binance

Binance (BNB) Guide 2024: How BNB Works, Where to Buy, and More

What Is Binance?

Binance is one of the largest cryptocurrency exchange platforms and BNB is their native cryptocurrency. Binance powers the ecosystem of dApps (Decentralized Apps), DeFi (Decentralized Finance), and Binance exchange users.

Initially, the Binance coin ran on the Ethereum blockchain with the ERC 20 standard before it became the native currency of the Binance blockchain, the Binance Chain. It was launched in 2017 with an initial coin offering (ICO). During the ICO, the price of BNB was about $0.11 per unit, but in January 2024, it cost $313. 

How Does Binance (BNB) Work?

The Binance blockchain combines Proof of Stake (PoS) with PoA to uphold the network. This technology uses fewer validators than the Bitcoin and Ethereum networks. By giving up decentralization for validation, the network is trying to weed out bad actors from becoming validators. 

In 2020, Binance launched the BNB Smart Chain with a smart contract feature. In the long run, BNB Smart Contracts have helped in reducing the overall cost. As of now, Binance if the fourth-largest crypto based on market capitalization. It is competing against more popular crypto like Ethereum, and others. 

Best Binance Coin (BNB) use cases

Binance (BNB) offers several use cases. Some of them are listed below:

  • Trading: You can trade BNB for other cryptocurrencies. 
  • Pay for BNB Transaction Fees: You can pay BNB as transaction fees in the crypto exchange platform. 
  • Credit Card Payments: You can use BNB to pay for crypto credit card bills through crypto.com.
  • Travel Booking Payments: You can pay BNB to book flights, hotels, and other plans on selected websites. 
  • Entertainment: Use BNB to pay for virtual gifts, lottery tickets, film tickets, concert tickets, etc.
  • Investment: You can BNB on multiple platforms to invest in stocks, ETFs, and other assets. 
  • Loans and Transfers: You can BNB as collateral for loans on some platforms. 

How to Invest in Binance (BNB) in 2024

There are three primary options to invest in Binance – buying, earning, or staking. Buying Binance is considerably easier than staking. You can easily invest in BNB through a cryptocurrency exchange. 

Binance is one of the top crypto trading and exchange platforms with 1.4 million transactions per second and moves $2 billion worth of crypto assets per day. It’s the native token of the Binance cryptocurrency exchange. In January 2024, it is the fourth largest cryptocurrency with a Market Capitalization of $47 billion. There are other cryptocurrency exchanges that you can choose to buy BNB. Some of them are listed below.

Where to Buy Binance (BNB)?

You can buy BNB from most major cryptocurrency exchanges, as discussed above. Here are 5 best Binance cryptocurrency exchanges:

  • Binance: Binance’s native cryptocurrency BNB is easily available on the platform. You get a user-friendly interface to interact with all the crypto coins including Binance and trade accordingly. 
  • eToro: You can trade BNB crypto at just $10 through eToro. This crypto platform offers more than 30 crypto assets to buy, sell, and stake. 
  • Kraken: Kraken offers a customizable interface with real-time market data. You can drag, drop, and arrange the ideal layout. It also offers high-level security to safeguard your Binance.  
  • Coinbase: Coinbase supports 200+ cryptocurrencies including Binance, and Ethereum, Bitcoin. It’s one of the most popular, secure, successful, and user-friendly cryptocurrency exchanges. 
  • Crypto.com: Crypto.com allows you to buy, sell, and hold Binance seamlessly. It has top-notch security, user-friendly UI, interest, and cashback rewards for holding crypto in it. It supports 250+ cryptocurrencies including Bitcoin and Ethereum.

How to Buy Binance BNB?

You can buy Binance and store them securely with 5 simple steps. Let’s discuss them. 

  1. Choose Your Perfect Binance (BNB) Crypto Exchange

Before you buy Binance (BNB), You must select the best cryptocurrency exchange for Binance. Research trading volume, transaction time and fees, user reviews, and more and select the best Binance cryptocurrency exchange. You can choose one from the ones mentioned above or you can select the one you desire. 

  1. Create an Account in the Crypto Exchange Platform

After choosing your perfect Binance crypto exchange, create an account on the platform. For that, you have to upload your personal and financial information like Banking ID, Citizenship ID, etc. 

  1. Transfer Fiat Currency into the BNB Crypto Exchange Account

After the platform validates your account, it is time for you to add fiat currency to the account. After that, you can use the currency to buy BNB.

  1. Buy Binance (BNB)

Now, as you log into your crypto exchange account, you’re ready to buy BNB. You can place the order to buy BNB. But there’s another step to secure your Binance investment. 

  1. Store Your Tether

After buying Binance BNB, you can store, access, and view them in your digital wallet. There are multiple types of crypto wallets to store your BNB:

  • Hardware Wallets: These wallets are also called cold wallets because they aren’t connected to the internet at all times. You can use one of these hardware wallets to store BNB. Some best hardware wallets are Ledger Nano X, Trezor Model T, etc. 
  • Software Wallets: They are also called hot wallets because they are connected to the internet all the time. To store your BNB, you can download the software wallets for your desktops and mobile. For example, If you want to store your USDT online way, you can download software for your desktop and mobile. For example, Binance is one of the major mobile wallets to store your BNB. 
  • Crypto Exchanges: The third option is to store your BNB in the crypto exchange itself. All the major crypto exchanges like Binance offer built-in hot wallets. 

The Bottom Line

Binance is the fifth largest cryptocurrency. Right now, it is mostly used as a token for paying trading fees. As Binance is continuously expanding and evolving, BNB will also become useful soon. With all the new features and support for dApps, DeFi, Smart Contract, and Web3 applications, it is good to speculate new and upward trajectories for BNB and now might be the best time to invest in BNB.