Click here to get this post in PDF
The cryptocurrency market has experienced a stark revival during the 2020-2021 bull run. Bitcoin and other cryptocurrencies have more than doubled in value since the beginning of the year, driving retail and institutional investors to buy bitcoin.
And while the market seems to have calmed down a bit since the initial rally, there are some coins that present extremely strong fundamentals. Binance Coin (BNB) has exploded in popularity thanks to the release of the Binance Smart Chain that added dozens of use cases to the native cryptic of the Binance exchange.
In this article, we talk about some of these fundamentals and why BNB is a good investment in crypto. Moreover, we will give you a list of places where you can acquire BNB safely, and start adding this great coin to your portfolio.
But first, let’s have a look at the basics of the BNB coin and why you might consider investing in it.
What is BNB
Binance Coin (BNB) is the native cryptocurrency of the Binance Exchange. Initially, it was released as an Ethereum ERC-20 token. However, the coin migrated to a proprietary blockchain, the Binance Chain, and became a BEP2 token.
Released in 2017, the BNB was launched through an ICO that helped fund the operations of the Binance Exchange.
In the beginning, BNB had only a couple of use cases:
- Traders could get trading fee discounts if they paid in BNB.
- It could be used as a means of exchange on the internet.
However, over the years that followed, BNB acquired a lot more use cases, including:
- The ability to participate in IEOs on the Binance Launchpad and get an opportunity to invest in up-and-coming cryptocurrencies.
- Used in the Binance Pay ecosystem to pay for travel arrangements on Tavala.com.
- Pay for gas fees on the Binance decentralized exchange.
And finally, since the release of the Binance Smart Chain (BSC) in September 2020, the BNB coin can be used for:
- Staking to secure the BSC and gain passive income
- Liquidity mining in the BSC Decentralized Finance (DeFi) ecosystem.
- Pay for gas fees for deploying smart contracts on the BSC.
All in all, BNB is a great cryptocurrency with multiple use cases and has a lot of potential to rise in value because of its popularity and usage growth.
Where should you keep your BNB?
Before you buy any BNB tokes, you need to create a cryptocurrency wallet. Cryptocurrencies such as Bitcoin and BNB are entirely digital and don’t exist in a physical form.
Instead, they are just records of transactions on the public ledger, the blockchain. Thanks to asymmetric cryptography, the owner of the private key of the BNB coins is the only one that can access and spend them.
A crypto wallet is specialized software that serves as a user interface for you to keep your private keys safe and be able to sign for transactions.
So, before you proceed to your initial purchase of BNB, make sure you have created a wallet that supports BNB coins such as Trust Wallet or MetaMask.
Tip 1 – Buy BNB on Binance
Naturally, the first way to invest in BNB is by purchasing it on Binance directly. Just create an account on Binance and follow the identification procedure.
You will notice that when buying BNB on Binance, the platform won’t request a private crypto wallet address. This is because Binance remains the custodian of your coins until you withdraw them on a BNB wallet.
Tip 2 – Exchange crypto for BNB on a centralized exchange
Another great method of acquiring BNB is by trading it for other cryptocurrencies. Considering the quick rise and fall of the price of cryptocurrencies, it can be a great way to make profits through quick trading.
Worth noting is that trading crypto for crypto can be done on both centralized and decentralized exchanges.
Tip 3 – Exchange USDT for BNB on PancakeSwap
Speaking of decentralized exchanges, PancakeSwap is a popular way of acquiring BNB without the need to pass through a tedious KYC process. However, keep in mind that you will be limited to the choice of payment methods.
Tip 4 – Buy BNB from a crypto broker
If you prefer purchasing BNB with FIAT, the best way of doing this is through a crypto broker. While you will need to go through a KYC procedure to be able to do this, there’s a huge advantage in purchasing BNB from a broker – they’ll send you your coins directly to your private wallet. Popular choices of such brokers are CoinMama and Paybis.
Tip 5 – Buy BNB with credit card on Trust wallet
Finally, you can easily buy BNB directly through the TrustWallet app on your smartphone. This might be the most beginner-friendly method as it requires that you follow the simple instructions provided in the app.
Wrapping up
BNB is one of the best coins on the market at the moment. It provides staking and yield farming, in addition to a dozen use cases. Hopefully, the tips provided in this article will allow you to get started with BNB and start investing safely in this promising cryptocurrency.
You may also like: The Complete Beginner’s Guide to Cryptocurrency
Image source: Dreamstime.com
