Last Updated on November 14, 2023 by Ben
How to Buy Binance Coin
Binance Coin (BNB) is a digital currency developed by the Binance company. It was created to facilitate transactions on their trading platform, which supports multiple cryptocurrencies. One of the main benefits of using this coin is reducing or eliminating transaction fees for trades on the platform. We will go over how you can buy your first batch of Binance Coins!
4 Things you should know before investing in Binance Coin
Binance Coin does not always provide pleasant and appealing results. While this isn’t to say that the token has a dark side, there are reasons to be cautious about it.
There are few reasons to hedge one’s bets when looking at any cryptocurrencies. However, because we’re discussing BNB here, we’ll focus on what you should be wary of before diving in.
- Being tied to Binance is good, as long as Binance performs.
One of the advantages of investing in crypto could be used as a double-edged sword. This token is relatively safe depending on Binance’s continuing viability, but only as long as it remains relevant.However, there is no assurance that the firm will survive – but the reality remains that it has a chance of failing.
Because of this, if you choose to invest in BNB, you should pay attention not just to the token but also to the exchange, its side projects, and how they’re all doing. The price of the coin is presumably to mirror this.
On the brighter side, with Binance generating new projects every day, such as a planned stablecoin and an existing Binance Bitcoin-pegged cryptocurrency (BTCB), the exchange’s -and thus, BNB’ s strength is enhanced.
- It’s not a widely exchanged token.
Binance Coin has only been exchanged on a little over a dozen crypto exchanges, whereas Bitcoin and Ethereum are traded on every cryptocurrency exchange.This implies that trading techniques with other tokens, such as exchange-hopping to take the market, will be more difficult with BNB on fewer platforms.
It also implies that, should the market for the token collapse, it will be considerably more difficult to locate individuals or businesses interested in buying your coins than it would be if you were holding a broadly traded cryptocurrency.
- Binance is centralized – and its safety rating is not the best.
The extensive majority of transactions on Binance happen through its centralized exchange, with the smaller side project being a decentralized version called BinanceDEX.Binance, the most significant exchange, is centralized, which makes it vulnerable to attacks and hacks in a way that decentralized exchanges are not.
In addition, Binance has previously been the target of hackers. While the users were not harmed financially during these assaults – owing to Binance’s insurance policy – a repeat occurrence would be devastating for BNB investors.
Even if none of Binance’s clients loses their crypto, a hack is likely to have an impact on the BNB price, whether or not it affects any other cryptocurrency.
- Its blockchain isn’t the most groundbreaking.
While the Binance blockchain is undoubtedly pushing technology forward, it is uncertain whether it will ever reach a premier blockchain status.
There are many intriguing ideas, and some of its current fringe applications, such as pegged tokens linked to other cryptocurrencies, may assist in the adoption process. However, those characteristics aren’t unique to Binance.
More significantly, the dApps community is one of the fastest-growing segments in the cryptocurrency world.
However, these applications rely on smart contracts, which the Binance blockchain does not support. This keeps it out of a big chunk of the market and, while hardly spelling its doom, it can work against Binance.
Reasons to Invest in Binance Coin
- Binance Coin has established use cases, with more on the way
BNB is not just a new type of money. It is a type of money with actual use and reason to exist. In fact, people are already trading it and using it on the Binance exchange.Binance allows users to buy and sell NFTs and participate in IEOs by paying for transaction fees with Binance Coin (BNB). Some of those IEOs are limited to transactions using the cryptocurrency token, which gives it another function for crypto investors. Binance’s Binance Chain is also being used for a number of other purposes, some of which are as follows: The native token on the Binance DEX – the decentralized arm of the company – is BNB, which is safer and more dependable than the website’s default currency. It’s also the only currency that can be utilized in Binance Launchpad, and it’s expected that future crypto projects from Binance will do so. Among the already announced future uses for it, there is a staking system that will allow users to stake their held BNB. If they do this, they can get more tokens in distribution.
- Binance is pushing crypto adoption, and its token reflects on the company.
Binance is a relatively new cryptocurrency exchange, yet in only two years, it has gone from nothing to one of the most important players in the market.Since the market is still in its infancy and major companies are anticipated to complete their launches during the next year or two, it’s always a good idea to hedge one’s bets by investing in cryptocurrencies that are unlikely to fail should the marketplace change. BNB is a token that will not lose all its value even if new tokens come to the market with revolutionary proposals. It would be hard for BNB’s company to be bought out or become irrelevant. Furthermore, because Binance’s value is intrinsically linked to that of its parent firm, the token will retain some value as long as Binance continues to thrive. It does not imply the token will move up and down as the company performs, but it would be unwise to think Binance’s own performance won’t have an impact on its price.
- The supply is dwindling.
This is different from most cryptocurrencies. BNB will become smaller every year.The 20% of the income generated by its transactions that is sent back to the token’s circulation supply is used to buy back and return them to an unsuitable address, thereby eliminating them from sight. This results in an ecosystem where the token is expected to rise over time rather than depreciating since the amount will decrease with time. Of course, there’s a limit to this – specifically, when 50% of the total BNB has been burned, the burns will cease – but as long as this ceiling hasn’t been breached, BNB is likely to appreciate with each subsequent burn.
- It’s relatively cheap.
Buying Bitcoin may be difficult for many individuals because the cryptocurrency has a price that is nearly out of this world.Although you can acquire modest amounts of it naturally, many investors dislike having a thousandth of a Bitcoin since the number appears to be tiny. The Binance Coin (BNB) is one of those tokens that you can acquire a significant amount of money without investing too much money. Just several hundred dollars will get you some areas of BNB, allowing your investment to have a more physical presence. Naturally, having crypto for the sake of having it is irrelevant. However, higher quantities aid in calculating how much money you have saved a cryptocurrency if you own six tokens rather than twelve-hundredths of one is easier. This also means you’ll be able to figure out how much your investment is worth faster and make decisions based on that information.
How to Invest in Binance Coin?
Binance coins can be acquired in a variety of ways, much like other cryptocurrencies.
However, because its market is much smaller and there are fewer exchanges where it can be exchanged, some strategies that may work or seem to work when trading huge cryptocurrencies would not be possible.
Buy and Hold
The investment strategy is referred to as such. Purchase when the values are inexpensive, then sell as the prices rise. In some respects, BNB was created with this type of investing in mind.
The regular token burn implies that supply is decreasing, and as a result, values should rise.
The fact that staking will be integrated as a feature on the platform only adds to the appeal of this strategy since holders may profit from higher prices and get rewarded for holding BNB with even more BNB.
Among all feasible investment techniques, this one is without a doubt the most recommended on Binance.
BNB is an excellent fit for IRA investments, which are a type of buy and hold.
The coin has a reliable price, which should prevent your savings from declining in value, and the ability to stake your BNB long-term and earn more BNB for doing so is specifically designed for retirement investments, which are usually long-term in nature.
The main disadvantage of utilizing BNB for IRA purchases is the scarcity of exchanges that trade it.
If you’re managing your IRA assets on your own, that won’t be an issue. However, if you’re dealing with an investment firm, it might be unwilling or unable to carry out the transaction.
The idea of having to go through the procedure all on your own is daunting, and many individuals would rather not take this step.
Binance Coin, like all other cryptocurrencies, has a value that fluctuates over time.
In essence, it means that the price may be sold short-term and, if one is knowledgeable about it, a considerable profit can be made.
Many of the methods utilized for short-term trading can be effective. BNB may be used to make short-term purchases and sales and the more extreme variant known as day trading.
However, the most extreme short-term investment method is leverage, perhaps the most well-known exception.
It may now be feasible to profit from day trading using BNB. You might be able to locate someone who will lend you the funds, and some exchanges may even legalize it openly.
However, because fewer exchanges will be required, executing this plan will be considerably more difficult.
The fact that Binance’s daily changes are generally less than those of other, more volatile cryptocurrencies only serves to emphasize this. You may lose money due to a market where prices change too slowly for day trading to be profitable, much alone for leveraging.
Steps to Buy Binance Coin
Open an Online Account
You may buy the BNB token from Binance, of course! However, if you live in the US, you’ll have to use a VPN or create a Binance.us account and follow KYC rules to access the site. This entails providing your Social Security number, driver’s license, and other biometric data to confirm your identity.
Buy a Wallet (optional)
Once you’ve created an account on Binance or Binance.us and purchased the amount of BNB tokens you want, you’ll need to choose where you’d like to store them based on your usage scenario.
If you utilize Binance frequently and trade-in BNB frequently, it’s a good idea to keep some of your position on that exchange. The ideal approach, however, is to move any large amounts of cash into a wallet that you control the private key for.
BNB can be held in a variety of ways, but the most popular is through software wallets.
Make your Purchase
It’s time to make your purchase now that you’ve established an account and chosen out your wallets for your use case and security preferences.
Binance offers a few alternatives for placing an order on Binance for BNB and other cryptocurrencies. You may place a market order, which will acquire the quantity of BNB you want at the current rate, or you can use a limit order, which will wait until the price reaches a certain level to execute the transaction.
Where to Buy Binance Coin
Here are some of the most recommended places to buy Binance Coin:
Bitcoin is a worldwide digital payment system that functions without the need for a bank or clearinghouse, allowing users to send money directly from one person to another. Bitcoin is considered a revolutionary change in today’s monetary/financial markets. Satoshi Nakamoto, a mysterious programmer behind the pseudonym “Satoshi Nakomoto,” created Bitcoin in 2009.
Bitcoin is becoming increasingly popular across the world, and mass adoption is rapidly approaching. As Bitcoin and other cryptocurrency usage grow, people are more interested in learning about it. There are some advantages as well as disadvantages to Bitcoin.
- Anonymous and Private
- Payment Freedom
- Fewer risks for merchants
- Low/Minimal Fees
- Degree of acceptance
- Possible Government Interference
- Ongoing development
Ethereum is usually regarded as the second most popular cryptocurrency after Bitcoin. Unlike Bitcoin, however, and most other virtual currencies, Ethereum was created with a much broader purpose in mind.
Ethereum, like all cryptocurrencies, is based on a blockchain network. A blockchain is a public, decentralized ledger that records and verifies transactions.
It’s distributed in the sense that everyone using Ethereum has an identical copy of this ledger, allowing them to view all prior transactions. It’s decentralized in that the network isn’t controlled or governed by any single entity; instead, it’s maintained by everybody who holds a copy of the ledger.
- A Robust Developer Community
- Rising transaction costs.
- Potential for crypto inflation.
- The steep learning curve for developers.
Cardano is a peer-reviewed, open-source blockchain network that was one of the first to implement Ouroboros, an academically verified proof-of-stake consensus algorithm.
This project aims to bring forth sophisticated capabilities based on a sound scientific and research-based technique.
The architecture of Cardano is highly unusual. One handles transactions with minimal fees, whereas the other manages smart contracts and decentralized apps.
It’s worth noting that, unlike proof of work algorithms, proof of stake blockchains require far less power and are more environmentally friendly.
- Proof-of-Stake Consensus
- Environmentally friendly
- Resemblances with Ethereum
- Substance over hype
- Considerably Slow Progress
- Early days
- The ambitious scope of work
Binance Coin is among the most popular cryptocurrencies available on many exchanges, and it’s one of the tops when in terms of market cap. As such, it’s hard to believe that this coin might lose value anytime soon. With so much development happening for this company–from expanding into several branches of crypto development to pushing general adoption as much as possible–investing in BNB now seems like a good idea.