Binance Coin is also known as BNB, and it’s the Binance Coin token. The Binance cryptocurrency exchange issued it, and its trading symbol is BNB. Although it was originally developed using Ethereum, the Binance Smart Chain is where the coin now lives. You can learn more about Binance coins and BNB here.
There are two hundred million total Binance coins available on the network. It is today the world’s most used and largest cryptocurrency exchange. This has been supported by an impressive efficiency rate that exceeds one million transactions per second.
Binance Exchange uses one fifth of its total profits to burn Binance coins four times a year, or. every quarter. Last year’s most recent fire was on April 15th, 2021. 1,099.888 Binance coins were melted. These tokens are worth just over half a million dollars.
Below is a step-by-step guide to buying BNB tokens.
Step 1. Choose a Crypto Exchange
Visit the market page on CoinStats to view the exchange platforms supporting BNB tokens. Compare the exchanges’ security, user experience, fee structure, supported crypto assets, etc., to choose the one with the features you need, such as affordable transaction fees, top-notch security, high trading volume, an intuitive platform, round-the-clock customer service, etc. Consider whether the crypto exchange is regulated and permits you to use your preferred payment methods.
To trade cryptocurrencies, you must use a centralized or decentralized crypto exchange, so let’s look into the details of each type below.
Centralized Exchange
A centralized cryptocurrency exchange (CEX), such as Coinbase or eToro and Binance acts as a broker between buyers and sellers. They charge specific fees to use their services. Most cryptocurrency transactions take place on centralized exchanges. Users can buy or sell cryptocurrencies in fiat currencies like the US Dollar, as well as digital assets such ETH and BTC. Users must comply with KYC (know your client) and AML rules on centralized exchanges by providing certain information as well as identification documents. However, the drawback of trading on a CEX is that it’s highly vulnerable to hacking or cybersecurity threats.
Decentralized Exchange
On the other hand, a decentralized exchange (DEX), like Uniswap, SushiSwap, Shibaswap, etc., is a non-centralized alternative to a centralized exchange and isn’t governed by any central authority. It operates on blockchain and does not charge any fees, except the applicable gas fee on one particular blockchain (e.g. the Ethereum blockchain). Smart contracts are used to allow people to trade crypto assets in decentralized exchanges that do not require regulatory approval. An automated market maker is used to eliminate intermediaries and allow users total control of funds. It is much safer as there are no potential security holes. Decentralized exchanges, however, are more difficult to use in terms of currency conversion and interface. For instance, they don’t always allow users to trade crypto with fiat currency; users have to either already own crypto or use a centralized exchange to get crypto. Decentralized exchanges have not achieved the same liquidity level as centralized ones. Because DEX trades peer-to–peer, it can take longer to find people looking for trades with you. In addition, if liquidity is low or not high enough, you might need to be willing to compromise on price to quickly sell/buy low-volume crypto.
A DEX allows you to list any asset. This gives you access to in-demand assets and also lets your portfolio take on greater risk.
Step 2: Open an account
After you’ve chosen a cryptocurrency exchange that suits your investment needs, you must register with the exchange using a valid email or mobile number. You will receive a link to confirm your account. Once the account is activated, you must create an elaborate password, and you’re good to go.
You may need to provide certain personal details in order for your exchange account to be verified.
- Full Name
- Address at home
- Date of Birth
- Identification Document
Sometimes, the verification process may require you to submit a picture or video.
Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.
Step 3: Deposit funds
Next, deposit money into your account. Many cryptocurrency exchanges allow you to deposit fiat currencies, such as USD, EUR and so on. You can choose your deposit method (e-wallets or wire transfer), and then select the currency that you want to deposit. Tap on “Deposit Funds,” enter the amount you want to deposit and click “Deposit.”
Some deposit methods can be done very quickly, but others require authorities confirmation. You should compare fees between deposit methods as different ones may have higher fees.
Although linking your cryptocurrency account to your debit card is a great way to make instant purchases or recurring payments, it comes with a cost.
It’s usually free to make a bank transfer from your local bank accounts, but you should still double-check with your exchange.
BNB tokens can be traded for another cryptocurrency or a stablecoin; the trading pairs vary between exchanges. So, you must search for BNB on the spot market to select a pair from the list of available trading pairs.
Step 4: Purchase a BNB
Follow the steps below to place a market order to buy BNB instantly at the current market price:
- Click the search bar, enter BNB, and select “Buy BNB” or the equivalent.
- Select a trading pair you wish to buy BNB against
- Choose the payment method, the currency you wish to use, and input the amount of BNB or the fiat amount to be spent. Most exchanges will automatically convert the amount to show you how many BNB tokens you’ll get.
- Double-check the transaction details and click “Confirm.”
- The BNB tokens will be displayed in your balance once the transaction is processed.
You can also place a limit order indicating that you want to buy BNB at or below a specific price point. Your broker will ask you the number of coins you wish to acquire and the maximum price you’re ready to pay for each once you’ve placed an order. If your broker fulfils your order within the price range you have requested, your coins will be in your wallet. If the broker increases the price, the broker can cancel the order or keep it open.
If you’re planning to keep your newly purchased coins for an extended period, we highly recommend securely storing them in a hardware wallet.
To trade BNB on spot markets, go to the Trade page and search for the BNB pairs ( BNB/USD or BNB/USDT). Click on the desired trading pair to view the price chart. Click “Buy BNB,” select the “Market,” enter your amount or choose what portion of your deposit you’d like to spend by clicking on the percentage buttons. Confirm and click “Buy BNB.”
Congratulations on adding BNB tokens to your crypto portfolio!
Step #5: (Optional). Store BNB
While your BNB tokens can be stored in your brokerage exchange wallet, experts highly recommend storing your precious coins away from exchange wallets, as those might be susceptible to hacks and interference.
A private wallet should be created with your unique keys. You can choose from software or hardware wallets depending on how you invest.
Software wallets
If you’re looking to trade BNB regularly, software or hot wallets provided by your selected crypto exchange will suit you. Software wallets are flexible and easy to use. This is their strength. Software wallets allow for the most simple setup of crypto wallets and allows you to easily connect with various Decentralized Finance (DeFi), applications. However, these wallets are vulnerable to security leaks because they’re hosted online. If you wish to store your private keys in software wallets, do some research to ensure security. A platform offering 2-factor authentication is recommended as an added layer of security.
Among other software wallets, CoinStats Wallet is MetaMask and Coinbase Wallet. Trust Wallet is another example. Edge Wallet is also a type of software wallet.
Hardware wallets
Cold wallets, or hardware wallets, are generally considered to be the most secure way of keeping your cryptos safe. They offer offline storage which significantly lowers the chance of hackers stealing them. The pin secures them and erases all personal information after several failed attempts. This prevents physical theft. The hardware wallets allow you to sign and confirm transactions via the blockchain. This gives you additional protection against cyber attacks. For users with a large number of tokens, these wallets are better suited for them.
The most secure and reliable hardware wallets, Ledger Hardware wallets allow you to securely manage all your digital assets. The Nano X is designed for advanced users and offers more storage space and advanced features than Ledger Nano S, designed for crypto beginners.
A hardware wallet is more expensive than a hot wallet, with prices ranging between $50 – $200.
Trezor T, Ledger Nano X and CoolWallet Pro are some examples of cold wallets.
Step #6 (Bonus step): Track BNB Tokens
It is highly volatile in the crypto market, so managing multiple assets can be difficult. Utilizing a portfolio tracker will help you keep track of your BNB tokens and all your crypto investments from one platform at all times. CoinStats is a leading provider of crypto portfolio trackers. You can read more about it here.
You can also monitor the profit, loss, and liquidity of BNB across several exchanges on CoinStats.
CoinStats has over 250 crypto exchanges. It also supports more than 7,000 cryptocurrency. You can use it to chart, analyze data, search advanced features and keep up with the latest news. You can connect unlimited portfolios (wallets or exchanges) here.
- Binance
- MetaMask
- Trust your wallet
- Coinbase
- Kraken
- Kucoin
- Bitstamp, 500 other.
Connect to CoinStats Portfolio tracker by:
- Click on Add Portfolio to Connect Your Wallet.
- To connect to an Ethereum Wallet wallet, click the button.
- Click on Submit to enter the wallet address.
Historical Overview and History of Binance Coin
From the words Finance and Binary, Binance derives its name. Binance has become one of the top cryptocurrency exchanges worldwide, and its Binance coin is the preferred utility token for the exchange. BNB Coin acts as an intermediary for trades that involve fiat currencies and other cryptocurrency.
Binance’s history and Binance Coin can been traced back to 2017, when ChangPeng Zhao, a Chinese founder founded Beijie Technology. This company manages and runs the Binance cryptocurrency exchange. Its headquarters are located in Hong Kong, China.
The exchange platform was created by the founder along with his team of developers. They also raised sufficient funds through an Initial Coin Listing (ICO). The ICO lasted approximately one month with a total of fifteen million dollars raised. Funds raised were used to fund startup expenses, e.g. paying new developers, marketing, and securing the exchange platform’s servers.
Binance coins were a great invention and quickly became very popular. Users who bought the token received a 50% bonus. They could use it to trade fees. Binance Coins can be traded on the exchange. They are burned periodically to reduce supply, and increase value.
What are the possibilities with Binance Coin
One of the most well-known crypto tokens is Binance Coins. You can use it for multiple purposes as a crypto currency:
- Binance Coin can also be used to pay trading fees for the Binance Smart Chain or Binance DEX.
- You can use it to pay transaction fees for coin conversions, such as Litecoin to Bitcoin. You can convert Bitcoin to Litecoins
- You can use Binance Coin to pay on Crypto.com and HTC. TravelbyBit also allows payments to be made. Additionally, loans can be accessed, such as via ETHLend ETHLend.
- Binance Coin can be purchased and used to donate to charities.
How does Binance coin work?
The token is made using ERC20 tokens. It’s created on Ethereum. But tokens can’t be mined because all the tokens in the Initial Coin offering have already been distributed.
Traders use Binance coins to pay transactions fees on the network, while its developers use them to generate computing power for apps on Binance’s network- Binance Smart Chain.
This Smart Chain makes Binance Coin different from all other trading tokens on various crypto exchanges.
This network can be programmed and executed smart contracts. It also serves as an open platform for other cryptocurrency and app development.
If you do not have cryptocurrency, how to buy Binance coin
You will need to purchase crypto if you don’t have any. The Binance exchange doesn’t use fiat currencies like the dollar. It is advisable to buy a stable crypto currency, such as Bitcoin or Ethereum, since this will be your first purchase. Bitcoin and Ethereum.
You will need to buy it through an exchange that is authorized in your jurisdiction. Coinbase is an example. Coinmama can also be a good option. Once you’ve acquired the coins, follow the instructions in this section to order Binance Coins.
How to buy Binance Coin from CoinStats
Coinstats can be used to search for cryptocurrencies, track portfolios and find exchange platforms.
CoinStats makes it easy to purchase BNBs. You can purchase coins using the integrated wyre mechanism. Payments can be made using your Apple Pay card or debit card. However, this function is limited to US residents. You cannot also make more than $250 per day.
However, support will increase for other countries in the future.
Binance Coin is worth buying
There is always a possibility that Binance Coins could be purchased now that you are familiar with how they work. ahem, Doubting readers may still be unsure whether they should dive in. If you’re not certain, here are four reasons why BNBs are a good investment for you:
- The cost of Binance Coins is lower than the price of most other coins. It is easy to trade on Binance’s crypto exchange.
- Demand and Supply are the two main factors that determine the growth and value of any token on any digital exchange. The supply of a token increases in popularity, which means that it has a lower value.
- Trustworthiness: Investors prefer to invest in trustworthy coins as they can’t afford to lose money or make large losses. It is simple to operate Binance, which makes it one of the most trustable cryptos. It is very attractive that you can withdraw up to $30,000 per month.
- Exchange Versatility. In addition to its value as an exchange token, Binance allows currency exchanges using many tokens such as Bitcoin Cash, ChainLink, Ethereum, EOS, VeChain and Cosmos. Cardano. Bitcoin Cash. ChainLink. Litecoin. Ethereum. EOS. VeChain. Cosmos.
- Participation in ICOs – Binance Lauchpad organizes the sale of new tokens using Binance Coins. This is before they become available for trade on Binance Exchange.
Conclusion
Binance Coin looks very promising considering that it is not an alternative currency. It can power apps and provide computing power to the network as a cryptocurrency.