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Binance Coin (BNB) - All you need to know
Ways to invest in Binance Coin
The best way to get started with any cryptocurrency is by signing up with a broker or exchange platform. It’s important to note that not every coin is available on every platform, so it’s a good idea to do your research before you get started.
When you’ve signed up, there are a few ways to get your hands on some Binance Coin. The most popular are buying the coins directly, and trading CFDs to speculate on their value. Keep reading to learn more about all the options available in more detail, while the links below direct you to individual pages which explain different investing approaches.
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What is Binance Coin (BNB)?
Binance coin is the cryptocurrency that fuels the Binance exchange. Its main use is to pay listing and transaction fees on the platform, but it’s also a means of payment in its own right with an increasing number of online merchants and can be used as a go-between to buy other coins.
The Binance exchange’s popularity is such that it handles well over a million transactions every second. BNB coin holders can get a discount on its trading fees as well as access to other special features, like merchandise in the shop and the opportunity to invest in new blockchain projects which are exclusive to Binance.
The exchange was founded in 2017 and was already the largest in the world by 2018. It first released the Binance Coin in June 2017 but it was only in 2021 that the coin rose to mainstream prominence.
How does Binance coin work?
The Binance coin works by storing a history of all its movements and transactions on a publicly available blockchain. The coin was originally released on the Ethereum blockchain but has since been moved onto Binance’s own chain, so a complete history of the coin is recorded there.
The value of a blockchain is that it replaces the need for a central authority, like a bank, to monitor and approve transactions. Instead, when someone wants to spend BNB, the blockchain can simply check that everything is as it seems and allow it.
Binance originally offered 50%-off on trading fees if you paid them using its coin as an incentive for traders to own it, but that discount is going to be reduced to zero in 2022. To compensate, it’s going to ‘burn’ 20% of the supply every year to increase scarcity and maintain the token’s value.
How to invest in Binance Coin
There are a few different ways to invest, depending on your appetite for risk and time frame for seeing returns. These days, there are also lots of ways to store and spend your coins as well. Here are all the different options you have:
- Trading coins with a broker. Buying through an online broker is often the easiest way to invest in a coin. Look for a broker that offers low trading fees and an easy-to-use trading platform – and check it offers Binance Coin, as not all brokers offer every coin.
- Buying coins on an exchange. Though it’s issued by the Binance exchange, you can also trade BNB on many other crypto exchanges. Some exchanges let you buy coins directly with fiat currencies like GBP or USD, on others you might have to get Bitcoin or another leading crypto first.
- Cryptocurrency trusts. An investment trust is a closed-end investment strategy in the UK that lets you hold a variety of different assets. More financial managers are adding cryptocurrency to their portfolios, so look for one that includes BNB along with a range of other coins.
- Debit cards. You can now use cryptocurrency to make purchases online with a crypto debit or credit card. Platforms like Wirex let you hold coins in an account and then spend them as you would any other currency.
- Cryptocurrency apps. You can buy and trade Binance coin on your mobile phone with numerous different cryptocurrency apps. If investing in multiple different cryptos at the same time is a priority for you, look for an app that offers access to the widest range of coins.
- Crypto wallets. A wallet lets you store your coins in a secure manner. These keep your holdings safe behind a unique private key that only you have access to. For the highest level of security, choose an external wallet to deter would-be online hackers from stealing your coins.
Where can I buy Binance Coin now?
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Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >