BNB, also called Binance Coin, began as a token on the Ethereum blockchain but later became the center point of the BNB blockchain. What started as a 15-cent token in 2017 is now an asset valued at over $500 at press time, powering one of the world’s leading blockchains. In this guide, we’ll explain how to buy BNB. Not sure where to buy? We’ll also discuss where to buy BNB, reviewing some of the best exchanges and trading platforms.
BNB powers two chains, collectively called the BNB chain. One of these, the BSC chain, is now the third-largest blockchain by total value locked (TVL), a measurement of smart contract usage on blockchains. Let’s explore how BNB works, how to buy BNB, and how to store your BNB securely.
What is BNB?
BNB is the native token of the BNB blockchain, which is a combination of the BNB Beacon Chain and the BNB Smart Chain (BSC). The latter of these chains represents the smart-contract capable platform that can execute computer programs on the blockchain. The token’s name has taken the meaning of “Build and Build,” referencing BNB’s utility in blockchain applications.
The BNB token was created by Binance as an ERC-20 token on the Ethereum blockchain in 2017 and saw its initial use as a token with which to pay trading fees on the Binance exchange. By 2019, BNB powered the Binance Chain (now the BNB Beacon Chain), and by 2020, it had found broader use with the BSC network.
Much like Ether (ETH) on the Ethereum blockchain, BNB acts as fuel to power the blockchain. The token is a cryptocurrency used to pay for network transactions, including sending BNB to other wallets or using smart contracts on the BSC network. Additionally, Binance still accepts BNB for trading fees, offering a 25% discount when paid with BNB.
BNB’s rise in the crypto market has been nothing short of spectacular, reaching more than $600 in 2021 and again in 2024, and the BSC chain remains a popular choice for decentralized finance (DeFi) applications. To use the BSC chain or earn Binance’s BNB-based discount, you’ll need to buy some BNB tokens. Let’s walk through the simple process.
How to Buy BNB in 5 Easy Steps
Buying BNB follows a similar process on most platforms that offer the token. First, open an account and verify your identity. Then, deposit funds, set up your order, and make your purchase. Once your account is set up, you can buy and sell cryptocurrencies quickly. Getting started, however, can take a bit longer due to identity verification requirements.
1) Select a Crypto Exchange
For this walkthrough on how to buy BNB, we’ll use eToro because the platform is easy to use and offers additional newbie-friendly features. These include copy trading (following the moves of successful traders) and a $100,000 demo account to practice trading. eToro also offers easy-to-understand trading fees. You’ll pay 1% in trading fees on crypto trades.
As a caveat, eToro does not support BNB withdrawals to an external wallet, making the platform best suited to price-based trading of BNB. You’ll need to swap it with another cryptocurrency to withdraw your crypto assets to an external wallet. Also, BNB is not available in all regions through eToro. For example, US traders can’t buy on BNB on eToro, which is also true of several other leading exchanges. Later in the guide, we’ll review some other platforms and factors to consider when choosing a crypto exchange or trading platform.
To get started with eToro, visit eToro and tap on the “Start Investing” button.
2) Verify Your Identity
Complete the basic information, including email, username, and password. Take a moment to review the user agreement.
eToro will also ask for your name, address, and phone number. The last step centers on KYC (Know Your Customer) regulations. eToro needs to verify your identity, which requires an approved ID, such as a driver’s license or passport, as well as proof of address, such as a utility bill.
Follow the prompts. eToro will notify you when KYC is complete. Other platforms work similarly; verification can take 5 minutes to 48 hours.
3) Deposit Funds
eToro supports deposits in USD, as well as debit cards and PayPal…
Read More: How to Buy Binance Coin (BNB) in 2024