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Kc  · 09/01/22

5 Things to Know Before You Buy BNB (Binance Coin)

06/27/23 · Trading platforms · This is not a financial advice
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With a 3.34% of market dominance and #3 market rank at the time of writing, Binance Coin has become quite a big deal among cryptocurrencies.

So what is BNB, or Binance coin?

BNB is a cryptocurrency launched by Binance Exchange. Represented by 'BNB,' the CoinMarketCap declared Binance the largest cryptocurrency exchange market in 2021, with more than 1.4 million transactions processed on this platform every second.

What has made Binance so popular that it has surpassed other cryptocurrencies in terms of transaction volume? Strong fundamentals, traders would say.

In this post, we will walk you through the details of BNB and a few things you should know before buying these coins.

Not the first exchange coin, not the last

Binance originally operated on the Ethereum network, which currently is and has been notorious for high fees and congestions.

Over time, Binance has moved on to its native cryptocurrency of the Binance Chain, the company's own ledger. The network is run and managed by a Chinese company, "Beijie Technology."

ChangPeng Zhao, the developer of Binance, and his team have done a tremendous job taking Binance to the bleeding edge of the quickly developing cryptocurrency trading industry.

The creation of BNB is certainly one big part of that. It is not the first exchange token that came to existence, but it is the first one that took the industry by a storm.

Here's a look at the five essential things you should know if you invest in Binance Coin.

  1. Buy Binance Coin from a safe exchange

    Despite being a popular cryptocurrency network, Binance is not accessible from all countries out there. Many people are looking for alternatives.

    Cryptocurrency offers robust security. Still, you cannot prevent scams. Your safety is in your hands.

    Consider the quality, security, and compliance of the crypto exchange before buying Binance Coins. You can't just buy BNB from any local crypto exchange.

    The safest place to buy BNB is the official Binance exchange. That's also the place where a vast majority of crypto traders buy Binance coins.

    Just like with FTX, there are two versions of the Binance platform — the international version (original) and the US-limited Binance. The latter does offer BNB for trading, but it has a limited number of crypto markets overall. is another cryptocurrency trading platform that offers Binance coins. However, it is a bit difficult to navigate since the app is crammed with many features and cryptocurrencies.

    Research is important. Whichever cryptocurrency exchange platform you choose for buying any alt coin, research it well.

    Read reviews, check the website's licenses and encryption, and buy Binance only if it looks like a credible place. It is better to stick to the safest exchange "Binance Exchange" to avoid any scam or other security issues.

  2. Learn about BNB before making an investment

    Binance may be the world's most popular cryptocurrency, but that doesn't mean you should buy these coins without any research.

    The prices of cryptocurrencies keep fluctuating every second. Binance is not an exception.

    You might be getting a good deal now, but what if the prices dip after you have purchased the coins?

    It's a fact that you cannot tell whether the prices of BNB or any other cryptocurrency (for that matter) will rise or dip in the future. Trading strategy, however, can help you make an informed investment decision.

    Like any other investment, it is important to learn more about Binance, how it is traded, what are its prices, and its current market capitalization. Research makes the job easier. Plus, it tells you how many BNB coins you should buy initially.

    Binance is most commonly used for reducing trading fees, as the Binance Smart Chain is cheaper than the Ethereum network. But that's just one reason why its popularity has skyrocketed in no time.

    Binance Smart Chain supports complex Smart Contracts, which gives the crypto trader an opportunity to borrow money, make payments, and execute advanced financial activities right on blockchain, without the interference of a middleman. There is no government or any corporate worker involved in the process.

    The concept was started by Ethereum, but Binance really took it to the next level, or so it seems.

    Just remember one thing — spend only what you can afford to lose. You might have heard of the stories of the investors becoming millionaires and billionaires with crypto investments. That may sound tempting, but be aware that BNB is a risky and volatile asset.

  3. Binance doesn't have any headquarter

    Surprisingly, Binance doesn't have any headquarters. Despite being the world's largest cryptocurrency exchange and the owner of CoinMarketCap, Binance does not have any location that it can call home.

    It does have physical locations. In fact, many offices of Binance are located in different corners of the world. It also has more than 2000 employees. They follow the crypto ethos that believe cryptocurrency should be borderless.

    The company's CEO has mentioned that they don't need a physical border or a traditional setup to run the cryptocurrency exchange.

    Binance has, however, purchased licenses to run its exchange in the US and other countries that have made licenses a mandatory requirement for running a crypto exchange. The company tried to have a similar setup in the UK, but it did not proceed with its application.

    Not having a headquarter clearly indicates Binance's commitment to the Bitcoin principle. However, if it has to keep expanding on the global level, the company has to have headquarters.

    Fortunately, Zhao said that they were in the process of building headquarters in different parts of the world, according to Economic Times.

    He added that the team decided to follow the original principle of cryptocurrency, i.e. keeping it open and decentralized with no physical borders. However, to operate a centralized exchange, a physical and legal structure is very important.

  4. Consider its regulatory challenges

    It is getting harder and harder for crypto networks to comply with the current regulatory requirements.

    We've seen Binance as a popular and the leading cryptocurrency exchange platform in the world. So, why would the UK ban it? Or, why does Binance no longer operate in Ontario, Canada?

    Binance is safe; there is no denying that. However, it is associated with many regulatory challenges that each investor should consider before buying this coin.

    For example, you cannot buy Binance if you are from the UK or are currently living there. Similarly, you cannot buy and sell Binance in Ontario.

    The government and authorities are getting concerned about people's safety. That's why the rules regarding crypto trading are getting stricter in many countries.

    The concern is about cryptocurrency being used to hide criminal activities and for money laundering. There is also a concern about the investors using the modern trading tools that increase the trading risks, especially in the market that's already pretty risky.

    Fortunately, Binance has always taken its regulatory compliance seriously. They are investing in these compliances to provide a safe environment for crypto traders. In fact, in a recent interviewwith Bloomberg, Zhao said that they have the highest number of crypto licenses (as compared to other crypto networks in the world).

    The other networks getting licenses in places where Binance is not considered an authorized trading network can hamper the coin's growth. So, for any investor planning to buy Binance, it is important to consider its regulatory compliance before making any decision.

  5. Binance has witnessed a 900% growth since 2019

    Another reason for the growing popularity of Binance is that it has converted $10,000 into $100,000 and more in the past two years. This means if you purchased Binance Coins in 2019, in 2021 they were worth 900% more than your purchase price. That's quite a big achievement for any investor.

    If Binance could grow at such a rapid pace in just two years, you can very well imagine where this cryptocurrency can reach in the next three to five years. The sooner you buy these coins, the better the chances you will secure a good deal.

    Maybe, one of the reasons for this exponential growth is the fact that Binance is not only a crypto exchange but a programmable ecosystem as well. The credit goes to the qualified and powerful team that manages its operations and makes it one of the safest cryptocurrencies on the market.

    Unlike other cryptocurrencies, Bitcoin has a clear and easy-to-use system. The company has done its best in educating people about the risks associated with Binance trading. They have also made it easier for investors to use the complex Binance products.

    Binance will definitely keep growing if the team launches more innovative products that make Binance a smoother, safer, and lucrative cryptocurrency exchange market.


The most attractive part about BNB is that its use case is plain and simple and that the liquidity, backed by the largest crypto exchange in the world, is always good.

No wonder people are gravitating towards Binance Coin. The crypto trading industry is expected to grow.

Barring any catastrophic accidents, if the company behind Binance keeps introducing new features and innovative trading tools, there is no reason why BNB coin should lack behind.

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