Xiang Lin
Alexandre Raffin
Discover a comprehensive step-by-step guide to buying Bitcoin on Cash App. Simple, updated, and secure.
TLDR
Binance exchange’s native coin, Binance Coin (BNB), plays a role in trading within the crypto ecosystem, and learning how to buy BNB can be beneficial. Users also employ BNB to pay transaction fees or as collateral for obtaining crypto loans at Binance.
Several exchanges offer the sales of BNB, and Binance is one of the most popular exchanges. Factors to consider when selecting an exchange are the security level of the platform, the available coins, flexible payment methods, etc.
The steps required to buy BNB:
- Open an exchange account
- Fund the account with any available payment methods (bank card, crypto)
- Select the equivalent amount of BNB you want to purchase according to the current market price.
What is Binance Coin (BNB)
BNB coin, also known as Binance Coin, was introduced in 2017 by Binance Exchange during its initial coin offering (ICO) crowdfunding event. At BNB’s creation, developers made 200 million tokens available; they allocated half for public sale and distributed 80 million and 20 million to the founding team and angel investors, respectively.
The issue price was about 1 BTC for 20,000 BNB, and 2700 BNB went for 1ETH. Binance raised 15 million US dollars during the ICO, using about 50% for branding and marketing. They divided the remaining 50% between emergency funds (15%) and the cost of platform and exchange system upgrades (35%).
BNB started as an ERC-20 token built on the Ethereum Blockchain but moved to Binance’s native blockchain, BINANCE Chain (BCS), in 2019. Users swapped the BNB ERC-20 for the new BNB coins through a token swap. BNB now serves as the native token of BEP-2 and BINANCE Smart Chain (BEP-20), which have merged to form the BNB Chain.
Within the Binance Ecosystem, BNB allows users to receive discounts during payments of trading fees. It also allows users to convert their “dust” to BNB. Dust represents small amounts of coins or tokens often overlooked, originating as tiny fractions from trades.
Where can you buy BNB?
One of the best places to buy and trade BNB is on the Binance exchange. Binance is one of the leading exchanges, racking up the highest trading volume daily. It is the perfect choice for traders to manage or execute high volumes of trades. Additionally, people highly regard it as a trusted exchange with low fees.
Binance also offers traders a comprehensive selection of the best crypto wallets. This not only allows you to store your wealth in cryptocurrencies or fiat currencies, but it also helps you earn interest on your long-term deposits.
Buying BNB Step-by-Step Guide
This section details a step-by-step process for purchasing BNB coins on Binance. Here is how to buy BNB in 5 simple steps:
Step 1: Choose a Broker or Crypto Exchange
Your first step to trade BNB is to identify an exchange or broker where you can buy BNB instantly and trade at low fees. We recommend Binance as they have the lowest reading fees of 0.10% and the best overall rating. Create an account by clicking the [Get Started] button.
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Binance, a leading global crypto exchange, offers a user-friendly interface and low fees for trading a diverse range of coins. Accessible to both institutional and individual investors, it supports advanced trading services, although U.S. options are somewhat limited.
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Industry's lowest trading fees.
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Advance trading options like leverage.
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350+ trading options, 150+ for theUS.
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Lucrative on-site staking options.
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Hiccups in account verification.
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Less regulated than some competitors.
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The corporate structure is not transparently.
Step 2: Create an Account on Binance
After selecting your preferred broker or exchange – in this case, Binance, the next step is to open an account on the platform.
Opening an account is easy and only requires you to enter details such as name, e-mail address, and password for the platform.
Most exchange platforms also require users to verify their accounts before they can start trading. It would be best if you carried out a Know-Your-Customer (KYC) verification exercise to verify your account. You will need to use any government-issued photo ID to have your account verified.
Step 3: Fund Your Account
Binance allows you to buy Binance coins using different payment methods. The main ways of funding your account include the following:
- Using Credit or debit card
This option is often preferable for people who are new to cryptocurrency and do not have a crypto wallet or any existing cryptocurrency. Binance allows users to link either a Visa or a Mastercard.
Select [Bank card] when you want to fund your account, and you can fill in your card details.
- Bank transfer
Another alternative for funding your account is through a bank transfer. You can deposit USD into your Binance account to purchase BNB via SWIFT.
Step 4: Buy Binance coin
After funding your account or connecting it to your credit card, you can buy BNB.
On Binance, you can buy BNB coins by clicking [Buy crypto] on the dashboard.
You can then select BNB as the coin to buy and what currency or payment method you will use. They credit the equivalent of the money spent to BNB.
The current price given for the coin is only valid for 1 minute. After the time given, a new order for BNB has to be recalculated based on the market price.
Click [Continue], and voila! You have purchased Binance Coin.
Step 5: Store or Use your Binance Coin
After purchasing BNB, you can store it in a crypto wallet or hold it in your exchange account. You can equally trade BNB on the exchange.
How to store BNB?
If you plan to store BNB coins, here are some of the recommended ways to do it:
- Store it on the exchange: It can be left in the exchange transaction wallet or “vault.”
- Get a hot wallet: Hot wallets are online crypto storage that can run on internet-connected devices. The major drawback is that they are at high risk since they are connected to the internet.
- Cold storage, or hardware wallets, refers to offline storage methods like USB or hard drives. The main drawback is that losing the access code makes the storage inaccessible, potentially resulting in losing your BNB coins.
Difference between a crypto broker and an exchange
In this modern age of decentralized finance, the major way to obtain cryptocurrency, including buying BNB, is through a crypto broker or exchange. Although both means serve the same end purpose of allowing you to get access to cryptocurrency, the approach is slightly different.
A crypto broker is an intermediary between the cryptocurrency market and the end user. They facilitate cryptocurrency exchange, including the buying and selling of crypto assets. This method is often more suitable for crypto beginners with little experience buying crypto.
On the other hand, a cryptocurrency exchange is a trading platform that allows people to sell and buy cryptocurrency. Most exchanges set crypto asset prices based on the market’s current price. They also charge a certain fee for trading on the platform.
What can you use BNB for?
Since its launch in 2017, BNB has grown in influence in the crypto world beyond the Binance exchange. The BNB token now boasts various applications and serves the following purposes:
Trading
Various crypto exchanges allow for the exchange of BNB with other cryptos. These transactions allow the replacement of BNBs to the equivalent value of the coin exchanged in a crypto wallet. However, some exchanges place a little restriction and charge a meager fee for these transactions.
Credit card payments
Crypto credit cards convert crypto tokens to fiat currency at ATMs and payment points accepting Visa and MasterCard. Despite the limited number of service providers, BNB coins enjoy full integration with crypto cards. Providers such as Crypto.com, Nexo, SoFi, WireX, and TenX all allow BNB.
Transaction fees
Transaction fees on Binance exchange can be paid using BNB. Users would receive a good discount, as high as 25%, for using BNBs instead of other coins. The discount makes using BNB coin cost-effective and gives higher returns on your investment and trade.
Loans and transfers
BNB is now accepted as collateral for crypto loans across various platforms. Crypto loan platforms such as Nexo, coin loan, and Binance loan grant loans for which BNB is used as collateral. Depending on market volatility, these loans typically have about 1-7% interest rates.
Entertainment
More than ever, BNB is being used in the online entertainment industry. It can buy lottery tickets, pay for virtual gifts, and bet on sports games and online casinos. A very good example is the Lucky Block and Cloudbet.
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The Lucky Block casino and sportsbook have over 3,000 games and 35 sports betting options. If you're a new player, you can claim a 15% cashback bonus on any losses and have the chance to win $10,000 in a giveaway. It also features advanced encryption technology and offers reliable customer support services. In case of any concerns, the highly trained support team is available to provide prompt assistance. Overall, a great place to start your sports betting journey.
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Lucky Block has no minimum deposit limit.
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Interactive UI for smooth gambling.
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Diverse betting options.
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No mobile app version.
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No welcome bonus for new bettors.
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The platform has no live poker.
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Over the years, Cloudbet has managed to rise to the occasion as it's one of the oldest companies in the game. The platform has an excellent reputation and generous welcome bonuses on BTC deposits worth up to 5 Bitcoins. For payments, users can choose 15+ fiat currencies and 20+ cryptocurrencies. Regulated under Montenegro and Curacao eGaming, Cloudbet ensures a state-of-art security mechanism.
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Completely anonymous deposits and withdrawals.
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Available in 100+ countries.
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It ensures safety with 2FA and SSL.
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24-hour high limits and quick withdrawals.
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No exclusive or original games.
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VIP program is only available for invited users.
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Lacks betting odds on major events.
Travel arrangements
Hotel and flight arrangements can now be made using BNB as payments. Many top-class hotels have added this flexibility to their payment structure.
Investment
A good number of investment firms have added crypto to their means of payment. BNB can buy ETFs, stock market bonds, and equities. This flexibility allows investors to be more fluid between fiat and crypto assets.
Charity and fundraising
Charity and fundraising are not left out of the cryptocurrency world. Many charity and fundraising organizations now accept BNB as a crypto donation towards humanitarian courses.
How to Choose a Crypto Exchange?
A crypto exchange is an online platform facilitating fiat currency exchange for crypto assets. There are several exchange platforms on the internet, many with different features. In choosing an exchange, a good number of factors must be taken into account. Some of the factors include:
Security levels
The crypto ecosystem has constantly been a victim of cyberattacks from malicious individuals and organizations targeted at stealing tokens and other digital assets via sham exchanges and swap systems, bait links, etc.
When choosing an exchange, one of the things to watch out for is the security level of the exchange. Good crypto exchanges use advanced security protocols, including two-factor authentication, to minimize unauthorized access to users’ accounts.
Coin listings
You must know the number of coins that can be traded on the crypto exchange. Currently, over 20,000 crypto tokens exist, and the higher the number of tokens listed on an exchange, the higher the opportunity of making returns on trading multiple coins.
Fee payment structure
Before you commit to any crypto exchange, you must get full information about all the associated fees. These fees typically include
Where to buy BNB coins and how to choose a reliable platform?
BNB became an extremely popular cryptocurrency very fast, and therefore, many crypto enthusiasts want an easy way to buy Binance coins or other cryptos.
When selecting the crypto exchange to buy BNB, the best security measure is checking whether your country supports the currency exchange and if the software has met the general requirements. The company anticipates buying, selling, and storing cryptocurrency through various methods.
In these circumstances, CEX.IO can be a good website to buy BNB. The ICO is the world’s oldest crypto exchange, with over four million users.
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CEX.IO is one of the market's highly-regarded trading platforms. The exchange has earned consistent praise from customers who appreciate its simplicity and features. Funds are SAFU, customer service is quick, and users can rely on guided assistance. This exchange ensures a smooth trading experience, which makes it a good choice.
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Simple, minimalistic, and user-friendly interface.
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Competitive commissions for takers and makers.
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High levels of security.
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Mobile trading app for Android and iOS devices.
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Data encrypts customers' information.
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Beginners may feel overwhelmed by number products.
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Lower liquidity compared to global exchanges.
Flexible payment method
Aside from crypto deposits on exchanges, fiat currency support is equally important for crypto platforms, especially for individuals outside the US. You need to be able to select a crypto exchange platform that will allow you to convert your local currency to dollars before exchanging it for crypto.
Liquidity
This is a determinant factor for how easy it is to swap crypto for fiat currency. The easier it is to sell an asset, the more it is considered to be liquid. The fastest way to know the liquidity of a crypto exchange is to check its 24-hour trading volume.
Regulations
Over the past years, there has been an increased interest in government agencies in crypto exchanges. This interest has led to a new wind of local and international regulatory laws on crypto firms.
Some crypto exchanges also face regulatory issues and legal battles. We recommend avoiding exchanges with low or poor regulatory compliance.
Insurance Policy
As much as advanced security is essential to protect assets on crypto exchanges, they also stand to be more secure when they have good insurance policies. You need to be familiar with the insurance policy of any exchange you want to select.
Conclusion
This article has explained and given an overview of Binance coin and how to buy and hold BNB. The digital asset is one of the most thriving, offering many applications in the crypto ecosystem and beyond.
There are several exchanges available where you can buy and trade BNB. One of the top choices where you can easily buy BNB is the Binance exchange, the native blockchain. The exchange is famous for its highly secured platform and ease of transactions. Binance also has a flexible payment method, allowing users to use crypto and fiat currency.
A step-by-step guide on how to buy BNB on an exchange like Binance has been provided. You can start trading Binance coins after verifying and depositing funds in your account.
Step 1: Choose a Broker or Crypto Exchange
Step 2: Create an Account on Binance
Step 3: Fund Your Account
Step 4: Buy Binance coin
Step 5: Store or Use your Binance Coin
Binance is the go-to platform for purchasing BNB, as it offers a wide range of supported assets for trading. You can buy Binance Coin with numerous cryptocurrencies or even use a credit card, although this option may incur a higher fee.
Yes, BNB can be stored in a Coinbase Wallet. However, it's important to note that assets within the wallet are not held by Coinbase itself.
Binance Coin (BNB) is the inherent token of the Binance Chain, serving as both a payment method on the exchange and a staking token. To acquire BNB without using Binance, consider utilizing a cryptocurrency exchange, P2P marketplace, or wallet that offers BNB support.
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