If you have resided in the crypto space for a while, then you should be aware of this coin
Though it only started in 2017, it has joined the list of the most popular crypto currencies in the world.
Whether their rapid growth was due to its founders being seasoned experts or because the coin really had a sort of good fortune, we are going to know soon.
In this article, I am going to share with you the following:
- What is Binance coin (BNB)?
- Why Binance coin?
- How to buy BNB on Binance?
- Some frequently asked questions & answers.
Without wasting time, let’s dive in.
What is Binance coin (BNB)?
BNB is a cryptocurrency that can be used to trade and pay fees on the Binance cryptocurrency exchange.
It is also the coin that powers the BNB Chain ecosystem.
BNB is an acronym for Binance coin and it is a digital coin just like Bitcoin.
Created July 2017 on the Ethereum Blockchain network, BNB is a utility token that allows holders to pay discounted fees for trading on Binance’s exchange.
Back then in its initial coin offering in July 2017, Changpeng Zhao and the Binance team were able to raise $15 million.
The issue price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. And though BNB was launched through an ICO, BNB does not provide users with a claim on Binance profits nor does it represent an investment in Binance.
Why Binance coin (BNB)?
If you are a medium-risk investor, BNB is perfect for you because it has a low-medium risk.
How do we know this?
If you study shitcoins properly, you’ll understand what makes them a high-risk venture.
And this is actually due to the fact that they don’t require huge funds for their value to rise as well as much funds for their value to crash.
As opposed to shitcoins, popular digital currencies like Bitcoin, Ethereum and Binance coin require a huge amount of funds for their value to rise and a huge withdrawal of funds for their value to crash which is not likely to happen
So this is why they are low risk investment
Also another benefit you will get when you invest in BNB is that you have more trading options than usual.
Especially when you buy it on an exchange platform like Binance which is its founder.
Binance supports the deposit of more than 300 cryptocurrencies, several of which you can exchange for BNB at some of the best rates in the market.
Burns & circulation
The coin has a limited supply of 200 million, and Binance conducts an auto-burn as a deflationary measure. The burning events will occur until the total circulating supply is reduced to 100 million.
Apart from trading fee discounts and enabling transactions, BNB can be used for travel expenses and is spendable on some products and services using the Binance Visa card.
A guide on how to buy BNB on Binance
Since you know what BNB is and why you should invest in BNB, let’s go straight into the guide.
It’s simple and interesting,
Let’s dive in.
Step1: Open an account on Binance
If you don’t have an account on Binance yet, then you should start with that.
If you already have an account, then jump to the next step
To open an account, you need to use your gmail or your mobile number as your username then create a password.
After that, you are required to complete the identity verification process by providing your personal details.
Step 2: Log in to your account
After creating an account, the next step is to log in to your account with your username and your password.
Step 3: Click on buy/sell button
Look for the buy/sell button
If you are using the app, click on the trade button which is located at the center of the bottom page.
After clicking on it, click on “buy”.
While if you are using the website, click on “buy/sell” at the top-left section of the page.
Step 4: Choose the coin you ant to buy
After you have clicked on the “buy” button, look for the currency that you want to acquire.
You can either scroll down to search for it or you can type in the name of the currency in the search box above to help you.
In this case, we are looking for BNB, so click on the search box and type in BNB.
Click on it.
Step 5: Decide on the payment method
There are a lot of payment methods that you can use to buy BNB.
Refer to the app to know the different payment methods of purchasing BNB available for your country.
For many people, they prefer using a credit card to purchase BNB directly while some prefer P2P.
So decide for yourself
If your country’s fiat currency is not compatible with BNB (i.e if you cannot purchase BNB directly with your own fiat currency), then you can use the below methods.
You can decide to buy a stable coin like USDT or BUSD first before converting it into BNB.
Or you can buy some BTC and convert it to Binance coin using Binance convert. Whichever method you prefer, go for it.
Step 6: Punch your quantity
You can decide to fill in the quantity based on the amount of BNB that you wish to get or based on the amount of dollars/BTC that you are willing to convert.
If this your first time, you can start with a little amount
Step 7: Confirm the purchase
Enter the quantity of BNB that you wish to buy, then confirm the purchase under a minute
If you were not able to confirm the price before the 1 minute elapses, then you will have to refresh the page to buy at the current price.
Immediately you confirm the order, your BNB will reflect in your wallet.
See also how to buy Evergrow coin on Binance
How much is one BNB?
According to Binance price chart, one BNB is valued at $ 317.86 which is due to the current increase in price of about +0.86%
You can re-check to know the current price, as we all know that crypto assets fluctuate a lot.
BNB has an all-time high price of $690.93, with a circulating supply of $157.90 million, it has a market cap of $ 50.19B.
NOTE: The market cap of an asset is normally calculated by multiplying the circulating supply of the asset with the current price of the asset.
What do I do after buying BNB?
You can choose to do anything with your BNB after purchasing it.
Most people just hold their BNB in their wallet and wait for it to appreciate in value before making profits, which is good.
But there is more you can do with BNB, you can decide to:
Earn Rewards by staking coins. Staking is a great way to maximize your holdings in staking coins that would otherwise be sitting in a wallet or trading account.
Here is a detailed guide on how to stake crypto coins.
Yes, Binance Pay allows you to easily transfer funds around the world, fast. You can buy BNB online and send to anyone and anywhere with their BNB address at ZERO fees.
You can buy goods and services with your BNB. More and more vendors and retailers accept BNB every day.
How do I unlock my Binance account?
There are a lot of accounts that were banned from using Binance in 2019 and this was because Binance itself was banned from some countries.
If you live in the US or in other countries where Binance was banned, then you will be prevented from using their service.
Nevertheless, if your account was blocked, there’s still a way to unlock it.
How?, use a VPN!
But before we talk about that, you must know that while it is safe to use a VPN to access Binance, it goes against Binance’s Terms and policy.
If you still want to find out, then check out our article on best VPN’s to access Binance.
On the other hand, If your account was only suspended by Binance then it might be because they sensed some suspicious activity on your account.
And so if that’s the case, you just have to contact Binance support for that.
Reading this guide can also be very helpful in recovering your binance account.
Why should I use Binance?
Binance is the world’s largest crypto exchange platform by trading volume which is about $76 Billion a day.
They have one of the fastest networks and one of the cheapest transaction fees compared to other exchange platforms.
It has a massive listing of currencies of about 350+ crypto currencies and it is stacked with different features including:
- Binance earn which allow you to make money
- Binance futures which allows you to short and margin-trade
- Binance smart contract which allows you to host contracts easily. And many others!
For more information, you can check out our full article on Binance
DISCLAIMER: No information on this site should be perceived as investment advice.
No matter what, you should always invest what you can afford to lose.