Buy Binance Coin (BNB) 2021 - is it worth the investment?
But what is it that makes this cryptocurrency so interesting? We took a closer look at Binance Coin and analysed, among other things, whether trading is worthwhile and how much potential there is in the currency.
Furthermore, we show where trading is safest and cheapest, give a step-by-step buying guide and explain when is the best time to buy Binance Coin.
Where can you buy Binance Coin?
Trade real cryptos and crypto CFDs
Broker fully regulated
Many tradable assets
Deposit from 20€
Huge selection of coins
What is Binance Coin?
Binance Coin was launched in 2017. Eleven days later, the Binance cryptocurrency exchange went live. Until 2019, Binance Coin ran on the Etherum network. In April 2019, the Binance Chain mainnet was launched.
Year of introduction
Change in a year
Why buy Binance Coin?
Big success from Binance: as one of the world's leading brokers, Binance manages to increase its market capitalisation as well as the value of its flagship token.
Solid Blockchain: Although Binance was initially launched on the Ethereum network, it has had its own mainnet since April 2019 and will also be running on the Binance Smart Chain since 2020.
Real-world applications: You can use BNB to book hotels and flights on various web portals, make donations and make payments in shops.
Increase in value: In the last few months, Binance Coin has risen from $55 in February to $380.
Active developer team: Thanks to the work of Binance developers, Binance Coin is constantly evolving.
What makes Binance Coin special?
Another unique selling point of Binance Coin is its triple blockchain system, as BNB participates in both the Ethereum blockchain and its own blockchain - developed in 2019 - and the newer Binance Smart Chain.
How does Binance Coin work?
Essentially, the Binance Coin is a non-degradable token with a finite supply of units that are gradually reduced through token burns by the Binance team. Both its profit system and the discounts it promises to its users incentivise Binance investors to hold the token, which tends to drive its value upwards and consequently makes BNB an interesting investment.
Buy Binance Coin: Comparing the best providers
Variable. One of the cheapest on the market.
Less competitive. They can be reduced by collecting Binance Coin.
Cryptocurrencies, stocks, indices, ETFs, commodities, forex
Hacked in the past
Although Binance manages the BNB token, it is not a good idea to invest in BNB on Binance. This way we can miss good opportunities to close profitable trades to benefit from the reduced fees of the BNB token.
At eToro, we are not conditional, so we are freer to take advantage of market fluctuations to maximise our profits by investing in BNB. Also, Binance has been hacked in the past, unlike eToro which has one of the most robust security systems in the world.
Binance Coin buying guide for eToro
You can buy Binance Coin on eToro, one of the best providers in the world. eToro is a trading platform that offers several advantages over the rest, from very low fees, to a wide range of payment methods and an easy-to-use interface. You can start trading Binance Coin on eToro in just a few minutes by following these simple steps:
Step 1: Sign up with eToro
The first thing you need to do to sign up is go to the eToro registration page to create your account. You will need a username, email address and a secure password. Once you have confirmed your email address via a link, you can enter your personal details to start trading.
Step 2: Fund your account
Next, you need to make your first deposit with eToro to start trading. eToro requires its users to pay a minimum deposit fee of $200. To deposit money, the platform accepts a variety of payment methods, including PayPal, Neteller, Skrill or Trustly, as well as all major credit and debit cards and of course bank transfers.
Buy Binance Coin with bank transfer
Buy Binance Coin with a credit card
Buy Binance Coin with Neteller
Buy Binance Coin with Skrill
Buy Binance Coin with PayPal
Buy Binance Coin with online banking
Buy Binance Coin with Rapid Transfer
Buy Binance Coin with Sofort
Buy Binance Coin with a debit card
Step 3: Invest in BNB
Finally, you can invest in BNB on the cryptocurrency market. Choose the amount you want to invest and open your trade by clicking on "Open trade". If you want to close it, you can do so from your portfolio in the menu on the left.
Binance Coin Buying Guide for Binance
The process of buying BNB on Binance is also quite simple:
Step 1: Sign up for Binance.
Go to the Binance welcome page and enter your email address to create your account. You will have to pass a captcha and then you will receive a link by email here as well, which you have to confirm. This will allow you to verify your email address and continue with the registration process.
Step 2: Verify your mobile number
Binance requires its users to use multi-factor authentication. In a second step, you therefore need to verify your mobile number in order to start trading on the markets. Only when you have successfully verified both your email address and your mobile number can you make your first deposit. This is to guarantee higher security.
Step 3: Top up your account
Once you have completed your multi-factor authentication, you can move on to the next step and fund your account. Binance offers a variety of methods to do this, some of which allow you to start trading in minutes. For example, credit card, bank transfer and other options are available. With Binance, the minimum deposit fee is currently $150.
Step 4: Invest in BNB
Finally, go to the Binance marketplace and buy your first BNB with the money you have loaded into your account. You can start trading as soon as the money is in your account. To do this, select the currency you want, enter the amount at which you want to buy BNB and follow the instructions.
Can I mine Binance Coin?
Binance Coin is a cryptocurrency that cannot be mined as it uses a management system similar to the proof-of-stake that other cryptocurrencies like Ada Cardano or soon Ethereum 2.0 have. The best way to profit from the BNB blockchain is to hold as many tokens as possible.
Which Binance Coin wallet do I need?
Buy Binance Coin with PayPal or credit card
Payment options differ depending on the trading platform you use. eToro offers a wide range of payment methods for investing in Binance Coin. Besides being able to do so with credit or debit cards and traditional bank transfers, eToro also allows you to fund your account with Skrill, Neteller, Trustly, RapidTransfer and Sofortüberweisung.
Buy BNB directly or invest in Binance Coin CFDs?
In the case of BNB, both strategies are good. Let's analyse them in detail:
Binance Coin direct
Although Binance Coin is designed to promote holding and reduce volatility, Binance Coin is undoubtedly a token that is prone to large price fluctuations in a short period of time, so simply buying and selling the token is enough to guarantee a good profit in the short term. Investing directly in Binance Coins can therefore be worthwhile.
Binance Coin CFDs
If you have the right knowledge of the market, trading Binance Coin CFDs can increase your profits exponentially as long as you are able to bear the risks involved. Thus, while trading contracts for difference is inherently riskier, it also offers the possibility of higher returns.
What should be considered when buying BNB?
Where can I buy Binance Coins?
Binance can be bought on cryptocurrency exchanges as well as from online brokers. Each option has its advantages and disadvantages:
Cryptocurrency exchanges are platforms that act as intermediaries between different investors in exchange for a small commission. On exchanges, liquidity comes from investors' own capital, so you are dependent on the actions of other users to open and close your own trades with BNB, which can lead to some slippage at certain market times.
Online brokers are platforms that retain ownership of the properties they offer, so your opening and closing transactions are not made against other users, but against the broker itself. This helps to significantly reduce the loss at the right entry and exit points for each trade, giving you access to higher investment returns.
When is the best time to buy Binance Coin?
Should you trade Binance Coin long term or short term?
Binance Coin is a token designed for long-term investment, and all the benefits it offers its users are designed to encourage them to hold it for years. So the long-term strategy seems to be suitable for investing in BNB,
although of course you can also make great returns by investing for the short term during volatile times.
Can you make money with Binance Coin?
Binance Coin Price Development
The price of BNB has risen relatively steadily since its inception. In 2021, the current cryptocurrency boom caused its value to skyrocket abruptly:
How high can Binance Coin go?
However, much of BNB's success can be attributed to the features of the Binance trading platform rather than the potential of cryptocurrency as such. It was only with the launch of the Binance Smart Chain last September that there was some interest in BNB's potential as a cryptocurrency in its own right, but this enthusiasm is still a far cry from that of other tokens such as Cardano or Uniswap.
BInance Coin Forecast: Does Binance Coin Have Potential?
Binance Coin has the potential to continue growing as long as the Binance trading platform does. However, Binance Coin has not been able to compete with top cryptocurrencies such as Ethereum, Uniswap or Chainlink; at least not until last September when the Binance Smart Chain was launched.
The Binance Smart Chain is a much more advanced blockchain than the previous Binance blockchain and allows for the development of smart contracts across its network. So far, however, most cryptocurrencies operating on the Binance Smart Chain blockchain are very small currencies without much value.
Nevertheless, the advantages offered by BNB are attractive enough to view its future with optimism.
Should you invest in Binance Coin?
Whether or not you should invest in Binance Coin depends largely on the state of the market and the strategy you have planned for your investments. However, it is clear that Binance Coin is one of the strongest tokens in the cryptocurrency market, and that the development team working on its blockchain is doing its best to increase BNB's reach in global markets.
In addition, the benefits that Binance Coin offers to users of the Binance platform support the long-term preservation and appreciation of this token. So as long as Binance remains a strong trading platform, the BNB token will remain very active in the markets.
Definitely, an investment in BNB can offer a great return, not only because of the upward trend, but also because of the project's robust foundation and the continuous improvements to the blockchain by its developers.
How can I sell Binance Coin?
If you have an open Binance coin position on eToro and you want to close it, simply go to your portfolio in the menu on the left, click on the position you want to close and click on the red X on the right side of the screen. This is an easy way to sell Binance Coins.
Binance Coin Advantages and Disadvantages
Conclusion: Should I buy Binance Coin or not?
For all these reasons, BNB is an interesting option to add to your cryptocurrency portfolio. We recommend trading BNB at our test winner eToro. Users can easily buy a variety of cryptocurrencies here, such as Binance Coin, using various payment methods.
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Binance Coin is the native cryptocurrency of the Binance trading platform and is designed to offer various benefits to Binance users who hold it for the long term.
Unlike Bitcoin, Ethereum or Cardano, which base their strength on the characteristics of their blockchain, Binance Coin's strength lies in the stability of the Binance trading platform, its parent project. Therefore, Binance Coin is not so much a cryptocurrency meant for transactions, but rather for making profits within Binance itself.
It is possible to buy Binance Coin at any time, especially if you intend to hold it for the long term, as its trend is slightly upwards. However, avoid buying Binance Coin near the highs or during the lows of periods of increased volatility.
Essentially, Binance Coin is a cryptocurrency that offers advantages of investing on the Binance platform and holding the token for several years. However, this is also its main disadvantage as these features discourage short-term investments and reduce the returns that can be made with Binance Coin in times of volatility.
You can buy Binance Coin on eToro to enjoy its cheap rates and wide range of trading tools. Although you can also buy it on Binance, buying on this platform is only worthwhile for long-term investments, which may run counter to your financial interests.