How to Buy Binance Coins (BNB)

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Binance Coin (BNB) has grown over 1000% in 2021 and is consistently in the top 5 cryptos by market capitalization. Like most other top cryptos, its value plummeted during May’s big crypto crash, although BNB has seen some recovery since then.

Experts attribute this to the growth of BNB Smart Channel blockchain network, which allows users to create digital assets and decentralized applications. BNB was born on the Ethereum blockchain and is the local currency used on Binance and Binance.US exchanges. You can use BNB to pay for trading fees and other transactions on the Binance Chain.

Despite its first market capitalization, BNB is far behind Bitcoin and Ethereum according to NextAdvisor’s investment score. As the two largest and most established cryptocurrencies, bitcoin and ethereum are considered better investments thanks to their longer track records and long-term growth in value, among other key factors. Here is how the Binance coin compares:

Piece of money NextAdvisor Investability Score
Bitcoin 80/100
Ethereum 68/100
Binance Coin 49/100
Last updated June 9, 2022. The NextAdvisor Investment Score gives crypto investors a comprehensive view of a coin’s performance. Learn more about our methodology.

BEFORE INVESTING

Cryptocurrency is a very volatile speculative investment. And altcoins like BNB amplify volatility and risk. Only invest in crypto what you are willing to lose and make sure you have other financial priorities in place first: save money in an emergency fund, contribute to savings- retirement and pay off any high-interest debt balance.

Steps to buy BNB

You can buy BNB on any crypto exchange that offers the coin. Experts recommend exchanges that have a high level of security, many users, and are simple and easy to use. Each exchange has a different funding mechanism, but typically you will need to fund your exchange account with a transfer of fiat currency, such as US dollars, in exchange for the desired amount of Binance Coins.

Find a cryptocurrency exchange

In addition to BNB’s home base, Binance.US, you can buy BNB on Crypto.com and eToro, two of the leading traditional crypto exchanges. While Binance.US offers lower fees than other exchanges, its lack of transparency on security and history of regulatory issues in the US are reasons to consider using other exchanges.

Fund your account

To fund your account on an exchange, you must designate a funding source based on the specifications of the exchange. This may include connecting a credit or debit card, or linking to your checking or savings account. You may see restrictions for minimum and maximum purchases, or other requirements and limitations based on coin and exchange.

Order

Once you have credited your account, you can place an order. Each exchange has a different checkout process, so you need to make sure you can use the method required by the exchange.

Storing Your Binance Coin

As with all tokens, you can choose to store your coins in a cold or hot wallet. A cold wallet is a physical device that keeps your cryptocurrency completely offline, while a hot wallet is a form of digital storage that you can access on your computer or phone.

Both types of wallets have their pros and cons. Cold wallets are better protected against hacking because your assets are not always linked to the internet, but you could lose access to your funds if you misplace your wallet or forget your security information. Hot storage wallets face security risks such as hacking or other common issues that can affect websites such as software glitches.

What can you do with BNB?

As BNB is the native token of the Binance exchange, you will get a 25% rebate if you pay trading fees with it. You also have other options for using BNB off-exchange, such as booking travel accommodation with workedand send payments to friends through a decentralized messaging app Inflexible messenger.

Best Wallets to Hold Binance Coins

When choosing a crypto wallet, you want to make sure it supports the coins you hold, offers strong security to protect your funds, and gives you easy access to your funds. Below are three such wallets that are ideal for BNB token holders.

Exodus

Exodus supports over 180 coins and you can transact from the wallet, so you don’t need to go to an outside exchange. You can keep all your crypto in one place while connecting to different exchanges, and you can connect directly to other users through the integrated exchange. It may be slightly advanced, but you can take advantage of the options to navigate exchanges and coins more freely.

You can select a desktop, mobile, or hardware wallet, depending on your security preferences. The hardware option is a Trezor wallet integration, i.e. a Trezor wallet with an Exodus hot wallet running on it.

Exodus in brief

  • self-guard
  • Hot and cold storage (with Trezor integration)
  • Number of coins and tokens supported: 180+
  • Costs: Free, but transaction fees may apply

Trezor Model T

The Trezor Model T is among the best cold wallet options, according to experts. You’ll see a $280 price tag, but the Model T has plenty of great features, including a large color touchscreen and add-ons like Backup Shamira security standard designed by Trezor only available for the Model T. The Shamir save allows you to create 16 recovery actions to use as backups. A recovery share is basically a way to recover your seed phrase.

The Model T is physically tough and tough, at least in appearance, and it’s user-friendly, intuitive, and easy to set up.

The Trezor T model at a glance

  • self-guard
  • Cold room
  • Number of coins and tokens supported: 1,816
  • Costs: $280

Nano X Register

If you want the security of a cold wallet but not the price of a Trezor Model T, the Ledger Nano X is a solid choice at $149.

The Nano X Register is a top choice among crypto experts. And it doesn’t need to be plugged in, thanks to Bluetooth. The Nano X supports many tokens and coins, and up to 100 apps. It is a good move if you are an active investor interested in a range of different cryptos.

The Nano X’s most notable safety feature is its Secure Element security chip, similar to what is used to secure credit cards. And the chips are even certified by the Common Criteria EAL5+ process.

Ledger Nano X at a glance

  • self-guard
  • Cold room
  • Number of coins and tokens supported: 5,500+
  • Costs: $149

Is BNB worth it?

Investing in cryptocurrency comes with a number of risks, as evidenced by the recent downturn in the crypto market. But given BNB’s strong gains over the past year and growing back moves after the crash, it could be a good addition to your portfolio.

BNB has a variety of use cases and is a “solid” piece, says Tally Greenberg, business development manager at hosting and staking platform Allnodes.

The token may be an attractive investment for many, but the Binance.US exchange has some issues, such as a history of regulatory scrutiny. Although the platform offers “plenty of opportunities for investors,” says Greenberg, such as a tax portal, staking rewards, and low fees, it does have a few issues.

“There is a real barrier to entry on the user experience side,” says Phil Haymes, vice president of product development at Exodus.io. “It assumes you know how to trade and you know what all the charts mean. You have to be pretty good at using this trick. There is a sticking point here.

We do not recommend Binance.US for beginners, due to regulatory issues and a lack of security transparency. We have reached out to Binance.US several times over the past few months for feedback on these issues, but have not received a response.

History of Binance and BNB

Binance is the largest exchange in trading volumeand it was founded by Changpeng Zhao in 2017. The platform stopped accepting US users in 2019. Binance.US was later launched in partnership with Financial Crimes Enforcement Network (FinCEN) registered BAM Trading Services to comply with US regulations.

Both Binance and Binance.US have faced legal challenges, although a Binance.US spokesperson told us in 2021 that they operate separately. Recently, the Securities and Exchange Commission (SECOND) began investigating the relationship between Binance.US and two companies owned by Binance founder Changpeng Zhao, The Wall Street Journal reported.


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