The Role of BNB in Binance Chain and Binance Smart Chain
Binance Chain is a decentralized blockchain network primarily designed for token issuance and trading. It provides a high-performance platform for creating and transferring digital assets. Binance Coin (BNB) initially existed on Binance Chain and played a crucial role as the native cryptocurrency within that ecosystem. BNB was used for paying transaction fees, participating in token sales, and powering other functionalities on the Binance blockchain.
Binance Smart Chain (BSC), on the other hand, is an extension of the Binance Chain blockchain network that focuses on decentralized finance (DeFi) capabilities. BSC supports the creation and execution of smart contracts, enabling the development of decentralized applications (DApps) and decentralized exchanges (DEXs). BSC is also compatible with the Ethereum Virtual Machine (EVM), making it easier for developers to port Ethereum-based projects onto the Binance ecosystem. In Binance Smart Chain, BNB serves as both the native digital currency and the utility token. It is necessary to pay transaction charges, access token offerings, and as a governance token for voting on the platform.
Who Created BNB?
BNB (Binance Coin) was created by Binance, one of the largest cryptocurrency exchanges in the world. The founder and CEO of Binance, Changpeng Zhao (often referred to as "CZ"), played a crucial role in its creation. BNB was first introduced in July 2017 as an ERC-20 token on the Ethereum blockchain. It was primarily intended for using within the Binance exchange ecosystem. However, Binance later developed its own blockchain technology called Binance Chain, and BNB migrated to become the native token of this blockchain.
How Is Binance Coin's Market Price Determined?
Binance Coin (BNB Token) is one of the largest crypto assets in the industry in terms of a market capitalization and trading volume, firmly sitting among the top 25 cryptocurrencies in the world. Its current market cap exceeds $ 37B in USD. This significant market capitalization reflects the popularity and adoption of BNB among cryptocurrency investors and traders. BNB's trading volume is also consistently high, indicating a strong demand and active trading activity for this digital asset.
Factors that affect the price of BNB coin:
Market Demand. The demand for BNB coin affects its price. High demand increases the price, while low demand decreases it.
Supply and Circulation. The total supply and circulation of BNB coins impact the price. Limited supply with high demand increases the price, while abundant supply with low demand decreases it.
Market Sentiment. Investor and market sentiment towards cryptocurrencies can influence the price of BNB coin. Positive sentiment raises prices, while negative sentiment leads to price declines.
Regulatory Environment. Regulations and government policies on cryptocurrencies affect the price of BNB coin. Favorable regulations stir prices up, while strict regulations or bans decrease them.
Technology and Development. Technological advancements and developments related to BNB coin can influence its price. Upgrades and partnerships attract investors and increase demand.
Market Competition. Strong competitors in the market can affect the price of BNB coin. Competition from alternative cryptocurrencies can impact demand and value.
Economic Factors. Broader economic factors like inflation, stability, and geopolitical events indirectly impact the price of BNB coin. Economic uncertainties or crises may increase demand for cryptocurrencies as a safe haven.
News and Events. News stories, announcements, media scandals, and other events related to BNB coin create volatility in its price. Positive coverage increases demand and prices, while negative news has the opposite effect.
These factors, both individually and collectively, contribute to the dynamic nature of the BNB price.
Why Buy Binance Coin (BNB)?
Main reasons to buy Binance Coin (BNB):
Revolutionizing the NFT market and metaverses. Binance NFT marketplace provides a platform for artists and game developers, and BNB Smart Chain allows developers to build projects in the metaverse.
Multiple use cases. BNB can be used to reduce trading fees and earn interest, and it fuels the Binance Smart Chain, which runs smart contracts and enables decentralized applications (dApps).
Token burn mechanism. Binance burns 20% of its profits by buying back and destroying BNB tokens, creating a supply-demand gap and boosting its value. Token burn also rewards holders and provides additional benefits.
Low trading fee. Paying with BNB can reduce trading fees by 50%, offering cost savings for users.
Binance leads in trading volumes. BNB's additional utility on the Binance exchange, including discounted trading fees and staking opportunities, sets it apart from competitors.
Best Ways to Buy BNB Safely
Changelly is the ultimate destination for hassle-free cryptocurrency purchases using traditional fiat currencies, such as USD and EUR. Our user-friendly exchange platform is designed to work seamlessly on both mobile and desktop devices, ensuring secure, affordable, and efficient transactions. As one of the top exchanges in the crypto market, we offer a huge selection of digital assets. With us, you can buy stablecoins, Binance Coin, Bitcoin, USD Coin, and over 500 other crypto coins and tokens.
Experience the most competitive exchange rates by leveraging our partnerships with leading cryptocurrency trading providers. In case you don't have a cryptocurrency wallet yet, there's no need to worry. Through our collaborations with trusted wallet providers like Ledger Live, Exodus, and Trust Wallet, you can purchase Binance Coin while also obtaining a secure storage solution for your assets in a single session.
How to Buy BNB with a Credit or Debit Card
Lots of crypto exchanges support BNB trading and are willing to take debit or credit card payments. Here steps to take to purchase BNB crypto with credit/debit bank cards:
Create an account with a reputable cryptocurrency exchange, such as Changelly, provide the necessary personal details, and complete the Know Your Customer procedure, if so is required by the platform used.
Once you verify your identity, go to the "Buy Crypto" page and select BNB (Binance Coin) as your desired digital asset. Choose "Credit/Debit Card" as your preferred payment method.
Specify the amount of Binance coins to purchase and input your card details. The online calculator will then display the total amount of BNB you will receive based on the USD price or other fiat currency used.
Before approving the transaction, thoroughly review the payment details, including a transaction fee that may incur.
Once your payment is settled, you will see BNB tokens appear in your account on the same platform. If you are purchasing through a non-custodial cryptocurrency exchange like Changelly, the bought Binance coins will be credited to the provided crypto wallet address.
How to Buy Binance Coin (BNB) with a Bank Transfer
If you're looking to purchase Binance Coin (BNB) with a bank transfer, the process is quite similar to using credit or debit cards. You may need to undergo an identity verification procedure to ensure security and comply with regulatory requirements. Once verified, you will need to provide your bank account details to initiate the bank transfer.
One advantage of buying crypto with wire transfers is that it allows for larger purchase amounts compared to using bank cards. Bank transfers are commonly used for more substantial transactions, making it suitable for investors who want to invest substantial amounts of money in Binance coin. Some people prefer wire transfers because of lower fees compared to card transactions.
However, there are a few disadvantages to consider as well. The process of purchasing crypto with a bank transfer usually takes longer compared to other payment methods. It may take a few business days for the transfer to settle and for the BNB coins to reflect in your account.
Moreover, the process may be more complicated for beginners, as it potentially involves more work to obtain details like bank account numbers, routing numbers, and other necessary information for initiating the transfer. Lastly, wire transfers may not be available in all countries or for all cryptocurrency exchanges, limiting the options for purchasing Binance coin.
How to Buy BNB with Apple Pay or Google Pay
Apple Pay and Google Pay are both widely-used online payment options that offer secure and instant transactions, including buying cryptocurrency like Binance Coin.
Both platforms utilize Near Field Communication (NFC) technology, so users can conduct card-less payments using their smartphones or smart watches. These payment services offer enhanced security through tokenization, where sensitive financial data is substituted with unique tokens, excluding the risk of fraud.
To incorporate Apple Pay or Google Pay for purchasing the native token of Binance Chain, you basically need to download the mobile app of your favorite crypto exchange, like Changelly, create a new account (or log into an existing one), and launch a BNB purchase.
The exchange app will recognize the pre-installed Apple or Google Pay wallet and suggest using it as a payment option to complete the investment. As easy as that!
How to Buy BNB with PayPal
PayPal allows users to deal with major cryptocurrencies. The financial network enables you to buy Bitcoin Cash, Bitcoin, Ethereum, and Litecoin, and it also provides for selling, trading, and storing digital assets. However, PayPal does not offer support for other cryptocurrencies, such as Binance Coin BNB. Additionally, their cryptocurrency trading services are currently available to the USA residents only.
Nevertheless, individuals who wish to utilize their PayPal funds for investing in BNB still have alternative avenues available to them. These alternatives can include peer-to-peer marketplaces, crypto trading platforms, broker firms, or centralized exchanges where PayPal may be enabled as a funding source.
How to Buy BNB from an ATM
You can buy and sell BNB through crypto ATMs, thanks to Binance’s partnership with Genesis Block and its crypto ATM chain called CoinHere.
CoinFlip has also joined the Binance Chain ecosystem and offers Binance Coin (BNB) on its network of nearly 500 CoinFlip Bitcoin ATMs in different states in America.
To buy BNB from an ATM, follow these simple steps:
Locate a BNB-friendly ATM near you using online directories or crypto ATM apps.
Visit the ATM and ensure it supports BNB purchases.
Insert cash into the ATM. Follow any on-screen instructions for the specific machine.
Provide your BNB wallet address. If you don't have one, set up a BNB wallet beforehand.
Confirm the transaction details, including the amount of BNB tokens you wish to purchase and any associated fees.
Initiate the purchase and wait for the transaction to process.
Once completed, check your BNB wallet for the purchased coins.
Keep the transaction receipt for your records, if available.
How to Buy Binance Coin (BNB) with Cash
There are several ways to buy Binance coin (BNB) with cash nowadays. Here are a few of them:
Peer-to-Peer (P2P) trading Platforms
P2P platforms connect buyers and sellers directly, allowing you to find individuals who are willing to sell Binance Coins for cash. An example includes Paxful.
Bitcoin ATMs
Some Bitcoin automated teller machines also support BNB trades. You can deposit cash or use a debit card to get BNB. Check the specific machine for instructions and availability.
Over-the-Counter (OTC) Trading
OTC trading involves direct transactions between buyers and sellers, typically facilitated by a broker. OTC desks and services enable you to purchase BNB with cash, often for larger amounts. Changelly offers OTC BNB trading, too.
Cryptocurrency Exchanges
Many exchanges allow fiat-to-crypto transactions for BNB, allowing you to deposit funds via different payment methods.
Crypto Voucher
Companies like CryptoVoucher io let you browse local distributors in your neighborhood, so you can buy BNB Voucher with cash in your favorite, local store.
How to Buy BNB Coin with a Prepaid Card
A prepaid debit card offers similar functionality to a regular debit card, but it is not connected to your bank account, providing greater privacy protection. It can be loaded with funds for online shopping or contactless payments at physical stores. When buying BNB with a prepaid card, you can utilize a P2P platform that connects buyers and sellers for asset deals. Certain cryptocurrency exchanges may also facilitate investing in Binance Coin using a prepaid card.
What Can You Buy with Binance Coins (BNB)?
Binance, originally created in 2017 as a utility token for discounted trading fees, has evolved into a versatile asset with a wide range of applications. In addition to covering transaction fees on Binance Exchange, Binance DEX, and Binance Chain, BNB coins can also be utilized in various ways. For instance, they can be used for payments at platforms like Crypto com, Monetha, and HTC, or for booking travel accommodations through sites, such as TravelbyBit, Trip io, and Travala.
BNB coins can also be employed for entertainment purposes, such as purchasing virtual gifts, card packs, or lotteries. Furthermore, they serve as a means of payment for online services like BitTorrent, Canva, and Storm, as well as for financial activities, such as taking out a loan on ETHLend or making investments through Moeda.
Lastly, BNB coins can be used via Binance Pay as a means of payment. Users can link their Binance Pay to their Binance platform account, and then use BNB coins to make purchases or send money to other Binance Pay users. Binance Pay aims to provide a seamless, secure, and decentralized payment method within the Binance ecosystem.
Where to Store BNB (Binance Coin)?
There are several options for storing Binance Coin (BNB), a popular cryptocurrency. One common solution is a hardware wallet, which offers strong security for your BNB by keeping private keys offline. Ledger Nano S and Trezor are popular hardware wallets that support BNB.
Another option is a software wallet, which can be accessed through a desktop or mobile application. Trust Wallet, Metamask Wallet, and Coinomi are well-known software wallets compatible with BNB.
Web wallets are also available, accessible through a browser, with Binance Chain Wallet being a widely used option for BNB storage.
How to Cash Out BNB?
To trade Binance Coin (BNB) back for cash, you can use the same avenues used for buying cryptocurrencies. Most commonly, you can sell BNB on cryptocurrency exchanges where the asset is listed. These exchanges allow you to trade BNB for major fiat currencies like USD, EUR, or other cryptocurrencies.
Crypto ATM terminals from certain operators also provide for trading Binance coin for local fiat money. You can sell crypto by scanning the QR code of your digital wallet.
Additionally, some companies offer crypto-based debit cards, allowing you to connect your BNB wallet with a special Visa or Mastercard bank card and use digital assets as easily as traditional money, including withdrawing cash from a regular ATM and paying at online/offline retailers.
Another alternative is using gift cards that allow you to trade BNB for cash or other goods and services. These options provide flexibility for converting your BNB holdings into cash.
