How to Buy Binance Coin (BNB)
Beginner’s Guide
What is Binance Coin?
Binance Coin (BNB) is a cryptocurrency that was created by the cryptocurrency exchange Binance. It is based on the Ethereum blockchain and is designed to be used as a utility token within the Binance ecosystem.
Binance Coin was initially launched as an ERC-20 token on the Ethereum blockchain, but it has since migrated to its own blockchain called Binance Chain. Binance Coin is used as a means of payment for trading fees on the Binance exchange, and it also has other use cases within the Binance ecosystem, such as paying for transaction fees on Binance DEX, Binance’s decentralized exchange.
Binance also periodically burns a portion of the Binance Coin supply to increase the token’s value and reduce its circulating supply. Binance Coin has become increasingly popular among traders and investors due to its utility within the Binance ecosystem and its potential for price appreciation.
How to Buy Binance Coin Summary
- Get a Binance coin wallet (Ledger, Trezor , AtomicWallet , Guarda, Exodus ).
- Find an exchange that sells BNB (e.g. Binance ,Crypo.com,Mexc, Kucoin, CEX.io)
- Sign up to Binance.
- Deposit money and make the trade
- Withdraw your coins (or leave them on Binance if you plan on using them)
Buying Binance Coin (BNB) in 3 Simple Steps
Step 1 – Get a BNB wallet
BNB Hardware Wallets
Binance Coin (BNB) can be stored in a hardware wallet, which is a type of cryptocurrency wallet that stores your private keys on a physical device, usually a USB drive. Hardware wallets are considered one of the most secure ways to store cryptocurrencies because they keep your private keys offline and away from potential hackers.
Here are some hardware wallets that support Binance Coin:
Ledger Nano S: The Ledger Nano S is a popular hardware wallet that supports a wide range of cryptocurrencies, including Binance Coin. It has a secure chip and screen to ensure that your private keys are protected.
Ledger Nano X: The Ledger Nano X is a newer and more advanced version of the Ledger Nano S. It has a larger screen and more storage capacity, and it also supports Binance Coin.
Trezor Model T: The Trezor Model T is a hardware wallet that supports Binance Coin and many other cryptocurrencies. It has a touch screen display and advanced security features to protect your private keys.
KeepKey: KeepKey is a hardware wallet that supports Binance Coin and other cryptocurrencies. It has a large screen and a sleek design, and it also supports multiple accounts.
Before buying a hardware wallet, it’s important to research and compare different options to find the one that best suits your needs. You should also make sure to follow the manufacturer’s instructions for setting up and using your hardware wallet to ensure that your Binance Coin is stored securely.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
BNB Software Wallets
Binance Coin (BNB) can also be stored in a software wallet, which is a type of cryptocurrency wallet that stores your private keys on a software application. Software wallets are often free and easy to use, and they can be accessed from a computer or mobile device.
Here are some software wallets that support Binance Coin:
Trust Wallet: Trust Wallet is a mobile wallet that supports Binance Coin and other cryptocurrencies. It is available for both iOS and Android, and it is designed to be easy to use and secure.
Atomic Wallet: Atomic Wallet is a desktop and mobile wallet that supports Binance Coin and over 500 other cryptocurrencies. It features a built-in exchange, so you can trade cryptocurrencies directly within the wallet.
Exodus: Exodus is a desktop and mobile wallet that supports Binance Coin and other cryptocurrencies. It has a sleek design and a user-friendly interface, and it also allows you to exchange cryptocurrencies within the wallet.
Coinomi: Coinomi is a mobile wallet that supports Binance Coin and over 1,700 other cryptocurrencies. It is available for both iOS and Android, and it features a built-in exchange and a range of advanced security features.
When using a software wallet, it’s important to ensure that you download the wallet from a trusted source and follow best practices for securing your private keys, such as using two-factor authentication and backing up your wallet. It’s also a good idea to keep only small amounts of Binance Coin in a software wallet and to consider a hardware wallet for long-term storage of larger amounts of cryptocurrency.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest BNB coin software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an BNB Exchange
Buy BNB through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy BNB through Crypto.com
- Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos.
Buy BNB through MEXC
- Founded in 2018, MEXC Global is known as the exchange of high performance and mega transaction matching technology. The team at MEXC Global are some of the first movers and pioneers of financial and blockchain technology. Currently, MEXC Global caters to 10 M+ users in more than 170 countries around the world and we have just started.
Buy BNB through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Buy BNB through CEX.io
- Cex.io is a cryptocurrency exchange that allows you to buy BNB with a credit card. If you use the company’s brokerage service (buying directly from the exchange) the fees will already be calculated into the exchange rate, that’s why it will seem higher than other exchanges. If you want to get better rates, try using the site’s trading platform (suited for more advanced users). Open a CEX.io account Add your payment method (Credit card or bank account) Navigate to “Instant Buy” and select BNB Choose the amount of BNB you want to buy Click on “Buy” and complete the purchase
Step 3 – Withdraw Your BNB coin
Once you decide on an exchange, open an account and buy your BNB coin. Make sure to withdraw the Binance coin from the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past).
Overview
Who Are the Founders of BNB?
Changpeng Zhao is the founder and CEO of Binance. In 2001, Zhao joined Bloomberg as head of tradebook futures development. He spent four years with the company and later joined Fusion Systems as a partner.
Since 2013, Changpeng Zhao has been actively involved with blockchain technology and cryptocurrencies. He became head of development at Blockchain, and in 2015 he founded BijieTech. In 2017, Zhao officially launched Binance, and he has been the CEO of the company ever since.
He Yi is a co-founder and chief marketing officer at Binance. She started her career as a TV anchor and presenter on China Travel TV in 2012. Later, in 2014, Yi co-founded OKCoin, which was the largest fiat-to-crypto exchange in China at the time. In 2017, she joined forces with Changpeng Zhao, and together they created the largest crypto exchange globally — Binance.
What Makes Binance Coin Unique?
Binance Coin (BNB) is a cryptocurrency created by the Binance exchange, which is one of the world’s largest and most popular cryptocurrency exchanges. Here are some of the key features that make Binance Coin unique:
Utility token: Binance Coin is primarily a utility token that is used on the Binance exchange to pay for trading fees, listing fees, and other services offered by the exchange. Binance offers discounts to users who use BNB to pay for these fees, which has led to its popularity and increased demand.
Deflationary supply: Binance Coin has a limited supply of 170 million tokens, and the Binance team has committed to buying back and burning a portion of BNB tokens every quarter until only 100 million tokens remain. This “burning” mechanism helps to reduce the total supply of BNB over time, making it a deflationary asset.
Multi-chain support: Binance Coin is now available on multiple blockchains, including the Binance Smart Chain, Ethereum, and Binance Chain. This means that users can hold and use Binance Coin on multiple platforms and blockchains.
Use cases beyond the exchange: Binance Coin has expanded beyond the Binance exchange and is now used in a variety of other applications, such as payment processing, gaming, and other decentralized finance (DeFi) applications.
Overall, Binance Coin’s strong use case, deflationary supply, and multi-chain support have made it a popular and unique cryptocurrency in the fast-moving world of blockchain technology.
What is Binance Coin Used For?
BNB is basically an ERC-20 token (i.e. a token on the Ethereum network) that is accepted as payment on Binance for trading fees. By using BNB you also get a discount on the fees themselves (up until 2021).
There’s a total of 200 million BNB tokens with the distribution as follows;
- 100 million tokens (50%) were assigned for ICO investors.
- 80 million (40%) belong to the founding team.
- 20 million (10%) were reserved for private angel investors.
In order to maintain the token’s value and make it somewhat deflationary, Binance plans to use 20% of the company’s profit each quarter to buy back BNB tokens until only 100 million BNB will remain on the market. It will then destroy the 100 million BNB they purchased.
Binance Smart Chain?
Binance Smart Chain (BSC) is a blockchain created by the cryptocurrency exchange Binance. It is a parallel blockchain to the main Binance Chain, and it was launched in 2020.
BSC was designed to be compatible with the Ethereum Virtual Machine (EVM), which means that it supports the same programming languages and smart contracts as Ethereum. This compatibility allows developers to easily port their Ethereum-based projects to BSC, making it easier for them to create decentralized applications (dapps) and other blockchain-based projects.
BSC uses a Proof-of-Stake (PoS) consensus mechanism, which makes it more energy-efficient and faster than some other blockchain networks. It also has lower transaction fees than Ethereum, which makes it an attractive option for those looking to develop or use decentralized applications that require frequent transactions.
BSC has its own cryptocurrency called Binance Coin (BNB), which is used to pay for transaction fees, and it also supports other cryptocurrencies and tokens. Overall, Binance Smart Chain offers an alternative blockchain network that can be used for a variety of purposes, including decentralized finance (DeFi) applications, gaming, and more.
To get started on the Binance Smart Chain, you first need a wallet that supports Binance’s BEP20 tokens, which are modeled on Ethereum’s ERC20 tokens. Here, you have two options:
- you can either install the Binance Chain Wallet, which works as a simple Google Chrome extension,
- or you can tweak your MetaMask wallet to support the BSC Mainnet.
How to Set up Meta Mask for Binance Smart Chain
Connecting your MetaMask wallet to the BSC Mainnet is a simple 2 step process:
Step 1: Open your MetaMask browser extension.
Click the Networks tab in the top-center corner of your wallet and select Custom RPC.
Step 2: Now that you’ve opened the Network tab, fill each parameter with the following information and click Save:
- Network Name: Binance Smart Chain
- New RPC URL: https://bsc-dataseed.binance.org/
- ChainID: 56
- Symbol: BNB
- Block Explorer URL: https://bscscan.com
How to Use the Binance Smart Chain
Once you’ve set up your wallet and bought some BNB tokens, you can interact with many of the “DeFi” protocols natively built or ported from the Ethereum blockchain to Binance Smart Chain.
AutoFarm is a yield farming aggregator running on both Binance Smart Chain (BSC) and Huobi ECO chain (HECO). Like yEarn, AutoFarm’s Vaults auto-compound yields across platforms while pooling the gas costs to optimize yield farming strategies.
If you wish to track your entire BSC portfolio from a single platform, you can use the BSC alternative to Ethereum’s Zapper platform called YieldWatch.
As you must’ve already noticed, we’re not dealing with much innovation here. YieldWatch is effectively a through and through fork of Zapper, only made to track yields on the BSC.
Closing Thoughts: Is the Binance Smart Chain (BSC) Legit?
The Binance Smart Chain can arguably be considered the hottest new thing in the cryptocurrency DeFi space at the moment.
Whether you decide to jump on the Binance Smart Chain hype train or watch it pass you by is entirely up to you. If you’re all too eager to join in on the action, please do so at your own risk, and always — always — do your own research.
After all, the Binance Smart Chain is a centralized blockchain where Binance plays a central role in gatekeeping the traffic and validating the transactions, which isn’t the case with Bitcoin or Ethereum. However unlikely, Binance could theoretically pull off the biggest rug-pull in the history of crypto, and you should always keep that in the back of your mind when interacting with some of its so-called “decentralized” applications.