How to buy Binance Coin? A comprehensive guide by Digimagg

Binance ranks among the leading cryptocurrency exchanges globally, boasting a capacity of 1.4 million transactions per second. Its native token, Binance Coin (BNB), currently stands as the fifth-largest cryptocurrency by market capitalization.

Despite recent price volatility, many investors see significant growth prospects in Binance Coin. If you're considering investing in Binance Coin, here are the key factors to consider.

What is Binance Coin (BNB)?

Binance has introduced various platforms within the cryptocurrency ecosystem, including a decentralized exchange, a peer-to-peer trading platform, and two parallel blockchains: Binance Smart Chain (BSC) and Binance Chain. The exchange boasts the largest trading volume globally, according to Binance.

Binance Coin (BNB) serves as the native cryptocurrency within the Binance ecosystem. It was launched in 2017 through an initial coin offering (ICO) on the Ethereum blockchain, offering 100 million tokens at 15 cents per token.

A distinctive aspect of Binance Coin is its coin burning mechanism. Every quarter, Binance allocates 20% of its profits to repurchase and burn Binance Coins, effectively reducing the token supply and permanently eliminating them from circulation.

This burning process is set to continue until 100 million Binance Coins—approximately half of the total supply—are destroyed. The objective is to enhance the scarcity and value of BNB.

BNB holders can utilize the tokens to avail discounts on transaction fees on the Binance exchange. Additionally, BNB can be traded for other cryptocurrencies like Bitcoin, Dogecoin, or Litecoin.

Where is Binance Coin available for purchase?

Although Binance is widely used, Binance Coin isn't universally available across all exchanges. Even well-known platforms such as Kraken and Gemini do not support BNB trading.

Cryptocurrency exchanges that facilitate BNB trading with fiat currency or other cryptocurrencies include:

• Binance.US
• eToro

Binance.US users benefit from a 25% discount on trading fees when using BNB for fee payments.

Some investors seek trading pairs that involve pairing Binance Coin with stablecoins like Tether. Exchanges offering such pairs include:

• KuCoin
• FTX

How to buy Binance Coin?

To begin investing in Binance Coin, follow these steps:

1. Choose a cryptocurrency exchange

Start by selecting a cryptocurrency exchange platform where you can conduct crypto transactions.

Not all exchanges support BNB trading, so it's essential to research and find one that does. Various exchanges cater to different needs, ranging from beginner-friendly platforms with basic features to more advanced ones offering options like margin trading or futures for experienced traders.

2. Purchase BNB

Once you've chosen an exchange, you can deposit funds into your account using methods such as debit cards, credit cards, or electronic bank transfers.

After funding your account, navigate to the exchange's trading platform. Search for Binance Coin using its ticker symbol, BNB, and specify the amount you wish to invest, such as $50. Most exchanges offer options for market or limit orders during the transaction.

While some exchanges accept credit card payments, we advise against this method due to higher fees and APRs associated with cryptocurrency transactions viewed as cash advances by credit card issuers. It's risky to invest borrowed funds, especially in cryptocurrency, as it could lead to debt.

3. Safeguard your BNB

Whether you're investing in BNB or other cryptocurrencies, it's crucial to ensure the security of your investment. Here are various storage options:

Hardware Wallets: Considered one of the safest storage methods, hardware wallets are compact physical devices. They provide offline "cold storage" as they can be disconnected from the internet or any computer network.

Paper Wallets: Another highly secure option, paper wallets involve writing down your private keys on a piece of paper or printing them on a downloadable QR code. However, it's essential to store the paper securely and remember its location to avoid losing access to your cryptocurrencies.

Software Wallets: Software wallets offer convenience as they are downloadable software or apps that store your cryptocurrencies on your devices. They are "hot wallets" because they are connected to the internet, making them less secure than hardware or paper wallets. However, they allow for easier trading or selling of tokens.

Crypto Exchanges: Some cryptocurrency exchanges offer storage services for your tokens. While this option is convenient and facilitates token exchange, it's advisable for short-term storage due to the risk of security breaches associated with exchanges.

What can you buy with BNB?

Binance Coin serves various purposes beyond covering transaction fees on the Binance exchange:

• Trading for other cryptocurrencies.
• Investing in stocks or exchange-traded funds (ETFs).
• Buying goods or services.

Several retailers and online merchants accept BNB as a payment method, including Travala, Zap Hosting, and others.

Despite its popularity, it's crucial to consider your investment decisions carefully before committing to BNB—or any cryptocurrency. Cryptocurrencies are known for their volatility, characterized by significant price fluctuations. It's wise to establish an investment budget and only risk funds that you can afford to lose, without impacting essential expenses.