Cryptocurrency investors are groomed and conditioned to digest and absorb colossal leaps and bounds in the value of their investments. Unlike conventional currencies that fluctuate by fractions, cryptocurrencies bounce up and down in a crazy fashion; just to give you a picture, in 2021 the Binance coin increased by 1000%! And soon, in the same year, the currency crashed badly and is still in recovery mode.

Binance coin runs on a blockchain of its own; the BNB Smart Chain. Smart chain enables investors to amass digital assets and decentralized applications. Originally developed on the Ethereum blockchain, BNB is the local currency of Binance and Binance.US exchanges. 

Steps to buying BNB

If you have the patience and financial resilience then investing in cryptocurrency is your thing. BNB can be procured on many exchanges. Some exchanges have extraordinary levels of security, and as a new investor, we would suggest that you opt for one such exchange to initiate investments. 

Choosing an exchange

Every exchange has a different funding method. Generally, you can fund your selected exchange through US dollars or other cryptocurrencies that you may have or can borrow from somewhere. Note that to initiate you will require some conventional currency to be converted into crypto. The default exchange for BNB is Binance.US. It can be traded on Crypto.com and eToro as well. While Binance.US is cheaper than other exchanges, it doesn’t provide the transparency in security protocol desired by the investors.

Funding your account

Funding your account may seem tricky at first. Every exchange has a different mechanism of funding and you must ensure that the channels and sources you provide comply with the exchange’s requirements and specifications. For instance, the exchange may require connecting your credit card details or linking a bank account, or even peg it with your online payment application.

However, it may be funded, you must ensure that you have read and understood the restrictions and limitations regarding the min-max investment, withdrawal, transfer, etc.

Placing your order

It is as simple as it reads. All you are left to do, once you have funded your account is to enter the amount you wish to invest and press the ‘buy’ button.

Storing your purchase

With cryptocurrencies, the investors can choose how they prefer to choose their assets. The methods used to store can be categorized broadly under two types; a) Hot wallets and (b) Cold wallets.

Hot wallets are essentially online and may be connected to the exchange directly. Though secure in general, however, being online and accessible through networks, the vulnerability factor is always present. Cold wallets are methods that are offline and not linked directly to any exchange.

Cold wallets can be hardware specifically designed to store cryptocurrencies, or software that runs on PC and cellphones both. A good example of a cold wallet is the “paper wallet” – A chit of paper that holds the public and private keys to your online assets in form of QR codes. The account is near impossible to access without the keys.

Having said that one can never be too careful, and we strongly suggest that you as an investor should be vigilant and keep your securities updated at all times.

Using Binance

The official currency of Binance is Binance Coin. Trading through BNB will get you a 25% discount on your trading fees. Not only that, but you also have the freedom to use BNB for other purposes off the exchange. For instance, you can book an airline ticket, reserve hotels, shop online, or even pay for your child’s college fee!

Pros & Cons of Binance

Every investment has its disadvantages and benefits both. However, a good investment is one where the benefits outweigh the cons. Below are some very major and obvious pros and cons of BNB that may shape your investment decision in favor of BNB

Pros:

• Eco-friendliness; energy-efficient BSC blockchain
• Unlimited utility across the Binance ecosystem
• Supported by all leading crypto wallets and exchanges
• Available in very limited quantity making it stable and promising for future
• The holder can claim a 25% discount on the spot market

Cons:

• Highly centralized
• Strictly regulated flow

And with this, we wish you progressive and secure investing