How to Buy BNB?
Founded in 2017, Binance is one of the most significant players in the crypto market. It’s considered the largest centralized crypto exchange in the world with over 150 million users (as of 2023) per year.
BNB (or Binance Coin) is the native token of Binance, powering a dynamically increasing landscape of decentralized applications and DeFi (decentralized finance).
In this article, you will learn how to buy BNB and find the answer to the question - Is BNB a good investment for you.
What is BNB?
Did you know that BNB, one of the most well-known choices for DeFi apps, reached $600 in 2024?
In 2017, Binance designed the BNB as an ERC-20 token on the Ethereum blockchain network (check out “What are tokens in blockchain?” to dive into more details about tokens). Initially, this token was used for paying trading fees on the Binance crypto exchange. Later on, it powered the Binance and also became widely utilized on the BSC network.
With BNB tokens, you can pay for network transactions, such as sending your BNB to different crypto wallets or just utilizing smart contracts on the Binance Smart Chain network. Moreover, in case of paying trading fees using BNB, you’ll get a discount of 25%.
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How to buy BNB: Step-by-step guide
Follow these steps to learn how to buy BNB:
Step 1: Select a reputable and trustworthy crypto exchange
Carry out in-depth research to choose a credible and secure crypto exchange supporting BNB trading. It’s recommended to take into account essential factors, such as transaction fees, security-related measures, reviews, and testimonials.
Step 2: Create your account and verify it
You need to register on your preferred crypto exchange’s website (or mobile application), then, you should fill in your personal data and complete the identity verification process, by submitting your password, ID card, etc.
It can also be a platform like MetaMask or Trust Wallet, where you purely create a Web3 wallet without the traditional account registration flow and components of Web2.
Step 3: Fund your crypto account
After verifying your crypto account, it’s time to transfer your funds to your newly opened account via the available payment methods, including credit/debit cards, and bank transfers.
Step 4: Explore the dynamic BNB market
After funding your crypto account, you can look for the “BNB” in the crypto exchange’s marketplace.
Step 5: Select the amount you want to buy
Mention the amount of the crypto, you are eager to purchase.
Step 6: Confirm the transaction
Before tapping “confirm”, check all the details related to the transaction. Then, click the “Buy” (or equivalent) button to purchase BNB.
Step 7: Make sure to store your funds in your crypto wallet
After purchase, it’s recommended to transfer your funds (especially if the amount is large) to your crypto wallet. Numerous crypto wallets of different types are available in the crypto market, such as hot and cold wallets.
Explore more about creating crypto wallets and their different types in our recent article: How to create and manage a crypto wallet?
Among the most credible, secure, and popular options are Trust Wallet and MetaMask. If you want to dig deeper into “How to buy BNB on MetaMask or how to buy BNB on Trust Wallet, check out recent articles: “What is Trust Wallet and how to install it?”, as well as “What is MetaMask and how to install it?”. If you prefer a hardware crypto wallet, consider using Ledger or Trezor.
Why is it worth buying BNB?
Is BNB a good investment? Here are the key features making Binance Coin stand out as a digital asset:
Limited fees
If compared with other blockchain networks, fees are lower. The reason behind this is the consensus mechanism the BNB Chain uses, known as PoSA, allowing for more transactions, but at the same time, involving less validator participation, as well as computational energy.
Unique and diverse Binance ecosystem
Are you currently using Binance Exchange? If yes, then, it’s more efficient to use BNB to access lower fees associated with trading and benefit from unique NFT drops.
Exclusive burning feature
BNB has an auto-burn mechanism, making sure that it can efficiently face the ongoing pressure associated with supply and demand. The process of auto-burning will go on till one hundred BNB remain in the marketplace.
Staking opportunity
BNB token holders may take part in staking pools. When you stake, as a token owner, you can store and hold your cryptocurrency on the network, and gain an opportunity to turn into an active validator on the BNB Chain. Furthermore, those who succeed in validating a block, acquire rewards that have the form of the BNB.
Highly programmable nature
Using smart contracts allows the BNB Smart Chain to be greatly programmable, enabling any application that is built on the network to interact with one another. The future expansion of this community may lead to various innovative use cases based on programmability.
Possibility of tokenization
You should be aware that it’s possible to tokenize any item registered digitally on the BNB Chain. Though the tokenization is more typical of the NFT landscape, it’s also broadly applied in areas, such as art and real estate.
Wrapping up
We hope this guide has been helpful to you and you already know how to buy BNB coin and now you feel well-prepared to start purchasing BNB and enjoy a seamless and informed trading experience.