A Step-by-Step Guide On Buying Binance Coin (BNB) In 2022
Intrigued by the popularity of cryptocurrencies and want to know how to buy Binance Coin yourself? You’ve landed on the right page.
Binance Coin is a top-5 cryptocurrency by market capitalization. The best part is that your average Joe can jump on the bandwagon, with little more than an internet connection, a good broker, and a debit/credit card or e-wallet.
In this guide, we are going to walk you through the process of how to buy Binance Coin. We cover potential commissions and fees, investment plans, and how to select a suitable brokerage to buy this digital currency online.
How To Buy Binance Coin (BNB) In 5 Easy Steps
To buy Binance Coin BNB, the first step is to open an account with a regulated exchange, deposit funds, select BNB from the trading platform list, and lastly check & confirm Binance Coins have been added to your Wallet.
Find a 5-step rundown below on how to buy Binance Coin:
Step 1: Sign up with a licensed platform where you can buy Binance Coin
Step 2: Fund your new account
Step 3: Select Binance Coin (BNB) from the selection of crypto-assets
Step 4: Choose how much Binance Coin you want to purchase
Step 5: Verify the information entered and hit ‘confirm’ - your digital coins will be added to your wallet
Step 1: Choose An Online Binance Coin (BNB) Broker Or Exchange
As is evident from our 5-step walkthrough, prior to buying Binance Coin - you need to sign up with a crypto broker.
Should you choose the popular social trading platform eToro, you will be able to buy digital currencies on a direct basis.
If you decide to buy Binance Coin via a crypto exchange, you are able to swap BNB coins with other digital currencies like Bitcoin, Litecoin, and Ripple. With that said, the aforementioned third-party exchanges are commonly unregulated - and therefore potentially unsafe.
By instead opting to sign up with a broker under strict regulation, such as eToro - you have convenience and safety in good measure. After all, there are a lot of shady brokers in the online-based financial sector - especially when it comes to cryptocurrencies.
End to end, if you are a beginner, it’s considerably easier to buy Binance Coin by signing up with a licensed broker. Throughout this guide, this sentiment will become clearer.
Nevertheless, you still need to go through the process of finding a suitable broker before you can buy Binance Coin. To help you find a platform that meets your needs, check out the metrics listed below.
Regulation is an important consideration when electing to find a platform to buy Binance Coin. This regulation is your safety net against sharks.
Not only that, but if you don’t use a regulated online broker, you are left in charge of your own crypto-wallet and its safety. You will have no doubt heard horror stories of wallets being hacked and investors losing everything. Regulated platforms take away this concern.
In terms of leverage, you will find that some cryptocurrency exchanges will offer this. However, this isn’t recommended due to the aforementioned lack of regulation in the space.
If risking your capital at a third-party exchange or unregulated broker makes you uneasy - as it should - eToro won’t disappoint.
The Binance Coin provider is strictly regulated by several regulatory bodies including the FCA (UK), ASIC (Australia), and CySEC (Cyrus). It is also registered with FINRA, meaning it has the legal remit to accept US citizens.
By sticking with regulated platforms like eToro, you can buy Binance Coin in a convenient, safe, and uncomplicated manner.
On the subject of payment methods, you shouldn’t encounter any problems. Most modern online brokers accept a variety of different deposit types.
Being able to buy Binance Coin was quite a different story in years gone by. A time when often a wire transfer to an unregulated exchange was the only course of action. This was hugely inconvenient and often took weeks at a time.
These days, cryptocurrency providers like eToro accept debit/credit cards, and increasingly popular e-wallets like Neteller, Skrill, and PayPal. These payment methods offer a much faster and more convenient way to deposit when buying Binance Coin.
Fees and Commissions
As you likely know, online brokers need to make money in order to continue running a business. This is attained by charging fees and commissions.
No two Binance Coin brokers are the same, so it goes without saying that fees will vary by a mile. That said, the majority of platforms charge commission by means of a variable fee - a percentage of your BNB position.
Online crypto broker Coinbase, for example, charges you 1.49% for each trade. This means that if you enter the market at $100, you pay $1.49 in commission. Ergo, if your position is worth $1,000, you pay $14.90 - and so forth.
We’ve put together a simple example of how this commission rate would affect your Binance Coin purchase:
- You place a buy order of $1,000 on Binance Coin
- The crypto broker charges you 1.49% - this amounts to $14.90
- When you sell your coins they are worth $1,500 - this equates to $22.35
- In this scenario, you paid a total of $37.25 in commission
As you can see, fees - although seemingly insignificant, can soon add up. Consequently, affecting your gains. Had this hypothetical purchase been carried out at eToro, you would have saved yourself $37.25 - as the broker is commission-free.
Moreover, Coinbase charges a fee of 3.99% on credit and debit card transactions. For instance, on a deposit of $1,000, you will need to pay a fee of $39.99.
On the contrary, at eToro, you will only be charged 0.5% when you make a deposit. In fact, you’re based in the US and depositing funds in US dollars, you can avoid this 0.5% fee - as it is a currency conversion charge.
Other Important Factors
Having an understanding of regulation and fees is a crucial part of buying digital currencies online.
As such, we should mention a few other important considerations when you buy Binance Coin via a crypto platform.
- User-friendliness: User-friendliness should not be forgotten when electing to buy digital coins on the internet. It’s important that you feel confident placing orders and that you find the website easy to navigate.
- Minimum Investment: Before signing up with any broker, you should check the minimum Binance Coin investment. For beginners, we recommend starting off small. After all, a platform requiring a minimum investment of $200 might not work for you in the long term. In stark contrast, eToro enables clients to buy Binance Coin for $25.
- Storage: Although we will cover crypto storage in more detail later, it should be a key consideration for you when seeking out a Binance Coin provider. Some brokers call for you to store your own coins in a private wallet. This is a rather cumbersome option for newbies. eToro, however, will store your BNB coins for you, so you don’t have to keep them in a crypto wallet - which can be fraught with risk.
Step 2: Come Up With An Investment Plan
When it comes to looking after your capital, it is practical to come up with an investment plan before you buy Binance Coin.
In such a volatile market it makes sense to try and plan ahead. Below, we have created a list of particulars you might add to your own Binance Coin investment plan.
Long-Term or Short-Term
You may start by asking yourself - do I want to be a short or long-term Binance Coin investor?
Some people prefer to focus on gains from the short-term price shifts of Binance Coin. This is attained by buying BNB coins and cashing out within a short time-frame of weeks, days, or even minutes.
At some point, most cryptocurrencies have dramatically fluctuated in price. We are talking double-digit percentages within one day. This indicates an obviously volatile market, and for those who dare to brave these conditions - there is potential for profit.
Known as the ‘buy and hold’ strategy, long-term investors tend to hold onto Binance Coin for months or years. The hope being that the digital currency will continue to rise in value. Until the time comes to cash out the investment - there is nothing more to do.
This could be a good option for beginners, as there is no need to concern yourself with short-term volatility when you buy Binance Coin.
Target Binance Coin Price
Heaps of people use a target Binance Coin price strategy.
For example, if you buy Binance Coin at $20.00 and want to triple your investment - the digital currency has to increase to $60.00 in value.
Although that might sound like an unattainable price shift - consider the following:
- In 2017, Binance Coin saw an all-time low of $0.096
- 2 years later the coin saw highs of $39.57
- That’s an increase of over 44,000%!
Again, this just demonstrates that due to volatility, anything is possible. Furthermore, some of those in possession of Binance Coin at that time probably made a handsome profit.
Consider Regular Investments
As we’ve illustrated above, in the cryptocurrency game, anything can happen when it comes to price movement. When thinking about how to buy Binance Coin, you should consider making regular investments.
After all, buying cryptocurrencies doesn’t come without its challenges. Making small investments on a regular basis is a great way to add Binance Coin to your portfolio in a risk-averse way.
Including weekly or monthly Binance Coin purchases in your investment plan is a sensible way to maintain a level of financial control. This is especially the case if you have never traded a day in your life.
Online broker eToro will let you buy Binance Coin from just $25, and as we mentioned, you can do this on a direct basis.
Would You Consider buying Binance coin BNB?
Step 3: Open A Binance Coin (BNB) Broker Account
Having done your homework and made a decision on which online broker you want to buy Binance Coin at - you need to sign up!
Head over to the platform and click the sign-up link. If you’ve traded stocks or forex before, this part will be familiar.
You will need to give the online broker some basic information - like your full name, address, email, and contact number. As per KYC procedures, you will also need to send over a clear photograph of your photo ID - like a passport.
Regulated platforms will also require proof of address. Usually, a recent utility bill or bank statement will suffice. The need to confirm your identity is standard in the financial space. KYC enforced by regulatory bodies helps prevent money laundering.
Before you can buy Binance Coin, the crypto provider needs to validate your identification. This can take up to 7 days, depending on the broker.
eToro shines here too - as the platform utilizes automated ID validation technology. This means that you can usually get started and buy Binance Coin less than 10 minutes after registering.
Step 4: Deposit Some Funds
Assuming you have already checked payment method availability before signing up - it’s now time to make a deposit.
To make the process as quick and easy as possible we recommend using a credit/debit card or e-wallet instead of a bank wire. The latter will take the longest time to reach your new account.
Popular platform eToro accepts a variety of instant payment methods. Not only does this include Visa, MasterCard, and Maestro (debit and credit) but also PayPal, Neteller, and Skrill. E-wallets like PayPal are fast becoming the go-to payment type for convenience and speed.
Inevitably there will be a minimum deposit stipulated by whichever broker you decide to sign up with. This can differ quite a lot. In fact, our beginner’s guide found this to be a figure between $0 and $1,000, if not more!
Always check with the particular Binance Coin provider you are signing up with - in case the minimum deposit is out of your price range.
Step 5: Set Up A Trading Order
When you have successfully funded your new crypto account - you can begin the process of buying Binance Coin.
You need to indicate to the crypto platform what you wish to attain by creating an order. This will be familiar territory if you have traded before.
Nevertheless, for the beginners out there, we have listed some helpful orders you will use to buy Binance Coin.
Not only is the buy order one of the most frequently used when purchasing digital currencies, but it required to enter the market.
In layman's terms, if you think the price of Binance Coin will go higher - you place a buy order. If you think it will fall - you place a sell order with your BNB provider. It’s as simple as that.
Limit or Market Order
As we have discussed, the value of Binance Coin changes on a second by second basis. You should keep this in mind if you are hoping to make a profit from short-term price spikes.
In terms of a ‘market order’, this is to be used if you want to enter the market at the current quoted price. When this order is created, your broker will execute your Binance Coin order with immediate effect.
Of course, due to the volatile nature of the cryptocurrency market, you will notice a slight difference between the quoted price when placing your order, and the price you get.
For instance, you might create a market order on Binance Coin at $28.01, but end up with $27.99. This is due to the unavoidable and frequent price changes we’ve talked about.
When it comes to limit orders - you are able to choose your own price at which to buy Binance Coin.
You will see a practical example of how a limit order is used below:
- Binance coin is priced at $28.00 - however you don’t want to enter the market at less than $31.00
- You place a limit order of $31.00
- If, or when the digital currency hits that price, your broker executes your order
- This means that unless you cancel your order or Binance Coin rises to $31.00 - your order remains pending
All things considered - market orders are great for newbies due to their simplicity. Limit orders can be used to buy Binance Coin at a price you like.
As obvious as it sounds, when you create an order to buy Binance Coin, you are going to need to consider how much you wish to stake.
There are no rules in this respect, as you can elect to buy as much Binance Coin as you like - as long as you meet the minimum. Nevertheless, as we touched on earlier, beginners often find that slow and steady wins the race.
Rather than pumping your life savings into purchasing Binance Coin, you would be wiser investing a bite-sized amount each time.
Just a reminder, that at eToro you can buy Binance Coin for a minimum investment of $25. This is a good amount to chip in with if you plan on making regular investments in the digital currency.
As soon as you have filled in all of the relevant information needed to buy Binance Coin - including buy or sell order, market or limit order, and your stake value - confirm your choices to proceed.
When you have successfully confirmed all of the above, your Binance Coin will appear in your crypto broker wallet.
Check Out: Will Binance Coin Make Me Rich in 10 Years
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Step 6: Storing Your Binance Coin (BNB)
When it comes to storage, it goes without saying that Binance Coin can’t be stored in the same way as traditional fiat money. On the contrary, digital currencies are stored on a decentralized ledger.
When it comes to looking after your Binance coin - your ‘crypto-wallet can be downloaded to your home computer or mobile phone.
We should point out that by storing your own Binance Coin you are responsible for remembering your own private key and protecting it against hackers.
So, what’s the alternative? By signing up with an online broker like eToro, your Binance Coin investment is stored and taken care of on your behalf. There’s no need to use a decentralized wallet. Furthermore, you can usually cash out whenever you like.
As eToro is regulated heavily by various jurisdictions, this saves you from having to worry about losing all of your digital currencies to a scammer. It also cuts out the need to make multiple transfers between your wallet and an unregulated exchange.
Step 7: Selling Your Binance Coin (BNB)
When you buy Binance Coin - you are hoping to time the market further down the line - selling it for more than you initially paid.
We have already touched on the contrast between buying cryptocurrencies via an online broker vs an exchange.
Nevertheless, to recap - cashing out Binance Coin via a crypto exchange is a rather long-winded process. This involves sending your digital currency from your personal crypto-wallet to the wallet at the exchange.
Next, you would need to exchange the Binance Coin into a fiat currency, like British pounds or US dollars for instance. This exchange will generally come at a cost.
On the contrary, cashing out via a platform like eToro is as easy as ABC. Simply head over to the website, sign in to your account, and elect to ‘sell’ your Binance Coin.
This is usually completed in a matter of seconds. The chances are, the money will be sent to your initial payment method - as per KYC ruling.
Other Ways To Buy Binance Coin (BNB) In 2022
We’ve divulged the essentials when it comes to how to buy Binance Coin throughout this guide.
That doesn’t mean you don’t have other options, so check out our list below for some alternative ways to buy Binance Coin online.
1. Buy Binance Coin Debit Card
As you likely know, Visa and MasterCard transactions tend to be instantaneous. Consequently, some people opt to buy Binance Coin with a debit card. When the time comes to cash out, the crypto platform will just send the money to the initial debit card used.
If you want to buy Binance Coin in this manner, simply enter your card details - stating the amount you want to buy.
Don’t forget to check the minimum investment amount required by the online broker in question. At eToro, this is just $25 and you can buy Binance Coin with your debit card in a flash (minimum deposit $200).
2. Buy Binance Coin Credit Card
If you want to buy Binance Coin using a credit card, you can do so via online crypto broker eToro.
It’s important to be mindful of potential fees charged by your provider, such as a ‘cash advance’ fee. This is because investment deposits tend to be categorized in the same camp as ATM withdrawals, and gambling transactions. In other words, a ‘cash advance’.
A standard fee of this type charged by credit card providers tends to be circa 3% of the transaction - however, it’s wise to double-check this yourself.
3. Buy Binance Coin Paypal
Most people have used PayPal, if not heard of it. It’s become virtually synonymous with online shopping and safety. Using PayPal to buy Binance Coin is no different, as it is instant and secure.
Crowd-pleasing broker eToro enables clients to purchase Binance Coin using a handful of e-wallets, including PayPal, Neteller, and Skrill.
4. Binance Coin ATM
On top of the aforementioned options when thinking about how to buy Binance Coin - were you aware of crypto ATMs? These ATMs are not the same as the terminals we use to withdraw tangible currency notes.
Instead, to purchase Binance Coin you need to insert the aforementioned tangible money into the machine. The screen informs you how much Binance Coin you will get and prints a receipt.
These Cryptocurrency ATMs can be found in airports, shops, and streets much like regular ATMs - although there are only 12,000-ish dotted around the world at this time.
Some of the crypto ATMs we came across charge in the region of 20% to exchange fiat currencies to Binance Coin. This is a considerably expensive route to take when buying digital currencies.
How To Buy Binance Coin (BNB) In 2022 - The Verdict
We’ve covered a plethora of subjects when it comes to how to buy Binance Coin. If you are a beginner - by now you will hopefully be feeling more confident in your future cryptocurrency endeavours.
First, you will need to sign up with a regulated and trustworthy crypto broker. We beat the drum for eToro, as it’s a great all-rounder. The broker is super user-friendly which is great for newbies - and it charges no commissions when you buy Binance Coin.
In addition to that, the platform stores your digital coins for you - and you’re protected by some of the biggest regulatory bodies from around the world. When the time comes to cash out, simply create a sell order.
eToro – Best Platform To Buy Binance Coin BNB
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How easy is it to buy Binance Coin?
It’s super easy to buy Binance Coin. Simply sign up to a broker with a user-friendly website.
What is the safest way to buy Binance Coin?
The safest way to buy Binance Cash is via a regulated broker. eToro is a newbie-friendly and commission-free platform - regulated by multiple regulatory giants from across the world such as the FCA, ASIC, and CySEC. For US clients the company is registered with FINRA.
Can I buy $100 of Binance Coin?
Yes, you can buy $100 of Binance Coin. However, newbies might want to start small. At eToro you can buy the digital coin from $25.
Can you lose money on Binance Coin?
Yes. Trading any financial asset comes with risk. Speculate on the future price of Binance Coin correctly - you make a profit. If you are wrong - you make a loss.
What is the highest Binance Coin price ever?
In May 2021, Binance Coin reached highs of $690.