When you are a cryptocurrency enthusiast then you also must have heard of this BNB coin which is strongly related to the Binance trading platform. BNB coin can be described as an altcoin which is a form of cryptocurrency. Bitcoin, the first cryptocurrency ever created, is currently ranked at no. 1 at Coinmarktetcap with a total value of 211 Billion USD. Although most altcoins have been in decline all over 2019, BNB coin can be considered as an exception in a very positive way. As a matter of fact, the coin is up more than 500% valued in USD year-to-day(2019). Interesting opportunity to buy BNB coin? Could be! But first, below the actual BNB coin price visualized in a price widget.
BNB Price & What is BNB Coin
So what is this mysterious BNB coin all about? BNB coin can be best described as a native token which only exists on the Binance Exchange. As a result of being a native token, this BNB coin has multiple functions within the cryptocurrency exchange. The number of use cases is growing rapidly but the most important are:
- Fueling transactions on the chain
- Paying for transaction fees
- Buying IEO tokens with it
- BNB Staking in wallet
- Pay by credit card
- Pay travel expenses
BNB Price & Burning mechanism
Back in 2017, Binance initially created 200 Million BNB tokens. Their plan is to burn a total of 50% of the initial supply which is exactly 100 Million. This burning will be done once a quarter and depends on the amount of trading volume. It’s important to know that these burning events are recorded on the Blockchain.
One of the main drivers behind the rising BNB price is the continuous demand which is caused by investors who wants to buy an IEO token on the Binance platform. In order to buy a newly created token on the platform, investors have to own BNB tokens and use this token to invest. This is a very smart move of Binance and creates a win-win situation. As a result of this, the demand for BNB keeps on a certain level which will result in a rising price. Also, the entrepreneurs and issuers of the new token are backed by steady investment capital.
What is an IEO & How does it work
An IEO is administered by a Binance on behalf of the startup that seeks to raise funds with its newly issued tokens. As the token sale is conducted on the exchange’s platform, token issuers have to pay a listing fee along with a percentage of the tokens sold during the IEO.
In return, the tokens of the crypto startups are sold on the exchange’s platforms, and their coins are listed after the IEO is over. As the cryptocurrency exchange takes a percentage of the tokens sold by the startup, the exchange is incentivized to help with the token issuer’s marketing operations.
IEO participants have to create an account on the exchange’s platform where the IEO is conducted. The contributors then fund their exchange wallets with coins and use those funds to buy the fundraising company’s tokens.
How to buy BNB Coin on Binance
Buying BNB coin on Binance is quite easy, but before you can do this you have to sign up and perform some steps for setting up your account the right way.
1.Buy BNB coin: Register and sign up
First you have to go to the Binance website and perform a sign up process here. Like any other registration an email address and password is needed. After signing up a confirmation email will be sent to you.
Solve the very easy puzzle, this to verify you are not a bot.
The confirmation email which has been sent to you contains a link to confirm your account. Click this link to continue the sign-up process.
And after clicking submit button in your email :
Log in to your Binance account.
After loggin in for the first time, Binance comes with a warning screen which you have to read carefully. This Safety risk notice screen comes up with 5 questions which you have to answer before continuing.
Click continue button.
2. Buy BNB coin: Continue setting up your Binance account
After logging in you will be taken to your start-up screen within the Binance trading portal. It’s highly recommend that you enable 2-Factor Authentication (2FA) on any exchange you use to trade cryptocurrency to improve your account security. Specifically, I recommend using the Google Authenticator app, as SMS 2FA has a variety of security vulnerabilities. Google Authenticator is free to use from both the Google Play Store and Apple IOS Store.
Initially your account withdrawal limits will be set to a 2 BTC equivalent every 24 hours, but you can raise these limits by completing “Submit verification documents”.
Personal or Business depends on what you are interested in. The next screens needs your personal information like passport, driver license or identity paper and submitting a selfie. These are all optional and only needed if you want to trade with large amounts of BTC( > 100 BTC pro day).
3. Buy BNB coin on Binance
After installing and setting up your personal account it’s time to buy BNB coin or any other cryptocurrency at this trading platform. To do so, there are currently two ways of doing this and it depends whether you already own some cryptocurrency or not. If not, don’t panic, because Binance also makes it possible to buy Bitcoin with credit card. For buying BNB coin you have to buy Bitcoin or Ethereum first and purchase BNB with it later on. I will show you later how to do this on Binance exchange.
3.1 Buy BNB coin: Use a credit card
To buy Bitcoin with credit card you have to choose “Funds” on the left and then click “Buy with creditcard”.
After this screen you have to give the details about your creditcard company and you’re ready to go.
3.2 Buy BNB coin: Deposit cryptocurrency to Binance
There’s a large number(more than 140 coins) of cryptocurrencies available to deposit onto Binance, although trading pairs are denominated in BTC, ETH, USDT, XRP, USDC, USD, PAX, TUSD and USDS.
Whatever crypto coin you choose, click deposit then send funds to the given address.
It takes some time for the blockchain to handle the transaction, but you can check this in a separate screen on Binance:
After the transaction has been confirmed by the blockchain network, the amount of Bitcoin will be added to your available balance as shown below:
4. Buy BNB coin with Bitcoin
Once your deposit has been completed, it’s time to trade your deposited cryptocurrency for Litecoin. Click the “Exchange” button in the menu and choose “Advanced”. Now you see the window which shows the current chart and price of several cryptocurrencies.
For buying BNB coin with Bitcoin you have to search in the menu for the BNB symbol. In the menu chose “BTC” and give the BNB(this is the symbol for BNB).
Place a buy BNB order using either a limit or market order. Binance charges a .1% fee for trades. To keep it simple, I purchased 1.5 BNB using a market order. If you’re placing a market order, you can choose the percentage of your Bitcoin balance you wish to use to buy BNB.
A market order will purchase the maximum amount of BNB available for the Bitcoin amount you’ve chosen to spend. It will purchase the cheapest available BNB until it has filled this amount.
After the market order has been completed and you will receive the amount of BNB in your BNB crypto wallet on the exchange. This wallet will automatically be generated for you by the Binance exchange.
BNB coin is one of the altcoins which gained a lot of market share in 2019, but still has a lot of potentials to grow in the future. One of the reasons is that it also uses smart contract tokens which are used by Ethereum(ERC 20). As a result of this, BNB coin can be seen as the main Ethereum competitor. Currently, the Binance Launchpad platform is very popular by beginning start-ups and Blockchain projects and keeps the demand for BNB on the rise.
Disclosure: This post contains affiliate links. This means I may make a small commission if you make a purchase. This doesn’t cost you any more but it does help me to continue publishing cool and actual content about Bitcoin & Crypto – Thank you for your support!
Latest posts by Jelmer Steenhuis (see all)
- Best Cryptocurrency Business Opportunities for 2019 and Beyond - July 18, 2019
- Decentralized Finance & Blockchain: A Very Powerful Combination - July 15, 2019
- The Cannabis Industry: A Perfect Example Of Working Blockchain Technology - July 10, 2019