BNB plays a crucial role in the Binance ecosystem. So, what exactly does the token do? We have the answers in this guide. Stay tuned to learn everything about BNB and how to purchase the token.
Created in 2019, BNB is the native token of the largest cryptocurrency exchange, Binance. It is intended to facilitate low-cost trading on the platform. Moreover, BNB is used to collect gas fees in the Binance Smart Chain, a protocol built to facilitate the creation of decentralized applications.
Why is BNB Becoming Popular?
BNB has grown in popularity in recent months, largely due to Binance’s reputation in the industry. The crypto exchange has the highest trust score, according to data from CoinGecko. Additionally, with many developers adopting the Binance Smart Chain, BNB’s utility cases have increased.
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BNB vs. Other Digital Currencies
With a market capitalization of $44.72 billion, BNB is now the fourth largest cryptocurrency, only behind Bitcoin, Tether, and Ethereum.
Since BNB operates on a blockchain, it must be stored in a crypto wallet. There are several wallets that support the storage of BNB. They include:
Binance Wallet – With this wallet, you can easily manage and trade BNB on the Binance exchange.
Trust Wallet – Acquired by Binance a few years ago, Trust Wallet is among the leading multi-chain mobile wallets. It allows you to store your BNB tokens securely.
SafePal – This wallet offers both cold and hot storage of BNB. SafePal software wallets are free to download and use, whereas hardware wallets can be bought for $190.
MetaMask – Although MetaMask is popular for storing ERC-20 tokens, it lets users store BNB as well.
Ledger – If you want to store BNB tokens offline, you can opt for Ledger.
BNB is a proof-of-stake token. That means you can stake it to earn yield. By staking BNB, you are essentially delegating the token to a validator that validates transactions on the Binance Smart Chain.
Where Can You Purchase BNB?
As mentioned earlier, BNB is one of the most popular cryptocurrencies. As such, several well-known exchanges list the token. They include:
Of course, you should expect BNB to be listed on Binance, considering it is the exchange’s native token. The process of buying BNB on this platform is seamless due to the high liquidity.
The simple user interface on the YouHodler platform makes it easy for beginners to buy BNB. Moreover, after purchasing the token, they can deposit it into Youhodler’s liquidity pools to receive interest of up to 5%.
The exchange’s support for peer-to-peer trading allows you to quickly buy BNB directly from another user.
If you are in Dubai, Bybit is the ideal exchange for buying BNB. It boasts high liquidity and adopts tight security measures to protect user funds.
How to Purchase BNB
The methods of purchasing BNB vary from one exchange to another. Here is how you can buy the token on Binance:
Step 1: Set up a Binance Account
To get started with Binance, you need to create an account. You can do this on the exchange’s web app or mobile app. Firstly, you will be required to enter your phone number, email, and password. After verifying the email and phone number, Binance will give you access to your new account.
However, to buy BNB, you must complete the KYC checks. Here, you will need to provide a photo of your ID card and a selfie.
Step 2: Select BNB and Add Payment Method
Once you verify your identity, go to “wallets” and click “Buy.” Select BNB as the token you wish to purchase, and then enter your debit/credit card details. After doing so, enter the amount you want to spend on BNB and initiate the transaction. Your BNB will arrive in your Binance wallet within seconds.
Step 3: Store Your BNB
If you do not intend to trade your BNB anytime soon, you can transfer the token to a non-custodial wallet to have total control.
And that’s how easy it is to buy BNB.