Where & How to Invest in Binance Coin (BNB) in 2023
Binance Coin (BNB) was originally launched in 2017 as a token running on the Ethereum network (ERC-20). However, with the official launch of the Binance Chain mainnet in 2019, it was swapped with BEP2 BNB in the ratio of 1:1. Its supply was originally capped at 200 million, and you can use it as a payment method and utility token. The crypto has consistently gained due to the Binance exchange becoming the biggest crypto exchange in the world. BNB also powers the Binance DEX (decentralised exchange), making it a good investment in 2023.
Here's how to invest in BNB for beginners.
1.Trade Binance Coin
BNB trades prominently on the Binance exchange where investors use it as gas. However, the use of brokerages is also on the increase today. You can bet on the price of BNB in these platforms through an assortment of financial instruments like Futures, Options, Contracts for Difference (CFDs), and other smart contracts.
The crypto trading approach allows you to invest at the most appropriate times. When traders forecast a possible increase in the value of the coin, they purchase it to take advantage of the volatility.
Trading in BNB tokens through crypto brokers is a quick way of making money. However, it suits people with primary sources of income. Besides, beginners with basic knowledge of crypto trading and BNB can find it rewarding. Overall, you need a trustworthy crypto trading platform.
Where to trade Binance Coin
There's no doubt that anyone who wants to trade in Binance Coin should look for the best broker out there. The good news is that you can find plenty of them with ease online. The problem emerges when it comes to choosing a legit, competent and affordable service provider. If you find yourself in this situation, evaluate the site's user interface, payment options, trading expenses, trading fees, trading pairs, and compliance with legal and regulatory requirements. You can also reach out to the service providers of interest to learn more about their services, history, and much more. If need be, go to independent sources as well to verify the crypto trading platform's claims.
We appreciate that if you are a busy person or beginner, this work can be overwhelming. That's why we have reviewed the top Binance Coin brokers and trading websites and provided a comprehensive list of our recommended services.
2. Buy and HOLD
"Hodl'' is a long-term investment strategy that refers to buying and holding crypto. In other words, it's derived from a misspelling of the word, "hold.' In 2013, an unskilled trader known as GameKyuubi posted online about his inability to understand basic investment principles. The individual talked about his determination to hold his Bitcoin from that point on. He wrote, "I AM HODLING".
The post attracted the interest of the cryptocurrency community. Today, the misspelt word is used to refer to the buying-and-holding approach.
Buy and HODL helps traders to take advantage of the volatility of cryptocurrencies. The price of BNB can change by a significant amount in a matter of hours or even minutes. In other words, like BTC, BNB is volatile, and you can use the investment approach and make some profits.
You can obtain the coin through a crypto exchange like Binance Exchange. You can also secure it from a crypto broker. Once done, find an external wallet to store the tokens.
Buying Binance Coin
We've created dedicated pages where you can find all the essential pieces of information you need to discover the best ways to obtain Binance Coin. Remember that when buying BNB, you need the right payment methods. Some of them work across the world. Others only serve specific locations. The transaction cost and buying expenses can also vary from one trading platform to another.
If you are looking for the best payment method, you might find the following links useful.
- Buy Binance Coin
- Buy Binance Coin with PayPal
- Buy Binance Coin with Credit Card
- Buy Binance Coin with Debit Card
3. Invest in Cryptocurrency and Blockchain Companies
If you don't want to get directly involved in the cryptocurrency trade, you could work with experienced companies that trade in BNB. By investing through companies that are heavily invested in the crypto or make use of the blockchain, you could benefit from the success of both the token and the companies.
Note that investors who are interested in shares of crypto-blockchain-based companies require the service of competent and credible brokers.
Where to invest in Binance Coin shares
Crypto brokers are experts at opening positions on buying suitable blockchain or Binance Coin stocks. For you to invest in the shares, you need to start by conducting in-depth research on the company that offers the service you require. Once you are done, focus on finding a trained crypto broker to facilitate the opening of the trading positions. From this, you can see that the broker plays a central role when investing in BNB shares. That means you need to use the right indicators to identify the ideal service provider.
Some of the most important factors that you should have in mind when choosing a crypto broker are the quality of the platform, trading fees, implementation of the recommended security measures, compliance with regulatory requirements, use of best practices within the industry, client feedback, and trading data and charts.
For some experienced crypto traders, the process of identifying the best broker is simple. Nonetheless, many people say it's time-consuming. Overall, one needs some extensive understanding of the crypto world to be able to make sense of the procedure fast. We've conducted extensive research on this to make the process easy for every crypto trader. Read on for our recommended broker to trade BNB.
4. Become a Staker
You can stake Binance Coin and earn new coins, increasing your investment further.
The Binance Smart Chain allows for staking via its Proof of Stake Authority (PoSA) consensus mechanism. Anyone with the required BNB can become one of the elected 21 validators who secure the network by processing transactions and creating new blocks. Validators then earn a reward for their effort paid in BNB. Note that to be a validator you will need to run the full network node and hold a minimum of 10,000 BNB tokens.
If you cannot become a validator, you can be a delegator—a network participant who stakes their BNB by supporting one of the validator nodes. When the validator gets paid for their contribution to the BSC, they share the reward with you.
You can also earn BNB by locking your tokens on the Binance network for an annual yield (APY) of up to 27.49%. You can stake BNB anywhere in four timeframes—15 days, 30 days, 60 days, and 90 days. The minimum is 0.1 BNB for all the above durations, with the maximum staking limit ranging from 5 BNB to 5,000 BNB depending on how long a user wishes to lock their assets.
What you earn therefore depends on the stake and the annualised rate, but the payout is done daily. This means you could easily accumulate some passive income from your Binance Coin holdings.
All the BNB that will ever exist have already been created, and the supply of BNB reduces over time as Binance regularly buys back BNB and "burns" it (permanently removes it from circulation).
Where to store Binance Coin
BNB investors and traders need compatible wallets to store digital assets. Some of the options that you have are:
Hardware wallets: These are physical devices that look like a hard drive and are often disconnected from the internet except when in use. This ensures your private keys are stored in a place where hackers can't access them.
Software wallets: They keep your BNB in an online environment. These wallets are convenient to use but easy to hack.
We've reviewed the best crypto wallet. You can find our recommended BNB wallet below.
5.Become a Binance Coin Developer to Make Money
If you are interested in developing a blockchain project that uses BNB, you need to acquire the relevant computer programming skills. It's one of the most lucrative ways of making money.
Other than learning to code in several programming languages including Java and Python, you may need a degree in software engineering and an extensive understanding of the crypto industry and BNB. Programs with a background in finance have higher chances of creating valuable crypto projects. Other than advanced coding skills, the rest are added advantages.
Expert Tip on When and How to Invest in Binance Coin“ In 2020, Binance Coin's value surged considerably due to the emergence of Binance DEX, one of the leading crypto exchanges in the world. If you want to invest in it today, start by assessing factors like the past trading trend, inflation, the global economy and regulatory policies. There is no best or worst time to invest in Binance Coin. It all depends on your knowledge of the crypto market and the crypto. For optimal results, you should take precautions by expanding your portfolios since the crypto market remains volatile. ”- Benson Toti