How To Buy and Use Binance Coin
Binance is one of the top cryptocurrency exchanges in the world, facilitating 1.4 million transactions per second. Binance Coin (BNB) is the exchange’s native token, which is currently the fifth-largest crypto by market cap.
Despite recent price fluctuations, some investors believe Binance Coin has plenty of growth potential. If you want to invest in Binance Coin, here’s what you need to know.
What is Binance Coin?
The cryptocurrency and blockchain industry includes numerous projects and assets aimed at different goals. It is not uncommon to see projects aimed at solving similar needs.
Several crypto exchanges exist, for example. Although each exchange may vary in construction and features, they aim to give crypto traders a place to swap their assets in a broader sense. Sometimes, a cryptocurrency exchange may have its own asset that is used for certain purposes on its related exchange such as fee discounts on the trading platform.
Binance Coin (BNB) of the Binance exchange is one such crypto exchange asset. What is a Binance Coin? BNB began as an asset sold in Binance’s initial coin offering (ICO), becoming a way for Binance exchange users could pay less trading fees on the platform once the exchange launched.
How BNB works
BNB is the fuel for the BNB Chain. There are two different blockchains in the BNB Chain, each with its own role:
- BNB Beacon Chain: Previously known as Binance Chain, this handles governance of the BNB Chain, including staking and voting on proposals.
- BNB Smart Chain: Previously known as Binance Smart Chain, this is a smart contract platform that’s compatible with Ethereum.
To validate transactions and govern its network, BNB Chain uses a unique consensus mechanism called proof of staked authority. This combines aspects of the popular proof-of-stake system with the less common proof-of-authority system.
BNB Chain’s system has 41 validators, with 21 taking turns confirming blocks of transactions. To become a validator, users first need to stake at least 10,000 BNB tokens to become an elected candidate.
Where Can I Buy Binance Coin?
Cryptocurrency exchanges that allow users to buy and sell BNB with either fiat currency or other cryptocurrencies include:
Some investors look for trading pairs, where a cryptocurrency token like Binance Coin is paired with a stablecoin like Tether. Exchanges that pair Binance Coin and Tether include:
How To Buy and Use Binance Coin
How Is Binance Coin Used?
Binance Coin’s usage comes in line with Binance’s growth. The asset initially started out as a vehicle to raise funds for the Binance exchange. Binance quickly gained significant traction as a cryptocurrency exchange following its 2017 launch. Binance grew from an exchange platform to more of an ecosystem under the Binance brand umbrella.
Over the years, Binance has launched a DEX, two blockchains, a peer-to-peer (P2P) crypto trading option, an option for crypto borrowing, and more. BNB has grown in line with Binance’s expansion.
The use cases for BNB coins continually increase as the BNB Chain expands. Currently, the coin is used to:
- Lend on DeFi protocols, such as
- Exchange on DEXs, such as
- Play crypto games
- Trade NFTs
- Participate in token sales
- Stake to earn rewards
- Pay for transaction fees
Apart from the virtual coin’s use in the Binance ecosystem, traders can use BNB for an array of real-world benefits, such as:
- Credit card payments
- Buying virtual assets
Binance has recently partnered with VISA for its Binance crypto card, which works similarly to a debit card. You have to fund the card with BNB coins to make payments.
How to Buy Binance Coin
Binance Coin (BNB) is a cryptocurrency created by the Binance exchange, which is one of the largest cryptocurrency exchanges in the world. BNB is used as a utility token on the Binance platform, allowing users to access various features and benefits such as discounted trading fees, participation in token sales, and more.
If you decide to invest in Binance Coin, follow these steps to get started:
1. Create an account on Binance:
To buy and use Binance Coin, you first need to create an account on the Binance exchange. Go to the Binance website and click on the “Register” button at the top right corner of the page. Follow the steps to create your account, including verifying your email address and setting up two-factor authentication.
2. Add funds to your account:
Once your account is created and verified, you can add funds to your account using fiat currency or other cryptocurrencies. Binance supports various deposit methods such as bank transfers, credit/debit cards, and third-party payment providers.
3. Select a Crypto Exchange:
To buy cryptocurrency, you first need an account with a cryptocurrency exchange—a platform that facilitates crypto trades.
Not all crypto exchanges offer BNB trading, so do some homework to find a cryptocurrency exchange that does. There are many exchanges, from ones designed for beginners and basic trading features to more advanced ones for seasoned investors looking for more complex options like margin trading or futures.
4. Buy BNB:
When you’ve found an exchange, you can fund your account with a debit card or electronic bank transfer.
Once your account is funded, enter the exchange’s trading platform. Enter Binance Coin’s ticker symbol—BNB—and the amount you want to invest, such as INR 500. Most exchanges allow you to choose between market and limit orders at the time of the transaction.
5. Use Binance Coin:
You can use Binance Coin to pay for trading fees on Binance and other fees such as withdrawal fees, listing fees, and more. Binance also offers various features and benefits to BNB holders such as discounts on trading fees, access to token sales, and more.
6. Store Your BNB:
Whether you’re buying BNB or other cryptocurrency tokens, you are responsible for safely securing your investment.
There are multiple storage options:
- Hardware Wallets. Usually the safest storage method, hardware wallets are small physical devices. Because they can be disconnected from the internet or any other computer network, they’re considered a form of offline “cold storage.”
- Paper Wallets. Like hardware wallets, paper wallets are a highly secure option. With this approach, your private keys are written on a piece of paper or printed on a downloadable QR code. However, ensure you have a safe place to store that paper—and remember where it is! Otherwise, you will lose access to your cryptocurrencies.
- Software Wallets. Software wallets are more convenient than hardware or paper wallets. They’re downloadable software or apps that store your cryptocurrencies on your devices. They’re “hot wallets” because they’re connected to the internet. They are considered less secure than hardware or paper wallets, but they let you trade or sell your tokens more easily.
- Crypto Exchanges. With some cryptocurrency exchanges, the exchange will store your tokens on your behalf. Using a crypto exchange for storage is convenient and makes it easy to exchange your tokens. However, there is a risk of security breaches, so it’s better as a short-term solution.
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