Binance coin (BNB) is the cryptocurrency currency of the popular trading platform Binance. On Binance, many different cryptocoins can be bought and sold. In a short period of time, the exchange grew into a very big success and by the turn of the year 2017-2018 had the largest trading volume of all exchanges.
How To Buy BNB
So you’re interested in buying BNB? Currently, there is no way to buy BNB directly with fiat, so the best way to buy BNB is to first purchase Ethereum, transfer it to your chosen trading platform and change it to BNB. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for BNB/ETH and confirm.
3. On the BNB/ETH trading section you can now choose how much BNB you want to buy with your Ether. Once you have chosen your amount, press Buy BNB and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of BNB.
What is Binance Coin?
Binance Coin is used as a means of payment to pay the costs (or trade fees) of buying or selling coins. It is common practice on all exchanges that you pay 0.2% to 0.5% of the traded coin costs, as well as on Binance. When Binance Coin is used, transaction costs are only 0.1%. Especially if you do a lot and big transactions this can be very interesting!
Binance Coin itself is of course also tradable on Binance. If you have bought too much BNB and decide to stop at Binance, it is very easy to get rid of it again. You can trade BNB against bitcoin (BTC), ether (ETH) and tether (USDT).
Binance Coins cannot be mined.
The Binance Coin is an ERC20 token and therefore uses the Ethereum blockchain. It is now possible to buy BNB tokens on Binance! Often you will leave them on Binance to use for cheap transactions. If you want to invest in Binance Coin, you can also move the BNB tokens to another Ethereum wallet as MyEtherwallet.
Before you can trade you will have to buy ETH or BTC. We recommend doing this at BTC Direct, very quickly, safely and transparently!
Binance Coin ICO
In July 2017, Binance launched an ICO to finance their exchange. A maximum of 100 million Binance Coins (BNB) could be purchased during this ICO. This also happened, as the ICO had already finished on 2 July and all the tokens had been sold.
BNB tokens could be purchased during the ICO for the next price:
- week 1:1:1 ETH = 2700 BNB
- week 2:1 ETH = 2500 BNB
- week 3:1 ETH = 2300 BNB
The amount of USD 15 million collected at the time was used for:
- 35% Building Binance platform, recruiting staff, training
- 50% for marketing and promotion
- 15% as reserve
How many Binance Coins are there?
Up to 200 million BNB tokens are spent:
- 100 million during the ICO
- 80 million for the founders
- 20 million for’ angel investors’, large and well-known investors such as Roger Ver.
However, this 200 million will not remain so much. Coins will be bought back and destroyed to increase the price of the other coins.
Destroying Binance Coins
Binance will buy back and’ burn’ BNB coins every quarter. In this way, fewer coins will be put into circulation. Binance uses 20% of the profit for this purpose. At the end of 2017, the first’ burn’ was the first and nearly 1 million BNB coins were bought back and destroyed.
In total, up to 100 million BNB coins will be destroyed, after which 100 million more will remain.
What can you do with Binance Coins (BNB)?
As explained earlier, you can use the coins for discounts when trading on Binance. But there are other applications for Binance Coin. All applications will be explained below:
- Discount on trading
- Payment tool for advanced features
- Payment method for a decentralised exchange
- Discount on trading
When BNB is used as a means of payment for trading fees, Binance offers a discount on these costs. The discount will be reduced over the years:
year 1 = 50% discount
year 2 = 25% discount
Year 3 = 12.5% discount
Year 4 = 6,75% discount
year 5 = no discount
Payment tool for advanced features
Binance is a relatively young exchange. Of course, the fact that it has already taken the top position within a year does not mean that the developers are sitting still! We are working on all kinds of innovative and advanced techniques that Binance must keep to the top. These could be trading bots, for example, computers trading for you.
These future options on Binance can be paid with the Binance Coin (BNB).
Payment method for a decentralised exchange
Binance is working on a decentralised exchange. At the moment all exchanges, including Binance, are centralised. This means that there is always a third party (e. g. Binance) between a transaction on an exchange. Some of the major advantages of decentralised exchanges are:
- Coins are no longer based on an exchange, but on own management.
- Privacy, no personal data need to be shared.
- By using nodes no risk of failure due to server problems, for example.
On the decentralised exchange, only BNB can be used to complete transactions. The Binance Coin will also become one of the most important exchangeable currencies.