How to Buy BNB: Top 4 Exchanges for 2022
Binance Coin is a digital currency issued by the crypto exchange, Binance. The coin is traded under the initials BNB. Binance is the world’s largest cryptocurrency exchange, and the platform has been moving quickly to grow its own currency.
However, other exchanges aren’t too keen to host the native cryptocurrency of the Binance platform. Binance’s competitors, such as Coinbase, Bitfinex, Kraken, and Huobi, do not yet offer BNB trading.
In this post, we’ll tell you how to buy BNB and name a few crypto exchange platforms that offer the currency as a trading option.
What Is a Binance Coin?
BNB is a native asset of the Binance Chain and Binance Smart Chain. The coin powers the platform’s trading ecosystem, is used to pay for its services, and can be converted to other crypto assets. BNB holders who have large volumes of the currency may be eligible for discounts on trading fees, a practice that encourages traders to use the coin.
Binance was founded in 2017. Since then, it has expanded out of Hong Kong and into international offices located in Malta and the Cayman Islands because of China’s crackdown on cryptocurrency trading.
BNB trading was initially hosted by the Ethereum blockchain. In April 2019, the ERC-20 BNB tokens were replaced by BEP-2 BNB at a 1:1 ratio. The BNB swaps enabled holders to transfer their coins to the newly-launched Binance Chain as BNB became the platform’s native cryptocurrency.
The Binance Smart Chain uses a Proof of Staked Authority in which network users state their reputation and identity instead of tokens. Under this mechanism, the Binance Smart Chain relies on 21 validators to run its blockchain.
Binance claims that anyone can become a validator as long as they meet hardware requirements and have a minimum of 20,000 BNB staked.
To prevent the concentration of power in the hands of a few, Binance also permits delegators. These individuals enable investors to delegate their BNB tokens for validators to validate, giving them a stake in the system even if they don’t hold millions in BNA.
Why You Should Buy the Binance Coin
Throughout 2021, Binance Coin gained more than 1,200% in value. Today, the token can fit into a wide range of investment strategies and is ideal for those looking to diversify their crypto portfolio. These are just some of the many reasons why you should buy BNB. Here are a few others:
Binance Is the Biggest Crypto Exchange
Binance is the world’s leading crypto exchange. Despite competition from Coinbase and others, it is the biggest by market capitalization. In 2020, it reached more than $2 trillion in total trading volume, while BNB became the third-largest cryptocurrency by market cap.
Binance Strives to Become Financial Services Hub
Binance is also growing its ecosystem in a way that other blockchains are not. For instance, BNB holders can use Binance coins as collateral to access credit. Binance users can also make secure borderless payments via Binance Pay and can earn passive income through NFT staking.
BNB Used for Every Transaction on Binance Smart Chain
Due to the tremendous volume of trade, the Binance Smart Chain now surpasses Ethereum as the most active platform in the market. Since BNB is native to the chain, having BNB tokens will certainly enable investors to profit from Binance’s growth.
Are There Any Downsides to Buying BNB?
While Binance has been enormously successful, it operates a risky business model. The company has often exhibited its willingness to move ahead with projects, even if they risk regulatory pushback.
Some investors may find this disconcerting. Recently, US authorities forced Binance to launch separate operations in the country to comply with its regulation. There have been similar speed bumps in Europe which led to a months-long freeze on bank deposits from the Single European Payment Area or SEPA network. Binance was also told to suspend operations in the Cayman Islands, the UK, Canada, and Thailand due to a lack of regulatory clearance.
And while many BNB investors hope that the platform will continue its expansion to different corners of the globe, others are very conscious of the scrutiny that the platform is drawing from regulators in more than a dozen jurisdictions.
Binance has promised to respond to investor concerns by improving its approach to regulatory issues. It says that it is improving its verification processes to meet various regulatory requirements in different states. Know your customer or KYC standards are also being beefed up in response to growing pressure from financial regulators globally.
How to Buy Binance Coin: Step-By-Step
The BNB token is available on some cryptocurrency exchanges, but not all. As such, those who are accustomed to using some of the popular platforms like Coinbase won’t be able to purchase the coins.
Nevertheless, even with increased regulatory standards, buying or investing in BNB is relatively easy. Here’s how to buy BNB:
Step 1: Open an Account
The best way to purchase BNB online is to set up an account on Binance. The registration process is straightforward. All you need to do is provide an email address and create a password for your account. Unfortunately, the platform isn’t accessible from all jurisdictions in the US.
Step 2: Get a Wallet
Once you’ve signed up, you’ll need to decide where to store your BNB tokens. You have two choices. You can store BNB on your BNB exchange wallet, or you can use Binance’s crypto wallet app, Trust Wallet. The company claims that the latter option is the most user-friendly and secure mobile wallet on the market.
Step 3: Buy BNB
Once you have an account and a wallet, the next step is to buy the tokens.
There are several ways that you can do this:
- Buy BNB with a credit card: Binance allows you to purchase BNB with either credit or debit cards. Both Visa and Mastercard are accepted on the platform.
- Buy BNB directly from another holder: Since Binance is a cryptocurrency exchange, it also allows you to purchase BNB directly from other holders. To buy BNB locally, simply access the Binance P2P exchange.
- Buy BNB with bank transfer: You can buy any of the stablecoins listed on Binance’s platform by wiring money from your bank account to the providers of those coins. The coins can then be used to purchase BNB on the Binance exchange.
- Buy BNB with other cryptocurrencies: Lastly, you can trade over 300 cryptocurrencies supported by the platform for BNB. The system works similar to a forex market, with each coin having an exchange rate with the Binance Coin.
Binance allows you to buy and sell on a regular desktop computer or on the move using its mobile apps. The platform uses a powerful matching engine that’s capable of supporting more than 1.4 million orders per second. Therefore, you can place trades in real-time.
Most users store their BNBs on the platform that they buy them from. They can often be stored in an exchange account – you don’t need an external wallet. However, there is a certain level of risk associated with this approach. If the exchange gets hacked, is fraudulent, or goes bankrupt, then you may lose your BNB.
Best Exchanges for Buying BNB in 2022
Several exchanges allow you to buy and sell BNB. In addition to Binance, there are a few other options.
As the world’s biggest crypto exchange, Binance has a trading volume of $21.83 billion, according to some of the latest data. By comparison, the Coinbase Exchange has only $3.26 billion.
Binance is the best place to buy Binance Coin (BNB) for several reasons. First, the platform is trying to go beyond its status as a mere exchange and branch out into other areas, providing blockchain-based alternatives to the conventional financial system.
The platform, for instance, lets people earn BNB by staking coins. Users can leverage holdings that would otherwise remain dormant in their trading account or wallet.
Binance also has facilities that allow individuals to transfer BNB around the world quickly. Binance Pay, for instance, operates a little like the International Clearing System but without some of the fees.
The BNB ecosystem is also expanding. It now allows customers to visit merchants who accept BNB (which it lists on its website for convenience) and donate tokens to charity.
KuCoin is a much smaller platform than Binance, with a trading volume of just over $2 billion. However, it still operates a trusted service with more than 10 million global investors and covers 200 counties. Like Binance, KuCoin is accessible on both desktop and mobile. Users can download the platform’s apps from the App Store or Google Play.
There are three main reasons why people sign up for KuCoin. Number one is the platform’s 24/7customer support. Users can contact support agents at any time with their questions.
Another reason is the user community. Investors can talk with each other across a range of platforms in more than 19 languages.
And finally, users can turn to the KuCoin news service that keeps them up to date on the latest developments in the world of crypto. KuCoin is widely praised for the number of coins that it offers as trading options, including BNB.
FTX has a trading volume that’s similar to that of KuCoin and is also known for the sheer number of coins that it offers. The platform allows you to easily convert from both fiat and other cryptocurrencies into BNB. You can convert the currencies on the wallet page by selecting the asset you wish to sell and clicking “Convert”. You’ll be offered a quote by the platform, and if the price is acceptable, you can execute the trade.
FTX is something of a cryptocurrency trader’s paradise, incorporating many of the financial tools that are available on mainstream brokerage platforms. It operates more than 250 quarterly and perpetual futures and allows users to buy leveraged tokens to increase their exposure to certain markets.
Lastly, the South Korean cryptocurrency exchange Bithumb lets you buy, sell, and store BNB alongside a host of other currencies. Currently, the platform has more than eight million registered users and has a cumulative transaction volume of more than $1 trillion. The Bithumb platform is available in both Korean and English. It offers high-quality services, including staking and login theft prevention.
How to Buy BNB Through Decentralized Exchanges
BNB is available to buy through a variety of third-party decentralized exchanges or DEXs that run on the Binance Smart Chain. Popular options include 1inch, SushiSwap, BakerySwap, and PancakeSwap, though there are others. Many of these platforms allow you to trade anything you like, with no registration or hassle, connecting directly to your wallet.
If you want to connect to these DEXs, you’ll need to have a wallet that supports the Binance Smart Chain. Binance’s own Trust Wallet is a great option, but there are a few alternatives, including MetaMask.
While you’re holding BNBs, you have the option to stake your coins and earn interest on them, as you might in a conventional market. The easiest way to do this is via the Binance platform. However, there are other protocols, such as those offered by PancakeSwap, that allow you to do the same thing.
What Is the Purpose Of BNB?
Binance originally launched BNB on its exchange as a way to offer users discounts on trading fees when paying with these coins. Originally, the discount was 50%, though it has since been reduced to a more modest 25%.
This reduction in trading fees encouraged traders to use BNB rather than other currencies. Binance then offered further discounts via its VIP system.
Trading fees with BNB vary according to your VIP level. Those with less than 25 BNB at “VIP 0” qualify for maker/taker rates of 0.1000% / 0.1000%, while those with more than 5,500 BNB at “VIP 9” get spot trading at 0.0200% / 0.0400% (excluding any discounts).
With the launch of the Binance Chain in 2019 and the Binance Smart Chain in 2020, the intrinsic value of the Binance Coin changed, leading to an increase in the BNB coin price. BNB became a native asset on two interlinked blockchains, similar to Ether and Ethereum, and must now be spent in every transaction.
Therefore, the success of the BNB token depends primarily on the performance of the underlying blockchain platform. Should Binance continue its successful run, the value of BNB is likely to increase.
The Binance Smart Chain, introduced in April 2020, gave BNB users the ability to enter into smart contracts, similar to the functionality offered by the Ethereum blockchain. The new options for customers proved to be a massive success, with BNB actually overtaking Ethereum’s daily transaction volume by up to 1,000% over the following months.
BNB offers users the following:
- Paying transaction fees on the Binance Smart Chain and Binance Chain
- Paying trading fees on the Binance exchange and Binance Decentralized Exchange
- Paying for goods and services directly using either Binance Pay or the Binance Credit Card
- Purchasing token sales hosted on the Binance Launchpad
Figuring out how to buy BNB is actually surprisingly easy. Today, there are several platforms, including Binance, that allow you to purchase the currency. You can decide which platform to use based on your needs.
The underlying coin you buy is always the same. It has a price based on supply and demand and is not linked to any Binance profits (and is, therefore, not stock or share). However, the value of the coin is still linked to the success of the Binance ecosystem.
The higher the number of BNB transactions, the more valuable the coin will become. Buying BNB, therefore, is likely to become increasingly popular in the future, particularly if Binance is able to continue expanding.
How do you buy BNB?
On most platforms, buying BNB is as simple as setting up an account, creating a cryptocurrency wallet, and then buying cryptocurrencies using fiat money. In some jurisdictions, however, you may need to meet KYC requirements, handing over details such as your Social Security number and driving license information.
Where can I buy BNB Crypto?
You can buy BNB crypto across a range of platforms, including Binance, FTX, Bithumb, and KuCoin. BNB, however, is not available via many other exchanges because it is a Binance-native coin.
Can you buy BNB on Coinbase?
You cannot buy BNB on Coinbase. Coinbase has its own stablecoin called USD Coin, which you can convert 1:1 with regular USD. Coinbase customers are eligible to earn rewards for each USD Coin they hold.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
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