Binance Coin, issued by Binance and traded under the initials BNB, is one of the digital currencies in the current crypto marketplace.
BEP-2 BNB replaced the former ERC-20 token at a 1:1 ratio in April 2019. Currently, you can use it to pay for trading fees and other transactions or convert it to other crypto assets on the Binance Chain. So far, other crypto exchanges have not caught up to offering Binance coin on their platform.
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This guide covers the how and where to buy Binance Coins in 2022 and everything in between.
Should I Buy the Binance Coin?
Although it lags way behind Bitcoin and Ethereum, BNB has seen its share of growth during the crypto boom. The coin, native to the Binance Chain and Binance Smart Chain, grew by 1000% in 2021. Even with the crypto downturn experienced earlier this year, the Binance coin has increased. It’s currently the 3rd largest cryptocurrency by market cap.
Despite competition from the likes of Coinbase, Binance is the largest crypto exchange, with $2 trillion in trading volume as of 2022. The platform is also expanding its ecosystem. Users of the platform can make secure borderless payments through Binance Pay and earn passive income through NFT staking. Binance now offers crypto savings accounts, whereby you can deposit digital tokens and receive interest. You then have the Binance debit card, which allows you to spend your crypto holdings online, in-store, and ATMs. Additionally, holders of BNB can use the coin as collateral for credit.
Given that BNB is native to the Binance Smart Chain, as an investor, having BNB tokens will enable you to profit from Binance’s growth. Due to huge trade volumes, the chain has surpassed Ethereum as the most active blockchain network.
With the cryptocurrency market’s volatility, investing with money you are willing to lose is good practice. Also, remember to find ideal entries ~ don’t buy when prices are at an All-Time High.
Downsides to Buying BNB?
There have been regulatory pushbacks from US authorities. Binance was forced to separate operations – Binance US. Binance has also faced similar challenges in Europe and ended up suspending operations in the UK, Canada, Thailand, and the Cayman Islands due to clearance issues.
Investors have found the scrutiny from regulators in different locations disconcerting. As a result, Binance promised to improve its verification process to meet the regulations of different states. Pressure from global financial regulators pushed the company to beef up its Know Your Customer (KYC) standards.
Where Can I Buy BNB in 2022
There are a variety of exchanges that list BNB as a tradable coin. Though not many do, you can buy the coin on any of the following exchanges:
Steps To Buy Binance Coin:
Buying or investing in BNB is simple. Generally, whichever crypto exchange platform you buy from, you will need to transfer fiat currency such as US dollars into your account in exchange for the same amount in BNB. Be sure to pick a popular, highly secure, easy-to-use platform for a smoother process.
Step 1: Open an Account
To register, provide an email address and create a password for your account. Binance is not accessible from all jurisdictions in the US and some in Europe due to regulatory issues. So consider using other exchanges.
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Step 2: Fund Your Account
There are different payment mediums based on the exchange platform you chose. You might be required to list a credit or debit card, link a bank account, crypto wallet, or Paypal. Some exchanges might have minimum and maximum purchase restrictions and other requirements and regulations.
Step 3: Buy BNB
Now you can buy some BNB tokens. Ensure you use the order process offered by your exchange of choice. Trades take place in real-time. For example:
- Buying via P2P: Since Binance is a cryptocurrency exchange, it also allows you to purchase BNB directly from other holders. To buy BNB locally, access the Binance P2P exchange.
- Buy via a credit card: Most platforms allow you to buy BNB with a credit or debit card. Both Visa and Mastercard are widely accepted.
- Buy via bank transfer: If ordering from the Binance platform, buy stablecoins by wiring money from your account, then use those coins to purchase BNB on the Binance exchange.
- Buy BNB with other cryptocurrencies: Each coin has an exchange rate like in a forex market. And there are over 300 cryptocurrencies supported by Binance that you can trade for BNB.
How to Buy BNB Through Decentralized Exchanges(DEXs)
Many of these third-party decentralized exchanges allow you to buy without registering. They can be directly connected to your wallet—Examples of alternatives you can pick from include PancakeSwap, SushiSwap, 1Inch, Bakery Swap, etc. To buy BNB from these DEXs, you need a wallet that supports Binance Smart Chain. A great example is Metamask.
Like on the Binance platform, the decentralized exchanges have different protocols that allow you to stake and earn from your BNB, as you might in the traditional forex market.
Storing Your Binance Coin
So you are now the owner of some BNB tokens. Where do you store them? Most users store their BNBs on the platform that they buy them from. If it’s on Binance, you can opt to store it in your BNB exchange wallet or on their wallet app, Trust Wallet.
Although you don’t need an external wallet, some risks come with storing it in your exchange account. For example, the exchange may be fraudulent, go bankrupt, or be hacked; then, you lose your Binance coin.
An external wallet may be cold(a physical device completely offline) or hot(digital storage accessible from a computer or phone). Each has its pros and cons. A cold wallet is secure from hacking, but if you lose it or forget your password, you lose your BNB. Conversely, a hot wallet can be hacked or affected by software glitches but can be redeemable if you forget your security information.
Before choosing a crypto wallet, ensure it supports the coins you are holding, is secure, and gives you easy access to your funds.
You now know how to go about buying BNB tokens. It’s quite easy. Several platforms allow users to buy the coin. Whichever choice you make, ensure it will accommodate your needs.
Although cryptocurrency’s price is determined by supply and demand, the value of the coins is linked to the ecosystem’s success. Therefore, the more BNB is transacted, the more valuable the coin becomes. The coin thus has the potential to continue growing in value if Binance can avoid regulatory issues and expand.