How to Invest in Binance Coin in India
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 BNB?
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.
Since then, BNB has retained a role in Binance’s growing ecosystem as Binance has expanded into more than a digital asset exchange.
Binance Coin: How It Works
BNB coin fuels transactions on two parallel-running blockchains in the BNB Chain: The BNB Beacon Chain and the Binance Smart Chain (BSC). BNB Beacon Chain is Binance’s first blockchain, focused on staking and governance for BNB holders. BSC is an Ethereum virtual machine (EVM)–a compatible blockchain that serves as an alternative to the Ethereum network and facilitates the formation of smart contracts.
BNB Chain uses a unique consensus mechanism known as proof of staked authority (PoSA) for validating transactions and governing its network. The system combines delegated proof of stake (DPoS) and proof of authority (PoA) consensus algorithms. This means the BNB coin is used in both the Binance Chain and the BSC Chain for transactions and staking, among other actions.
What is Binance Coin used for?
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.
Beyond the Binance exchange, Binance Coin has several uses, including the ability to:
- Make credit card payments
- Pay for travel arrangements
- Buy virtual gifts
- Process payments
- Make investments
- Make loans and transfers
- Donate to charity
How to Buy Binance Coin (BNB)
Binance Coin (BNB) can be bought and sold on many crypto exchanges, as it’s a popular coin in the market. With Bybit, you’ll be able to trade BNB either as a derivative or spot —plus, you can stake and earn BNB.
1. Buying BNB Through By bit
To purchase BNB coins from Bybit, you’ll first need an account with Bybit and relevant documents for KYC verification.
You can sign up with your email ID to create a new account on the Bybit trading platform. If you already have an account, then please sign in.
After you’ve signed in, you need to purchase USDT coins using one of the three methods listed below:
- Fiat Gateway
- Peer-to-Peer Transaction
- Third-Party Payment
2. Trade USDT for BNB as a Derivative
Once you’ve bought your USDT, you’ll be able to trade BNB as a derivative. First, head to the Derivatives section and look for BNBUSDT under USDT Perpetual. Click on it and you’ll be directed to the trading terminal.
3. Trade USDT for BNB as Spot
To perform spot trading, go to Trade and select Spot Trading → BNB/USDT.
4. Stake BNB With USDT as a Dual Asset
You can also earn BNB staking rewards by staking it as a dual asset with USDT. You’ll be able to earn USDT when its price rises, and earn BNB when its price falls. Either way, you’re earning!
How to Invest in Binance Coin in India
Binance is a popular cryptocurrency exchange platform that allows users to trade a wide range of digital currencies. If you’re an investor in India and want to invest in Binance, you can follow the steps below:
Step 1: Create an Account on Binance
The first step is to create an account on the Binance website. Visit the website and click on the “Register” button in the top right corner. Enter your email address, password, and referral ID (if you have one), and click on the “Create Account” button. You will receive an email to confirm your account.
Step 2: Complete the KYC Process
Once you’ve created an account, you need to complete the Know Your Customer (KYC) process. You will be asked to provide your personal information, such as your name, address, and date of birth. You will also need to upload a government-issued ID, such as a passport or driver’s license, and a selfie for identity verification.
Step 3: Add Funds to Your Account
After completing the KYC process, you can add funds to your Binance account. You can fund your account using INR (Indian Rupees) by using the “Deposit” option on the homepage of the Binance website. You can use a bank transfer or UPI to deposit funds.
Step 4: Buy Cryptocurrencies
Once your account is funded, you can start buying cryptocurrencies. Go to the “Trade” section of the website and select the cryptocurrency you want to buy. You can choose to buy with INR or another cryptocurrency. Enter the amount you want to buy and click on the “Buy” button.
Step 5: Store Your Cryptocurrencies
After you buy cryptocurrencies, you should store them in a secure wallet. Binance provides a wallet for each cryptocurrency, but it’s recommended to store your cryptocurrencies in a hardware wallet for added security.
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