CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
What is the Difference Between Buying and Trading Binance Coin?
There are some differences between trading and buying Binance Coin depending on your investment strategy:
Duration: The primary difference between trading and investing in the Binance Coin (BNB) is the duration. Are you investing for the short-term or long-term? As an enthusiast, you want to choose the one that suits your lifestyle and complies with your risk appetite. With short-term investment, which lasts for a few days or weeks is ideal if you want to make profits immediately, based on price speculation. Otherwise, consider a long-term investment that could last for many years. In this case, you are betting on the long-term potential of BNB. For example, if you had bought the Binance Coin when it was less than $40, you could hold it for some years until it hits $1,000, for example.
Risk Management: The cryptocurrency market is susceptible to fluctuations. The prices of crypto assets could spike and hit the bottom in a matter of minutes. Therefore, consider a strategy based on your risk tolerance. You could decide to use Stop Loss (S.L.) if you are just trading or simply leave the position open if you are holding for many months.
Trading Frequency: The market is open 24/7, if you are a keen and active trader, you should be available throughout your day. If you are participating frequently, trading is the best. Or if you’re not as available, you can buy your coin and leave them there.
Type of Analysis: Another difference between trading and investing in the Binance Coin is the type of analysis you would use. Fundamental Analysis (F.A.) is best if you are investing or buying the coin. Otherwise, use Technical Analysis (T.A.) to get a hang of the coin’s direction before funding your trade.
How to Buy Binance Coin Online?
Here are the concise steps to take when you want to invest or trade the Binance Coin (BNB):
Step 1: Sign Up on a Crypto Exchange or Get a Compatible Wallet. The Binance Coin is the native crypto token that powers Binance, one of the leading cryptocurrency exchanges. Thus, you can get it by using any of the Binance products, such as the Binance cryptocurrency exchange or the Trust Wallet – a dedicated cryptocurrency wallet launched by Binance.
Step 2: Locate Your BNB Address. If you are using the Binance cryptocurrency exchange, choose the BNB from the list and copy your BNB address. Otherwise, find the same address on Trust Wallet if that is what you are using.
Step 3: Choose a Payment Method. There are many options when it comes to buying the Binance Coin. You can use Peer-to-Peer (P2P), Credit/Debit Card, and Bank Transfers. You will only need to send the BNB address to the merchant if you are using P2P. You can also send the P2P address if you are just using your Trust Wallet. This is because there is no exchange to buy the coin directly from the wallet. You can also buy the Binance Coin (BNB) directly if you are using the Binance cryptocurrency exchange. All you have to do is to choose a trading pair for BNB. It could be BNB/BUSD or any other pair.
Step 4: Pay for the BNB. Now, enter the amount of BNB you want to buy on the exchange. The minimum amount you can buy is $10. You can also send the equivalent of that to the merchant – if you are using P2P.
Step 5: Confirm Your Purchase. The BNB you paid for will reflect in your wallet after a few minutes. Navigate to the portfolio section and see if the value of the coin you bought has been credited to your wallet address.
How to Trade Binance Coin?
Remember that the value of the Binance Coin (BNB) will fluctuate depending on the market condition, the latest news in the crypto market, and the overall sentiment of the buyers.
These are steps to trade your Binance Coin (BNB):
Step 1: Find an Exchange or Broker. You have the option of choosing between a broker and a cryptocurrency exchange. Be sure to get used to the platform you choose.
Step 3: Deposit Money. You can now choose a preferred payment option. The exchange uses BNB as its native token and payment options include debit card, credit card, bank transfer, and Peer-to-Peer (P2P).
Step 2: Acquire BNB. Pay for the number of Binance Coins (BNBs) you want to purchase.
Step 3: Trade BNB. The process involves trading a stablecoin you might have bought for BNB. For example, you can trade the USDT you paid for at the initial time for BNB. However, it is also possible that you got credited with the Binance Coin (BNB), especially when you used either a debit/credit card or P2P. In this case, you can trade your BNB for any other coin.
Step 4: Take Profits or HODL. There are two ways to make money from Binance Coin (BNB). The first is by trading the coin and selling it when its value/price increases. The other is to leave your BNB position open for many months or years until its profits accumulate.
What Are the Different Ways To Pay for Binance Coin?
You can buy the Binance Coin (BNB) through different methods. This also depends on the cryptocurrency exchange or broker you are using.
Thus, you won’t run out of options when it comes to how to buy Binance Coin. These are some of the popular payment options you can use, especially on Binance – the exchange that uses BNB as its native token:
Credit/Debit Card: You can use either a credit or a debit card on Binance to buy the Binance Coin (BNB). Through this method, you will get the equivalent of the amount you paid after the conversions have been made. The supported credit and debit cards are VISA and MasterCard.
Cash Balance: You can also use the cash you have on your Binance account to buy BNB. This is ideal if you already made some deposits in the past and you have a few amounts of your local currency left in your wallet. In this case, the remaining cash balance will be converted to BNB.
Third-Party Payment: Binance also supports third-party payments, whereby you can use any of the third parties to pay for the Binance Coin (BNB). This can attract additional charges, especially when your local currency needs to be converted to BNB.
P2P: This is one of the best ways to pay for the Binance Coin. Here, Binance allows you to transact directly with the other traders or merchants who have a lot of Binance Coins to sell. You are to make a bank transfer of the equivalent of the BNB you want to buy to the merchant’s bank account. The merchant will then credit you with the number of BNBs you paid for.
What To Consider When Buying Binance Coin?
The Binance Coin has come a long way since its launch in 2017 when it was on the Ethereum blockchain. It has since moved to the Binance Chain, the native blockchain of Binance.
Today, the Binance Coin doubles as the native cryptocurrency of Binance’s blockchain, as well as the utility token used for reducing or discounting transaction fees.
These are some of the things to consider before investing in BNB:
Utility of the Token: Binance Coin is more than just a utility token. It is both the native cryptocurrency that fuels Binance Chain, the native blockchain of the Binance cryptocurrency exchange. It is also the crypto token used in most transactions on the Binance cryptocurrency exchange as a means of reducing transaction costs.
Supply: Binance Coin doesn’t have an infinite supply. Instead, its supply is pegged at only a few million. The occasional buying and burning of the coin by Binance indicate that the value of the coin will be on an upwards trajectory.
Study the Historical Data: Check the historical price of the Binance Coin. The coin has done over 10x (10,000%) in profit from its initial/issuing price. With the fundamentals backing it, the value/price might go up a bit further.
Community Participation: Crypto assets are now much more than a means to make money. These assets also have underlying features to unite investors. Binance Coin has an active and loyal community that is bullish about the coin. Aside from the loyalists, the BNB community is also made up of Research and Development (R&D) analysts, developers, and stakeholders.
Is it Safe to Buy Binance Coin Online?
Most cryptocurrency transactions are done online via either a cryptocurrency exchange or a brokerage.
To bolster your safety when buying Binance Coin, here are some steps to take:
Consider storing your BNB in a dedicated digital/crypto wallet – preferably a Trust Wallet.
Ensure that you submit the important documents required for your Know Your Customer (KYC) verification on the cryptocurrency exchange or brokerage you are using to buy BNB.
Enable the Two-Factor Authentication (2FA) to provide an additional layer of security for your trading account.
Change your passwords on either the cryptocurrency exchange or wallet after a while.
How to Store Binance Coin (BNB)
The best way to protect your BNB against theft is to store or keep it in a cryptocurrency wallet. As mentioned earlier, a Trust Wallet is best. You can also check the reviews of the other wallets to see the one that works best for you.
There are different types of cryptocurrency wallets. These are Hardware Wallets and Soft Wallets.
The Hardware Wallets are cryptocurrency wallets that allow you to store your BNB and any other cryptocurrency on an offline device. This way, your crypto assets won’t be overly exposed to potential hacks on exchanges. The advanced security features also make this type of crypto wallet ideal.
Otherwise, you can choose to use traditional Soft Wallets, which are online cryptocurrency wallets. You can find these wallets on the cryptocurrency exchange you are using. They can also be independent, such as Trust Wallet, the Bitcoin Wallet, and Coinomi Wallet.
How to Sell Binance Coin
There are many ways to sell BNB. It depends on the one you find more convenient and hassle-free.
First, you can sell the coin via a P2P platform, such as the one on the Binance cryptocurrency exchange or the one offered by Paxful.
You can also trade/swap your BNB for another coin on a cryptocurrency exchange. Since you are selling, it is best to trade it against a stablecoin, such as the Tether USD (USDT). This ensures that the value of your sold asset doesn’t fluctuate.
The other option is to sell your Binance Coin for cash. This means that you can sell it to someone who will pay you the equivalent in cash.
The other uncommon option is to use a Bitcoin/cryptocurrency ATM. This type of ATM is not widely available.
Is it Worth Buying Binance Coin Right Now?
Binance Coin (BNB) has had a good run. From an under $50 coin to become one of the coins on the Top 10 list based on market capitalization.
The cryptocurrency market is very volatile. So, ensure you are buying BNB with the amount you are willing to lose should the market go sideways. Also, find an ideal entry so you don’t end up buying the coin when the value/price is on the All-Time High (ATH).
Binance Coin (BNB) has significant potential. A good understanding of the potential risks, and future projection is key to successful trading. Peer-to-Peer (P2P) option could possibly be the best way to buy the Binance Coin as you’re able to leverage the option to start investing in BNB.
Can I Buy Binance Coin in any Country?
You can only buy BNB from a cryptocurrency exchange or brokerage that has been permitted to offer cryptocurrency services in your country.
Is There a Limit to How Many Binance Coin I Can Buy?
There is no limit to the number of BNBs you can buy. You can buy as many as you can afford.
Can I Buy a Binance Coin without an ID?
It depends on the exchange or brokerage. Most of these platforms require you to verify your profile/account before buying BNB.
Can I Buy Binance Coin Instantly?
Yes, you can instantly buy Binance Coin (BNB) if you have sufficient funds in your cryptocurrency wallet.
What is Binance Coin?
Binance Coin (BNB) is the native cryptocurrency that powers the Binance Chain, the blockchain of the Binance cryptocurrency exchange.