Binance Coin (BNB) is among the largest cryptocurrencies by market capitalisation, and is the platform token for the popular cryptocurrency exchange Binance. In this guide, you will learn how to use BNB, why it is a popular asset among blockchain investors, and discover a step-by-step guide to buying it.
INTRODUCTION
When the Binance exchange was created in 2017, the most popular way to raise funds at the time was to sell tokens to the public in what was called an ICO (initial coin offering).
The Binance team, led by Changpeng Zhao (CZ), thus created a token to help raise the funds needed to develop the platform. The token was called Binance Coin (BNB).
BNB has proven to be an invaluable asset to the Binance ecosystem, which has transformed from a simple token exchange platform to a multi-diverse marketplace. Binance Coin is not only the native cryptocurrency within this expanding ecosystem, but its applications have also multiplied enormously.
This guide will look at the various ways to buy BNB, but for a detailed analysis of Binance Coin, we have prepared a comprehensive guide that addresses everything there is to know about BNB. You can check it out here.
WHAT IS BINANCE COIN (BNB)?
Binance Coin (BNB) is the cryptocurrency that powers the Binance ecosystem. It is a token minted on the newly launched BSC blockchain that adheres to the BEP-20 standards. There is also another less popular BNB variant minted on the Binance blockchain as a BEP-2 token.
It is vital to distinguish between the two tokens, as they are often confused. Whenever you transfer BNB on or off the Binance Exchange, you will be prompted to select between the two versions. They are almost identical tokens, so knowing how to distinguish between them is essential to avoid costly mistakes.
BNB USE CASES
As a native asset of the Binance Smart Chain and Binance Chain blockchains, BNB is the de facto value transfer tool within the Binance ecosystem. Specific uses of Binance Coin include:
Paying transaction fees on Binance Exchange and Binance Decentralized Exchange (DEX);
Earning wagering rewards through wagering on the BSC blockchain;
Pay for goods and services through the Binance card feature;
Accept and make payments on the Binance Pay service;
Claim transaction fee rebates on spot market, margin and futures trades;
Earn token holder participation rights in exclusive Binance Launchpad events;
Act as collateral for crypto loans on the Binance Lending and Loans platform; and
Used to store liquidity in the Binance launchpool.
PROS AND CONS OF BNB
Every asset has its benefits and drawbacks. Here are some of the reasons to invest in or avoid BNB:
Pros
BNB is environmentally friendly, as it is based on the energy-efficient BSC blockchain;
The token has unparalleled utility within the vast Binance ecosystem;
Binance Coin is broadly compatible with major crypto wallets;
BNB is a deflationary asset, and as less of it becomes available in the market, the price is projected to rise over the long term;
Binance Coin holders can claim discounts of up to 25% in the spot market.
Cons
BNB has limited utility outside the Binance ecosystem;
Binance Coin is highly centralised with its circulation and supply determined by the Binance exchange.
WHERE TO BUY BINANCE COIN (BNB)
BNB is easily accessible to anyone with a Binance or Binance.US account. Binance.US is the US subsidiary of Binance regulated by the US Financial Crimes Enforcement Network (FinCEN). As a platform token, it only makes sense that the best place to acquire it is on its native platform, Binance, and affiliated entities.
However, you can still get your hands on some Binance coins at a few other places outside of the Binance exchange. Three of the most popular exchanges where BNB is supported are:
Gate.io;
FTX.com;
Trust Wallet.
Trust Wallet is an independent wholly owned subsidiary of Binance Exchange. The wallet is available exclusively on mobile platforms, so only Android and iOS operating systems, while Gate.io and FTX.com are competitors with cordial working relationships with the Binance exchange. This could explain why they list the native token on a competing platform.
HOW TO BUY BNB ON BINANCE (STEP BY STEP)
Buying BNB on Binance’s official trading platform is the most popular way through which most investors acquire the digital asset. Binance provides several methods to buy any cryptocurrency, including its native token. These include:
Bank transfers;
Credit/debit cards;
Peer-to-peer (P2P);
Cryptographic deposits;
Third-party payment channels such as Simplex, Banxa and Paxos.
Note: In this tutorial, we will focus on the quickest and easiest way to buy BNB on Binance, which is using a credit or debit card. However, with transaction fees of between 4% and 10%, this payment method is one of the most expensive ways to buy cryptocurrencies.
Step 1 – Create a Binance account.
If this is your first time using Binance, you will need to create a user account by visiting the Binance homepage and registering. You will also need to verify your identity before proceeding with the tracking steps (see our detailed Binance KYC guide).
Account holders can skip this step and log in to their accounts with their username, password and second factor authentication credentials.
Step 2 – Navigate to the cryptocurrency purchase page.
From the Binance homepage, hover over the [Buy cryptocurrencies] link in the top navigation bar and then select the [Credit/Debit Card] option from the drop-down list.
Step 3 – Provide the transaction details.
Start by selecting the cryptocurrency you wish to purchase from the transaction form.
Click on the crypto icon in the [Receive] tab to open a selection window. Scroll to find the BNB token or use the search box.
Then select the fiat currency supported by your preferred payment method. Click on the fiat token within the [Spend] tab to open the available options of supported national currencies.
You can search or scroll down to find your preferred option, as the list is sorted alphabetically.
Once you select the relevant assets, fill in the amount you wish to trade. In our example, we chose to trade USD for BNB. You can specify the amount you wish to buy in USD or BNB.
Then click [Continue] to set up your payment method.
Binance Recurring Purchase Function
Note: On this first screen, you may notice a toggle button next to the title [Recurring Purchase]. Binance allows its users to set up automatic cryptographic purchases, which can be run daily, once a week, bi-weekly or once a month.
If you wish to set up this feature, start by enabling the toggle button. A selection link will be displayed just below the button.
Click on this link to open the available configuration options. Choose the purchase interval that works for you.
Step 4 – Make payment.
If this is your first time using Binance or the credit/debit purchase option, you will need to link your payment card to Binance. On the tracking screen, click the [Add New Card] button to link your card.
The setup process is simple, provide the card details, then click the [Next] button to add the payment card to your Binance account.
Step 5 – Confirm the transaction.
Your newly linked card will appear by default on the payment page and will be pre-selected. Click the [Continue] button to proceed to the confirmation page. Verify that the purchase details are correct. The confirmation page also highlights the cost of the transaction.
Click [Confirm] to execute the transaction. Binance will ask you to provide the second factor authentication code as confirmation of your identity.
The transaction will be processed immediately and the BNB tokens will be deposited into your [Fiat and Spot] wallet.
HOW TO BUY BNB ON TRUST WALLET (STEP BY STEP)
Trust Wallet is a mobile crypto wallet app available for iOS and Android devices. It is the easiest way to buy BNB without creating an account with any centralised exchange.
However, you will be asked to register with a third-party service through which the credit card payment will be processed. Therefore, even if you do not have to register for an exchange account such as Binance, KuCoin or FTX.com, you will still have to disclose your identity to a third party.
The benefits of buying BNB through Trust Wallet are that it is fast and more convenient. Usually, if you buy cryptocurrencies from an exchange, you’ll need to move them to a wallet, but if you buy BNB on Trust Wallet, you don’t have to send them anywhere else.
Follow these simple steps to buy some Binance Coin tokens in Trust Wallet with a credit or debit card.
Step 1 – Download Trust Wallet.
Before proceeding, you must have Trust Wallet installed on your mobile device. Visit the download page and click on the appropriate link as shown here.
You must then create a new wallet or retrieve an existing wallet using the backup phrase. If you create a new wallet, make sure you back up your recovery phrase by writing it down on a piece of paper and keeping the paper in a safe place.
Step 2 – Open Trust Wallet.
Open the Trust Wallet app on your mobile device and navigate to the [Tokens] tab in the main navigation at the top.
There are two options available to proceed from the main screen. You can click on the [Buy] button in the centre of the page and then choose an asset you wish to purchase. Or, you can scroll down and select the asset you wish to buy by tapping on it to open more information about it and then click to buy on the next screen.
Before we continue, it’s worth noting that Trust Wallet lists both versions of BNB here with different titles to differentiate them. The token called BNB is the BEP-2 version on the Binance Chain (BC) network, while the other called Smart Chain is the BEP-20 token on the BSC network.
BNB on Smart Chain will allow you to interact with decentralised applications (dApps) on the BSC network, while the other BNB token is the preferred native token of the Binance DEX platform.
Click (tap) on whichever option you prefer to continue with.
Step 3 – Buy BNB.
On this screen, there are two [Buy] buttons that you can use to purchase BNB. One at the top and one towards the bottom section of the screen. The second button will not be displayed if you already have some BNB in your wallet.
Step 4 – Make the payment.
On the next screen, Trust Wallet will ask you to enter the amount of BNB tokens you wish to purchase denominated in your preferred fiat currency.
Enter the amount, then tap the [Continue] button, where you will be redirected to the partner’s website to process the payment.
As mentioned above, you will be asked to provide an email address and details on your payment card to initiate the transaction. Once you have finished, confirm the transaction and authorise the purchase.
The BNB tokens will be deposited into your Trust Wallet account as soon as the payment is processed, which, if you are using a credit/debit card, should be fairly quick. You now have your Binance Coins in your wallet.
WHERE TO STORE BNB
Binance Coin is a highly versatile asset and, depending on how you want to use it, will determine how you want to store it. The two options are:
Keep the BNB on the Binance exchange; or.
Move it to an external wallet such as Trust Wallet.
For most cryptocurrencies, it will be better to keep the assets in an external wallet where you are guaranteed better security. However, BNB has more utility within the Binance ecosystem, and you may find that keeping your tokens in your exchange account is the best option.
If you decide you just want to keep BNB as a store of value, you can choose from the many crypto wallets available on the market, including:
Web wallets such as MetaMask;
Mobile wallets (Trust or Exodus Wallets);
Desktop wallets (Exodus or Atomic wallets); and
Hardware wallets (Ledger, Trezor or CoolWallet).
You can get additional utility with some of the available options listed above, such as stalking with trust wallet or Ledger wallets. Trust Wallet probably has the most features adopted from the binance exchange, making it a solid option for keeping your BNB off the main trading platform.
Some of the features supported by Trust Wallet include:
Exchange and exchange of tokens;
Investing in NFT on Ethereum and BSC networks;
Betting various assets with BNB being one of them;
Participation in DeFi ecosystems; and
Browsing dApps on the BSC network.
The most significant benefit of using Trust Wallet is that it is available to anyone around the world, even in jurisdictions where Binance is restricted or prohibited. In addition, users can safeguard their assets rather than relying on a centralised platform that is vulnerable to hacking.
FINAL THOUGHTS
This guide was about BNB and how to acquire this highly versatile asset. We highlighted two easy ways to buy it, which are using the Binance exchange or using a mobile wallet such as Trust Wallet.
Both channels rely on credit/debit cards as a payment method. If you prefer another method, such as using bank transfers, take a look at our other guides on this.
As a native token for the larger crypto ecosystem, BNB is an extremely sought-after asset worth including in a crypto investment portfolio.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. By investing, your capital is at risk.
FREQUENTLY ASKED QUESTIONS ABOUT BUYING BINANCE COIN (BNB)
What is Binance Coin (BNB)?
BNB is a cryptocurrency token native to the Binance ecosystem. Initially issued as an ERC-20 token on the popular Ethereum network, BNB is now a BEP-2 and BEP-20 token issued on the Binance Chain (BC) and Binance Smart Chain (BSC) networks, respectively.
What is BNB used for?
BNB is the cryptocurrency that powers the vast Binance ecosystem, which comprises features such as:
Trading;
Staking;
Payment processing;
Mining;
Crypto project launches;
Yield agriculture; and
Lending and borrowing, among others.
Is Binance Coin a good investment?
Whether Binance is a good investment will depend on your investment objectives and some other factors, such as timing. You should consider whether you want to actively trade BNB or buy and hold for the long term. The answer to these questions will determine which strategy to use, and by extension, whether it is worth investing in BNB in the first place.
Where can I buy BNB?
You can buy Binance Coin (BNB) at several different places, including:
Centralised exchanges such as Binance, Binance.US, Gate.io and FTX.com;
Decentralised exchanges (DEX) such as PanCake Swap; and
Select crypto wallets such as Trust Wallet, Atomic and Exodus Wallet.
