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How to Buy Binance Coin (BNB)

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BNB coins

What is BNB?

BNB is the digital currency used on the Binance ecosystem. It was created by Binance in 2017, and it was issued to investors during the company’s ICO (Initial Coin Offering) event back in July of the same year. The token sale of BNB offered 100,000,000 units of the coin, which is 50% of the total supply. At the time, the issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. All BNB tokens were created before the ICO and they were sold within 20 days, raising approximately $15 million.

At the start, BNB was issued as an ERC-20 token that was deployed on the Ethereum blockchain. However, Binance then launched its own Binance Chain, and the BNB coins were transferred there. The initial total supply of the BNB coin was 200 million, but due to regular coin burn events, the supply has been on the decline.

BNB is a unique coin that has multiple uses within the Binance ecosystem. It is a utility coin that allows traders and investors to receive a discount on their trading fees. Furthermore, BNB coins can be used to pay for travel expenses as users can utilize it to pay for hotels and flight bookings. BNB coin is also used to purchase virtual gifts, to shop with a credit card, and much more. Several people also use the BNB token to make donations to charity via the Binance Charity Foundation (BCF) project.

Interestingly, Binance is different from other crypto exchanges in that it transacts purely in cryptocurrencies and not in fiat currencies. Founder Changpeng Zhao’s vision for the Binance coin was to compete with the other exchanges by offering solutions to the numerous problems he saw with the cryptocurrency trading infrastructure. So, let us explore BNB in more detail.

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Where to Buy BNB?

buy BNB coin

Binance Coin is one of the leading cryptocurrencies and it is available on numerous platforms. However, despite its availability, it is best to buy BNB from reputable platforms since they have more liquidity, security, and offer better customer support for investors. The reputable brokers and exchanges also abide by set regulations, which makes it more secure and transparent to operate with them.

Why Buy BNB from Brokers?

broker for Binance coin

One of the best platforms to purchase the BNB tokens is from online crypto brokers. Brokerage platforms come with various advantages for traders and investors. They include as follows:

Security

Hackers have been targeting the cryptocurrency sector since the inception of Bitcoin more than a decade ago. However, the entry of brokers into the industry has provided more security for traders and investors. Brokers usually have tight security protocols on their sites such as the 2FA and SSL certificates. As a result of this, this ensures the safety of customer funds and information.

Less Expensive

Trading BNB with online brokers means that you will spend less than when you buy the coins from an exchange. With brokers, you do not have to worry about the storage of your cryptocurrencies as you are not actually trading BNB. Instead, you are simply trading BNB CFDs (contracts for differences). Here you are simply required to make a prediction regarding the direction that the price of the asset will move. This form of trading is also a lot simpler than buying and selling BNB from an exchange.

Liquidity

Brokers operate effective and intuitive trading platforms, which means that liquidity is not a problem for them. This means that you can trade BNB at any time and also, in many cases, brokers offer a mobile trading platform enabling you to trade even while on the move.

Regulated

Many brokers operate as regulated and licensed entities, which means that everything they do falls under the rules of the respective financial regulator. The task of these regulators is to protect the trader and to ensure they are trading in a transparent trading environment.  With this in mind, you can be comfortable trading BNB with regulated online brokers as they follow strict security and regulatory measures to ensure that the funds and personal information of their clients remain safe and secure at all times.

Effective Trading Tools

Brokers make the trading process easier for you because they offer effective trading tools. These trading tools assist you in analyzing market movements and making informed decisions about when to buy and sell your BNB coins. You can also trade BNB against a large basket of other cryptocurrencies and fiat currencies.

Here are the pros and cons of trading BNB with an online broker:

Pros

Cons

  • Safe and secure trading environment
  • Powerful trading platform
  • Choice of price charts and indicators
  • Wealth of educational resources
  • Professional customer support
  • Limited choice of cryptocurrencies
  • You do not own the cryptos

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Buy Binance Coin (BNB) from Exchanges

crypto exchanges

Aside from brokerage platforms, you can purchase the BNB tokens from cryptocurrency exchanges. They are the first entry point into the crypto market and offer high liquidity of the coin. BNB can be traded against a wide range of cryptocurrencies on crypto exchanges. Buying BNB coins from crypto exchanges is advantageous because of the following reasons:

Liquidity

The largest liquidity of Binance Coin can be found on cryptocurrency exchanges, especially the Binance exchange. BNB and virtually all cryptocurrencies are listed on crypto exchanges. Most exchanges offer top liquidity, which means that you can buy, sell, and trade the BNB tokens with ease.

24/7 Open Market

Cryptocurrency exchanges operate in a unique way that ensures that they are open and operate 24/7. This means that Binance Coins are readily available on crypto exchanges, day and night, and on every day of the week.

Full Control of Cryptos

Unlike brokerage platforms, cryptocurrency exchanges allow you to buy and hold the physical coins. You can buy BNB coins and hold them in your digital wallet, plus the BNB coin can be used for various things such as paying for goods, hotels and flight bookings, and buying virtual gifts. Based on this, you stand to do a lot more than just trading when you buy BNB coins from cryptocurrency exchanges. You are not limited to only buying, selling, and trading them. You are free to use the coins on the Binance ecosystem or save them in digital wallets for proper storage against hackers.

Here are the pros and cons of buying and selling BNB from an exchange:

ProsCons
  • No spreads on market maker exchanges
  • Sometimes identity verification is not required
  • Offer a larger choice of cryptocurrencies to trade/ invest in
  • Might have a complicated verification process
  • Fees charged per transaction

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How to Buy Binance Coin (BNB) from Binance Exchange

binance crypto exchange

Binance has gone through tremendous changes over the past three years to become the largest and most popular cryptocurrency exchange in the world. Its native coin, the BNB token, is used by traders and investors on the platform as they enjoy discounts when they use it to pay for transaction fees on the Binance trading platform. Purchasing the BNB coin from the Binance cryptocurrency exchange involves a few simple steps.

To buy BNB from Binance, you will first need to have Bitcoin (BTC), Ethereum (ETH), or Tether (USDT). In this post, we will use Bitcoin as our example, even though the other options work in the same way.

Registration

  • You should start by visiting the Binance trading platform at Binance.com and register an account with them.
  • Insert your email address and create a new password for the account. Complete the CAPTCHA and respond to the verification email they will send to you.

Authentication

  • After opening a new account, set up the 2 Factor Authentication using the Authy or the Google Authenticator App. This provides an extra layer of sophistication and security to your account and keeps your cryptocurrencies safe.

Buying BNB

  • Buy Bitcoin using your credit card or any of the approved payment methods on Binance. After the BTC arrives, go to the BNB wallet and click on Buy the Binance Coin.
  • Proceed to Funds” > “Balances,” where you will see all your account Binance wallets listed there. Binance sells a wide range of coins if you wish to buy more than BNB from there. They have an in-built digital wallet to help you store each coin for safekeeping.
  • At the top of the list of coins, you will see your Binance Bitcoin address. Click on the BTC address and select “Deposit.” Your BTC deposit address will be displayed, and you can send the BTC from any cryptocurrency exchange you have them stored in.
  • If you have BTC on Coinbase that you bought using fiat currencies, you can send the BTC from your Coinbase wallet to your Binance Bitcoin wallet. The transaction takes a few seconds or minutes, and the coins will instantly reflect in your Binance BTC wallet. Once that is done, you can then trade BTC for the BNB coins.
  • To trade Bitcoin for Binance coins, click on “Exchange” > “Basic” in the upper left-hand corner of the trading platform. It will take you to the where you can exchange the cryptocurrencies.
  • Binance will show you different coins to exchange with Bitcoin. Don’t click on the first coin you see on the list, as it might not be the BNB coin that will be listed. Make sure that you select both BTC and BNB when filling in the appropriate sections.
  • On the right side of the screen, you will see a little green boxed showing BTC. This shows you that Bitcoin is the crypto to be used in a coin exchange. Beneath the BTC box, you will see a list of BTC/altcoins trading pairs.
  • Select the trading pair with BTC/BNB or search for it on the toolbar. The trading pair will be isolated. Proceed to click it, and the screen will show you the Binance coin trading screen.
  • While there is a lot of information on the page regarding the coin, not all of this is important for you as an investor or a trader that wishes to buy the Binance Coin.
  • Click on the menu button on the page as it is our priority at this point. This simple interface can be used in multiple ways. However, we will show you how to buy the Binance Coin quickly.
  • You can purchase the Binance coin without knowing what all the terms on the platform mean. The Price line will be filled out for you once you enter the page. This is the current market price of the BNB coin. If you wish to buy the Binance Coin as soon as possible without wasting time, do not alter the price and kindly move down to Amount.
  • Here, traders and investors can fill in the number of Binance coins they wish to buy at a price stated above, or they could click on “100%” to choose to buy as much BNB as they can using all the Bitcoin they purchased earlier.
  • Once you do that, you will see the Total filled in automatically. This indicates the final price you are willing to pay in Bitcoin for the Binance Coin you are buying. Afterwards, hit the green Buy BNB button, and your order would be processed and completed within a few seconds.
  • You have successfully bought the BNB coins, and the next step is now left to you. You can decide to move the coins to a safe external wallet for safekeeping, or you can use it to pay for your transaction fees on the Binance exchange or to purchase other items.

Binance Coin is one of the leading crypto coins and, as such, it is unbelievably valuable. This means that hackers are always trying to get their hands on the coin. To protect your BNB coins on the Binance exchange, make sure that you employ 2 Factor Authentication on your account. This will keep your account very secure.

You can also choose to use the Binance coin on the Binance trading platform for trades or just store it for the long haul. If you wish to deploy the most secure method, navigate to “Funds” > “Balances” and withdraw your BNB to your external digital wallet, either cold storage or hot storage wallet, depending on your preference.

Why You Should Invest in BNB

There are several reasons why crypto traders and investors should consider investing in BNB. To start, its increasing value is the reason why you should buy it now. No one can deny the astonishing growth that Binance has experienced over the past three years. Within that period, Binance has dominated the cryptocurrency exchange business, and the BNB coin has experienced a massive surge in price during that period. Binance, which started as a Chinese-based cryptocurrency exchange in August 2017, did not experience much trading volume in its first month. However, it exploded into the scene around December of the same year and has since become the number one digital asset trading exchange in the world. The insane growth of Binance has seen the BNB coin rise to be amongst the top ten most valuable cryptocurrencies in terms of market value. With Binance venturing into the decentralized exchange space and more, BNB will become even more valuable.

The BNB coin demand is also on the rise, but the supply is diminishing. This means that as more people seek to buy these coins, and its supply decreases, the price of the cryptocurrency will skyrocket over time. Binance is acquiring more cryptocurrency exchanges and expanding its business into other sectors of the crypto sector. This means that more people will use BNB to pay for their transaction fees and to carry out other transactions. But with the diminishing supply, there will be limited BNB coins in circulation, and its value will increase because of that. If you are interested in buying, selling or trading cryptocurrencies, then the Binance Coin should be one of your first choices.

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Dov Herman