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Binance Coin is a cryptocurrency issued by one of the world’s largest exchanges, Binance. The currency runs on the Ethereum blockchain with ERC-20 standard and has a strict limit set at 200 million tokens. Binance Coin is considered to be a significant contender within the cryptocurrency realm, as it is not as volatile as other digital currencies, and is therefore seen as a safer investment by some analysts.
You can invest in Binance Coin on Binance or on the following CFD trading platform:
The main purpose of Binance Coin is to support Binance’s broader operations. Apart from being used to pay for trading fees, users can opt for this coin to cover listing fees, exchange fees and any other fees levied by the organization. Using Binance Coin to pay for fees automatically discounts them, with the discount rate originally set to halve every year until being eliminated completely in the fifth year. Although this was the plan set out in the Binance Coin whitepaper, Binance decided to extend the current discount rate for a further year.
Unlike the majority of other cryptocurrencies, the locations where you can buy Binance Coin are extremely limited, since the coin is only directly available from the Binance exchange. In order to buy Binance Coin you need to follow these steps:
Binance Coin’s three-digit ticker code is BNB, and while the currency was only released in 2017, it is already in the top 10 list of most popular cryptocurrencies according to CoinMarketCap. BNB has a total market cap of over $2.8 billion, ranking it as the 8th largest digital currency. To date, the currency’s highest sale price was recorded to be $39.57.
There are several ways to buy Binance Coin online and in person and choosing between these depends primarily on the way you intend to pay for the coin.
Buying cryptocurrencies using a credit or debit card has long been a popular option since this payment method is fast, efficient and easy to use. Until recently, it was practically impossible to buy Binance Coin using credit or debit cards, but this all changed ever since Binance started accepting this method of payment.
You can deposit and withdraw funds using fiat currency through Binance’s partnership with Simplex. This method provides you with an instant way to fund your account and buy Binance Coin immediately. Furthermore, Binance does not charge any additional fees when using a credit or debit card to buy Binance Coin.
Using PayPal to buy and sell cryptocurrencies has always been difficult since the eWallet provider is known for charging high fees to platforms which support it. One notable exception is eToro, which allows you to buy Binance Coin using PayPal instantly, at no additional cost.
Bank transfers are commonly used to deposit fiat currencies into trading accounts on exchange platforms. Although they are sometimes slow and inefficient, bank transfers conveniently include currency conversion options and do not cost anything for platforms to accept them. Nevertheless, Binance does not accept this method, so this limits the ways you could buy Binance Coin with a bank transfer.
eToro provides a potential solution to this problem. The trading platform specialises in offering a variety of crypto assets and crypto CFDs, together with several other financial instruments. Over the years, it has built a reputation for offering technologically-advanced trading solutions, which include its signature social trading platform. You can buy Binance Coin on eToro using a bank transfer, together with a variety of alternative payment methods.
With no Binance Coin ATMs available, it can be difficult to buy this cryptocurrency anonymously. Using the Binance exchange, users can open an account without submitting any documentation, which is as close as you can currently get to remain anonymous. With an unverified account, Binance allows you to withdraw up to 2BTC or equivalent every 24 hours, a significant limit to the otherwise 100BTC you could withdraw with a verified account.
As a centralised cryptocurrency which is administered by Binance, there are limited options to buy Binance Coin on the open market. When buying many cryptocurrencies, you would normally have several different platforms to choose from, with some offering you lower prices and others providing a range of add-on features. In this respect, Binance Coin is different and only available from one central exchange.
Naturally, Binance is the primary cryptocurrency exchange platform where you can expect to buy Binance Coin from. The platform has built a reputation for offering a secure and reliable service which caters to both novice and experienced traders. Together with several buy options, Binance provides you with detailed historical data and charting analysis tools, so you can make the most out of buying and selling Binance Coin.
Although it is difficult to find, you might be able to locate independent Binance Coin brokers, who are ready to trade you the coin in exchange for fiat currency or another cryptocurrency. Finding such brokers is difficult, particularly since the coin is not as popular as Bitcoin or Litecoin. If you decide to use this method to buy Binance Coin you need to be wary of potential scams. If an offer looks too good to be true, it probably is.
Buying Binance Coin with cash is probably the most challenging, since not only do you need to find a seller willing to accept this payment method, but you need to locate him or her in your geographical area. Since Binance Coin is not so commonly traded as other cryptocurrencies, managing to find such a seller in an online forum or P2P platform is unlikely. If, however, you succeed, you can negotiate the sale of the coins with payment in cash.
Buying Binance Coin using cash can be risky since scam artists often pose as legitimate sellers in order to dupe their victims. If you agree to use cash to settle a transaction, ensure that your Binance Coins are deposited in your wallet while you are still with the seller.
While one way to get hold of Binance Coin is to buy it using fiat currency, Binance allows you to trade one cryptocurrency for another. The exchange gained its reputation as offering one of the most comprehensive range of cryptocurrencies, and today counts over 450 different ones. You can, therefore, trade Binance Coin using Bitcoin, Ethereum, Litecoin, and a host of other altcoins.
Trading Binance Coin with other cryptocurrencies on Binance is easy and fast. Payments in cryptocurrency are normally very efficient and Binance charges some of the lowest fees in the industry. When making a purchase or sale of BNB, you can set an order to execute the trade once the coin has reached a certain value, thus increasing the potential of trading the coin at a favourable price.
Trading and owning Binance Coin can be banned or restricted depending on your country of residence. To this day, cryptocurrencies remain illegal or tightly controlled in several jurisdictions around the world. As a result, before opening an account with a platform you need to understand your local laws and requirements.
Binance, for example, is a cryptocurrency exchange which does not currently support US-based users. Nevertheless, Binance US is being developed and should start accepting US-based users in the near future, however, an exact date has yet to be set by the company. As a result, if you reside in the US the only way to invest in Binance Coin is through eToro.
Yet, it is good to point out that eToro too, has certain restrictions to US users. CFD trading is banned in the country, and as a result, eToro cannot extend its Binance Coin CFD options to anyone who resides in the United States. On the other hand, residents from most other countries in the world can open full accounts with both Binance and eToro.
Binance Coin CFDs are a financial instrument which allows you to generate a return from the cryptocurrency, without needing to own the asset. CFDs are best suited to day traders, since overnight fees make longer-term trades unprofitable. By investing in CFDs you can normally use leverage to magnify the size of your investment well-beyond your capital. Depending on the type of trade you open, Binance Coin CFD trading can generate a return both when the coin’s value increases as well as when it decreases.
Trading Binance Coin CFDs involves significant risks, particularly due to trading on margin. In the same way that a successful trade can increase your return, an unsuccessful trade can result in the loss of most or all your investment. You should only trade CFDs if you are aware of all the risks involved and can afford such potential losses.
When buying Binance Coin you need to think of where to store the digital currency until you need to use it. Binance offers an in-built wallet and is generally considered to be an extremely safe platform. Nevertheless, the exchange was sensationally hacked in 2019. While all users were compensated for their losses, the attack proved how vulnerable hot wallets can be.
The best way to store Binance Coin securely is to use a hardware wallet. Sometimes referred to as a cold storage device, hardware wallets are physical devices which you can carry around with you and which are not continually connected to an online network. As a result, they cannot be remotely hacked and offer the best security features for your cryptocurrencies.
Several hardware wallets exist, but not all allow you to store Binance Coin. Your best options are Trezor or Ledger since they accept this cryptocurrency, are affordable and are extremely easy to use and connect. With these cold storage wallets, your Binance Coin is only a few clicks away from being transferred to an address of your choice, but is, nevertheless, securely stored and immovable without the proper authorisation.
If securely storing your Binance Coin is not something you wish to concern yourself with, then investing in Binance Coin CFDs might be a better, more suitable option for you. It is good to understand that when investing in CFDs you are not purchasing the underlying asset, so you avoid any related issues, such as logistics or safety. Your transaction details are automatically stored on the CFD trading platform, and you needn’t worry about anything.