BNB, previously known as Binance Coin, powers the BNB Chain ecosystem and is one of the world’s most popular utility tokens. Learn more about how to buy BNB, where to store it and how it can be used.
Introduction to BNB Chain (BNB)
BNB, previously known as Binance Coin, is the native cryptocurrency of the Binance platform, one of the world’s largest cryptocurrency exchanges. Launched in 2017, BNB powers the BNB Chain ecosystem and has multiple uses, including for trading fee discounts.
Since its initial coin offering (ICO), BNB has become a widely traded cryptocurrency and investment option. It was originally launched as an ERC-20 token on the Ethereum (ETH) blockchain.
You can find out more about BNB Chain and its native token with our “What is BNB Chain (BNB)?” article.
Use BNB to pay for goods and services, settle transaction fees on Binance Smart Chain, participate in exclusive token sales and more.
Binance
Where to buy BNB
BNB is available for purchase on a range of different cryptocurrency exchanges and trading platforms, such as eToro. Despite the many different versions and names associated with BNB and BNB Chain, most cryptocurrency exchanges have continued to support the token.
Centralised exchanges (CEXs) and decentralised exchanges (DEXs) are two options for buying BNB. The former will allow investors to buy BNB and other cryptoassets using fiat currencies. CEXs often provide access to Customer Support and will usually allow you to store BNB tokens on the platform itself.
On the other hand, DEXs are decentralised alternatives — they allow investors to buy, sell or swap a range of cryptocurrencies, including BNB, between users directly. Decentralised exchanges are usually slightly less beginner-friendly than centralised exchanges, and it is rarely possible to swap fiat currency for BNB.
How to keep and store BNB
Like any cryptocurrency, BNB is only useful if properly stored and protected. Several exchanges and platforms offer integrated storage, allowing you to quickly buy, sell or trade BNB without transferring it from an outside source.
Cryptocurrency wallets, meanwhile, allow investors to store and manage their BNB tokens externally. There are various types of crypto wallets, such as hardware and software wallets. Hardware wallets are offline cryptocurrency storage solutions, while software wallets are more accessible, online cryptocurrency wallets.
For BNB specifically, there are a number of storage options:
- Binance Chain Wallet: Binance Chain Wallet is a browser extension wallet developed by Binance. It allows users to manage BNB and other BNB Chain tokens directly on their browser.
- Trust Wallet: Trust Wallet is a multi-currency wallet that supports BNB and other cryptocurrencies. It is a mobile wallet available for iOS and Android devices.
- Trezor: Trezor is a reputable hardware wallet that supports BNB and other cryptocurrencies. It offers high-level security to keep your coins safe.
Learn more about BNB Chain (BNB)
Before investing in BNB, it is important to understand its history, utility and functionality as part of the BNB Chain ecosystem. BNB can be used to pay transaction fees on the network, and BNB Chain is host to a range of decentralised finance (DeFi) protocols and decentralised applications (dApps). BNB’s unique token burn mechanism helps to differentiate the cryptocurrency from its competitors.
As Binance attracts more users and increases the number of cryptocurrencies it lists, the demand for BNB appreciates.
Tip: Some cryptocurrencies, including BNB, undergo periodic coin burns, permanently removing tokens from circulation.
To learn more about BNB, consider exploring these additional resources:
| eToro Academy | Online | Easy-to-digest educational materials on BNB, its history, function and how to trade it. The eToro Academy also covers a range of other cryptocurrency and blockchain-related topics. |
| Whitepaper.io | Whitepaper | A deep dive into the thought processes behind creating BNB and the problems it aims to solve. This resource is best suited to more experienced cryptocurrency investors. |
| Whiteboard Crypto | YouTube | A popular YouTube channel that explains in layman’s terms how various cryptocurrencies, including BNB, work. |
How to buy BNB on eToro
eToro is a popular trading platform that allows users to buy and sell various cryptocurrencies such as BNB, BTC and ETH. With over 30,000,000 users worldwide, eToro is a good option for investing in BNB and other cryptoassets.
Follow these steps to learn how to buy BNB on eToro:
- Sign Up
Register on the eToro website or app and complete the verification process. - Deposit Funds
Once your account is set up, deposit the funds you intend to use for buying BNB. Check which payment methods are accepted in your country before trying to make a deposit. - Search for BNB
Use the search bar at the top of the platform to find BNB. Alternatively, access BNB through the cryptocurrency market page. - Buy BNB
Click on “Trade,” enter the amount you wish to invest, and then click “Open Trade.” If you want to buy BNB at a set price in the future, click “Order” and decide at which price you would like to purchase the cryptocurrency.
It is advisable to thoroughly understand the platform’s Terms and Conditions before you start to buy BNB on eToro.
Final thoughts on investing in BNB Chain (BNB)
Investing in BNB, like any cryptocurrency, requires a comprehensive understanding of the digital assets market, blockchain technology and particular dynamics related to that coin or token.
While it’s typically recognised in the context of the Binance platform, BNB has unique aspects that could make it a valuable investment, independent of the exchange. Investors also demonstrate interest in BNB’s tokenomics, especially the burn mechanism, which makes it deflationary in nature.
However, it is important to remember the risks attached to cryptocurrency investments, which are traditionally very volatile.
Learn more about BNB Chain and other cryptoassets on the eToro Academy.
FAQ
- Should you buy BNB?
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The decision of whether or not to buy BNB depends on your individual circumstances and risk tolerance. BNB has experienced significant growth since its launch and has broad utility within the cryptocurrency market, but, like all cryptocurrencies, it can be highly volatile and will require considerable risk management.
- What is a coin burn?
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A coin burn is a process by which a certain number of cryptocurrency tokens are intentionally removed from circulation, thus reducing the total supply. This is typically done by sending some tokens to an unspendable “burn” address, making the removal permanent. This process is often used as a deflationary tool to create scarcity. BNB is known for utilising a token burn mechanism.
- Does BNB have a hard token cap?
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Yes, BNB has a hard token cap or maximum supply limit. The original total supply of BNB was 200 million tokens, although the BNB burn will eventually reduce the total BNB supply to 100 million tokens.
This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.