Introduction
BNB has proved an invaluable asset to the Binance ecosystem, which has morphed from a simple token exchange platform to a multi-diverse marketplace. Binance Coin is not just the native cryptocurrency inside this expanding ecosystem, but its applications have also multiplied tremendously. This guide will look at the various ways to buy BNB, but for a detailed analysis of the Binance Coin, we have prepared a comprehensive guide that tackles everything there is to know about BNB. You can check it out here.
What is Binance Coin (BNB)?
It’s vital to distinguish between the two tokens since they’re often confused. Whenever you transfer BNB into or out of the Binance Exchange, you will be prompted to select between the two versions. They are almost identical tokens, so knowing how to tell them apart is essential to avoiding costly mistakes.
BNB use cases
As the native asset of the Binance Smart Chain and the Binance Chain blockchains, BNB is the de facto value transfer tool within the Binance ecosystem. The specific uses of Binance Coin include:
Paying transaction fees on the Binance Exchange and the Binance Decentralized Exchange (DEX); Earning staking rewards through staking on the BSC blockchain; Paying for goods and services through the Binance Card feature; Accepting and making payments on the Binance Pay service; Claiming discounts for transaction fees on spot, margin & futures market trades; Earning token holders participation rights to the exclusive Binance Launchpad events; Acting as collateral for crypto loans on the Binance Lending and Loans platform; and Used to farm liquidity on the Binance Launchpool.
BNB Pros and Cons
Every asset has its benefits and drawbacks. Here are some of the reasons to invest in or avoid BNB:
Where to Buy Binance Coin (BNB)
BNB is easily accessible for anyone with a Binance or Binance.US account. Binance.US is the Us-based Binance affiliate regulated by the US Financial Crimes Enforcement Network (FinCEN). As a platform token, it only makes sense that the best place to acquire it is on its native platform, Binance, and affiliated entities. However, you can still get your hands on some Binance Coins in a few other places outside the Binance exchange. Three of the most popular exchanges that BNB is supported on are:
Gate.io; FTX.com; Trust Wallet.
Trust Wallet is a fully-owned independent subsidiary of Binance exchange. The wallet is exclusively available on mobile platforms, so only Android and iOS operating systems, whereas Gate.io and FTX.com are competitors with cordial working relations with the Binance exchange. This might explain why they list a competing platform’s native token.
How to Buy BNB on Binance (step-by-step)
Buying BNB on the official Binance trading platform is the most popular way through which most investors acquire the digital asset. Binance provides several methods to buy any cryptocurrency, including its native token. These include:
Bank transfers; Credit/debit cards; Peer-to-peer (P2P); Crypto deposits; Third-party payment channels such as Simplex, Banxa, and Paxos.
Note: In this tutorial, we will focus on the fastest and simplest way to buy BNB on Binance, which is using a credit or debit card. However, with transaction costs of between 4% and 10%, this payment method is one of the most expensive ways to buy crypto.
Step 1 – Create a Binance account.
If this is your first time using Binance, you will need to create a user account by visiting the Binance homepage and signing up. You will also have to verify your identity before proceeding with the follow-up steps (see our detailed Binance KYC guide). Account-holders can skip this step and log in to their accounts using the username, password, plus second-factor authentication credentials.
Step 2 – Navigate to the crypto purchase page.
From the Binance home page, hover over the [Buy Crypto] link on the top navigation bar, then select the [Credit/Debit Card] option from the drop-down list.
Step 3 – Provide transaction details.
Start by selecting the cryptocurrency you want to purchase in the transaction form. Click the crypto icon in the [Receive] tab to open a selection window. Scroll to find the BNB token or use the search box. Next, select the fiat currency supported by your preferred payment method. Click the fiat symbol within the [Spend] tab to open up the available options of supported national currencies. You can search or scroll down to find your preferred choice as the list is ordered alphabetically. Once you select the corresponding assets, fill in the amount you want to transact. In our example, we chose to trade USD for BNB. You can specify the amount you want to buy in either USD or BNB. Then click [Continue] to set up your payment method.
Binance’s Recurring Buy Feature
If you wish to set this feature up, start by enabling the toggle button. A selection link will display just below the button. Click on this link to open up the available setup options. Choose whichever purchase interval works for you. NOTE: Refer to our comprehensive guide to the Binance Recurring Buy feature, where we discuss what it is and how to use it in greater detail.
Step 4 – Make payment.
If this is your first time using Binance or the credit/debit purchase option, you will need to link your payment card to Binance. In the follow-up screen, click the [Add new card] button to link your card. The setup process is simple, provide the card details, then click on the [Next] button to add the payment card to your Binance account.
Step 5 – Confirm the transaction.
Your newly-linked card will be listed by default on the payment page and preselected. Click on the [Continue] button to proceed to the confirmation page. Check to make sure the purchase details are correct. The confirmation page also highlights the cost of the transaction. Click [Confirm] to execute the transaction. Binance will prompt you to provide the second-factor authentication code as a confirmation of your identity. The transaction will process immediately and the BNB tokens will be deposited into your [Fiat and Spot] wallet.
How to Buy BNB on Trust Wallet (Step by step)
Trust Wallet is a mobile crypto wallet application available for iOS and Android devices. It is the simplest way to buy BNB without creating an account with any centralized exchange. However, you will be required to sign up for a third-party service through which the credit card payment will be processed. Therefore, even though you do not have to sign up for an exchange account such as Binance, KuCoin, or FTX.com, you will still have to reveal your identity to a third party. The benefits of buying BNB through Trust Wallet are that it’s fast and more convenient. Typically, if you buy crypto from an exchange, you will need to move it to a wallet, but if you buy BNB on Trust Wallet, you do not have to send it anywhere else. Follow these simple steps to buy some Binance Coin tokens on Trust Wallet using a credit or debit card.
Step 1 – Download Trust Wallet.
Before we continue, you need to have installed Trust Wallet on your mobile device. Visit the download page and click on the appropriate link as shown here. You then have to create a new wallet or recover an already existing wallet using the backup phrase. If you create a new wallet, ensure you backup your recovery phrase by writing it down on a piece of paper and keeping the paper in a safe place.
Step 2 – Open Trust Wallet.
Open the Trust Wallet app on your mobile device and navigate to the [Tokens] tab on the main navigation at the top. There are two available options to proceed from the main screen. You can either click on the [Buy] button within the center of the page then choose an asset you want to buy. Or, you can scroll down and select the asset you want to buy by tapping it to open more information about it then click to buy on the next screen. Before we continue, it’s worth noting that Trust Wallet lists both versions of BNB here with different titles to differentiate them. The token named BNB is the BEP-2 version on the Binance Chain (BC) network while the other one named Smart Chain is the BEP-20 token on the BSC network. BNB on the Smart Chain will enable you to interact with decentralized apps (dApps) on the BSC network, while the other BNB token is the preferred native token of the Binance DEX platform. Click (tap) on either option you prefer to proceed with.
Step 3 – Buy BNB.
On this screen, there are two [Buy] buttons you can use to purchase BNB. One at the top and one towards the lower section of the screen. The second button will not be shown if you already have some BNB in your wallet. There are also other options here, such as receiving or sending BNB.
Step 4 – Make payment.
In the next screen, Trust Wallet will prompt you to input the amount of BNB tokens you wish to purchase denominated in your preferred fiat currency. Enter the amount, then tap on the [Continue] button, where you will be redirected to the partner webpage to process the payment. As mentioned earlier, you will be required to provide an email address and details on your payment card to initiate the transaction. Once you are done, confirm the transaction and authorize the purchase. The BNB tokens will be deposited into your Trust Wallet account as soon as the payment is processed, which, if you are using a credit/debit card, should be fairly quickly. You now have your Binance Coins in your wallet.
Where to store BNB
Binance Coin is a highly versatile asset and, depending on how you want to use it, will determine how you would want to store it. The two options are:
Keep the BNB on the Binance exchange; or Move it to an external wallet such as Trust Wallet.
For most cryptocurrencies, you will be better off holding the assets in an external wallet where you are guaranteed better safety. However, BNB has more utility within the Binance ecosystem, and you may find that holding your tokens in your exchange account is the best option. If you do decide that you just want to hold BNB as a store of value, you can choose between the vast amount of crypto wallets available in the market, including:
Web wallets such as MetaMask; Mobile wallets (Trust or Exodus Wallets); Desktop wallets (Exodus, or Atomic wallets); and Hardware wallets (Ledger, Trezor, or CoolWallet.)
You can get additional utility with some of the available options listed above, such as stalking with Trust Wallet or Ledger wallets. Trust Wallet probably has the most amount of features adopted from Binance exchange, making it a solid choice for holding your BNB outside the parent trading platform. Some of the features supported on Trust Wallet include:
Swapping and exchanging tokens; Investing in NFTs on Ethereum and BSC networks; Staking various assets with BNB being one of them; Participating in DeFi ecosystems; and Browsing dApps on the BSC network.
The most significant benefit of using Trust Wallet is that it is available to anyone worldwide, even in jurisdictions where Binance is restricted or banned. Plus, users get to custody their assets as opposed to trusting a centralized platform that is vulnerable to hacks.
Final thoughts
This guide was all about BNB and how to acquire this highly versatile asset. We highlighted two easy ways to buy it, which are using the Binance exchange or using a mobile wallet such as Trust Wallet. Both channels rely on credit/debit cards as the payment method. If you prefer another method such as using bank transfers, check out our other guides on the same. As a native token for the largest crypto ecosystem, BNB is an extremely sought-after asset that is worth including in a crypto investment portfolio. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Trading; Staking; Payment processing; Mining; Crypto project launches; Yield farming; and Lending and borrowing, among others.
Centralized exchanges such as Binance, Binance.US, Gate.io, and FTX.com; Decentralized exchanges (DEXes) such as PanCake Swap; and Select crypto wallets such as Trust Wallet, Atomic, and Exodus Wallet.
