binance Smart Chain (BSC) but was renamed to highlight its community-driven nature.
The top BNB Chain tokens include a mix of DeFi (finance apps), gaming tokens, NFTs, and utility coins that benefit from low fees and fast transactions.
BNB Chain is also compatible with Ethereum, making it easy for developers to move projects while keeping costs low.
Meme tokens
Meme tokens are cryptocurrencies driven by internet culture, social media hype, and online communities rather than practical utility. Their value often fluctuates based on trends, making them highly volatile.
These tokens thrive on community engagement, often experiencing rapid price swings based on social sentiment.
Seed tokens
The Seed Tag is used to classify early-stage crypto projects that may be highly volatile and risky compared to other listed tokens.
These projects are often new and innovative, but they may not yet have a fully developed product or a large user base. Because of this, their prices can fluctuate significantly based on market sentiment and adoption.
Binance applies the Seed Tag to help users identify these tokens and encourages them to Do Your Own Research (DYOR) before investing. Traders must also pass a quiz every 90 days to trade Seed Tag tokens, ensuring they understand the risks.
Infrastructure tokens
Infrastructure tokens are essential blockchain projects that provide the foundation for networks to function efficiently. They help with scalability, security, interoperability, and decentralized storage, ensuring that blockchains can handle transactions and applications smoothly.
DeFi tokens
DeFi (Decentralized Finance) is a blockchain-based financial system that allows users to trade, lend, borrow, and earn interest without relying on traditional banks.
The top DeFi tokens power different financial services, including decentralized exchanges (DEXs), lending platforms, staking protocols, and derivatives trading.
Launchpool tokens
Binance Launchpool is a platform that lets users earn new crypto tokens by staking BNB and other assets. It helps launch promising blockchain projects while allowing users to participate early.
The top Binance Launchpool tokens include a mix of DeFi, gaming, infrastructure, and AI-related projects. These tokens benefit from Binance’s liquidity and exposure, making them accessible to a wide audience.
Real World Assets (RWA) tokens
Real World Assets (RWA) crypto tokens bring physical assets onto the blockchain through tokenization, making them easier to trade, own, and manage.
These tokens allow fractional ownership, meaning people can invest in parts of assets like real estate, commodities, and bonds instead of buying the whole thing. They also improve accessibility and liquidity, making traditionally hard-to-trade assets available on DeFi platforms.
These tokens bridge traditional finance with blockchain, making investing more efficient and accessible.
Artificial Intelligence tokens
AI crypto tokens use blockchain and artificial intelligence together to power smart applications.
Some help create AI marketplaces, where people buy and sell AI tools. Others focus on AI-powered trading, using smart algorithms to automate investments. Some even support AI-driven organizations, where decisions are made by AI instead of people.