BNB refers to Binance Coin, which is the token used in the Binance cryptocurrency exchange. It is issued on the Binance cryptocurrency exchange, with its trading symbol being BNB. Having initially run on the Ethereum blockchain, it is now native to the Binance Smart Chain.
Binance coin has a total of two hundred million tokens available in the network. Today, it is the most popular and the largest crypto exchange globally, backed up by a truly impressive efficiency rate of over one million transactions every second.
Binance exchange makes use of one-fifth of its overall profits to burn its Binance coin holdings four times annually, i.e. every quarter. The most recent burn took place on the 15th of April, 2021 where 1,099,888 Binance coins were burned. To put this in perspective, the dollar equivalent of these tokens is a little over half a billion dollars.
History and Overview of Binance Coin
The word Binance is derived from the two words Finance and Binary. Today, Binance is one of the leading cryptocurrency exchanges in the world, with its Binance coin the preferred utility token for the exchange. BNB Coin is used in the form of an intermediary with trades involving fiat currency and other cryptocurrencies.
The history of Binance and its respective Binance Coin can be traced back to 2017 when Chinese founder ChangPeng Zhao established Beijie Technology, the company managing and running the Binance crypto exchange. The company has its headquarters in the Hong Kong province of China.
In the creation of the exchange platform, the founder and his team of developers created the Binance Coin token, raising sufficient funds via an Initial Coin Offering (ICO). This ICO lasted for up to one month, with around fifteen million dollars raised as a result. The resulting funds were channeled into startup expenditure e.g. paying new developers, marketing, and securing the exchange platform’s servers.
A truly innovative creation, Binance Coins quickly grew in popularity thereafter. There was a 50% reward for users who purchased the token, using it as a tender for trading fees. On the exchange, Binance Coins are burnt periodically, reducing supply and automatically increasing value.
What Can You Do With Binance Coin
Binance coins are some of the most popular crypto tokens in existence today. As a cryptocurrency, it can be used for a variety of purposes:
- Binance Coin can be used to finance trading fees on the Binance Smart Chain, Binance DEX, and Binance.com
- It can be used to pay transaction fees during coin conversion, e.g. converting Bitcoin to Litecoins.
- Binance Coin can be used to make payments on Crypto.com, HTC, and Monetha. Payments can also be made for the purpose of booking travel accommodation on sites like TravelbyBit. In addition, you can access loans, e.g. via ETHLend.
- You can also buy Binance Coin and use it to make charitable donations.
How Does Binance Coin Work
It makes use of ERC20 tokens and is created on the Ethereum blockchain. Tokens cannot be mined, however, because the Initial Coin Offering ensures that all of the tokens have been distributed and pre-mined.
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.
In fact, this Smart Chain is what makes Binance Coin unique from other trading tokens across different crypto exchanges.
The network is programmable and executes smart contracts, serving as a platform for other cryptocurrencies and apps.
How to Buy Binance Coin (BNB)
First of all, you can buy BNB tokens with your credit card or debit card. To buy BNB tokens with your credit or debit card, go to the Binance site, go to Buy Crypto, and select a preferred payment method. Payment can be made using either a MasterCard or a Visa card.
Also, there are two other ways to go about this, depending on whether you own other coins, e.g. Bitcoin, or not. If you already own Bitcoin or altcoins, it is a simple matter of converting what you have to its BNB equivalent.
On the other hand, if you do not have any cryptocurrency, you will have to purchase one other than Binance Coins since the Binance exchange does not permit purchase with fiat currency.
How to Buy Binance Coin if You Have Crypto
As a crypto veteran, you will have to follow the following steps to acquire BNB tokens:
Step 1: Binance Account Creation
As the first step, you must create an account on Binance if you do not have one already. Log into the Binance website and create an account using a valid email address and a strong password.
After completing the process, you will receive an email containing a link to verify your new account. Ensure to carefully go through this email, as it will provide you with some essential but handy security tips.
Step 2: Enable 2FA (2 Factor Authentication)
This verification method is to make sure that only the owner of the account, i.e. you, can access the account at any time. This gives an added layer of protection to your account, helping to keep your account safe from the perpetual hackers and scammers that infest the virtual space.
Since Binance is a bank account of sorts, only this time the funds are encrypted, security is expected to be a big issue on the platform.
To enable 2FA, install the Binance app on your mobile device and log in with your details.
Step 3: Account Verification
This verification step will involve your providing and sending a clear photo of yourself (timestamped), along with a valid identification document. You can skip this step altogether if you won’t be withdrawing Binance Coins yet.
Step 4: Make a Purchase
Having set up your new account, you can now make your purchase. This can be done via a market order which takes into account the number of Binance Coins that you want for the current exchange rate.
You can also fix a limit order which automatically waits until the cost attains a specific limit, after which the exchange is then made.
Step 5: Coin Deposit
As it is assumed that you already have some crypto reserves, all you have to do is deposit the existing funds in your new Binance Coin Wallet by copying your wallet address.
Step 6: Swap Your Altcoins for BNBs
Having completed the deposit, you can quickly go to the Binance Trading Platform, click on the Exchange section, and then look for a good trade. Choose BNBs, since you want to convert your coins to Binance Coins. You will then make use of percentages to calculate the direct equivalent of the funds you want to change to BNBs.
How to Buy Binance Coin if You Do Not Have Crypto
If you do not have crypto at all, you will have to buy some before you can buy actual BNB because the Binance exchange does not use fiat currencies such as the dollar. Since it is your first crypto purchase, you will do well to purchase a stable one, e.g. Bitcoin and Ethereum.
To do this, however, you will have to acquire it from an exchange platform that is legal in your country. An example of a good one is Coinbase, Coinmama is also ideal. After acquiring, you can then follow the steps highlighted in the previous section in order to buy Binance Coins.
How to Buy Binance Coin From CoinStats
CoinStats is an app that you can use to research cryptocurrencies, exchange platforms, and track your crypto portfolios.
Buying BNBs from CoinStats is quite easy. The Wyre system has been integrated into the platforms, making it possible for you to purchase coins. Payments can be made via your debit card or Apple Pay. The function is only available for users based in the USA, however. In addition, you cannot make payments of more than $250 daily.
Nevertheless, there will be increased support for more countries subsequently.
Why Should You Purchase Binance Coin
Now that you know how to buy Binance Coins, there is a chance that some of the, ahem, doubting readers are still unsure whether to delve in or not. If you’re not certain, here are four reasons why BNBs are a good investment for you:
- Cost: Binance Coins have a low price compared to that of other coins. Trading on the Binance crypto exchange is also quite easy.
- Demand and Supply: In any digital exchange, what determines the value and growth of a token is its demand and supply. As its popularity increases, so does the supply decrease, thus increasing its value.
- Reputation: Most investors prefer to subscribe to trustworthy coins, as they cannot afford to lose coins and make significant losses. Binance is one of the most trusted cryptos as it is easy to operate. The withdrawal threshold of $30,000 is also very appealing.
- Exchange Versatility: Other than its obvious use as a valuable token, its parent exchange platform, Binance, allows you to make currency exchanges with many other tokens, e.g. Cardano, Bitcoin Cash, ChainLink, Litecoin, Ethereum, EOS, VeChain and Cosmos.
- Participation in ICOs: Binance Lauchpad hosts the sales of new tokens that can be purchased using Binance Coins, prior to when they are available to trade on Binance exchange.
Binance Coin is rather very promising, seeing how its success does not rely on it being an alternative cryptocurrency. As a cryptocurrency, it can be used to power applications and generate computing power for the network.