How To Buy Binance Coin (2024)

Binance is one of the top cryptocurrency exchanges in the world, facilitating 1.4 million transactions per second. Binance Coin (BNB) is the exchange’s native token, the fourth-largest crypto by market capitalization.

Despite recent price fluctuations, some investors believe Binance Coin has plenty of growth potential. If you want to invest in Binance Coin, here’s what you need to know.

What Is a Binance Coin (BNB)?

Binance has launched a decentralized crypto exchange, a peer-to-peer crypto trading platform and two parallel blockchains: Binance Smart Chain (BSC) and Binance Chain. According to Binance, the cryptocurrency exchange is the largest in the world based on trading volume.

Binance Coin is the cryptocurrency coin that powers the Binance ecosystem. BNB was launched in 2017—initially on the Ethereum blockchain—with an initial coin offering, or ICO, of 100 million tokens at 15 cents per token.

A unique feature of Binance Coin is coin burning. Every quarter, Binance uses 20% of its profits to buy back and burn Binance Coins, removing them from circulation and permanently destroying them.

Binance will continue this process every quarter until it destroys 100 million Binance Coins—approximately 50% of the supply. This strategy is designed to make the supply of BNB more exclusive and valuable.

Binance Coin holders can use the tokens to receive discounts on Binance crypto exchange transaction fees. They can also trade for other cryptocurrencies, such as Bitcoin, Dogecoin, or Litecoin.

Where Can I Buy Binance Coin?

Cryptocurrency exchanges that allow users to buy and sell BNB with either fiat currency or other cryptocurrencies include:

• CoinDCX
• ZebPay
• Mudrex
• WazirX

Some investors look for trading pairs, where a cryptocurrency token like Binance Coin is paired with a stablecoin like Tether. Exchanges that pair Binance Coin and Tether include:

• ZebPay
• CoinDCX

How To Buy Binance Coin

If you decide to invest in Binance Coin, follow these steps to get started:

1. Select a Crypto Exchange

To buy cryptocurrency, you first need an account with a cryptocurrency exchange—a platform that facilitates crypto trades.

Not all crypto exchanges offer BNB trading, so do some homework to find one that does. There are many exchanges, from ones designed for beginners with basic trading features to more advanced ones for seasoned investors looking for more complex options like margin trading or futures.

Note: Choose a cryptocurrency exchange platform that is FIU-registered.

2. Buy BNB

You can fund your account with a debit card or electronic bank transfer when you’ve found an exchange.

Once your account is funded, enter the exchange’s trading platform. Enter Binance Coin’s ticker symbol—BNB—and the amount you want to invest, such as INR 500. Most exchanges allow you to choose between market and limit orders at the time of the transaction.

Although some exchanges allow you to use credit cards, we caution against this funding method. Credit card issuers view cryptocurrency trades as cash advances, so you’ll incur higher fees and annual percentage rates (APRs). Borrowing money to invest is risky, mainly when trading cryptocurrency, and you could end up in debt.

3. Store Your BNB

Whether buying BNB or other cryptocurrency tokens, you are responsible for safely securing your investment. There are multiple storage options:

• Hardware Wallets. The safest storage method is usually tiny physical devices called hardware wallets. Because they can be disconnected from the Internet or any other computer network, they’re considered a form of offline “cold storage.”
• Paper Wallets. Like hardware wallets, paper wallets are a highly secure option. With this approach, your private keys are written on paper or printed on a downloadable QR code. However, ensure you have a safe place to store that paper—and remember where it is! Otherwise, you will lose access to your cryptocurrencies.
• Software Wallets. Software wallets are more convenient than hardware or paper wallets. They’re downloadable software or apps that store your cryptocurrencies on your devices. They’re “hot wallets” because they’re connected to the internet. Although less secure than hardware or paper wallets, they let you trade or sell your tokens more easily.
• Crypto Exchanges. With some cryptocurrency exchanges, the exchange will store your tokens on your behalf. Using a crypto exchange for storage is convenient and makes it easy to exchange your tokens. However, there is a risk of security breaches, so it’s better as a short-term solution.

Read more about: Where Do You Store Your Cryptocurrency

How Much Is Binance Coin Worth?

As of July 31, 2024, BNB is trading at $585 with a market capitalization of $85.38 billion, and its 24-hour volume is 1.45%. It’s all-time high was two months ago at $720.67, up by around 140.26% from the past year. The circulating supply is around 145 million.

According to CoinDCX, Binance Coin’s forecast indicates bullish sentiment and that it can fall into the $750 – $800 range this year.

What Can You Purchase With BNB?

Binance Coin has many uses. Beyond paying transaction fees on the Binance exchange, you can use BNB to do the following:

• Trade for other cryptocurrencies.
• Invest in stocks or exchange-traded funds (ETFs).
• Purchase merchandise or services.
• Some retailers and online merchants accept BNB as a payment method.

Although BNB is popular, think carefully before investing in a token or cryptocurrency. Cryptocurrencies can be volatile, with steep price increases and decreases. Set an investing budget for yourself and only risk money you don’t need for essential expenses.