How to buy Binance Coin (BNB) — A Beginner’s Guide
Binance Coin (BNB) is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange. The Binance Exchange is the largest cryptocurrency exchange in the world as of January 2018, facilitating more than 1.4 million transactions per second. In this post, I’ll give a brief overview of what BNB is and where you can buy it online.
How to Buy Binance Coin Summary
- Get a Binance coin wallet (Ledger, Exodus).
- Locate your BNB address.
- Sign up to Binance.
- Buy BNB with another crypto or a credit card.
- Withdraw your coins (or leave them on Binance if you plan on using them)
For investment purposes only you can use eToro and skip all three steps.
That’s how to buy Binance Coin in a nutshell. If you want a more detailed review of Binance Coin and how to buy it, keep on reading. Here’s what I’ll cover:
1.What is Binance Coin?
Binance Coin is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. Binance coin initially ran on the Ethereum blockchain with ERC 20 standard but has since become the native coin of the Binance chain.
Binance coin has a strict maximum of 200 million BNB tokens.
- Binance Coin is the cryptocurrency issued by the Binance exchange and trades with the BNB symbol.
- BNB was initially based on the Ethereum network but is now the native currency of Binance’s own blockchain, the Binance chain.
- Every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy, or “burn,” Binance coins held in its treasury.
- Binance was created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
What is Binance Coin Used For?
Just like other evolving cryptocurrencies, the Binance Coin offers several uses that go beyond the Binance exchange, such as
- Trading: Binance Coin can be traded for other cryptocurrencies on various exchanges, depending on the restrictions set by the exchange.
- Transaction fees on the Binance Exchange: BNB can be used to pay for transactions on the Binance Exchange, and users also receive a discount for doing so.
- Credit card payments: BNB can be the form of payment for crypto credit card bills on Crypto.com.
- Payment processing: Merchants can offer BNB as a means of payment for customers, offering more flexibility in payment methods.
- Booking travel arrangements: BNB can be used to book hotels and flights on select websites.
- Entertainment: From paying for virtual gifts to buying lottery tickets, BNB serves several purposes in the entertainment space.
- Investment: Several platforms allow investors to invest in stocks, ETFs, and other assets using Binance Coin.
- Loans and transfers: BNB can be used as collateral for loans on certain platforms. Also, there are apps that allow users to split bills and pay friends and family through Binance Coin.
2. How to buy Binance Coin?
Step 1: Get a Binance Coin wallet
Assuming you’re looking to buy and hold BNB, it’s important you have a wallet to store it in. Since Binance Coin is basically an Ethereum token, many wallets support it.
Binance Coin Hardware Wallets
The safest way to store BNB would be on a hardware wallet. A hardware wallet is a physical device that stores the private key to your coins offline. This way, as long as the device remains in your possession, no one can gain remote access to your coins.
Ledger hardver wallets: Secure your Binance Coin assets with the most trusted hardware wallet. Cold storage wallets are typically encrypted devices that store users’ Binance Coin assets offline, providing a layer of security against the evolving threats emerging from being connected to the Internet.
Your private keys, giving access to your assets, remain safe in a certified secure chip.
Ledger Nano S — Protect your Binance Coin assets with the first and only independently-certified Binance Coin wallet on the market.
Ledger Nano X — The Ledger Nano X is a Bluetooth® enabled secure and CES award winning device that protect your Binance Coin assets.
Binance Coin Software Wallets
Trust Wallet — for Binance Coin (BNB). The mobile app works with several crypto tokens and blockchain wallets. With Trust Wallet, you are in control over your funds. Receive, send, store and exchange your cryptocurrency within the mobile interface.
Exodus — A beautifully designed wallet for Blockchain assets with over 4 million downloads that supports Binance Coin, Bitcoin and over a 100 other crypto assets. The wallet also has an exchange feature for users who want to swap BNB for other cryptos and vice versa.
Binance Coin Web Wallet
Binance’s exchange — Normally I advise against keeping coins on an exchange. However, if you’re planning to use BNB to save on Binance fees and you don’t own a large amount, it might be most cost efficient to just keep it on the exchange. Keep in mind that if this is the case, you’re giving away control over your coins to Binance.
Step 2: Find a BNB exchange
Buy Binance Coin through Binance
With a market cap of over $90 billion, Binance is the leading crypto exchange platform in the world. Based in China, Binance is run by crypto mega-influencer Changpeng Zhao, or CZ. Across the pond, Binance.US serves customers stateside with a limited suite of features thanks to U.S. regulations.
Buy Binance Coin through eToro
Founded in 2007, broker eToro has more than 13 million users in 140 countries worldwide — and the U.S. is now on that list.
The broker made its name through its social investing platform, an innovative tool that allows users to copy the trades of other investors.
While eToro runs multi-asset brokerages (offering stocks, commodities and forex trading) in other countries, so far U.S. customers can trade only cryptocurrencies on the platform. The company plans to expand its U.S. offerings in the future.
EToro is registered in Cyprus, is a regulated Financial Conduct Authority in the U.K. and retains a cross-border license to operate in other European countries, credentials that may give U.S. users comfort in using a brokerage not currently licensed by the U.S. Securities and Exchange Commission. But it’s important to remember cryptocurrency brokerages are not insured by the Securities Investor Protection Corporation, or SIPC.
*eToro users: 75% of retail CFD accounts lose money. Your capital is at risk. US users — CFDs are not available for US users. US users can only trade (long) real assets without leverage.
Step 3: Withdrawing your BNB coins
Usually I advise withdrawing the coins you just bought into your own wallet. However, if you plan on using your coins to save on Binance fees, it’s probably best to leave some on the exchange itself. If you own a large amount or bought the coins for investment purposes only, move the coin off the exchange and into the wallet you chose on step 1, so that you will have full control over them.
As Binance grows in popularity, BNB will probably appreciate as well. Unlike most other “utility tokens” out there, BNB gives real value to Binance users in the form of saving on trading fees.