How to Buy Binance Coin (BNB) - A Beginner’s Guide
Launched initially as an ERC-20 Binance Coin (BNB), it later migrated to the Binance Chain. This happened in what's commonly known as a mainnet swap.
Today, BNB is to Binance what ETH is to Ethereum. As a form of cryptocurrency, it is actively traded on multiple exchanges and is also used within the Binance ecosystem for trading fee discounts and to pay transaction fees on the Binance Chain and the Binance Smart Chain (BSC). BSC is a blockchain built to overcome limitations with its predecessor, Binance Chain. Both chains work in parallel, but BSC is closer in functionality to Ethereum.
This means that decentralised applications can be built on BSC, and the project has attracted a significant number of keen developers. The advantage of BSC over Ethereum, from a user perspective, is that the transaction fees are significantly lower. In addition, BNB is considered deflationary due to the buyback and token burn built into its system.
In addition to being a worthy (and much cheaper) competitor to Ethereum, Binance is also the world's largest cryptocurrency exchange by trading volume, and its founder, Changpeng Zhao, is one of the world's wealthiest people. In this article, discover how to buy BNB quickly and easily.
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Our Recommended Platform to Buy Binance Coin
If you are visiting this assistance guide to discover how to purchase Binance Coin (BNB), you may know about the basic rules about buying BNB. If not, you can keep reading the article to develop a complete understanding of everything related to purchasing BNB as we have consolidated the most recent data and information in this guide.
The advanced users can consider the leading platforms and exchanges that we have meticulously selected after assessing a large number of features and service characteristics.
Where to Buy Binance Coin in 2022
Before you think about selecting a trading platform or a crypto exchange, you need to learn about the differences between the two platforms. When we talk about 'purchasing Binance Coin' or 'BNB', there are various approaches to do so. Depending on your investment strategy, you can buy the BNB tokens, or you can purchase monetary instruments that drive speculation on prices of different assets, including the Binance Coin.
For a better understanding, keep in mind that if you need to store your BNB tokens for quite a long time, feeling that the BNB coin price will increase, it is a better strategy to purchase the BNB tokens from a crypto exchange service such as Binance. You will need to store them in a crypto wallet, software or hardware, for long term security. This way, you will have the option to recover your BNB coins when you think the opportunity has arrived to capitalise on the price surge of the token.
Then again, if you are looking forward to short or medium-term gains, purchasing financial instruments for BNB is a more reasonable option. You don't really buy the BNB tokens here; instead, you speculate on the price. For example, you can purchase a BNB Contract for Difference (CFD) if you believe that the price will go up in the near future, which could be as early as a few hours. When the price hits the top ceiling according to your evaluation, you can sell the CFD for profits. This eliminates the problem of paying a great deal of exchange and transfer expenses alongside having a committed crypto wallet. In addition, purchasing and selling CFDs is a lot quicker and affordable.
Whichever strategy you select, only invest in BNB what you can afford to lose. The crypto market is volatile, particularly in the short run, and you can lose all your investment very quickly. You need to minimise and manage your risk by investing in different coins that are expected to perform well.
How to Buy Binance Coin With a Broker
Crypto traders and financial enthusiasts who need their investment venture to do well are very particular about picking their broker. They want to buy and sell BNB through brokers that don’t just adhere to regulatory bodies but provide a wide range of trading features including low charges, excellent client care, trading tools, charts, analytics, and security. You can depend on online audits and feedback to make a judgment call when it comes to the integrity of a crypto broker.
1. Register With the Broker
The signing up procedure on the vast majority of the trading platforms is a basic and clear process. Some exchanges like eToro usually just request your username, email address, and a strong password to kick you off while others like Pepperstone also ask you to submit a detailed investment profile before investing. The password needs to be strong though and should at least have ten characters, including one or more capitalised letters, special characters, and digits. Some platforms will allow you to use your social media networks to sign up for ease.
2. Verify Your Identity (KYC Process)
A regulatory controlled trading platform is bound by law to confirm the true identity of the financial trader joining their website. This is called Know Your Customer (KYC), which is put in place to counter illegal tax avoidance endeavours and give a sheltered investment and speculation platform to the clients of the broker’s website. It also ensures that your personal data and crypto funds remain secure.
To complete the identity confirmation (KYC) measure, you will need to share some personal identifying information with your broker which could be an official ID, driving permit, verification of residence, and evidence of your income.
3. Deposit Funds With Your Preferred Payment Method
It is now time to transfer your deposit to the broker, which will play the role of your working capital. If you are just starting out, we recommend you to only submit the minimum deposit which is generally between $250 and $500. Many brokers offer a wide scope of payment ways including wire transfer, bank cards, and e-instalment methods. You should consider all the components of your preferred payment method before you choose. Top factors are the cost of the transaction, deposit, and withdrawals alongside speed and availability.
Many traders would prefer PayPal, but due to regulatory issues, it is usually not available. Check out the fee structure and read the fine print before you jump into investing in the BNB tokens. Managing costs is important since they can eat into your profit margin.
4. Open a Position to Long/Short BNB
Before you open a short or long position on BNB, you need to have a complete understanding of various investment strategies. The financial investors who believe that the BNB token price will see a surge are known as bulls, and they open long positions so that they can earn as the BNB price keeps on increasing. However, the traders who believe that the Binance Coin price will diminish are known as bears, and they open short positions so that they can profit by BNB's deteriorating price.
When you have built up a crucial understanding of these investment strategies, it will be much more convenient for you to know whether you need to open a long or short position. The vast majority of the popular platforms that we suggest, for example, eToro offer risk management features which you can use to your advantage, including stop loss and take profit options.
5. Close Your Position
Once you have grasped the idea of risk management, you will know how to set stop loss and take profit limits as they empower you to close your position automatically without your presence while giving you complete authority over your ventures. Remember that these cutoff points are just there to deal with your risk and you reserve the right to close a position when you trust that you have earned enough profits from a position and keeping it open could actually be risky. You can do the same when you are shorting BNB before the price falls to the level that you had specified.
We suggest that you read all the material and guidelines regarding opening and closing positions accessible on this website before you begin putting your capital into BNB investment.
How to Buy Binance Coin With an Exchange
Purchasing BNB through an exchange is an ideal investment strategy when you want to hold Binance Coin tokens for the long term. Exchanges are for the users who think that BNB will keep on improving as far as its price is concerned and individuals who want to contribute towards the Binance Coin blockchain objectives. You have to look for similar factors when choosing an exchange as you have to when you are selecting a broker. Aside from assessing exchanges for their service and goodwill, you additionally need to identify the trading costs. Apart from that, you should consider user-friendliness, client assistance, and security. Keep in mind that not every exchange follows regulatory guidelines, and it is better to invest with those that follow KYC guidelines.
1. Set up a Binance Coin Wallet
Before you buy BNB, ensure that you have a crypto wallet to store your tokens. This may appear intimidating at first, but the digital currency space has developed over the years, and these procedures have become simpler and more user-friendly. Depending upon the duration for which you want to hold your Binance Coin, you can select various kinds of wallets including:
- Exchange/Web Wallets – These are wallets that are either web-based or come built-in with your trading platform or exchange.
- Software Wallets – These wallets are available for both your desktop and mobile devices and support all the major operating systems, including macOS, iOS, Windows, and Android.
- Hardware Wallets – These are also referred to as cold wallets and are ideal for putting away your BNB tokens for a long time. They have the equipment to safely store your coins, and they are totally disengaged from the web. They are also quite portable so you can take your coins anywhere with you.
2. Choose and Join an Exchange That Sells Binance Coin
There are many cryptocurrency exchanges, including Binance, CEX.io, and Coinbase that offer BNB coins and other digital currencies. You will need to assess the pros and cons of each, but Binance is the most appropriate exchange to purchase the coin. You need to remember that various exchanges have a distinctive signup requirement. Some will just request fundamental information to get you started while others will completely check your identity by requiring documentation. Crypto exchanges that abide by regulatory compliance are better for security.
3. Choose Your Payment Methods to Buy Binance Coin
After you have chosen your exchange, the time has come to analyse the variety of payment modes offered by it and which one will suit your investment strategy and goals the best. For instance, you can utilise bank transfer, debit or credit card, and other electronic payment methods to purchase BNB, but you'll have to take speed, comfort, and transactional costs into account.
You can incorporate your bank account into the exchange to make the trading and payment procedures significantly more consistent. Your fiat money will always be accessible to be utilised for buying BNB or some other tokens you may want to purchase.
4. Place an Order to Buy Binance Coin
For buying an altcoin such as BNB, you may need to purchase a well-known digital currency like Bitcoin or Ethereum first relying upon the exchange you have selected. A few exchanges may legitimately sell you BNB directly but others may not. First off, select your fiat money before you choose the amount of BNB you need to purchase. There is commonly a calculator available that reveals to you the amount of BNB you'll have the option to buy with that sum. When you have chosen your fiat money and the sum, you can send your buy demand through.
If two-factor authorisation is enabled, you will receive a code on your phone, which you will have to type in before the transaction is executed. This is for your security.
5. Safely Storing Your Binance Coin in a Wallet
If you are not interested in a long-term BNB coin investment, it is fine to leave it in the exchange wallet. This way, you won't need to worry about withdrawal charges. If you need it to hold your coins for a more drawn out period, like over a week, at that point, it is smarter to move the assets to a devoted wallet. To do that, you will have to provide the public key before the BNB coins are transferred. Again, if 2FA is enabled, you will need to provide the OTP for the transfer of BNB tokens confirmation.
Should You Buy or Trade Binance Coin?
Remember that purchasing and trading Binance Coin are two distinct strategies. Purchasing BNB from an exchange means that you want to own the tokens while trading them on a brokerage means you are merely speculating on their price through financial instruments. An exchange like Binance is a better fit for long term investors while platforms like eToro will be more suited for those looking to invest in CFDs.
What's the Difference Between a Binance Coin Exchange and a Broker?
A Binance Coin exchange is a service that empowers you to buy lesser-known currencies against well-known ones such as Bitcoin and Ethereum. That is exactly why they are called cryptocurrency exchange. For long term investment, you should go for an exchange since they actually sell the BNB token which you can own, transfer, trade, and store.
On the other hand, if your motivation is to produce a second income that can supplement your essential pay, trading becomes a superior choice. For this, you should go to a crypto broker where you can rapidly purchase and sell financial instruments of BNB, for example, Futures, Options, and CFDs. In this situation, you hope to make the most of the unpredictability of the digital currency market to make momentary profits.
Long Vs Short Term Investment
Long-haul investment should be considered when you sincerely believe that the market price of BNB will keep on going up consistently over the period of the next few weeks or months or you actually believe in the success of the project and want to support it with your investment. If you are one of those investors, then a crypto exchange is the right choice for you.
Transient speculation happens when you are not searching for long haul future possibilities of the coin. You simply need to utilise the momentary unpredictability of BNB to procure gains and close your position. This way, you won’t need to set up a wallet and deal with operational issues of buying and selling actual BNB tokens.
3 Tips to Buy Binance Coin
Now that you have a complete understanding of how brokers and exchanges work, here are three tips from us that will help you to make your investment much safer.
Choose the Right Time and Do Your Own Research
Try not to depend on a single source to speculate about the prices of BNB. Go through the assessments of various influencers and analysts, assess new turns of events, and watch out for the latest news to make your own decisions. It's essential to pick the right moment to buy BNB or any other coin.
Comparing Costs to Buy Binance Coin
Numerous new investors belittle the expense and costs of trading BNB. Trading spread, commissions, exchange charges, withdrawal expense, and storage charge, the cost piles on and can cannibalise your earnings. Before you put your capital into BNB, ensure that your odds of hitting the net positive are high.
Safety and Security
Unfortunately, this is another factor that doesn't get the consideration it should. Ensure that you are following the best industry practices, moderating your risk, consenting to industry regulation, and utilising security features like 2FA, passphrases, and more to keep your BNB secure.
What Is the Best Payment Method for Buying Binance Coin?
- Buy Binance Coin with Cash - Purchase Bitcoin with Cash through an ATM, and afterwards, trade it for BNB. It is not a convenient method.
- Buy Binance Coin with Credit/Debit Card - One of the most well-known methods to purchase BNB albeit a bit on the costly side.
- Buy Binance Coin with Bank Transfer - Convenient and reasonable in terms of expense, however, comparatively slow.
- Buy Binance Coin with Bitcoin - Simply trade Bitcoin for Binance Coin.
- Buy Binance Coin with PayPal - Quick and efficient; however, very restricted accessibility depending on where you live.
Other Ways to Buy Binance Coin
Previously mentioned methods are the most convenient and affordable to purchase Binance Coin and trade BNB on various platforms. Now, you are more prepared than ever to buy BNB and invest in other tokens after reading this guide. We will close this guide with some lesser-known alternatives that can be utilised to buy Binance Coin.
- Peer-to-Peer (P2P) Exchanges - These are services that connect sellers and buyers of digital forms of money. Instead of relying on an exchange, you can directly buy from a person. However, ensure that you checked their integrity through reviews and transaction history. P2P isn’t only convenient and versatile but quite affordable as well.
- Since Binance Coin tokens are pre-mined, you can't gain them through a mining cycle.
We will continue to update this guide as more information and news come in about BNB. This will ensure that our guide is up-to-date at any given moment and you can rely on it to learn about investing in BNB tokens and other cryptocurrencies as well.
Frequently Asked Questions
Many of the exchanges that we have listed do not charge any fee for buying BNB tokens. However, there are other expenses you may need to bear.
Purchasing BNB implies you own the token - the digital asset that you can sell, trade, exchange, and hold. Trading BNB generally means you hold a financial instrument that allows you to speculate on the price of the BNB token so you can keep the profit or loss once you close the position.
That is up to you. Before you make a move, we suggest you read our guide and watch out for what experts are stating.
Since it’s a native token of Binance Exchange, the best place for buying it is the Binance exchange. However, there are other factors like user-friendliness, customer support, transaction fees, trading volume, and more which can affect your decision.
Aside from the nations that have restricted digital currencies and their trading, Binance Coin is lawfully available and tradeable.