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Binance Coin
Binance is the world’s largest cryptocurrency exchange and is popular in several countries. Its native cryptocurrency, Binance Coin (BNB), is one of the most valuable altcoins on the market.
Binance Coin gained significant attention throughout 2021 for its dramatic price surge. During the year, the price of 1 BNB rose from just under $40 on 1st January to over $600 at certain points. It has since retracted a little but is still over 10 times as valuable compared to a year ago at the time of writing in January 2022.
If you want to hop on the Binance Coin bandwagon, doing a little prior research is a good idea. You’re in the right place for that, as this guide will explain everything you need to know – including where to buy the coin, plus payment methods and more.
Best Way to Invest in Binance Coin in 2023
Although BNB is native to Binance, you can buy the currency on several other platforms. Below, we’ve compiled a list of the best.
What Is Binance Coin – Quick Overview
Name and ticker Binance Coin (BNB)
Date launched July 2017
Circulating supply | max supply: 165,116,760.89 | 165,116,760
Blockchain network Binance blockchain; previously Ethereum
Creators Changpeng Zhao
Use-cases Trading, payments for transaction fees, financial services, buying products and services
Social media Twitter | Facebook | Reddit | Instagram | YouTube
What is Binance Coin – Explained
Binance is the world’s largest cryptocurrency exchange, and Binance Coin is the platform’s native currency. It launched in 2017, which was the same year that the exchange itself went live.
Since coming onto the market, cryptocurrencies in general have exploded – but Binance Coin has been one of the largest successful. It’s one of the planet’s best-recognised altcoins and is the fourth-largest cryptocurrency on the globe at the time of writing.
Binance Coin has a market cap that exceeds $61.2 billion as of 31st January 2022. Its maximum number of coins are in circulation, and you can buy one full BNB token for just over $370.
Why Was Binance Coin Created?
In the beginning, Binance Coin’s primary purpose was to facilitate lower trading fees on the Binance exchange. To this day, many people using the platform still use the token for this purpose – and in general, Binance has lower fees than many cryptocurrency platforms you’ll find elsewhere.
During the early days, Binance Coin was a part of the Ethereum blockchain – which has been used to fork several cryptocurrencies in the past. Since then, though, it has moved to a dedicated Binance blockchain.
Use Cases
Binance has both centralized and decentralized platforms, and the BNB currency facilitates lower trading fees on both of these. But while this is the currency’s main reason for existing, it has been used in a whole host of alternative scenarios.
Binance Coin has been used to buy products and services in numerous fields. These include travel, gaming, and sending money to others using this currency is also possible.
Elsewhere, Binance Coin has been used to facilitate faster payment processing. This is a common theme with several cryptocurrencies; another well-known crypto used in this instance is Ripple (XRP).
The primary reason you’re reading this guide is that you want to invest in BNB to make a profit, and this is another frequent use case. In more recent times, some users have turned to the coin to purchase non-fungible tokens (NFTs).
Does Binance Coin Have Any Famous Backers?
Many of the larger cryptocurrencies have famous backers. Bitcoin is a prime example, with several celebrities holding the currency. Others have used cryptocurrencies to enable fans to purchase items, while others – such as YouTube star Logan Paul – have begun their own cryptocurrency projects.
If we’re talking about Binance Coin from the perspective of celebrity-level famous backers, it doesn’t have as many vocal supporters as the likes of BTC and Ethereum.
Does Binance Coin Have a Large Social Media Following?
Binance Coin doesn’t have individual social networks, instead, you can get your BNB news and connect with supporters of the token by following Binance’s accounts. The project has a large presence on most of the major social media channels.
On Twitter, Binance has no fewer than 7.4 million followers at the time of writing. It’s also pretty large on Facebook, with over 948,000 page likers and more than one million followers.
Reddit is frequently used by cryptocurrency enthusiasts, and BNB fans will almost certainly find their crowd on this platform. The Binance subreddit has surpassed 700,000 members.
If you’re more of a visual learner, YouTube is an excellent tool in this respect. You’ll find Binance on this platform, with well over 400,000 subscribers. The project is also present on Instagram, and its account has 2.3 million followers.
How To Buy Binance Coin
As the largest altcoin on the planet, you won’t be surprised to hear that you can purchase Binance Coin in several places online. You’ve have two options when it comes to purchasing Binance Coin: buying and owning the tokens outright, or purchasing derivatives.
For the latter, you can use these derivatives to make a profit – but you cannot use these assets for making online purchases. If you’re a beginner with cryptocurrency investing, you might find this option easier as you won’t have to deal with the technicalities of opening and owning a cryptocurrency wallet.
If you choose to buy BNB derivatives, you’ll typically do so from a brokerage. You can find a couple of places that offer the coin, including eToro. If you were to buy from this platform, you’d need to do the following:
Step 1: Create an eToro account. Like Binance, you’ll need to complete a KYC check.
Step 2: Once your account is verified, search for BNB. Then, select the ‘Buy’ option.
Step 3: Enter the amount you’d like to spend on Binance Coin. After that, confirm your order.
Alternatively, you can purchase your BNB coins from a cryptocurrency exchange; this is the most common option for many buyers. Once you do this, you’ll own the coins outright – meaning that you can use them for ordinary payments as well as investing. You’ll need to set up a wallet to keep your coins safe in this respect.
The steps to buying BNB are similar to if you had purchased derivatives.
How To Sell Binance Coin
When you’re ready to sell Binance Coin, you can do so in several ways. If you purchased derivatives, you’d need to use the same platform that you bought them from. In this case, we’ll show you again how to sell BNB on eToro:
Step 1: Sign in to your account.
Step 2: Go to the BNB page and select the ‘SELL’ option.
Step 3: Select the amount of BNB you’d like to sell, along with the fiat currency you’d like to get in return.
If you bought your BNB from a cryptocurrency exchange instead, you could sell your coins there. You’ll need to transfer the money from your crypto wallet before submitting a selling order. After that, you’ll receive your fiat money.
When you sell or profit on Binance Coin, it’s important to remember that you might need to pay capital gains tax. The rules for this differ depending on where you live, so it’s worth doing some research and ensuring that you stay on the right side of the law.
Alternative Ways to Invest in Binance Coin
Although it’s typical for users to invest in Binance Coin from either an exchange or brokerage, these aren’t the only ways to do so. You’ll find a selection of alternatives, and we’ve briefly explained each of these in separate bullet points below.
Cryptocurrency Wallets and Apps: Once you’ve purchased your BNB, you might not even need to use an exchange to sell them again later. In other cases, you don’t need to use one to purchase them either. Many cryptocurrency wallets have built-in exchanges where you can buy and sell BNB with other cryptos.
Buying Binance Coin From a Friend: If you’ve got a friend who’s happy to sell their BNB, you can trade with them. After that, you can decide whether you’d like to sell them from a wallet or exchange.
Futures Contracts: In addition to standard and buying and trading, you can also invest in BNB using futures. These involve you buying the currency before agreeing to sell it again at an already-decided price on a specific date in the future.
Is It Safe to Invest in Binance Coin Right Now?
Before we continue, we must remind you that cryptocurrency markets are extremely volatile. Buying any coin carries significant risks, and you can lose a lot of money if you don’t know what you’re doing. Never invest more than you can afford to lose, and avoid using complicated tools – such as leverage – until you have a significant level of experience.
If we talk about investing in Binance Coin as a safe investment for profitability, many experts believe that the coin will continue to grow in the future. Others, however, aren’t as positive. Generally speaking, you can expect it to remain prominent as long as Binance’s exchange does – but it’s worth noting in that instance that Binance has had regulatory disputes in some countries.
As for online safety, the answer depends on how and where you purchase BNB. The safest way to buy the currency is by using a reputable exchange, such as the ones we’ve mentioned in this guide.
However, it’s important to take additional precautions; exchanges aren’t foolproof, and a hack could have detrimental consequences for your coins. Below are some tips for improving your safety when buying Binance Coin online.
Activate two-factor authentication (2FA) on all of your accounts.
Never give anyone else your login details; change them immediately if you suspect that someone has these.
Only ask for help on official websites.
Only pass over the necessary documents for KYC checks.
Never click on suspicious links.
Always double-check the recipient’s details when transferring BNB to your wallet, as transactions are irreversible.
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