Caleb & Brown

October 30, 2022  ·  5 min

How to Buy Binance Coin (BNB) in a Few Easy Steps

How to Buy Binance Coin (BNB) in a Few Easy Steps

Key Points

  • Binance Coin (BNB) was founded in 2017 by tech entrepreneur Changpen Zhao (AKA CZ).
  • BNB is the native utility token of the Binance exchange, the largest cryptocurrency exchange in the world. Owning BNB allows holders to access a range of services such as decentralised apps (DApps), NFTs, and more available through Binance.
  • Caleb & Brown offers a simple, highly secure process for obtaining BNB and 100s of other cryptocurrencies. Learn how you can do it below.

Since its inception in 2017, Binance has become one of the largest companies in the blockchain industry. Aside from being the largest crypto exchange, it has launched an entire ecosystem of crypto-related functionalities.

The one thing keeping it all running smoothly? Binance Coin (BNB).

The native token to one of the largest exchanges in the world, BNB powers a growing ecosystem of DApps, decentralised finance (DeFi), and Binance exchange users. In this guide, we’ll show you the secure and simple way to buy BNB, one of the largest crypto assets by market cap.

What is Binance Coin (BNB)?

BNB was initially offered to the public as an ERC-20 token on Ethereum in July 2017. The funds raised during this initial coin offering (ICO) were used to fund future development of the Binance exchange. The coin was priced at about $0.11 per unit during this period, now valued at $272 at the time of this writing.

In 2019, Binance decide to move BNB off the ERC-20 standard and onto its own blockchain, the BNB Chain. Here, BNB became the utility token that it is today. It plays an integral role across the BNB Chain’s parallel blockchain ecosystem: the BNB Beacon Chain and BNB Smart Chain.

The BNB Beacon Chain handles governance across the network. Here, participants can vote on proposed changes to the network, and stake BNB to earn rewards.

On the BNB Smart Chain, participants use BNB to create and execute smart contracts on the blockchain.

Outside of this, BNB has other useful functions on the BNB Chain. These include:

  • Trading fee discounts when you pay in BNB on Binance’s exchange
  • Access to exclusive token sales
  • Access to the BNB Chain ecosystem of DeFi gaming, DApps, and more

BNB uses an auto-burn mechanism to continuously reduce its total supply to 100,000,000 BNB. This mechanism helps the network manage ongoing supply and demand pressures.

BNB’s newly abbreviated meaning is Build’N’Build; a motto that reflects the network’s gradual move towards a collaborative, participatory, open-source project.

Recommended Reading: 10 Most Popular Types of Crypto & Their Use Cases

What BNB Brings to the Table

There are some key features that distinguish BNB as an asset. These include:

Low Fees: Because of the unique PoSA consensus mechanism, the BNB Chain processes more transactions with less validator participation and computational energy. As a result, fees are quite low when compared to other smart contract blockchains like Ethereum.

The Binance Ecosystem: If you already use the Binance exchange, having BNB on hand is comparable to having airline reward points. You can use BNB to reduce fees on every trade, for payment on various supported platforms, and to gain access to exclusive NFT drops.

Unique Burning Mechanism: BNB’s auto-burn feature works to ensure that the coin can deal with the ongoing pressures of supply and demand. Auto-burning will continue until 100 million BNB remain in the market.

Staking: The network also allows owners of the BNB token to participate in staking pools. When staking, token owners store and hold crypto (at least 10,000 BNB) on the network in exchange for a chance to become an active participant (validator) on the BNB Chain. Validators who successfully confirm a block earn rewards in the form of BNB. This process can also be delegated through a stake pool operator.

Programmability: Although in its early stages, the use of smart contracts means that the BNB Smart Chain is highly programmable. Any app or protocol built on the network can interact with one another. If the network’s community continues to grow, we may see innovative use cases arise from this programmability.

Tokenisation: Any item that can be registered in a digital format can be tokenised on the BNB Chain. While tokenisation is commonly used in the NFT space, it has real-world applications in real estate, art, and even gold. Think of it as a digital certificate of ownership for an asset.

Ultimately, it’s up to the individual investor to determine if Binance is the right investment for them.

Recommended Reading: The Big Four: Smart Contract Platforms

How to Buy BNB in 4 Easy Steps

You don’t have to join Binance to buy BNB.

Caleb & Brown provides a simple alternative to complex crypto exchanges.

We deliver a personalised crypto investing service, with a dedicated member of our broker team always on hand to guide you through your crypto investments. From account setup to storage, we support you at every step, so you can focus on getting the best out of your investments. With our brokers by your side, you can confidently buy, sell, swap, and safely store BNB and other digital assets for peace of mind investing.

Here’s how you can buy BNB in 4 easy steps.

1. Open an Account

Register as a client for free in just 5 minutes. You can register as an individual, corporation, business, trust, self-managed super fund, self-directed IRA or 401(k).

2. Verify Your Account

Verify your account by submitting the required Know Your Customer (KYC) documentation. This usually includes a photo ID, proof of address, and other documentation depending on the type of entity you register as. For more information, see our Onboarding Your Account FAQs.

3. Deposit Cash or Crypto

Once your account is verified, deposit your funds into the account provided by Caleb & Brown. A test transaction will be done first and, if successful, you can then transfer the entire amount.

4. Buy BNB

Once the funds hit your account, you’re ready to place an order. Simply send your order form via email to your personal broker. Your broker will execute your trade as requested, avoiding slippage where possible.

Alternative Ways to Buy Binance Coin (BNB)

You can also buy BNB through the Binance exchange, another centralised exchange (CEX), or a decentralised exchange (DEX). Each option brings with it a unique set of hurdles to jump through.

If using fiat currency on a CEX there will often be additional KYC steps and fees applied to have your fiat converted to crypto. Check with the exchange you are using before proceeding.

Additionally, some popular exchanges do not list BNB at all. This means that any incoming BNB transactions to wallets on these exchanges may not be credited, and could result in a loss of funds entirely.

Alternatively, if you find a DEX that lists BNB, it’s not as simple as making a purchase with your deposited fiat currency. You may need to find a BNB trading pair; a crypto asset that can be traded for BNB on the exchange. If you don’t have one of these assets, you’ll need to swap your fiat or crypto for a coin that readily pairs with BNB. Keep in mind that you will be charged a transaction fee for each swap you complete.

Lastly, when using DEXs keep in mind that they come with their own set of risks. DEXs offer no custodial services, are prone to hacking, and are generally less secure than CEXs and brokerages.

FAQs

How Much BNB Should I Buy?

How much BNB you buy depends largely on your investment goals. Investors also weigh a variety of factors before choosing a project to invest in. Ultimately, it’s up to you to determine how much you decide to invest, and what strategies you use to invest in crypto. Doing your own independent research will go a long way in helping you create and set investment goals.

How is the BNB Chain Different From Ethereum?

The fundamental difference between the BNB Chain and Ethereum lies in their consensus mechanisms. Ethereum uses Proof of Stake. The BNB Chain uses a hybrid Proof of Stake Authority (PoSA) to validate network transactions.

Through implementing a PoSA consensus model, some may argue that the BNB Chain is not as decentralised as Ethereum. Simply put, both blockchains have taken different approaches to address scalability over time.

Outside of this, Binance the company is a for-profit entity, whereas Ethereum is a non-profit open-source project.

Where is the Safest Place to Buy BNB?

With digital asset scams on the rise, now is more important than ever to engage services that prioritise user security above all else. If you’re looking for a secure, custodial service to safeguard your assets, look no further than Caleb & Brown. We have a battle-tested security infrastructure, through the leading asset security platform Fireblocks.

Make Your First BNB Investment

Buying BNB through a broker is a simple and easy process.

Caleb & Brown is the world's leading cryptocurrency brokerage for those looking to invest in BNB or other digital assets.

Our personalised broker service makes crypto investing simple. A dedicated member of our broker team is always on hand to guide you along the way, giving you the confidence you need to navigate the world of crypto. Not to mention key features such as:

  • No joining or signup costs
  • Industry-leading storage solutions
  • 24/7 customer support

If you are ready to take the next step and invest in BNB, contact your crypto broker today.

Not yet a client? Sign up for your free consultation.

Recommended reading: What is a Layer 1 Blockchain?

Disclaimer: This assessment does not consider your personal circumstances, and should not be construed as financial, legal or investment advice. These thoughts are ours only and should only be taken as educational by the reader. Under no circumstances do we make recommendation or assurance towards the views expressed in the blog-post. The Company disclaims all duties and liabilities, including liability for negligence, for any loss or damage which is suffered or incurred by any person acting on any information provided.

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