Binance Coin (BNB): what is BNB and how do you buy it?

In this extensive guide, we will discuss what Binance Coin is. How can you buy BNB, and what are the advantages of this special cryptocurrency?

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What is Binance Coin (BNB)?

Binance Coin is the official crypto of Binance and has been around since 2017. BNB runs on the Binance Chain and possesses several unique features. For example, with BNB, you receive discounts on transaction fees, and you can use the cryptocurrency to participate in new crypto launches.

How can you buy BNB on Binance?

Before you can buy BNB, you must first open an account on Binance. Click here to open an account for free & get a 20% permanent friend discount on all your transactions. It is important to secure your account. In this article, we discuss how to protect your account.

After opening an account, you will need to add fiat or another crypto to your account to purchase Binance Coin. You can do this by navigating to your Wallet and by then pressing on Deposit. Do you need help with this? In this article, we will discuss in more detail how to add funds to your Binance account.

After you add funds to your account, you can exchange them via Trade and then Convert. Select which crypto or fiat currency you want to convert in the first box and select BNB in the second box. Then press Preview Conversion to double-check your purchase and execute it when you are satisfied.

Buy BNB Binance

At Binance, you can buy BNB via both a market order and a limit order. With a market order, you buy the cryptocurrency directly at the available price. With a limit order, you can set a price at which you buy Binance Coin. In the first case, the purchase price may be higher, while in the second case, you run the risk of your order not being executed.

What can you use BNB for?

The price of BNB has increased enormously since its launch. This is not surprising, when you consider that Binance is the largest crypto exchange in the world. In this part of the article, we will discuss what you can use BNB for.

Discount on transaction fees

You can use BNB to pay transaction fees on the platform. When you turn this option on, you will pay even less transaction fees on your trading activities. Binance plans to phase out this discount every year until it disappears completely.

Discount BNB

Volume discount

At Binance, so-called VIPs pay lower transaction costs. In order to be classified as a VIP, you need to hold a certain number of BNB and trade a certain volume. This volume discount is only available to people who trade cryptos in large volumes.

Commission on referrals

If you hold enough BNB within the platform, you get a higher commission on users you refer. You can invite friends to your account and receive a share of the transaction fees. Read more about the referral programme here.

Higher cashback

You can also apply for a Visa Credit Card on Binance. If you hold more BNB, you will receive a higher cashback. This cashback can be as high as 8%, but you will need to hold a very large amount of Binance Coin to reach the highest level.

Participate in Binance IEO

You can also use BNB to participate in IEO or Initial Exchange Offerings. This works via the Binance Launchpad: Binance regularly launches new crypto coins on it.

Cryptocurrencies launched via the Binance Launchpad have often shown a sharp rise in price in the past. As a result, the popularity of participating in this type of programme is high. Binance therefore holds a lottery to determine who is entitled to participate in IEOs. You receive more tickets for the lottery when you hold a larger number of BNB.

What are the main advantages of BNB?

Binance is the largest crypto exchange in the world, which means the demand for BNB is enormous. At the same time, half of the supply is ‘burned’, which reduces the supply. If the popularity of Binance continues, the price of BNB may increase further.

At the time of writing, BNB is in the top 10 of cryptocurrencies with the highest market capitalization. Thanks to Binance’s good network, you can also use BNB at various partner companies for shopping.

What are the main disadvantages of BNB?

The future of the Binance Coin is strongly linked to the future of Binance. If something goes wrong with Binance, BNB’s price could suddenly plummet.

It is also important to monitor whether BNB remains popular when the discount on trading costs is slowly phased out. After all, this makes holding BNB less attractive, which can put pressure on its price.

Do not forget that BNB is completely controlled by Binance, which means that as a user, you have no influence over the future of the cryptocurrency. This clashes with the decentralized philosophy often attached to cryptocurrencies.

Tip: also keep an eye on the competition. Competing exchanges have their own cryptos, for example, CRO of crypto.com.

Some more tips for Binance Coins

Always research whether Binance Coins are a good investment for you. Remember that cryptocurrencies are extremely risky investments: you can easily lose part or even all of your deposit.

Due to the enormous volatility of BNB, it may be wise to buy the crypto in stages. If you buy all your BNB at one moment, there is a chance that the price will collapse just afterwards, causing you to lose a considerable amount of money. It is also important to spread your investments over different securities. Click here to read more Binance tips.