How to Buy Binance coin (BNB)
Binance coin, also called BNB is a cryptocurrency that is accepted on Binance as payment trading fees. BNB was formed in 2017 when Binance held its Initial Coin Offer (ICO). At the time, Binance issued 200, 000, 000 coins.
Today, to preserve the value of the coins, Binance occasionally repurchases its cryptocurrency and burns them. Presently, more and more individuals are adopting this cryptocurrency as a new form of money. However, many popular exchanges that people know about, for instance, Coinbase do not have Binance coins, so where does one buy these Binance coins?
Where to Buy Binance Coin?
One can purchase Binance coin on Binance, either directly with a wire transfer or credit card using the ‘buy crypto’ tab on the platform or by swapping it with a different cryptocurrency on the trade tab.
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Buying Binance Coin via Credit Card or Wire Transfer
One can register on Binance either via the Binance app or the website by following the following steps.
When you tap on the register button, you have to enter your e-mail address and choose a password for your account. There is also an option of using a phone number if you don’t want to use an e-mail. To get a password, you are required to choose one with a minimum of eight characters. That includes one uppercase letter and a numeral.
Even though this step is not compulsory, it is highly recommended you enable the two-factor authentication option. You can do this either via Google 2FA or SMS 2FA.
If you’re using the website, find the Register button
If you were referred to the exchange by anyone, then you should fill in their name in the referral ID box, if not, ignore the box.
Complete the security verification by solving a puzzle then having an e-mail sent to your inbox. You have 10 minutes to check for the verification code and complete the process. Sometimes the code doesn’t come in, so you simply have to request another one by clicking ‘send code.’
You can verify your account later, before you withdraw your coins or if you intend to buy your crypto with fiat money. You can also choose to do it at the time of registering your account. It is different from verifying your e-mail address. To verify your account, send in a photo of yourself holding your government ID document. This step is called, Know Your Customer (KYC) and exists to prevent money laundering.
Buy Some Binance Coin
You could either use a credit card or deposit fiat money through a bank account. If you’re choosing to deposit fiat money through a bank account, find the wallet button on the top right corner of the site, then go to fiat and spot wallet. Click on deposit and choose your preferred currency. After this, select your payment method. Enter the amount you want to pay and hit the ‘continue’ button. Here you can find all the relevant information you need for your bank transfer. At this stage, you get a reference code for the bank transfer. Don’t forget to use the code while making the transfer.
After making the transfer, you have to wait for one to two days for the money to show up in your account. Check the status of your payment by clicking on the wallet, fiat, and spot wallet. Once you have the money in your Binance account, click on ‘buy crypto’ and go to ‘cash balance.’ Wire transfers could come with expensive bank fees, so always confirm this before starting the process.
If you are paying with a credit card, you don’t have to go through the steps above but can go straight to buying cryptocurrency using your credit card. To do that, find the ‘buy crypto’ button, then click on credit/debit card. From there, you are taken to a page where you get a list of options on cryptocurrency to buy. Type in BNB in the search button on this page and select ‘Binance Coin’.
After this, you can select the currency you want to use for payment, type in the amount you want to spend (check the BNB equivalent of whatever amount you plan to spend) and click on buy BNB. A page comes up where you have to enter your card details and confirm the purchase. This completes the purchase.
Buying Binance by Trading Other Crypto Currency for BNB
If you already have some cryptocurrency on Binance, all you have to do is log into your account. Go to your wallet, and then find your spot wallet. Look for the cryptocurrency you want to trade. Go to trade, and then choose the cryptocurrency you want to convert to BNB. Choose the amount you want to convert and set a price limit. Click on buy BNB. That completes your purchase order.
How to Store Binance Coin
Depending on how much Binance coin you plan to buy, you can store it either in hardware or software wallets. If you buy BNB in a small amount, you can either keep it on a free soft wallet or a Binance exchange account.
Software wallets, for instance, Exodus, and Coinomi, though free to use, are less secure. This is the reason one should only store small amounts of BNB coins in them.
If you intend to accumulate large amounts of BNB, it’s safer to store it on a hardware wallet. Recommended hardware wallets include the Nano X and Model T. Hardware wallets cost money but can store more than a thousand cryptocurrencies including BNB and are reputable. The Model T can connect to mobile phones.
If you are storing huge amounts of BNB in a software wallet for a long time, it’s better to transfer these over to a hardware wallet. To do this, find your BNB address. Each BNB address is a lengthy combination of numbers and letters that often begin with either a zero, X, or BNB.
Once you’ve got the address, send your BNB there. That way, you get absolute control of your coins.
How to Spend Your Binance Coins
To Pay Transaction Fees
One can use BNB to pay their transaction fees on platforms such as Binance chain, Binance DEX, and Binance.com.
To Make Payments
One could also use BNB to make payments for goods and services purchased on certain platforms. They can be used to make payments for lottery tickets, travel, gift cards, etc. You can also donate BNB to charity or send them as a gift to someone else.
Some businesses let you use your BNB as collateral to take out a loan.
To make Investments
You can use BNB coins to take part in some ICOs that you can find on Binance’s Launchpad program.
FAQs on How to Buy Binance Coins
An ICO, which means Initial Coin Offering, is a type of capital raising activity in the cryptocurrency and blockchain world. It is similar to an IPO in the stock market. Start-ups primarily use an ICO to raise capital and Binance was no different with their release of BNB. The Binance ICO was held in 2017. During the ICO, Binance distributed BNB tokens among different participants. These included the Binance founding team and angel investors. A total of 200 million BNB were distributed between the founding team, angel investors, and public sales. This was given as 40%, 10%, and 50% respectively.
People often repeat the same common mistakes when buying Binance coins. One is buying the coins before they know what the investment is all about. They commit their money based on bogus ‘get-rich-quick’ stories told over the internet. Another common mistake is buying Binance coins on the wrong platform. The most reliable platform to buy coins is on Binance.
Although 200 million BNB were initially offered in 2017, the coin in circulation today is significantly less. Originally, in their whitepaper, Binance committed itself to using 20 percent of its profits to repurchase BNB and permanently destroy them by burning them. However, this was changed to now be based on the volume of trading down in the last quarter. Binance has done about 16 of these burns with its last quarterly burn taking place in July 2021. They destroyed 1,296,728 BNB.